ANNUAL REPORT
2021
MAKING
PROGRESS
T HE O CE A N I S A N O P P O R T U NI T Y A ND A M Y S T ER Y.
I T H A S T HE P O T EN T I A L T O P R O V IDE L O W IMPAC T
F O O D F O R G ENER AT I O N S T O C O ME – IF W E D O I T
R I G H T. R E SE A R CH , INN O VAT I O N A ND C O N T IN U O U S
IMP R O V EMEN T W IL L HEL P U S G E T T HER E .
After two challenging years of pandemic, we are proud to
present the continued progress we have made on our journey
of sustainable growth in 2021. We have used the year as an
opportunity to adapt, change and improve.
With the sales of our Shetland operations, we have narrowed
our operational focus to the production regions with the best
potential for profitable growth - Norway and Canada. With
our new and integrated sales and market organization, we aim
to increase the value of our salmon downstream. Through the
dedication and hard work of our employees, we have improved
our farming practices across our regions.
Reducing our footprint and improving fish health and welfare
will always be the key to success. Combining decades of experi-
ence with new technologies, knowledge and data driven intelli-
gence, we will create value for all stakeholders. That is how we
farm the ocean for a better future.
CONTENT
PA R T 01
OUR FOUNDATION
H I S T O R Y A N D F U T U R E
O U R O R G A N I Z AT I O N
M A I N A C H I E V E M E N T S
K E Y F I G U R E S
O U R S C O R E B O A R D
C E O L E T T E R
O U R 2 0 2 5 B U S I N E S S S T R AT E G Y
O U R VA L U E C H A I N
O U R A P P R O A C H T O S U S TA I N A B L E B U S I N E S S
O U R C E R T I F I C AT I O N S
PA R T 0 2
OUR PROGRESS
TOWARDS A
SUSTAINABLE
FOOD SYSTEM
A Q U A C U LT U R E I N A S U S TA I N A B L E G L O B A L F O O D S Y S T E M
H E A LT H Y O C E A N
S U S TA I N A B L E F O O D
P R O F I T & I N N O VAT I O N
P E O P L E
L O C A L C O M M U N I T I E S
0 5
0 6
0 7
0 8
0 9
10
11
15
16
17
19
2 2
3 3
4 4
67
76
PA R T 0 3
OUR FINANCIAL
RESULTS
B O A R D O F D I R E C T O R S ' R E P O R T
C O R P O R AT E G O V E R N A N C E
A N N U A L A C C O U N T S 2 0 2 1
A U D I T O R ' S R E P O R T
PA R T 0 4
TRANSPARENT
SUSTAINABILITY
REPORTING
T R A N S PA R E N T R E P O R T I N G O N O U R P R O G R E S S
G R I I N D E X
S TA K E H O L D E R D I A L O G U E
A U D I T O R ’ S S U S TA I N A B I L I T Y R E P O R T
8 1
96
10 3
161
16 5
16 6
174
17 5
OUR
FOUNDATION
Farming the ocean comes with a responsibility. We are
dedicated to providing healthy seafood to people all over
the world while reducing our footprint and improving fish
welfare. People, partnerships, technologies and innovations
will help us get there. This is our tiny way of making the
world a better place.
PA R T 0 1
H I S T O R Y A N D F U T U R E
O U R O R G A N I Z AT I O N
M A I N A C H I E V E M E N T S
K E Y F I G U R E S
O U R S C O R E B O A R D
C E O L E T T E R
O U R 2 0 2 5 B U S I N E S S S T R AT E G Y
O U R VA L U E C H A I N
O U R A P P R O A C H T O S U S TA I N A B L E B U S I N E S S
O U R C E R T I F I C AT I O N S
0 5
0 6
0 7
0 8
0 9
10
11
15
16
17
PA R T 0 1: O U R F O U N D AT I O N
PA G E 5
HISTORY AND FUTURE
The seafood industry
Grieg Seafood
The future
5000 B.C.E
First fish farms reported in China.
1850
The first wild salmon hatcheries established in
Norwegian salmon rivers.
1969
The brothers Ove and Sivert Grøntvedt transfer
the first salmon smolt to sea pens at the island
Hitra in Norway.
1970s
Commercial salmon farming of chinook, coho
and sockeye is established around Sechelt in
British Columbia.
1973
The Norwegian parliament adopts a licensing
system for the country's growing aquaculture
industry, with the aim of strengthening local
communities along the coast. Since then,
salmon farms have contributed jobs and
revenues to small, coastal communities.
1990s
Fish vaccines are introduced. As a result, the
salmon farming industry has significantly
reduced its use of antibiotics.
1992
1992
Grieg Seafood Salmon (trading company) and
Bioinvest (salmon farming investor) are established.
1998
1998
Grieg Seafood Rogaland is established.
2000s
2000s
The Norwegian government launches the “green
license” scheme, with stricter environmental
standards. Grieg Seafood currently has eight green
licenses.
2001
2001
Grieg Seafood acquires Scandic Marine Ltd. in British
Columbia and establishes Grieg Seafood BC.
2006
2006
Grieg Seafood merges with the Volden Group and
establishes Grieg Seafood Finnmark.
2007
2007
Grieg Seafood is listed on Oslo Stock Exchange.
Grieg Seafood acquires Hjaltland Ltd in Shetland, the
beginning of Grieg Seafood Shetland.
Grieg Seafood starts implementing RAS technology in
Rogaland.
2010
2010
Together with Bremnes Seashore, Grieg Seafood
establishes the sales company Ocean Quality.
2013
The Norwegian government and the industry develop
the standard NS9415 to ensure fish farms are
technically safe and prevent the escape of farmed
salmon.
2020
2020
Grieg Seafood acquires Grieg Newfoundland in Eastern
Canada, and establishes Grieg Seafood Newfoundland.
Grieg Seafood establishes its own sales and market
organization, and the Ocean Quality partnership is
dissolved.
2021
2021
Grieg Seafood disposes Grieg Seafood Shetland to
focus operations on the regions with most growth
potential, Norway and Canada.
2025
Grieg Seafood aims to have achieved global growth
with a harvest of 130 000 tonnes, be cost competitive
and have a stronger market position, confirming our
position as a global protein producer.
2030
Grieg Seafood aims to have reduced total carbon
emissions by 35%.
2050
Grieg Seafood aims to have reduced total carbon
emissions by 100%.
PA R T 0 1: O U R F O U N D AT I O N
PA G E 6
OUR ORGANIZATION
GRIEG SEAFOOD FARMING
We farm Atlantic Salmon in Rogaland and Finnmark in Norway, and in British Columbia and
Newfoundland in Canada. We have hatcheries, sea farms and processing plants. Newfoundland is
a greenfield project, where we expect to transfer fish to sea mid-year 2022.
GRIEG SEAFOOD SALES
We have our own integrated sales and market organization, with sales offices in each country.
OUR VISION
R OO T ED I N N AT UR E
FAR MING T HE O CE AN F OR A BE T T ER FU T U R E
OUR VALUES
OPEN
We are open with each other. We share knowledge and ideas, and learn from each other.
We meet new perspectives with an open mind. We are always honest – also in difficult
situations. Our managers have an open door and welcome suggestions for ways to improve.
We are open and transparent towards society. We proactively share honest information
about our operations with the public, the authorities, and the media – even before they ask.
We invite the community to our facilities, participate in the public debate, and engage in
dialogue with other users of the fjords.
AMBITIOUS
Every day, we endeavor to do our job in the best possible way. We never settle for the
average. We walk the extra mile. We always strive to improve. We think big and set
ambitious goals for everything we do. We are not afraid of making bold decisions, even if
they are tough and push us out of our comfort zone.
We embrace change and innovation. We prioritize our commitments and carry them out.
Our ambitious goals aim to make Grieg Seafood ever more profitable. Only then can we
develop the salmon farming industry further.
CARING
We not only treat each other with respect, we care. We care about our people, and help
them flourish and develop their talents. We foster a caring environment – even in difficult
situations and when hard decisions must be made.
We care about our fish and the natural environment that is vital to the production of healthy
salmon. We work constantly to maintain good biological control and reduce our impact on
the environment. We will pass healthy fjords and salmon on to future generations.
We care about our communities. We recognize that the fjords belong to them, and we take
their concerns seriously. We are a good neighbor. We create opportunities and lasting value
for society.
For more information on the Group structure, refer to Note 1 in the Group Accounts.
Shetland was sold as of 15 December 2021. As such, Shetland has been excluded from the majority of this report.
PA R T 0 1: O U R F O U N D AT I O N
PA G E 7
MAIN ACHIEVEMENTS
GROUP
• Highest ever harvest volume of 89 327 tonnes, or 75 601 tonnes ex Shetland
• EBIT before production fee and fair value adjustment of NOK 442 million, with EBIT/kg of NOK 5.9 driven by the harvested volume and good prices
• Strong operational performance, with increased seawater survival in all regions
• Restructured our business with the sale of Shetland operations to narrow focus to the regions with greatest potential for profitable growth:
Eastern and Western Canada, and Northern and Southern Norway
• Fully operational sales and market organization, with value added processing as part of our downstream strategy
• Continued focus on certification for sustainable farming, 62% of net production ASC certified
• Ranked 2nd by the Coller FAIRR Protein Producer Index of the world’s most-sustainable protein producers
• Received Leadership (A) score by the CDP for our transparency and actions related to climate change
ROGALAND
• Highest ever harvest volume of 26 670 tonnes
• EBIT/kg of NOK 9.1
• Good seawater production with a survival rate of 92%
• Average weight of smolt when transferred to sea increased to 460 grams, in line with our
post-smolt strategy
• No use of antibiotics due to efforts to ensure robust fish health and good results from
vaccines.
• Reduced use of sea lice treatments, where 40% of the pens of fish harvested in 2021 did not
have any sea lice treatments due to successful use of preventive measures
• No escapes
• 66% of farms powered by renewable energy
BRITISH
COLUMBIA
• Harvest volume of 14 448 tonnes
• EBIT/kg of NOK 10.4
• Good seawater production with a high survival rate of 92% due to positive results from our
algae mitigation system. Mortality related to algae blooms reduced from 3.4% in 2019 to
0.4% in 2021
• 12 out of 15 eligible sites ASC certified
• Reduced use of sea lice treatments due to successful use of preventive measures
• Committed to the UN Declaration on the Rights of Indigenous Peoples (UNDRIP)
FINNMARK
• Highest ever harvest volume of 34 484 tonnes
• EBIT/kg of NOK 7.3
• Good seawater production with a high survival rate of 95% due to systematic improvement of
fish health and welfare measures
• 100% ASC certified
• Reduced use of sea lice treatments due to successful use of preventive measures
• 65% of farms powered by renewable energy
• Zero escaped farmed salmon found in a river monitoring project in the Alta river
NEWFOUND-
LAND
• RAS facility fully operational, smolt capacity of 600 tonnes
• Fish are healthy and growing well in freshwater facility
• Aim to transfer between 2-3 million fish to sea during the spring and summer of 2022, with
harvesting commencing in 2023
• Main priority is gradual development of the region to ensure biosecurity, fish health and
profitability
PA R T 0 1: O U R F O U N D AT I O N
PA G E 8
KEY FIGURES
FIGURE 1.1
HARVEST VOLUME 2021
FIGURE 1.2
SALES REVENUE 2021
FIGURE 1.3
EBIT* 2021
19%
46%
24%
35%
34%
42%
Rogaland
Finnmark
British Columbia
*EBIT before fair value adjustment of biological assets
FIGURE 1.4
SALES REVENUE 2021 BY MARKET
FIGURE 1.5
SALES VOLUME 2021 BY MARKET
4 599
SALES
REVENUES
MNOK
5.9EBIT/KG
NOK
753NO. OF
EMPLOYEES
KEY FIGURES NOK MILLION
Operational
2021 *
2020 *
2019 *
2018
2017
2016
2015
2014
2013
2012
Harvested volume (tonnes GWT)
75 601
71 142
71 700
74 623
62 598
64 727
65 398
64 736
58 061
70 000
Spot price of salmon (NOK/kg) 1
Group farming cost (NOK/kg) 2
EBIT/kg 2
Financial
Sales revenues
EBITDA 2
EBIT before fair value adj. 2
Profit/loss for the year
Cash flow from operations
Capital structure
NIBD according to covenants
requirement 2
NIBD/EBITDA 2
NIBD/Harvest (NOK) 2,3
Equity %
Gross investments 2,4
Profitability
Return on Capital Employed
(ROCE) 2
Dividend per share (NOK)
Earnings per share (NOK)
Total market value (Oslo Stock
Exchange)
People
57.3
47.2
5.9
53.7
47.0
3.3
4 599
4 384
818
442
604
601
602
233
-316
412
57.2
40.5
15.0
4 756
1 384
1 077
599
1 193
59.2
43.1
14.7
7 500
1 334
1 099
997
820
59.2
43.4
14.5
7 017
1 106
904
601
709
1 869
3 679
1 939
1 690
1 284
n/a
30.9
41%
979
3%
0.0
-4.8
1.4
23.4
46%
667
1.3
22.6
48%
733
1.2
20.5
47%
553
19%
22%
24%
4.0
5.6
4.0
8.8
4.0
5.0
2.6
24.7
52%
570
6%
0.0
10.7
9 427
61.9
39.7
18.0
6 545
1 342
1 168
1 222
953
906
0.7
14.0
47%
255
33%
1.5
10.7
40.7
37.7
0.7
4 609
261
48
4
367
39.8
35.2
5.3
38.9
34.0
6.0
25.5
32.5
-2.7
4 100
2 404
2 050
484
343
144
157
484
348
431
317
1 569
1 566
1 445
6.3
24.0
38%
322
1%
0.5
-0.1
3.3
24.2
42%
312
3.0
24.9
43%
164
10%
12%
0.0
1.3
0.0
3.9
-30
-191
-147
203
1 530
-51.3
21.9
37%
190
-6%
0.0
-1.3
9 643
15 666
11 423
8 068
9 123
3 462
3 182
2 736
1 379
Continental Europe
UK
North America
Asia
Number of employees
753
950
822
769
707
654
681
686
626
640
*Ex. Shetland. The Shetland assets was sold 15 December 2021. Throughout 2020 and 2021 (up until the sale), the Shetland assets has been classified as assets held for sale and the
income statement and cash flow of the Shetland assets has been presented as discontinued operations. The 2019 figures have been represented, while 2018 and earlier periods have not.
In 2020, we sold all our shares in Ocean Quality, which throughout 2020 and up until the sale, for the part of Ocean Quality related to sale of fish from Bremnes Fryseri AS, was classified
as assets held for sale and the income and cash flow presented as discontinued operations. The 2019 figures have been re-presented, while 2018 and earlier periods have not. See Note
5 for more information. Number of employees up to and including 2020 includes Shetland.
1 Average of weekly NQSALMON prices less 0.75/kg.
2 See more information in the Alternative Performance Measures of this report.
3 Net interest-bearing liabilities according to covenant divided by last 12 months harvest volume. 2021-2019 are excl. Shetland while prior periods include Shetland. The 2020 figure is
calculated by subtracting NIBD by the book value of the Shetland assets as at 31 December 2021.
4 Incl. financial lease (according to IFRS in force prior to 1 January 2019) investments. 2021-2019 are excl. Shetland while prior periods include Shetland.
PA R T 0 1: O U R F O U N D AT I O N
OUR SCOREBOARD
The sustainability scoreboard is a set of some of the
key performance indicators for the Group´s five pillars,
where we track our performance.
The colors indicate
Within target
On track to meet our target
Unsatisfactory result
PILLAR
KPI
P R OFI T &
INNO VAT ION
Return on capital employed1)
Farming cost per kg
Rogaland (NOK)
Finnmark (NOK)
British Columbia (CAD)
TARGET
12% p.a.
NOK 40/kg in Norway and CAD 7/kg in BC in 2022
HE ALT H Y
O CE AN
Harvest volume (tonnes GWT)
77 000 tonnes in 2021
ASC certification2)
All sites by 2023
Rogaland
Finnmark
British Columbia
Survival rate at sea3)
93% by 2022
Rogaland
Finnmark
British Columbia
Use of antibiotics (g per tonne LWE)4)
No use of antibiotics
Rogaland
Finnmark
British Columbia
Newfoundland
Sea lice treatments (g per tonne LWE)4)
Minimize use of pharmaceutical treatments
Rogaland
Finnmark
British Columbia
Use of hydrogen peroxide (kg per tonne LWE)4)
Minimize use of pharmaceutical treatments
Rogaland
Finnmark
British Columbia5)
Escape incidents
Zero escape incidents
Rogaland
Finnmark
British Columbia
Carbon emission (kgCO2e per tonne GWT)6)
35% reduction (from 2018) in total emissions by 2030
High quality product
Scope 1 + 2 location based
Scope 3
Rogaland
Finnmark
British Columbia
93% superior share
Absence rate
Below 4.5%
LTIR
Rogaland
Finnmark
British Columbia
Newfoundland
7)
Rogaland
Finnmark
British Columbia
Newfoundland
SU S TAIN A BLE
F OOD
P EOP LE
L O C AL
C OMMUNI T IE S
Workplace culture
Above average score in Great Place to Work survey
Support our local communities
Collaborate and contribute to local community
Newfoundland has been excluded from most of these metrics as they are not yet relevant
due to no seawater production.
1) ROCE in 2019, 2020 and 2021 ex Shetland.
2) Number of sites certified and % of net production (budget).
3) 12 months rolling survival rate calculated according to the GSI standards.
4) Amount of active pharmaceutical ingredients (APIs) used (gr/kg) per tonne of fish
produced (LWE).
5) As of 01.01.2021, the Government of Canada - Department of Fisheries and Oceans
Canada (DFO) changed the calculation formula for the API of hydrogen peroxide from
Paramove 50 from 1 L (Paramove 50) * 1.15 (density) * 0.45 (concentration) = 1 kg H2O2 to
1 L (Paramove 50) * 1.19 (density) * 0.49 (concentration) = 1 kg H2O2, which corresponds
to the method used in Norway. Previous years (2017 - 2020) have not been recalculated.
6) All previous years have been recalculated due to the divestment of our Shetland
operations. See also GRI 102-48 and our chapter on carbon emissions.
7) LTIR figures are not scored since an LTIR target has not been defined in order to avoid
under-reporting of incidents.
2021
6%
44.6
43.7
8.8
2020
3%
42.1
44.1
8.0
2019
19%
35.9
37.7
8.3
2018
22%
40.3
35.6
7.4
PA G E 9
2017
REFERENCE
page 83
page 83
24%
38.4
40.7
7.4
75 601 (89 327
incl Shetland)
71 142 (86 847
incl Shetland)
82 973
74 623
62 598
page 12
0
18 (100%)
12 (69%)
0
15 (80%)
11 (59%)
92%
95%
92%
0.0
6.0
41.7
0.0
4.4
0.5
0.3
1.6
2.4
35.7
0
1 (4352)
2 (4)
430
4 900
81%
82%
87%
3.0%
8.7%
5.6%
1.3%
42
22
6
5
90%
92%
90%
0.0
0.0
62.3
0.0
0.0
1.0
0.2
7.2
3.6
46.6
0
0
0
456
5 737
85%
69%
86%
3.0%
5.5%
6.8%
n/a
9
28
36
n/a
0
10
n/a
93%
96%
88%
0.0
0.0
87.0
n/a
0.0
0.3
0.5
11.9
0.0
6.0
0
0
0
428
n/a
75%
86%
86%
3.5%
4.9%
2.0%
n/a
15
22
35
n/a
0
4
n/a
92%
96%
88%
0.0
0.0
151.3
n/a
1.1
0.8
0.3
3.5
14.5
5.8
0
0
0
345
n/a
74%
86%
84%
4.7%
5.4%
1.8%
n/a
24
18
38
n/a
85% (global)
84% (global)
79% (global)
89% (Norway)
yes
yes
yes
yes
0
2
n/a
91%
95%
93%
0.0
0.0
18.3
n/a
0.2
1.0
0.1
10.8
13.4
9.2
0
0
0
317
n/a
81%
78%
81%
3.2%
4.4%
0.9%
n/a
11
24
16
n/a
n/a
yes
page 17
page 23
page 24
page 26
page 26
page 27
page 39
page 34
page 75
page 75
page 72
page 78
STATUS
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
PA R T 0 1: O U R F O U N D AT I O N
PA G E 10
CEO LETTER
Dear Shareholder,
2021 was a year of contrasts. At the beginning, we were still in the
Our ambitions on sustainability remain steadfast. While food from
middle of the Covid-19 pandemic, with health and safety measures
the ocean has a good starting point, we have several challenges
in place throughout our operations and markets in lockdown.
to solve to be a true solution in a future sustainable food system.
We also experienced a challenging biological situation in several
Grieg Seafood is committed to reducing our impact and improving
regions. At the end of the year, the pandemic was in a new phase,
fish welfare. During 2021, we made progress on certifying our
with eased restrictions and increased demand for salmon. The
farms according to the Aquaculture Stewardship Council (ASC)
biological condition of our fish had improved significantly, with
certification with 62 percent of our production now certified. We
increased survival in all regions and better sea lice and disease
were pleased to achieve second place on the Coller FAIRR Protein
control. Altogether, we harvested more fish than we have ever
Producer Index, which rates global protein producers according to
done before in a single year. I want to sincerely thank all of my
sustainability, as well as an A list rating by CDP for climate action.
Grieg Seafood colleagues for pulling together and turning the
Still, the majority of the work is ahead of us. We must continue to
company around.
roll up our sleeves and improve.
During the year, we reached several milestones in our 2025
It is when times are tough that the truth about who we really are
business strategy. With the sale of our Shetland operations, we
emerges. Despite challenging times in 2020 and the beginning
narrowed the company’s focus to the production countries where
of 2021, we carried on all the way to the other side without
we see the largest potential for profitable and sustainable growth:
compromising on our values. That makes me proud, and I know
Norway and Canada. With a healthy balance sheet, we are well
it has made us stronger. While we cannot predict the future, we
positioned to engage in growth opportunities in these regions.
know that new uncertainties will continue to appear in a globalized
Last year, our internal global sales organization also became
world. As I am writing this letter, a terrible and heartbreaking
operational. We are now able to work fully integrated between
war is unfolding in Ukraine, and Europe suddenly find ourselves
farming and sales, allowing us to improve our performance in the
in a new geopolitical situation. What we least expected has sadly
market. We are also making progress on our downstream strategy,
become a reality.
and we are currently delivering value added products from both
our Norwegian and Canadian operations. This work will continue
In 2022, Grieg Seafood is in a better shape than ever to adapt to the
at full speed in 2022.
unknowns, respond to changes and grasp the opportunities that
lie ahead.
In 2021, each region made progress towards our goals. Rogaland
delivered strong biological results and continued to advance
our post-smolt strategy, which reduces the time our fish spend
in the ocean. For the first time, we harvested fish after only 10
months in the sea. Moreover, 40 percent of the pens harvested
in Rogaland never needed any sea lice treatments, due to
preventative measures. Finnmark significantly improved control
over winter ulcers and disease throughout the year, and delivered
a solid performance in the second half of 2021, marked by
improved survival rates. British Columbia made further progress
in controlling the impact of harmful algae blooms and low oxygen
levels. With our locally developed mitigation systems, we reduced
mortality caused by harmful algae from 3.4 percent in 2019 to 0.4
percent in 2021. Newfoundland, despite the postponed transfer of
fish, is on track to start sea operations in the coming spring.
PA R T 0 1: O U R F O U N D AT I O N
PA G E 11
FIGURE 1.6
SUSTAINABILIT Y DRIVES RESULTS
SUSTAINABILITY
DRIVERS
• Sea lice control and minimal sea
lice medication
• Escape control
• Survival and disease control
• Wildlife management
• Lower carbon emissions
• HSE, diversity and work
satisfaction
• Certifications
• Local value creation
SUCCESS FACTORS
FINANCIAL TARGETS
• License to operate
• Higher volume
• Superior quality
• Competitive cost
• Engaged employees
• ROCE: 12%
• Harvest: 90 000 tonnes in 2022,
130 000 tonnes in 2025
• Farming cost: NOK 40/kg and
CAD 7/kg in 2022
• Preferred by customers and
• NIBD/EBITDA: < 4.5
<
consumers
• Dividend: 30-40% of net profit
Salmon farming is a long-term commitment, where sustainability and long-term profitability go hand in hand. Sustainability drivers like sea
lice control and fish survival rates directly impact success factors like cost and volume. Our sustainability drivers must perform well if we are
to reach our financial targets.
OUR 2025 BUSINESS
STRATEGY
Our 2025 strategy comprises three key strategic objectives for continued
business development. Increasingly sustainable farming practices
underpin all areas of the strategy.
GLOBAL GROWTH
Harvest volume of 130 000 tonnes by
2025
COST IMPROVEMENT
Global growth
Harvest volume of 130 000
tonnes by 2025
Improve competitiveness in each region
Cost improvement
Improve competitiveness in
each region
VALUE CHAIN
REPOSITIONING
Evolve from supplier to innovation
partner
Value chain repositioning
Evolve from supplier to
innovation partner
SU S TAIN A BILI T Y
SUSTAINABILITY
Global growth, cost leadership and value chain repositioning are
the key areas of business development towards 2025. Sustainability
is the foundation of all areas of the strategy.
To increase our harvest volume, we will focus on post-smolt
investments, utilize our current licenses better, target new
licenses, and seize opportunities afforded by new technology. We
participate in new growth initiatives, M&As, joint ventures, and
greenfield projects, and seek cooperation with farmers in existing
areas.
To be cost competitive in the regions where we farm, we
continuously focus on operational performance. Biological control
through preventative measures and fish health and welfare are
essential in securing increased survival and reduce production
costs. We will also drive performance improvements through
continuous research and development, as well as through the
utilization of new technologies.
We will increase the value of our products through a stronger
presence
in the market, based on partnerships, category
development and brand cultivation. Repositioning Grieg Seafood
from a salmon supplier to an innovative partner for selected
customers is an important part of our value creation plan.
PA R T 0 1: O U R F O U N D AT I O N
PA G E 12
S TAT U S A ND A C T IONS TAK EN IN 2021
GLOBAL GROWTH
GLOBAL GROWTH
1
COST IMPROVEMENT
COST IMPROVEMENT
2
STATUS
• We harvested 75 601 tonnes of salmon excluding Shetland
GOING FORWARD
• We expect further growth to come from better utilization of our
(89 327 tonnes including Shetland) in 2021. Our Norwegian
farming regions delivered the highest ever harvest volume
of 61 154 tonnes, an increase of 22% compared to 2020.
This increase is a result of improved utilization of the sites’
seawater licenses by moving more growth to land through our
post-smolt program. We are piloting post-smolt in Rogaland,
and will increase post-smolt capacity also in Finnmark and BC.
The expansion of the smolt facility in BC will be completed in
maximum allowable biomass (MAB) and higher survival rate
2022.
STATUS
• As part of our aim to be cost competitive, we set a target for
GOING FORWARD
• Our cost improvement initiatives have developed according to
our farming cost (directly related to production and harvest of
plan. However, we have seen cost inflation particularly for feed
salmon) of NOK 40/kg and CAD 7/kg in 2022, for our Norwegian
ingredients and transport cost, with continued inflation in 2022.
and BC operations, respectively.
We will continue to benchmark our cost to our competitors’ to
— The farming cost in Rogaland was NOK 44.6 per kg in 2021,
ensure we have cost competitive targets.
up from NOK 42.1 per kg in 2020. The farming cost was
• While our post-smolt strategy
increases
investment
• Better utilization of our seawater licenses by improving
impacted by harvesting from sites affected by Pancreas
expenditures and smolt cost, we expect it to reduce operational
in seawater. In BC, the harvested volume decreased compared
to 2020 due to the local production arrangements and larger
farms on the West Cost of Vancouver Island compared to
the East Coast, where we harvested from this year. As a
consequence, the Group volumes also vary every other year,
biosecurity, fish health, welfare and survival rates, is also
expected to secure on-growth and harvest volumes. Flexibility
is a requirement to achieve better utilization of our capacity,
and we are continuously looking for opportunities to secure
regardless of the underlying biology. Measures are being done
access to new locations.
to equalize harvest volumes, including securing new locations.
• Our new region in Newfoundland is expected to provide a
• With the sale of our Shetland operations, we have narrowed our
operational focus to the regions with the greatest potential for
profitable and competitive farming operations. Our Norwegian
and Canadian regions have the greatest biological potential
and are also in close proximity to our most important markets
- Europe and the USA, respectively.
• We spent NOK 480 million in investments related to growth
initiatives in 2021. Close to 60% of the investments were
in Newfoundland, with completion of the smolt facility
and preparations of the seawater locations. Another main
investment was the expansion of our smolt facility in BC, which
will be key to secure access to high quality smolt.
harvest of 15 000 tonnes in 2025, and has a long-term harvest
potential of at least 45 000 tonnes. The first smolt will be
transferred to the sea spring/summer of 2022.
• We have received four and a half development licenses for
the offshore concept “Blue Farm”. The concept is based on
technology from the Norwegian oil and gas industry, and the
aim is to implement the concept in exposed areas. The decision
on whether to build the farm has not yet been taken.
Disease (PD), which increased fish handling and well-boat
expenditures and reduce costs related to mortality, disease
costs. We are working systematically to improve fish health
outbreaks, sea lice treatments and fish handling. Our farming
and welfare through general health and welfare measures,
experience and our data analyses indicate that reduced time in
and all sites with PD will be harvested at the beginning of
the sea will reduce the risk of biological challenges such as sea
2022.
lice, Pancreas Disease (PD), winter ulcers and ISA.
— The farming cost in Finnmark was NOK 43.7 per kg in 2021,
• Rigorous focus on fish health and welfare measures has
down from NOK 44.1 per kg in 2020. We have been less
increased our survival rates. In BC, we have had good results
impacted by challenges related to winter ulcers this year
with digital monitoring and measures to mitigate the effects of
due to improved management in this area.
harmful algae blooms, our main biological challenge in BC.
— In BC, the farming cost increased from CAD 8.0 per kg in
2020 to CAD 8.8 per kg in 2021, mainly due to a lower harvest
volume.
VALUE CHAIN REPOSITIONING
VALUE CHAIN REPOSITIONING
3
SUSTAINABILITY
SUSTAINABILITY
4
82 973
86 847
89 327
90 000
74 623
FIGURE 1.7
OUR GROWTH JOURNEY: HARVESTED TONNES GWT
.
department, and have started to process some salmon into
fresh and frozen valued added products at external processing
plants in both North America and Norway.
• We will continue to evaluate both external opportunities
to strengthen our processing capacity, such as long-term
partnerships with third parties in Norway, North America and
Europe, as well as development of existing internal processing
infrastructure.
130 000
130 000
STATUS & ACTIONS
• We have established our own sales and market organization,
and have built a customer portfolio.
Grieg Seafood's business is based on five pillars, covering
environmental, social and governance (ESG) topics identified as
important to our stakeholders. Our main sustainability drivers and
• We have established a Value Added Product (VAP) sales
results are presented in Part 02 of this report.
PA R T 0 1: O U R F O U N D AT I O N
PA G E 13
OPERATIONAL FOCUS AREAS
To achieve sustainable growth and improve competitiveness, we
focus on reducing the time fish spend at sea (post-smolt), improving
fish welfare and providing data-driven decision support (“Precision
Farming”) to our operations. Together, the focus areas strengthen our
ocean farming. Read more about our operational focus areas here.
OPERATIONAL FOCUS AREAS
Less time at sea (post-smolt)
Prevention and fish welfare
“Precision Farming” - data-driven
decision support
LESS TIME AT SEA (POST-SMOLT)
During the first stages of their life, salmon are raised in
onshore freshwater hatcheries. In traditional salmon farming,
fish are transferred to the sea when they have undergone the
smoltification process, making them physiologically ready for life
in saltwater. With our post-smolt strategy, we keep the fish longer
on land or in closed facilities in the sea, shortening the time that
they spend growing in open sea-pens by several months. Less
time at sea will improve biological control, fish welfare, survival
and quality because each salmon is less exposed to biological
risks like sea lice, seaborne diseases or other unfavorable ocean
conditions such as harmful algae or sub-optimal oxygen levels.
Less exposure to these risks will also allow us to better utilize
preventative methods and avoid expensive treatments. This will
reduce our environmental impact as well as our production cost.
Post-smolt also increases flexibility with regard to the transfer of
smolt, allowing us to fallow sites for longer periods if necessary.
The fish will be larger and more robust when entering the sea-
growing phase, which we believe will increase health and welfare
in and of itself.
Post-smolt transfer also allows for a more efficient production
cycle. It takes less time to reach harvestable size in the sea, which
frees up capacity at farms to grow more salmon within existing
licenses. The result is a lower environmental footprint per fish,
better fish health and welfare, lower costs, and increased annual
harvests. Altogether, we expect post-smolt transfer to reduce
operational expenditure
in the sea-growing phase,
improve
profitability and competitiveness, and provide opportunities for
sustainable production growth. It strengthens our ocean-based
salmon farming operations.
Grieg Seafood is piloting our post-smolt strategy in Rogaland.
We have also invested in post-smolt capacity in Finnmark, British
Columbia and Newfoundland. As it takes two to three years to farm
one salmon, it will take time before we have harvested enough
generations of fish with a substantially shorter time at sea to draw
final conclusions. We also need to learn how we can optimize
welfare and fish farming with this new type of production cycle,
and adjust accordingly. However, our experience so far indicates
that results are meeting expectations.
ACHIEVEMENTS 2021
•
In Rogaland, where post-smolt is piloted on a regional level:
— While our average smolt transferred to the sea in 2015
weighed 120 grams, the average smolt transferred to the
sea in 2021 was 460 grams.
— More than 50% of fish harvested were from post-smolt (fish
weighing more than 200 grams when transferred to sea).
— Reduction in sea lice treatments and reduced risk of PD for
post-smolt fish that spend less than 12 months at sea.
— Post-smolt with an average weight of approx 900 gr when
transferred to the sea at the end of March had an average
weight of 4.8 kg when harvested at the end of November.
— By putting a second FishGlobe into operation, we increased
our post-smolt capacity by 450 tonnes.
GOING FORWARD
•
In Rogaland:
— We have executed our post-smolt strategy gradually to
utilize increased production capacity, and have tested
batches of post-smolt together with batches of traditional
smolt on farms. In 2021, we transferred post-smolt to one
entire farm, which will be harvested at the beginning of
2022. Here, the seawater production time will be reduced
by 100-150 days.
— The expansion of Tytlandsvik Aqua, which will be completed
in 2022, will add an additional capacity of 750 tonnes of post-
smolt. Going forward, additional initiatives will be pursued,
including Årdal Aqua, which is expected to provide at least
3 000 tonnes of post-smolt.
— Grieg Seafood Rogaland aims to increase the average smolt
transfer weight to approximately 800 grams in 2025.
•
In Finnmark, we target an increase of 4 000 tonnes of post-
smolt by 2025 through various initiatives.
•
In BC, we will increase our smolt capacity from 500 tonnes to
900 tonnes in 2022 through our Gold River smolt facility.
• Our RAS facility in Newfoundland includes a smolt module with
a capacity of 1 500 tonnes.
PA R T 0 1: O U R F O U N D AT I O N
PA G E 14
PREVENTION AND FISH WELFARE
We pursue a systematic, long-term approach to fish health
and welfare. The key is investment and further development of
preventive measures against seaborne hazards, such as sea lice,
harmful plankton, jellyfish, low oxygen levels, infectious diseases
and low seawater temperatures.
Prevention will reduce handling and stress for the fish. It will also
reduce our environmental footprint by, for instance, reducing the
number of treatments needed. Moreover, prevention instead of
handling reduces production costs. The result is stronger growth,
high harvesting quality, increased survival rates and lower costs.
ACHIEVEMENTS 2021
•
In BC, we are fine-tuning our algae detection and mitigation
system, which is becoming more effective every year as we
learn how to use it. The system comprises long tarps around the
pens and aeration/oxygen generation systems to keep harmful
algae outside and push clean and oxygenated water up to the
fish during periods of harmful algae blooms or sub-optimal
oxygen levels. The effect is increased survival and continued
feeding and on-growth during challenging conditions, as well
as better sea lice control.
•
In Rogaland, we have had success with using cleaner fish as a
preventive method to control sea lice. As a result, 40% of the
pens of fish harvested did not receive any sea lice treatments
in 2021.
•
In Finnmark, we have implemented measures to mitigate ISA
and winter ulcers. We have vaccinated our smolt with an ISA
vaccine, made changes to our smolt transfer strategy and
shared experience with the Norwegian Veterinary Institute to
increase the knowledge about the virus’ outbreaks.
GOING FORWARD
• Some of our numerous ongoing initiatives to improve fish health
and welfare throughout the production cycle include selection
of roe with specific qualities related to sea lice and diseases,
feed customized for the various stages of the salmon’s life
cycle, or vaccinations targeting specific diseases:
— Tests with improved feed formulas in Finnmark, utilizing
best available science, to strengthen health, welfare,
robustness and quality. Examples of changes are increased
levels of essential marine fat and a stronger vitamin mix.
— Initiatives to optimize health, welfare and robustness
of post-smolt. We are looking into how the vaccination
program should be structured optimally for post-smolt, and
what temperature profiles during the land-based phase is
optimal for post-smolt production cycles.
— Efforts to mitigate the negative impact mechanical sea lice
treatments may have on fish health and welfare. Mortality
caused by such treatments has been reduced, and we are
working to reduce it further.
— We have developed our own fish welfare indicators, based
on the Fishwell research project, to be able to more
systematically assess and improve fish welfare throughout
our operations.
“PRECISION FARMING” - DATA-DRIVEN DECISION
SUPPORT
“Grieg Seafood Precision Farming” is our concept for digitalizing
• Further
improvements and new capabilities have been
farming operations, with the aim of providing strategic, tactical
introduced in a dashboard for environmental monitoring and
and operational decision support into our production processes.
prediction of exposure to negative impacts at the site level.
Experience-based knowledge has always been the foundation
• The introduction of fully autonomous feeding by utilizing AI,
of salmon farming. With advanced sensors, big data, artificial
supported by fish behavior monitoring, environmental sensors,
intelligence, and automation incorporated into our operations,
pellet detection and real-time oxygen monitoring, has given
the Precision Farming concept introduces data-driven decision
improved biological performance in BC.
support as an addition to existing knowledge and experience.
Big data analyses on previously unknown connections between the
fish and the environment provide insights for strategic decision-
making. The use of digital tools and dashboards, providing real-
time data on various farming parameters to operational centers
as well as to farmers, aims to improve tactical and operational
decisions. They also allow us to benchmark on new parameters
and learn better from best practice. We aim to be able to predict
negative events early, enabling us to apply preventative measures
and improve management decisions. The result is expected to be
increased growth, reduced environmental impact, improved fish
welfare, increased productivity and lower costs.
ACHIEVEMENTS 2021
• Our internal analysis team has conducted several new data and
GOING FORWARD
• Through data analysis, we aim to gain increased insight and
knowledge of various challenges, such as Yellow mouth, one of
the challenges we have in BC.
• We are setting up a project to explore how to utilize our data
from cameras, environmental sensors and other data sources
to gain increased insight within biomass development, fish
health, feed and feeding profiles. This includes implementing
predicative methods focusing on providing data-driven decision
support to the operators.
•
Increased focus on automatic and standardized data acquisition
in the freshwater facilities will enable us to do performance
analyses in our hatcheries as well as build early warning
capabilities for potential negative trends on water quality
parameters.
regression analyses to provide strategic and tactical decision-
• We are setting up an integrated operation center in our
making support, aimed at mitigating biological challenges:
Newfoundland region as we are starting up seawater
— Developed prediction models for the optimized time to
production. The center will be built to the same design and with
transfer smolt to the sea, based on historical data from
similar capabilities as we are running in Rogaland.
Rogaland and Finnmark, to mitigate biological risk and to
optimize production cycles.
— Re-runs of the analysis of winter ulcers with new and
updated data. Positive effects of the subsequent changes in
the operational procedures have been identified.
— By analyzing the development and historical trends of feed
utilization, we have gained new insight about different feed
types, including identifying which feed types are giving the
best production results. We are also working with different
appetite models to obtain improved feeding.
— Lice treatment evaluation, by developing a tool for standard
data acquisition and procedures for logging information
when performing lice treatments. This will enable efficient
data analysis and support the selection of the most
efficient treatment method given current biological and
environmental conditions.
• High-definition biomass camera with video algorithms for real-
time biomass calculation of weight and weight distribution,
automatic lice counting and fish-health monitoring, have been
implemented in both Rogaland and BC.
PA R T 0 1: O U R F O U N D AT I O N
PA G E 15
OUR VALUE CHAIN
IN P U T
NATURAL CAPITAL
• Public natural resources: we lend
sea areas for our sites and fresh
water for our RAS facilities.
• Privately owned natural resources:
Plant-based and marine feed
ingredients, and salmon eggs.
TECHNOLOGICAL CAPITAL
• Farming equipment and technology
FINANCIAL CAPITAL
• Trust and investment from investors
• Access to capital
HUMAN CAPITAL
• People (experience, ideas, passion)
• Culture
• Corporate Governance
POLITICAL/SOCIAL CAPITAL
• Our License to Operate
• Trusted among our key stakeholders
• Favorable political conditions
BREEDING
FRESHWATER
FARMING
POST-SMOLT
SEAWATER
FARMING
HARVESTING
SALES AND
DISTRIBUTION
VALUE ADDED
PROCESSING
RETAIL /
HORECA
In Rogaland, we
have a broodstock
operation where
we breed for
specific traits, such
as strong health or
resistance to sea
lice and diseases.
In all of our
regions, we have
RAS freshwater
facilities, where
the eggs are
hatched and the
salmon spend
at least the first
year.
As part of our post-
smolt strategy, we
keep the salmon
longer on land
in all regions to
shorten the time in
seawater, reducing
risk of biological
challenges. In
Rogaland, the
average size of the
smolt transferred
to the sea in 2021
was 460 grams
compared to
120 grams in 2015.
The salmon live
and grow in the sea
until they reach a
harvestable size of
4–5 kg.
We have harvesting
plants in Rogaland
and Finnmark. We
use a harvesting
vessel in BC. In
Newfoundland,
we will have
cooperation with a
local plant.
We have our
own global sales
and market
organization with
local offices in the
countries we farm
salmon, to support
growth and the
downstream
strategy.
We have a small
share of VAP in
Norway and BC.
We will form closer
partnerships in
the market and
increase the value
of our salmon
through VAP.
Our salmon is
found in retail
stores or on
the menu at
restaurants or
hotels. Currently,
we have the
HoReCa brand
Skuna Bay in
Canada.
OU T C O ME
1 600 000
HEALTHY MEALS PER
DAY*
*Based on our harvest volume for 2021 incl
Shetland, with 68% yield from live weight, and
servings of 125 grams.
OUR BR ANDS
SKUNA BAY
Skuna Bay is our high-end HoReCa brand for the US market.
Skuna Bay fish is preferred by some of America’s top chefs, and
is regularly served at the James Beard Award. Read more here.
PA R T 0 1: O U R F O U N D AT I O N
PA G E 16
OUR APPROACH TO
SUSTAINABLE BUSINESS
In our long-term perspective, there is no contradiction between clean seas, healthy fish,
and financial profit. It is our task to make these aspects go hand in hand and contribute
to a sustainable ocean economy. Our targets go beyond short-term profitability. Based
on our materiality assessment, our five pillars show our commitment to sustainable and
long-term value creation for all of our stakeholders.
M AT ER I ALI T Y M AT R I X
Together with our stakeholders, we have identified our most
important risks and opportunities, based on our operations and
geographical locations. The materiality matrix is the foundation of
our five pillars.
• Employee health & safety
• Safe & healthy food
• Fish health & welfare
• Protecting wild salmon (escape & sea lice control)
• Protecting biodiversity & marine ecosystems
(local emissions, medicine use, wildlife
interaction)
• Low use of antibiotics
• Carbon emissions
• Plastics pollution
• Sustainable feed ingredients (zero deforestation,
sustainable marine ingredients, ESG assessment,
novel ingredients)
• Human rights, including labor rights
• Profitable operations
• Corporate governance
• Responsible business conduct
•
Indigenous rights & partnerships
• Value creation in rural areas
S
R
A
L
L
I
P
R
U
O
T
N
E
M
N
G
I
L
A
G
D
S
S
C
I
P
O
T
HEALTHY OCEAN
SUSTAINABLE
FOOD
PROFIT &
INNOVATION
PEOPLE
LOCAL
COMMUNITIES
• Fish health & welfare
• Safe and healthy
• Profitable operations
• Human rights
• Local value creation
• Protecting wild
food
salmon (escape and
• Sustainable feed
• Our market
• Research,
• Embracing diversity
• Indigenous
• Creating attractive
relationships
sea lice control)
ingredients
development and
jobs
• Protecting
• Climate action
innovation
• Keeping our
biodiversity &
• Recycling and waste
• Responsible business
employees safe
• Dialogue and
engagement
marine ecosystems
management
conduct
(local emissions,
medicine use, wildlife
interaction)
• Plastic pollution
• Corporate
governance
S
N
O
I
S
I
C
E
D
D
N
A
S
T
N
E
M
S
S
E
S
S
A
R
E
D
L
O
H
E
K
A
T
S
N
O
E
C
N
E
U
L
F
N
I
I
L
A
R
E
T
A
M
T
N
A
C
I
F
I
N
G
S
I
E
T
A
R
E
D
O
M
• Fresh water use
• Diversity
• Visual & noise pollution
• Recycling & waste
• Transparency & stakeholder
management
dialogue
• Circular economy
• Community sponsorships
• R&D/ innovation
• Lifelong learning for
employees
MODERATE
SIGNIFICANT
MATERIAL
SIGNIFICANCE OF ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS
Grieg Seafood's business is based on five pillars, covering environmental, social and governance (ESG) topics identified as important to
our stakeholders. The pillars are based on our materiality assessment. They help us steer towards long-term value creation for investors,
customers, employees and local communities. Find a combined overview of our pillars, targets and Group policies here.
The identified sustainability topics are based on the positive and negative environmental, social, and economic impacts that our stakeholders think Grieg Seafood may have. The materiality
analysis is based on stakeholder dialogues and evaluations by our global and regional management teams. The material topics identified define the content of this report and are aligned
with how we report our pillars. The materiality matrix is reviewed and updated annually. The Board of Directors has oversight of the materiality assessment. During 2021, we have
strengthened our corporate governance on sustainability. All material areas in the materiality assessments are or will be covered by group policies, and progress is reviewed by the Board.
For more information, please see the GRI index in Part 04 of this Annual Report.
PA R T 0 1: O U R F O U N D AT I O N
PA G E 17
OUR CERTIFICATIONS
It is important for both local communities and customers to know
that our farming practices are responsible. For reassurance, our farms
are certified by independent bodies.
To ensure that local communities, customers, and civil society can trust that we farm responsibly and to the highest standards, we certify
our farms according to several recognized, third-party certifications. Read more about our certifications and their current status here.
CERTIFICATE
ASC
TARGET
100% ASC certification (or
compliance with ASC) for
active and eligible sites by
2023.
Newfoundland aims to
certify when the seawater
sites get into production.
DESCRIPTION
Aquaculture Stewardship Council (ASC) was
founded in 2010 by World Wide Fund for
Nature (WWF) and IDH Sustainable Trade
Initiative to establish global standards for
sustainable seafood production.
The ASC label only appears on food from
farms that have been independently assessed
and certified as being environmentally and
socially responsible. A Chain of Custody
certification ensures that companies
selling certified seafood have identification,
segregation and traceability processes and
procedures in place.
GLOBALG.A.P
Global Good Agricultural Practices
(GLOBALG.A.P.) is a standard for both
agriculture and aquaculture. The standard
covers food safety, animal welfare,
sustainability, employment, and traceability.
100% of farms in Norway
GlobalG.A.P. certified
(certification not relevant for
Canada)
GlobalG.A.P. certification provides assurance
that food has been grown using recognized
levels of quality and safety. It also ensures
that it has been produced sustainably in a way
that respects the health, the environment
and the welfare and safety of workers and
animals. The GLOBALG.A.P. The Chain of
Custody Standard ensures that the product is
sourced from GLOBALG.A.P. certified farms.
GlobalG.A.P is particularly important for
customers in Europe.
BAP
Best Aquaculture Practices (BAP) is an
aquaculture standard that covers practices in
all stages of the fish farming process.
100% of farms in BC BAP
certified (certification not
relevant for Norway).
BAP certification helps to assure consumers
that the seafood they buy is produced in a
manner that is considerate of the animal’s
welfare, the environment, workforce and
community, food safety, and traceability.
BAP is particularly important for customers in
the United States.
STATUS
At year-end 2021, 18 sites
(100% of net production)
in Finnmark and 12 sites
(69% of net production
(budget)) in BC have
received ASC certification.
Grieg Seafood Rogaland
will receive the first ASC
certifications in 2022.
Our sales and market
organization in both
Norway and Canada are
ASC Chain of Custody
certified.
All our farms in Norway
are certified. Our farms
in Rogaland have been
certified since 2008, and
farms in Finnmark since
2016.
Our sales and market
organization in Norway
is GlobalG.A.P. Chain of
Custody certified.
All our farms in BC have
been certified since 2011.
Our Newfoundland region
is under establishment
and is not yet delivering to
market.
OUR PROGRESS
TOWARDS A
SUSTAINABLE
FOOD SYSTEM
Reducing our footprint and improving fish health and
welfare will always be key to success and our focus across
all our regions.
PA R T 0 2
A Q U A C U LT U R E I N A S U S TA I N A B L E G L O B A L F O O D S Y S T E M
H E A LT H Y O C E A N
S U S TA I N A B L E F O O D
P R O F I T & I N N O VAT I O N
P E O P L E
L O C A L C O M M U N I T I E S
19
2 2
3 3
4 4
67
76
PA R T 0 2 : L E A D I N G W I T H S U S TA I N A B I L I T Y
PA G E 19
AQUACULTURE IN A
SUSTAINABLE GLOBAL
FOOD SYSTEM
Food systems are responsible for 70 percent of the water extracted from nature,
cause 60 percent of biodiversity loss, and generate up to a third of human
greenhouse gas emissions. A complete transformation of our global food system
is needed during the next decades. We must provide healthy food for a growing
population using fewer resources and with a lower impact. If we do it right, food
from the ocean can play an important role.
FIGURE 2.1
FEED CONVERSION RATIO
Feed conversion ratio (FCR) measures the productivity of different protein production
methods. A lower FCR represents a more efficient use of feed resources.
TOMORROW’S SUSTAINABLE GLOBAL
FOOD SYSTEM
• Healthy and nutritious food for 9 billion people
• Nature and biodiversity protected
• Low carbon and low climate risk
• Good animal welfare
• A circular economy with resources recycled
• Social and economic justice for producers in
supply chains
FARMED SALMON NUTRIENT PROFILE
• Omega 3 fatty acids
• Protein
• Vitamin D, B12 and A
• Iodine
• Selenium
• Minerals
Research shows that eating seafood at least twice a week helps
maintain a healthy heart and reduces the risk of cardiovascular
diseases. Regular consumption of salmon can promote health
and development across the lifespan. Read more here.
Aquaculture has the potential to be an important part of the solution. 70% of the Earth is covered by ocean. Today, however, we obtain
only about 2% of our food from the sea. While there are limits to the amount of wild fish that can be sustainably harvested, sustainable
aquaculture can meet the increased demand for seafood in people’s diets. With a low carbon footprint, low feed conversion ratio, low land
and fresh water consumption, and a high edible yield, farmed salmon continues to be one of the most eco-efficient forms of animal protein.
In addition, farmed salmon is a nutritious food with numerous proven health benefits. Read more here.
FIGURE 2.2
EDIBLE YIELD
68%FARMED
ATLANTIC
SALMON
Edible yield measures how much of the animal is actually used for human consumption. Farmed Atlantic salmon
has a high edible yield compared to other animal proteins.
46%CHICKEN
52%PORK
38%LAMB
FIGURE 2.3
CARBON FOOTPRINT
Farmed salmon has a low carbon footprint compared to other animal proteins. Carbon footprint measures the
total greenhouse gas emissions caused directly and indirectly by production of an item. Carbon footprint is
measured as tonnes of carbon dioxide equivalent per tonne of edible protein.
0.60
FARMED
SALMON
0.88
CHICKEN
1.30
PORK
5.92BEEF
Source: GSI
PA R T 0 2 : L E A D I N G W I T H S U S TA I N A B I L I T Y
PA G E 2 0
THE CHALLENGES
WE MUST SOLVE
Though we have made great progress in finding more
sustainable fish farming methods in recent decades,
many challenges remain to be solved. For farmed
salmon to be a part of a sustainable global food
system, we must keep improving.
1. ENSURING CO-EXISTENCE WITH NATURE AND OTHER
SPECIES
It is our responsibility to protect biodiversity wherever we operate. Our aim is to use
farming methods that allow us to co-exist with other species, such as wild salmon, cod,
shrimp, wild mammals, and birds. Going forward, our industry must work hard to reduce
our environmental impact.
2. IMPROVING FISH WELFARE
While only a few fish from millions of eggs survive in the wild, farming fish in captivity puts
an ethical responsibility on us to safeguard our stocks’ survival, health, and welfare. While
we have worked hard to improve survival rates and fish health in recent decades, much
work remains to understand how we can improve animal welfare at our farms. This also
includes cleaner fish.
3. FINDING SUSTAINABLE FEED INGREDIENTS
As an industry, we need to develop new feed ingredients in order to grow sustainably. We
need novel marine ingredients, as well as novel protein ingredients.
4. CUTTING CARBON EMISSIONS
While farmed salmon has a low carbon footprint compared to other animal proteins,
our industry must do more to contribute to the Paris Climate Agreement’s goals. New
technologies must be developed to cut emissions in our operations and value chain.
5. RECYCLE RESOURCES
Our industry must develop a circular approach in more areas. The aim is to support the
circular economy and recycle resources throughout our value chain.
6. PROMOTING HUMAN RIGHTS
As an industry with global supply chains both upstream and downstream, we have a
responsibility to respect and promote human rights both in our own operations and in our
value chains.
T HE SU S TAI N A B LE
DE V EL OP ME N T GO A L S
The UN Sustainable Development Goals guide us
towards a more sustainable food system. They
highlight opportunities to grasp and challenges
to solve - both in our farming operations and in
our value chain. Read how Grieg Seafood aligns
with the various SDGs here.
GL OB AL SU S TAIN A B ILI T Y
INI T I AT I V E S
Grieg Seafood has committed to several
initiatives that set high standards for our
farming operations and value chain. Initiatives
range from ocean stewardship to the climate,
deforestation, and human rights. Read more
about these initiatives here.
R&D A C T I V I T Y
R&D is inherent to delivering on our strategy
and targets, such as improvements in fish
welfare, sustainability, cost control and product
quality. Read about our efforts here.
PAR T NER SHIP S AN D
C OLL A B OR AT IO N
Collaboration and partnerships with
researchers, peers, companies in our value
chain, NGOs or other relevant actors is
highly valued by Grieg Seafood. Only through
collaboration can we drive necessary change,
and solve the challenges we have in our industry
and in our global food system. Read more about
our partnerships here.
OUR PROGRESS
TOWARDS A
SUSTAINABLE
FOOD SYSTEM
We advance a more sustainable global food
system by continuously improving and by
creating shared value for shareholders, local
communities, employees and customers alike.
HE A LT H Y OCE A N
P E OP L E
Farming salmon with practices that keep the fish and oceans
Every single day, whether it is sunny, stormy or freezing cold, our
healthy has a positive impact on our harvested volume, cost,
fantastic employees are out there working hard in the hatcheries,
quality, license to operate and employee engagement.
on the farms or at the harvesting plants. Their passion and
dedication drive Grieg Seafood forward.
H U M A N R I G H T S
E M B R A C I N G D I V E R S I T Y
C R E AT I N G AT T R A C T I V E J O B S
K E E P I N G O U R E M P L O Y E E S S A F E
L OC A L C OMMUNI T IE S
6 8
7 0
7 2
74
We are grateful to our local communities for giving us permission
to farm salmon in their fjords and inlets. In return, we do not
only do what we can to ensure local biodiversity and sustainable
farming methods. We also contribute to vibrant local communities
in the many rural areas where we operate.
R E L AT I O N S H I P S W I T H L O C A L C O M M U N I T I E S
C O M M U N I T Y S U P P O R T
7 7
7 8
F I S H H E A LT H A N D W E L FA R E
P R O T E C T I N G W I L D S A L M O N
P R O T E C T I N G B I O D I V E R S I T Y &
M A R I N E E C O S Y S T E M S
S U S TA IN A BL E F OOD
2 3
2 5
2 8
We work to make our practices more sustainable along the entire
value chain. Focus areas extend from safe and healthy food,
traceability, and feed to carbon emissions and waste management.
S A F E A N D H E A LT H Y F O O D
S U S TA I N A B L E F E E D I N G R E D I E N T S
R E D U C I N G C A R B O N E M I S S I O N S
WA S T E M A N A G E M E N T
3 4
3 6
3 9
4 2
P R OF I T & INNO VAT ION
Without a profitable business, we will not be able to farm healthy
salmon for people to eat all over the world. To achieve good
financial results, our farming methods need to be both cost-
effective and sustainable.
E C O N O M I C P R O D U C T I V I T Y
R O G A L A N D
F I N N M A R K
B R I T I S H C O L U M B I A
N E W F O U N D L A N D
S A L E S & M A R K E T
T H E G R I E G S E A F O O D S H A R E S
R E S P O N S I B L E B U S I N E S S C O N D U C T
K E Y P E R F O R M A N C E I N D I C AT O R S A N D A N D
A LT E R N AT I V E P E R F O R M A N C E M E A S U R E S
4 6
4 8
51
5 4
5 7
5 9
6 2
6 4
6 5
PA R T 0 2 : H E A LT H Y O C E A N
PA G E 2 2
OUR PROGRESS TOWARDS
A SUSTAINABLE FOOD SYSTEM
HEALTHY OCEAN
F I S H H E A LT H A N D W E L FA R E
P R O T E C T I N G W I L D S A L M O N
P R O T E C T I N G B I O D I V E R S I T Y &
M A R I N E E C O S Y S T E M S
2 3
2 5
2 8
Farming salmon with practices that keep the fish
and oceans healthy has a positive impact on our
harvested volume, cost, quality, license to operate
and employee engagement.
PA R T 0 2 : H E A LT H Y O C E A N
F I S H H E A LT H A N D W E L FA R E
PA G E 2 3
FISH HEALTH AND WELFARE
Ensuring the good health and welfare of the fish in our care is first and
foremost an ethical responsibility. It is also the most important factor
in achieving good growth, higher quality at harvest and lower costs.
O U R AP P R O A CH T O F IS H HE ALT H AND W EL FAR E
We are committed to improving the health and welfare of our fish.
Good fish health and welfare implies that the highest possible
number of fish thrive, grow, and survive to the end of their lifecycle.
We have the same ethical responsibility to safeguard the good
health and welfare of the cleaner fish in our care as our salmon.
Our policies for fish health and welfare therefore apply equally to
salmon and cleaner fish.
Every region has implemented measures to fully comply with
national fish health and welfare legislation. Every region also has
a specific plan for preventive measures and treatments to secure
fish health.
Our fish health policy and our fish welfare policy follow the
guidelines of the World Organization for Animal Health (OIE).
OU R TAR GE T S
Antibiotics
No use of antibiotics
Survival rate*
Above 93% seawater survival rate by 2022
Above 95% seawater survival rate by 2025
*Survival reported in accordance with the standards of the Global Salmon Initiative (GSI) is defined as: (total # of mortalities in sea last 12 months / (closing
# of fish in sea + total # of mortalities in last 12 months + total # of harvested fish in last 12 months + total # of culled fish in sea) x 100".
We have also set targets for survival rates in fresh water. In the wild, only a small percentage of fertilized eggs
survive and become adults. That is our biological starting point. Over the years, research has allowed us to improve
the quality of breeding process, the eggs and survival rates, but we still experience mortality especially in the very
early phase. We work systematically at the various stages in the lifecycle to improve survival rates. These targets
can be found in our fish health and fish welfare policies.
LEARN MORE ON OUR WEBSITE
→
→
→
Improving fish health and welfare
Policies for fish health and welfare
of salmon and cleaner fish
Policy for the use of antibiotics
OUR P R INCI P LE S F OR FI SH HE ALT H AND W E LFAR E
FISH HEALTH
transport, etc.
• Minimize the pathogens (harmful micro organisms) entering
— Monitoring welfare indicators during treatments in sea
our farms.
water for early detection of physical damage and rapid
— Intake of healthy and robust roe and fish.
implementation of measures.
— Strict hygienic control of boats, feed, people, or any
equipment taken into the farms.
• Minimize the pathogens multiplying within the fish farm
environment.
— Daily removal of sick or dead fish.
— Feed program targeted for each fish species and stage of
the lifecycle.
— Intake of fish with the physiology to thrive in the farm.
— Intake of fish vaccinated with available and effective vaccines
relevant for the area.
— Continuous health monitoring and rapid implementation of
necessary measures during disease outbreaks.
• Minimize any environmental health risk to the fish.
— Regular monitoring of water quality with respect to
temperature, oxygenation, and salinity, based on local risks.
In our freshwater facilities, we control and adjust these
factors to ensure healthy growth conditions for the fish.
— Monitoring of algae and jellyfish blooms in periods of risk.
— Monitoring the seabed regularly to avoid sedimentary
loading, and
fallowing periods according
to
local
environmental conditions.
FISH WELFARE
There is no universal definition of animal welfare, but we accept
that every fish is an individual with a perception of life. We regard
fish welfare as the quality of life as perceived by the animal itself.
Our challenge is that we are not able to control each individual fish
at any time, but treat all fish in one pen equally. Monitoring of fish
behaviour and appetite in each pen is very important. We need to
invest more resources to understand salmon farming in the light
of population dynamic.
We seek to fulfill “the five freedoms for animals under human
control”:
1. Freedom from hunger, thirst, and malnutrition
2. Freedom from fear and distress
3. Freedom from discomfort
4. Freedom from pain, injury, and disease
5. Freedom to express normal patterns of behavior
• Minimizing any discomfort to the fish during its lifetime at our
farms:
— Regular risk-based water monitoring for early detection of
risk factors and rapid implementation of measures.
— Careful handling of any live fish during treatments, grading,
— Regular fish health checks for early detection of diseases
and rapid implementation of measures.
— We do not use/allow growth-promoting hormones in fish
feed or other additives.
• Ensuring that all live fish are anesthetized prior to killing. At
harvest, the salmon is killed by electrical stunning or
stunning, while cleaner fish and salmon not destined for
consumption are killed by chemical anesthesia.
There is still a lot to learn about fish welfare, including finding
good ways to measure it more precisely. Welfare indicators such as
mortality, appetite or daily feeding and environmental conditions
are measured systematically. We are currently testing if these and
other parameters can be performed automatically and accurately
by camera sensor technology.
CLEANER FISH
Cleaner fish eat sea lice off the salmon and are used as a
preventive measure to keep sea lice numbers low. In this way, they
successfully help to reduce the number of delousing treatments
salmon undergo.
• Finnmark use farmed lump suckers as an addition to other
sea lice control measures, to keep sea lice levels low without
treatments. The aim is to reduce the number of cleaner fish
used within some years and replace them with other sea lice
control innovations if we find measures that are as effective.
• Rogaland use wild wrasse and farmed lump suckers. Today, this
is a key measure to keep sea lice levels low without treatments.
In this region, we aim to improve effectiveness of the measure
and reduce the number of cleaner fish used. Fishing quotas for
wild cleaner fish are regulated by Norwegian Authorities.
As cleaner fish are living animals in our care, they are also covered
by our fish health and welfare policies. However, we recognize
that fish health and welfare is not on a sufficient level as of today,
and mortality rates are too high. We are working systematically to
improve in this area. As a new species in aquaculture, it will take
time to get to a sufficient health and welfare level. Some of our
efforts are:
• Only use cleaner fish on farms where we know they are
effective. Farms with harsh conditions are not suitable for use
of cleaner fish.
• Use the type of cleaner fish that is best suited for the biological
conditions, such as seasonal temperatures, on each farm. For
instance, wild wrasse is only used during summer and autumn
in Rogaland, as temperatures are too low in the winter.
PA R T 0 2 : H E A LT H Y O C E A N
F I S H H E A LT H A N D W E L FA R E
PA G E 2 4
• Optimized vaccination programs.
• Screening before release into the pens.
• Specific feed in the pens, tailor-made for cleaner fish.
• Tailor-made, artificial kelp forests in the pens where the
cleaner fish can hide, avoid stress, rest, and sleep.
•
Improve harvesting practices of cleaner fish.
• Register fish welfare and mortality on a daily basis.
We are working systematically to improve our reporting routines,
evaluate causes of mortality and to have better control of the loss
of cleaner fish at sea.
We recognize the ethical dilemma in using cleaner fish. Today,
though, cleaner fish is an important and effective measure to keep
sea lice levels low without treatments on specific farms. We are
working both to improve the health and welfare of cleaner fish, but
also to continuously evaluate other preventative sea lice control
measures that are emerging.
OU R AP P R O A CH T O A N T IBI O T IC S
OUR P R INCIP LE S F OR AN T IBIO T IC S
Resistance to antibiotics is a growing global challenge, and
such risks increase with extensive use of antibiotics in animal
protein production. We are committed to combating resistance to
antibiotics.
We are committed to preventing bacterial diseases by using
available vaccines and biosecurity measures. We aim to avoid
use of antibiotics when possible. In Norway, effective vaccines
have reduced the use of antibiotics, however it has been used in a
limited amount to secure the welfare of the fish when there are no
other alternative treatment.
RESULTS IN OUR REGIONS
→ Rogaland
→ Finnmark
→ British Columbia
→
Newfoundland
• Antibiotics are used only as a last resort to treat bacterial
diseases when fish health and fish welfare are threatened, and
never as a growth-promotor.
• All farming operations comply with the WHO Guidelines on
Use of Medically Important Antimicrobials in Food Producing
Animals.
• Antibiotics on the WHO list of Critically Important Antimicrobials
for Human Medicine categorized as “critically important” will
not be used.
• Antibiotics on the WHO list of Critically Important Antimicrobials
for Human Medicine categorized as “highly important” or
“important” can be used if fish welfare is threatened.
• Antibiotics with low bio availability (oxytetracycline) will not be
used.
• Antibiotics must be prescribed by authorized fish health
personnel and only drugs licensed as veterinary medicine will
be used.
• Withdrawal periods for medicine use are rigorously controlled
and documented.
• All prescriptions for antibiotics must be approved by central
management in Grieg Seafood ASA.
FIGURE 2.4
DENSIT Y IN THE PENS
Our seawater pens are between 97.5% - 98.5% water and 2.5%
- 1.5% fish biomass, providing space for the fish in our facilities
to allow for comfort, natural behavior and a healthy growth cycle.
PA R T 0 2 : H E A LT H Y O C E A N
P R O T E C T I N G W I L D S A L M O N
PA G E 2 5
PROTECTING WILD SALMON
Salmon farming can potentially impact wild salmon if
we do not use responsible farming practices. Keeping
low levels of sea lice, avoiding escapes and avoiding
diseases are key aspects to ensure co-existence. Grieg
Seafood is working hard to avoid impacting wild
salmon in all of our regions.
PA R T 0 2 : H E A LT H Y O C E A N
P R O T E C T I N G W I L D S A L M O N
PA G E 2 6
SEA LICE CONTROL
Controlling sea lice levels is one of the most important measures to protect both
wild salmon and the health and welfare of farmed salmon. Sea lice treatments are
expensive and resource intensive. We aim to keep sea lice levels low at all times.
OUR AP P R O A CH
We have an ethical responsibility to protect our salmon against
health issues caused by sea lice. We also have a responsibility to
reduce the risk of sea lice from salmon farms contaminating wild
salmonids, especially during the smolt migration period. We also
need to protect biodiversity and the ecosystems around our farms,
and to minimize the impact from sea lice treatments.
Every region has implemented measures to comply with national
sea lice legislation.
OUR P R INCI P LE S
FIGURE 2.5
OUR APPROACH TO SE A LICE CONTROL
1. PREVENTION
Genetics, post smolt, semi-closed
containment, fallowing zones, skirt, shield
2. BIOLOGICAL REDUCTION
Cleaner fish, laser, etc
3. TREATMENTS
Medical/non-
medical
1. When available, we use roe that has
proven more resistant to sea lice.
Post-smolt reduces the time at sea
and reduces the exposure to sea lice,
which improves sea lice control. We
use sea lice skirts/shields, to prevent
sea lice from entering the pens.
2. We use lump suckers and wrasse,
which eat sea
lice. Rogaland
in
particular has succeeded
in using
wrasse effectively. We use
lump
suckers at all green
licenses
in
Finnmark.
3. We use mechanical treatments, such
as fresh water, to avoid affecting
environment.
the
The methods
are selected when conditions are
favorable. Only as a last resort do we
use medical treatments.
Grieg Seafood prefers to use preventive and biological sea lice
• Non-medical treatments are preferred if they provide an
measures rather than medical and non-medical treatments.
acceptable level of fish welfare. A risk assessment must be
Harvesting will always be considered when sea lice-infested fish
performed prior to any treatment. The treatment’s effectiveness
are close to harvestable weight.
and the risk of side effects on fish and the environment should
be evaluated.
• Sea lice measures are based on IPM (Integrated Pest
• Pharmaceuticals for sea lice treatments must be prescribed by
Management) principles. A multifaceted approach will give
authorized fish health personnel, and only medicines licensed
improved results and reduce the risk of sea lice becoming
for sea lice control should be used.
resistant.
• Withdrawal periods for medicine use are rigorously controlled
• Minimize use of pharmaceutical treatment methods that
and documented.
discharge treatment water into the sea. Pharmaceutical lice
treatments are acceptable in clean treatment systems, which
purify the treatment water before it is discharged back into the
ocean.
LEARN MORE ON OUR WEBSITE
→
→
Policy for sea lice control
Co-existence with wild salmon
RESULTS IN OUR REGIONS
→
→
→
Rogaland
Finnmark
British Columbia
OUR TAR GE T S
Sea lice level Rogaland
and Finnmark*
Average adult female sea lice below 0.5
Sea lice level BC**
Average motile sea lice below 3.0
*At the green licenses in Finnmark, the limit is 0.25 adult female sea lice per fish, while
during April and June, when wild salmon smolt migrate from the rivers and pass the
salmon farms, the limit is 0.2 adult female sea lice per fish.
**Pacific salmon species on the Canadian west coast have a higher tolerance for sea lice
and for that reason we use separate KPI for British Columbia.
PA R T 0 2 : H E A LT H Y O C E A N
P R O T E C T I N G W I L D S A L M O N
PA G E 2 7
ESCAPE CONTROL
In areas where the wild salmon population is of the Atlantic species, escapes
may cause interbreeding between farmed and wild salmon in the rivers, and
interfere with the genetic uniqueness of the local wild salmon population.
O U R AP P R O A CH
OUR P R INCI P LE S
• High technical standards at our sites. We have implemented
• Regular inspections of vessels, moorings, and facilities to
the technical minimum requirement set by the government,
verify compliance.
the NYTEK standard, at all facilities in Norway to avoid escapes
•
Inspections before and after harsh weather.
during harsh weather.
• We follow procedures to avoid escapes before, during and after
operations, according to local conditions:
• Our goal is that all employees attend courses on escape
prevention at least every third to fifth year. New employees also
receive risk and procedural training, and do not carry out work
— Divers and/or a ROV are used before and after the transfer
operation.
or treatment of fish.
— In Rogaland, divers are used during operations.
— In Finnmark, a ROV is used during operations.
— In British Columbia, we use double nets on all pens. A ROV
is used to inspect the grow nets after each targeted two
week cleaning cycle.
We regard it as our responsibility to avoid interbreeding between
with our Atlantic salmon. In Newfoundland, we use sterile fish,
our farmed salmon and the local wild salmon populations. In
which cannot interbreed with local wild fish.
OUR TAR GE T
Rogaland and Finnmark, our farmed salmon is of the same
species as the wild salmon population (Atlantic salmon), and
Grieg Seafood has zero tolerance for escapes from our farms in
Escape
Zero escape incidents
interbreeding may happen should escapes occur. In BC, the wild
all regions.
salmon are of the Pacific salmon species, which cannot interbreed
RESULTS IN OUR REGIONS
→
→
→
Rogaland
Finnmark
British Columbia
PA R T 0 2 : H E A LT H Y O C E A N
P R O T E C T I N G B I O D I V E R S I T Y & M A R I N E E C O S Y S T E M S
PA G E 2 8
PROTECTING BIODIVERSITY
& MARINE ECOSYSTEMS
Protecting biological diversity is important for ensuring
the survival of animals and plants, genetic diversity,
and natural ecosystems. Natural ecosystems provide
clean water and air, and contribute to food security and
human health. It is our responsibility to protect nature
and biodiversity wherever we operate.
PA R T 0 2 : H E A LT H Y O C E A N
P R O T E C T I N G B I O D I V E R S I T Y & M A R I N E E C O S Y S T E M S
PA G E 2 9
PROTECTING MARINE ECOSYSTEMS
We take special care to avoid impacting ecologically sensitive habitats.
OU R AP P R O A CH
We are increasing our awareness of nature and biodiversity risk,
and we strive to learn more about and avoid impacting ecologically
sensitive marine habitats.
OUR P R INCI P LE S
OUR TAR GE T S
Impact on marine ecosystems
Environmental and social impact
assessment performed for 100% of
farms
• Our farms are located in legally and permitted zones for
aquaculture development.
• We perform environmental and social impact assessments of
new land-based sites and seawater locations.
• We do not set up new farms within the following locations:
— existing federal parks, regional district parks, marine
protected areas, and conservancies.
— within any area where there is identified critical habitat for
endangered species.
• We comply with local and national legal requirements in
regards to minimum distances where a farm can be located.
• We monitor changes to legislation and perform annual
revisions to the impact assessments.
• All our farming operations are certified according to standards
that take account of biodiversity. These standards, such as
GlobalG.A.P., BAP and ASC, include criteria to minimize
environmental impact and preserve biodiversity.
OUR R E S ULT S
Grieg Seafood follows national regulations in each country with
Our impact assessments also include identification of IUCN red
regards to operations in protected areas, and risk assessments
list and national conservation list species present in our operating
are conducted as part of the standard application process. We
areas. The International Union for Conservation of Nature
follow regulations to avoid impact on biodiversity and the marine
(IUCN) ‘Red List of Threatened Species’ provides an inventory of
environment beyond what
is considered acceptable by the
the global conservation status of plant and animal species, and
authorities in the countries in which we operate. Certifications,
national conservation lists serve as authorities on the sensitivity
like the Aquaculture Stewardship Council (ASC), where impact
of habitat in areas affected by our operations, and on the relative
assessments are part of the certification program, help us raise
importance of these habitats from a management perspective. Our
the bar above regulatory limits.
assessments have not identified that our activities pose a threat
to any endangered plants or animal species. Please also read how
We have performed environmental and social impact assessments
we work to minimize impact on wildlife here.
of all (100%) of our sites. Two broodstock sites in Rogaland and
the harvesting plant in Finnmark are located in "national salmon
Each region performs continuous monitoring of legislation
fjords", a protection category created by the Norwegian Parliament
revisions as well as annual revisions to the impact assessments.
to protect wild salmon. Our two sites in Rogaland are located in
Impact assessments are also part of the ASC certification program.
Suldalsfjorden, using a total area of 0.054 km2. Our harvesting
plant in Finnmark is located in Altafjorden, and uses 0.003 km2 of
the seawater surface. These seawater farms and the harvesting
plant were present prior to the establishment of the category,
and became subject to certain restrictions as a result. We do have
sites in the proximity of land nature reserves, but we do not have
any other sites in or adjacent to protected areas or areas of high
biodiversity value (areas defined as Special Areas of Conservation
(SAC), Marine Protected Areas (MPA), High Conservation Value
Areas (HCVA) or Federal Marine Protected Areas) expect for those
mentioned above. All site locations available on our web site with
GPS coordinates, please see links below. The regional maps can be
matched with other maps, such as HCVA.
LEARN MORE ON OUR WEBSITE
→
→
→
Our site locations in Rogaland
Our site locations in Finnmark
Our site locations in BC
PA R T 0 2 : H E A LT H Y O C E A N
P R O T E C T I N G B I O D I V E R S I T Y & M A R I N E E C O S Y S T E M S
PA G E 3 0
INTERACTION WITH WILDLIFE
OUR P R INCI P LE S
Farms are often located in areas abundant with birdlife and marine
mammals. We strive to avoid conflicts with wildlife.
OU R AP P R O A CH
We arrange operations and facilities in a way that minimizes our
impact on local wildlife.
• Potential conflicts with wild animals are evaluated when we
consider new sites.
• We aim to release any animal that gets stuck in our pens
unharmed.
• We generally only euthanize animals that are injured, and
choose alternative ways to protect farms against intruders.
Euthanizing animals must be approved by a manager and in
some cases a regulator. We do not euthanize species listed on
• Where relevant, we use equipment that minimizes the risk of
injury to wildlife, such as bird nets, strong nets, anti-predator
national red list conservation list.
• Weapons are not allowed on our sites.
equipment or electric fences.
• We do not use Acoustic Deterrent Devices (ADDs) as some
research indicates that they impact the navigation systems of
certain marine mammals.
OUR TAR GE T
Wildlife interaction
Minimize impact on wildlife
LEARN MORE ON OUR WEBSITE
→
Co-existence with wild life
RESULTS IN OUR REGIONS
→
→
→
Rogaland
Finnmark
British Columbia
PA R T 0 2 : H E A LT H Y O C E A N
P R O T E C T I N G B I O D I V E R S I T Y & M A R I N E E C O S Y S T E M S
PA G E 3 1
ORGANIC EMISSIONS
Organic emissions from salmon farming may impact the marine
ecosystem in the ocean under or around the pens. For this reason, we
give the environment time to recover between each generation of fish
farmed. Our impact should never be irreversible.
OU R AP P R O A CH
As in all other types of food production, our farming operations
leave a footprint through local emissions. Such emissions may
be excess feed, feces from the fish or copper from fish nets. This
impact should never be irreversible. Between each generation of
fish, we allow the ecological system to rest and restore itself.
OUR P R INCI P LE S
OUR TAR GE T S
• We choose sites with good currents and exchange of water. This
ensures that fecal waste is dispersed rather than accumulating
Seabed conditions
All sites restored between each generation
of fish farmed
in one place, thus mitigating its negative impact. We move
Copper
100% copper free nets
away from sites that have less optimal conditions and increase
production at sites with optimal conditions, which reduces our
overall impact.
• All farms are fallowed after each generation, allowing the
environment to rest until it reaches regulated restoration
thresholds. Only then may we transfer a new generation of
salmon to the farm. Sites with optimal conditions recover
quicker than sites with less optimal conditions. We monitor the
seabed under and around our sea farms, and perform benthic
testing during peak biomass.
LEARN MORE ON OUR WEBSITE
• All regions apply Area Based Management, where all farms in
an entire fjord system are fallowed simultaneously, allowing a
→ Impact on nature
larger marine ecosystem to rest at the same time.
• We aim to reduce excess feed by using underwater cameras
and transferring control of the feeding process to operational
centers staffed by feeding experts. This enables us to stop
feeding when the fish are replete.
• We use copper-free antifouling solutions on our nets.
PA R T 0 2 : H E A LT H Y O C E A N
P R O T E C T I N G B I O D I V E R S I T Y & M A R I N E E C O S Y S T E M S
PA G E 3 2
OU R R E SULT S
Each country has its own scoring system for benthic tests of the
if seabed test results indicate that is needed. Only when a farm
seabed under fish farms, including their own threshold of when
has reached the threshold of restoration, may we transfer a new
a site is restored. The marine ecosystem under all farms are
generation of fish to the site. If fallowing is not enough to improve
restored through fallowing before a new generation of fish is
seabed test results, additional measures, such as reducing
transferred to the farm.
production, is taken.
In Norway, farms must conduct independent seabed tests (B
In BC, regulations require us to conduct benthic tests at peak
test) at peak biomass production/max load, and also undertake
biomass at each farm, and fallow the farm after ended production
regular independent tests in the area around the farms (C test).
cycle until the seabed of the site reaches the regulated threshold
Local regulations impose fallowing periods after each generation
of remediation. The test must be accepted by the regulators and,
to ensure the environment under and around the pen recover.
since our farms are BAP certified farms, an independent third
The minimum fallowing period is at least two months, and longer
party.
FIGURE 2.6
RESTORED ECOSYSTEMS UNDER FARMS
Region
Rogaland
Finnmark
Remediated ecosystems under farms before a new generation of fish was transferred in 2021
100% of farms*
100% of farms*
British Columbia
100% of farms**
*Restored to “very good” or “good” thresholds according to local regulations.
**Threshold on hard bottom according to local regulations: Beggiatoa species, similar bacteria or marine worms does not cover 10% or more of any four segments of substrate. Threshold
on soft bottom according to local regulations: Sulphide does not exceed 1 300 µM at 30 m and 700 µM at 125 m away from the cage edge along two transects.
ROGALAND
Grieg Seafood has partnered with other salmon farming
companies
in Rogaland
to commission an
independent
environmental monitoring program, to ensure that the combined
organic emissions from all the farms do not significantly impact
the fjords. The program monitors the water quality and possible
eutrophication in the Ryfylke fjord system. The results after ten
years of monitoring show that the fjord system’s environmental
condition is good.
According to the Risk Report of Norwegian Fish Farming by the
Institute of Marine Research, the risk of impact from organic
waste from fish farming is low and the environmental ecosystem
condition is good in Rogaland (the salmon production area PO2).
100% of our sites received a very good or good score on seabed
tests in 2021, compared to 92% in 2020. Sites that receive a poor
score must subsequently fallow for longer. Through our integrated
operation center, we can develop specialized feeding expertise.
We are working to reduce excess feeding by using underwater
cameras, so that we can stop feeding when the fish are replete.
FIGURE 2.7
ROGAL AND RESULTS OF B-TEST
Year
2021
2020
Very good
83%
83%
Good
17%
8%
Poor
0%
8%
Very poor
Test not yet taken (new sites)
0%
0%
0%
0%
FINNMARK
According to the Risk Report on Norwegian Fish Farming by the
53% of our sites received a very good or good score on seabed tests
Institute of Marine Research, the risk of impact from organic waste
in 2021, slightly up from 52% in 2020. Longer fallowing periods
from fish farming in Finnmark (the salmon production area PO12) is
are in place for sites with poor scores, and a new generation will
low and the environmental ecosystem condition is good. Compared
not be stocked until the impact is reversed and the sites have met
to Western Norway, there are far fewer fish farming operations in
the regulated restoration thresholds. Access to new sites will also
Finnmark, which reduces the overall risk. An environmental study
reduce the organic impact. In addition, we are conducting digital
of the organic impact of fish farming in the Alta fjord, published in
analyses of the marine conditions at sites to understand how the
2017, showed low impact on the fjord system. Organic materials
farms can hit the currents in the most optimal way, which reduces
decompose more slowly in low seawater temperatures, and we
the organic impact. We are subsequently working with local
may need longer fallowing periods compared to Rogaland.
authorities to adjust the farms accordingly.
FIGURE 2.8
FINNMARK RESULTS OF B-TEST
Year
2021
2020
Very good
Good
43%
26%
10%
26%
Poor
19%
26%
Very poor
Sites with hard seabed (do
not get a score)
Test not yet taken (new sites)
5%
0%
14%
16%
10%
5%
Based on last B-test taken per site, either at peak biomass production/max load, or before restocking when the seabed has recovered.
BRITISH COLUMBIA
The Aquaculture Activities Regulation, established under the
substrate monitoring according to the Monitoring Standard. The
Canadian Fisheries Act, sets exceedance limits for the benthic
sites cannot be restocked if they exceed these limits.
FIGURE 2.9
BC % OF SITES THAT ARE RESTORED
Substrate Type
Benthic exceedance thresholds at peak biomass or before re-stocking
Compliance 2021
Hard Bottom
Soft bottom
* ASC Salmon standard.
FIGURE 2.10
USE OF COPPER
Region
Rogaland
Finnmark
British Columbia
Beggiatoa species, similar bacteria or marine worms does not cover 10% or more of
any four segments of substrate.
Sulphide does not exceed 1 300 µM at 30 m and 700 µM at 125 m away from the cage
edge along two transects.
Sulphide does not exceed 1 500 µM outside the Allowable Zone of Effect*
100%
100%
100%
Copper-free antifouling solutions on nets
100%
100%
100%
Finnmark had one pen with copper antifouling solution as part of a research project.
PA R T 0 2 : S U S TA I N A B L E F O O D
PA G E 3 3
OUR PROGRESS TOWARDS
A SUSTAINABLE FOOD SYSTEM
SUSTAINABLE FOOD
S A F E A N D H E A LT H Y F O O D
S U S TA I N A B L E F E E D I N G R E D I E N T S
R E D U C I N G C A R B O N E M I S S I O N S
WA S T E M A N A G E M E N T
3 4
3 6
3 9
4 2
We work to make our practices more sustainable
along the entire value chain. Focus areas extend
from safe and healthy food, traceability, and feed to
carbon emissions and waste management.
PA R T 0 2 : S U S TA I N A B L E F O O D
S A F E A N D H E A LT H Y F O O D
PA G E 3 4
SAFE AND HEALTHY FOOD
Our salmon is healthy and safe to eat. We are transparent
about our farming methods and communicate our standards
and results to our customers.
OU R AP P R O A CH
Customers and consumers can trust our products, our approach
to food safety, and our food safety management systems.
OUR P R INCI P LE S
OUR TAR GE T S
• Grieg Seafood’s products are produced, processed, packaged,
labelled, and sold in a value chain that ensure a high level and
Global Food Safety
Initiative certification
All operations 100% certified
focus on protection of human health.
• Based on scientific advice, data collection, analysis, and
regulatory requirements Grieg Seafood deliver a seamless
integrated approach to food safety and quality
• Grieg Seafood has a fully integrated traceability system from
roe to finished product, including fish feed. Our operation also
keeps adequate records of raw material suppliers, and the
ingredients they supply.
• Grieg Seafood will advise customers to comfortably recognize
that they are responsible for proper storage, handling,
processing, or cooking of food after delivery.
• Products originating from our processing plants have been
handled under a competent Hazard Analysis Critical Control
Point (HACCP)- and sanitary program. Grieg Seafood focuses
on risk-based thinking to take advantage of opportunities and
preventing unwanted results.
• Zero residues of any medicines in our products.
Quality share
93% superior share
Medicine residue
Zero residues
Environmental
contaminants
No levels above limits set by authorities
Foodborne bacteria
No levels above limits set by authorities
LEARN MORE ON OUR WEBSITE
→ Our policy for food safety
PA R T 0 2 : S U S TA I N A B L E F O O D
S A F E A N D H E A LT H Y F O O D
PA G E 3 5
OU R R E SULT S
CERTIFICATIONS
Our farming operations (except Newfoundland, which has not yet
started production in sea) are certified according to the Global
Food Safety Initiative (GFSI) through our BAP and GLOBALG.A.P.
certifications. Our sales and market organization is chain-of-
custody certified according to ASC and GlobalG.A.P. While GFSI
does not provide food safety certification, it recognizes a number
of certification programs that meet the GFSI benchmarking
requirements. GFSI recognized certification is a mark of the
highest standards in food safety, allowing food businesses that
hold these certificates to access all corners of the global market.
TRACEABILITY
Each salmon has a CV with information about origin and production
to ensure full traceability. The information includes details on the
relevant fish group, farm and pen where it was grown, broodstock,
roe, feed batches, certifications, vaccinations and medical
treatments if relevant. Each fish box has a traceable LOT number.
Going forward, we will assess blockchain services or equivalent
measures aimed at improving traceability related to sustainability
and food safety.
PRODUCT RECALLS
We maintain strict quality control at every stage of our farming
operations to ensure the highest levels of food safety. Products
originating from our processing plants have been handled through
a HACCP- and sanitary program. We did not have any product
recalls in 2021, and we are not banned from any markets. We have
not had any product recalls for at least last ten years. However, we
perform regular training on our procedures for managing product
recalls.
QUALITY SHARE OF OUR SALMON
Diseases, winter ulcers and other biological issues may affect
the quality of our product. We categorize our salmon as superior,
ordinary or production grade. Superior quality has a positive
overall impression with good meat quality and no external damage
or faults. Downgraded salmon has external and/or internal faults
or damage, and obtains a lower price in the market. In Norway,
downgraded salmon is priced according to standard discount
rates of NOK 1.5-2 per kg GWT for ordinary grade and NOK 5-15
per kg GWT for production grade, depending on the extent of the
impairment. As other companies in the salmon farming industry
may use other quality categories and criteria for grading their
harvested salmon, the quality share may not be comparable
between the companies. The superior share is calculated as a
percentage of net biomass, excluding discards. See each regions
scoreboard for results.
ENVIRONMENTAL CONTAMINANTS
FIGURE 2.11
ENVIRONMENTAL CONTAMINANTS AND LIMITS IN 2021 FOR SAMPLES OF GRIEG SE AFOOD SALMON
Environmental contaminant
Lead
Mercury
PCB 6
Dioxins PSDD/F TEQ excl LOQ
EU limit
0.3 mg/kg
0.5 mg/kg
75 µg/kg
3.5 pg/g
Samples
Median
Max
Median
Max
Median
Max
Median
Max
Norway
British Columbia
< 0.050 mg/kg
< 0.050 mg/kg
< 0.050 mg/kg
< 0.050 mg/kg
0.010 mg/kg
0.020 mg/kg
3.245 µg/kg
6.290 µg/kg
0.301 pg/g
0.354 pg/g
0.000 mg/kg
0.013 mg/kg
0.000 mg/kg
0.000 mg/kg
0.000 mg/kg
0.241 mg/kg
Our sampling for PCBs, dioxins, PCB-like dioxins and heavy metals are taken on all farms at the end of the production cycle. Samples from
each site are tested according to standard analytical methods by external laboratories. BC does not source fish oil from areas where all of
these contaminants can be a challenge.
FIGURE 2.12
FOODBORNE BACTERIA - LISTERIA CONTAMINATION
Region
Rogaland
Finnmark
British Columbia
*Number of samples of end product.
Number of samples*
2020
Listeria detected (%)
2020
Number of samples*
2021
Listeria detected (%)
2021
1 184
429
138
0.0%
0.0%
0.7%
1 305
262
118
0.1%
0.4%
2.5%
We test our salmon for Listeria on a regular basis. Samples are analyzed according to standard methods by external laboratories. If Listeria
is detected, action plans are executed in the form of extra thorough cleaning or technical measures such as change of equipment set-up,
or replacement of equipment. Relevant customers are informed. Most of them have measures in place to manage Listeria for the fish they
buy, even when Listeria is not found on the fish or at the harvesting plant. The number of samples taken in Finnmark has been reduced
in 2021 as there was no harvesting at our own plant during the first half year due to upgrading of the plant. We had one positive sample
of Listeria in Rogaland and Finnmark in 2021, and in BC, three fish tested positive for Listeria. When we have a positive Listeria result, we
ensure that the proper cleaning and disinfection procedures are followed and increase the level of disinfection if positive results continue.
We also perform regular Listeria sampling at key points on the processing line to ensure food safety. Samples are taken regularly to show
variations over time.
QUALITY SHARE OF SALMON
→
Rogaland
→
Finnmark
→
British Columbia
PA R T 0 2 : S U S TA I N A B L E F O O D
S U S TA I N A B L E F E E D I N G R E D I E N T S
PA G E 3 6
SUSTAINABLE FEED INGREDIENTS
Fish feed is the most important and cost-intensive input factor in salmon
farming. Feed ingredients should come from sustainable sources. We
continuously work to reduce the impacts from our fish feed.
OUR AP P R O A CH
OUR P R INCI P LE S
Input factors in fish feed, both marine ingredients and plant-based
• Marine ingredients do not contribute to overfishing:
ingredients, should come from sustainable sources.
— No marine ingredients come from illegal, unreported, or
unregulated fisheries.
Ingredients with high-risk are certified by recognized certifications.
— All marine ingredients from forage fisheries (excluding
Today, fish meal and fish oil from fisheries and Brazilian soy
byproducts) are certified by MSC or MarinTrust (including
and palm oil are identified as ingredients of high-risk. To get a
Fisheries Improver Programmes).
fuller picture of the sustainability risks connected to feed, Grieg
— We comply with the ASC standard for how much fish meal
Seafood is currently risk assessing ingredients used according to
and fish oil we have in our feed.
environmental, social and governmental parameters.
• Be a net producer of marine protein.
The environmental impact from feed must be reduced. In addition,
deforestation either directly or indirectly and we require the
the aquaculture industry is expected to grow significantly during
following:
the coming decades, due to global population growth. As such,
— Brazilian soy protein concentrate are certified according to
novel types of feed ingredients are needed to be able to produce
ProTerra or Round Table on Responsible Soy (segregated)
salmon sustainably going forward.
— Brazilian soy protein concentrate is supplied by Brazilian
• Grieg Seafood is committed to ensure we do not contribute to
FIGURE 2.13
FEED INGREDIENTS IN 2021
Fishoil
This illustrates the average of raw material content in our feed
used in Norway. In BC, the content is somewhat different as in
general a larger part of protein from vegetable are replaced by
poultry-bi product. We do not use palm oil in our feed.
LEARN MORE ON OUR WEBSITE
→
→
Supplier Code of Conduct
Our feed approach
vendors with a 2020 cut-off date, including a robust MRV
system, for all of their soy bean business. This is important
to mitigate indirect contribution to deforestation in this
high-risk geography.
— Palm oil is certified by Round Table on Sustainable Palm Oil.
— Plant-based ingredients should not cause planting on
peatlands or exploitation.
— Grieg Seafood is committed to engage with stakeholders to
promote awareness of moving towards zero deforestation.
• Feed ingredients used by Grieg Seafood do not pose any risks to
human health. Read more here.
• Grieg Seafood will take part in commercializing novel feed
ingredients.
• Grieg Seafood is committed to work with stakeholders towards
more sustainable feed with lower impact.
• Feed suppliers are required by our Supplier Code of Conduct
to minimize their environmental impact, to safeguard basic
human rights and to behave responsibly. They are expected
to identify and monitor their environmental impact, and to
implement measures where needed.
OUR TAR GE T S A ND A CHIE V EMEN T S
Targets
All marine ingredients (excluding byproducts) used are based on
fisheries certified according to MSC or MarineTrust (including
FIPs)
Achievements 2021
Yes, for all regions for the full year
FFDRo below 2.52 (ASC requirement)
Yes, in all regions
FFDRm below 1.20 (ASC requirement)
All Brazilian soy protein concentrate certified according to
ProTerra or segregated RTRS
Yes, in all regions. The level is below 1.0, making us a net
producer of marine protein
Yes, in all regions using Brazilian soy protein concentrate
All Brazilian soy protein concentrate supplied by Brazilian
vendors with a 2020 cut-off date + robust MRV system
Yes (in all regions using Brazilian soy protein concentrate). CJ
Selecta, Caramuru and Imcopa are the Brazilian suppliers used
All palm oil used certified according to Round Table on
Sustainable Palm Oil
Yes (in Newfoundland, the only region where we used a small
amount, 0.3% of palm oil)
PA R T 0 2 : S U S TA I N A B L E F O O D
S U S TA I N A B L E F E E D I N G R E D I E N T S
PA G E 3 7
OU R R E SULT S
ZERO DEFORESTATION
Grieg Seafood’s Brazilian soy protein concentrate vendors, CJ
to the mitigation of sustainability linked risks in feed ingredients
is needed. This is especially necessary as the seafood industry is
Selecta, Imcopa and Caramuru, have as the first Brazilian soy
looking at developing novel feed ingredients suitable for scale. We
traders set a 2020 cut-off date for all of their soybean business in
must ensure that a scale-up of these ingredients do not contribute
the Cerrado, including a robust MRV system. With this move, they
to new or unforeseen ESG risks, and that they are a good fit for a
have set a new benchmark for sustainable supply chains globally.
future sustainable food system.
Grieg Seafood have engaged with these producers and applaud
their leadership. Read more here.
Grieg Seafood has initiated a project to evaluate environmental,
social and governance risks in salmon feed ingredients in a
Grieg Seafood participated in the CDP Forest program for the
holistic manner. In the assessment we have included topics
second time in 2021. CDP Forest provides a framework of action
previously unexplored in-depth in relation to all ingredients,
to measure and manage forest-related risks and opportunities,
like land use and biodiversity, carbon footprint and climate risk,
transparent reporting on progress, and commitment to proactive
circularity, pollution, soil health, fresh water consumption, human
action for the restoration of forest and ecosystem. We scored B on
rights, governance risk and scalability. The goal of the project is to
our work against deforestation. For more information, please visit
increase transparency and traceability, to be able to benchmark
CDP’s website here.
GRIEG SEAFOOD FEED PROJECT -
A HOLISTIC APPROACH TO
ENVIRONMENTAL, SOCIAL AND
GOVERNANCE (ESG) RISKS
In the animal feed industry, the sustainability focus has mainly
been on high-risk ingredients such as soy, palm oil, fish meal and
fish oil. In the past, efforts to mitigate the risk of overfishing lead to
less use of marine ingredients in salmon feed. Unfortunately, some
of the alternatives introduced, like Brazilian soy, were later linked
to new issues of concern, such as deforestation and conversion. To
avoid repeating the mistakes of the past, a more holistic approach
feed ingredients on material ESG aspects and have the ability to
reduce risk and drive change throughout our supply chains. The
assessment will also inform what novel ingredients we engage
with.
WWF US is our partner in the project. We work in close dialogue
with our feed suppliers on this project and our aim is to release
more information about the status of the project in 2022.
FIGURE 2.14
VOLUME OF MARINE INGREDIENTS
Volume of marine ingredients (tonnes)
Forage fish 2020
Forage fish 2021
Trimmings 2020
Trimmings 2021
Fish meal
Fish oil
7 062
8 697
6 726
7 123
2 244
2 689
3 154
5 999
Marine feed ingredients should come from sustainable sources. An overview of marine raw materials in our feed, including specie,
country of origin and certification of each raw material, is available here.
FIGURE 2.15
MARINE INGREDIENTS - FISH ME AL FFDRM
ASC REQUIREMENT: 1.2
The forage fish dependency ratio (FFDRm) represents the amount of wild fish needed to produce sufficient fishmeal for one kilo farmed
salmon. We use little fish meal in our feed. Our FFDRm figures shows a continuous reduction and that we were a net producer of marine
protein in 2021 in all regions. Our FFDRm is well below the ASC limit.
FIGURE 2.16
FISH OIL FFDRO
ASC REQUIREMENT: 2.5
The forage fish dependency ratio (FFDRo) represents the amount of wild fish needed to produce sufficient fish oil for one kilo farmed
salmon. We use low levels of fish oil in our feed, and we reduced the use of fish oil further in 2021 compared to 2020, and are well below
ASC requirements.
PA R T 0 2 : S U S TA I N A B L E F O O D
S U S TA I N A B L E F E E D I N G R E D I E N T S
PA G E 3 8
ADVOCACY TO PROMOTE MORE
SUSTAINABLE FEED
• We have taken part in the development of the new ASC feed
standard, which was launched in 2021.
NOVEL FEED INGREDIENTS
Grieg Seafood will take part in commercializing novel feed
ingredients. We are in dialogue with producers of such ingredients,
like insect meal, and have previously engaged in projects aimed at
• We are a member of the MarineTrust Governing Body
transforming algae into feed. Based the outcome of our ESG feed
Committee, to engage in the improvement of global fisheries.
project outlined above, we will determine our approach to novel
• We are member of a GRI task force for preparing a sector
standard for agriculture, aquaculture and fisheries.
ingredients.
• We have excluded Cargill Aqua Nutrition from our Green Bond
use of proceeds, until their mother company Cargill Inc. have
reduced their soy related deforestation risk in Brazil.
• Through the Global Salmon Initiative, we take part in the
development of a new industry standard for carbon emissions
from feed, which will allow us to benchmark and work more
systematically to reduce carbon emissions from feed.
FIGURE 2.17
BIOLOGICAL FEED CONVERSION RATIO (BFCR)
The biological feed conversion ratio describes the amount of feed required to produce one kilo of farmed salmon. It is calculated as the total
weight of feed divided by gross growth (incl. mortality). The ratio is an indicator of feed efficiency, reflecting how effective a feed strategy can
be. The bFCR ratio is impacted by the ability of the fish to utilize the nutrients in the feed for growth. The ratio is also impacted by over- or
underfeeding, causing feed spill or reduced growth, respectively. In 2021, we had a slight increase in the bFCR in Rogaland as biological
challenges related to PD impacted fish appetite negatively, while BC had a positive development mainly due to mitigation of challenges
related to algae and improved feeding control (less feed waste).
PA R T 0 2 : S U S TA I N A B L E F O O D
R E D U C I N G C A R B O N E M I S S I O N S
PA G E 3 9
REDUCING CARBON EMISSIONS
While farmed salmon has a low carbon footprint compared to other animal
proteins, our industry must do our part to achieve the Paris Agreement.
New solutions must be developed to cut emissions in our operations and
along our value chain.
OUR AP P R O A CH
According to the Intergovernmental Panel on Climate Change
(IPCC), global warming may cause ecosystem imbalance, ocean
acidification, extreme weather and social unrest. To fulfil the
Paris Agreement and avoid the consequences of global warming,
significant climate action by nations, businesses and individuals is
needed in the coming years.
According to the High-Level Panel for a Sustainable Ocean
Economy (Ocean Panel), food production from the sea may be
advantageous from a climate perspective, because the carbon
footprint from production is low compared to terrestrial animal
protein production (see also Figure 2.3 and our Aquaculture in a
sustainable global food system chapter). However, we recognize
that we must do more to cut greenhouse gas (GHG) emissions
from our farming operations and supply chains. Direct emissions
from our production (Scope 1 & 2) account for less than 10% of our
total emissions. More than 90% of our emissions originate from
our value chain (Scope 3), particularly those aspects linked to fish
feed and the transportation of salmon from our harvesting plants
to the markets.
• Take part in R&D projects in regions where renewable energy
sources are not available.
• Encourage suppliers to take climate action through:
— Setting GHG emission reduction targets in line with the
Paris Agreement.
— Conducting annual climate accounting.
•
Improve transparency and contribute to the development of
robust GHG reporting standards that allow for comparison and
benchmarking.
• Do not engage in lobbying activities that run contrary to the
fulfillment of the Paris Agreement on climate change.
• Engage in carbon offset initiatives.
OUR TAR GE T S
GHG emission
reduction
35% reduction of Scope 1, 2 and 3 by 2030
(from a 2018 base year)
100% reduction of Scope 1, 2 and 3 by 2050
We are working continuously to improve data quality and reporting
from our operations and suppliers. By cutting GHG emissions,
OUR R E S ULT S
Grieg Seafood aims to be a part of the low carbon solution in a
sustainable global food system.
OUR P R INCI P LE S
Our efforts to reduce our GHG emissions focus particularly on feed
and transportation to market. We also work continuously to reduce
GHG emissions from our production.
• Reduce the GHG emissions from our feed.
• Favor transportation methods with a low carbon footprint.
— Grieg Seafood’s set-up allows for shorter transportation
routes and limits use of air freight to our two main markets:
− Main supply to Europe from Northern and Southern
Norway
− Main supply to the USA from Eastern and Western
Canada
— Eliminate unnecessary weight from transportation.
— Preferred methods of transportation are train, ship, and low
emission trucks.
— Take part in R&D projects and help commercialize climate-
friendly transportation methods suited for our transport
routes.
• Reduce the carbon footprint of our production, with the aim
of eliminating our dependence on finite energy sources.
Prefer renewable energy sources in regions where that is
commercially available.
THE SCIENCE BASED TARGET INITIATIVE
Our greenhouse gas (GHG) emission reduction targets are
classified as well-below 2°C (2030) and 1.5°C (2050), aligned with
the Paris Agreement. Our emission targets have been approved by
the Science Based Targets initiative, and can be found here.
CDP
For 2021, the CDP awarded Grieg Seafood an ‘A’ score for our
climate disclosures and efforts to transition to a low-carbon
future. Even though farmed fish already has a low carbon footprint
compared to other animal proteins, our industry must still find
ways to cut more emissions from our operations and supply chain.
For more information, please visit CDP’s website here.
LEARN MORE ON OUR WEBSITE
→
→
Our policy for climate action
Reducing carbon emissions
PA R T 0 2 : S U S TA I N A B L E F O O D
R E D U C I N G C A R B O N E M I S S I O N S
PA G E 4 0
GH G EM IS SION S E XP L AN AT I ONS
SCOPE 1 & SCOPE 2 EMISSIONS
Our absolute Scope 1 and Scope 2 GHG emissions remained
unchanged compared to last year, while production increased by
6%. As a consequence, the emissions decreased by 6% measured
as kilograms of C02 equivalents per tonne harvested. In Rogaland,
total emissions decreased by 5% from 2020 to 2021, despite a
16% increase in harvested volume. As a consequence, emissions
per tonne decreased by 18% from 2020 to 2021. In Finnmark,
the harvested volume increased by 28%. Total emissions were
increased by 17%, mainly due to an emission factor correction*.
As in Rogaland, this shows that there is not a linear correlation
between production volume and emissions. Well-boat services
make up a substantial proportion of our emissions, and whether
we decide to provide these services ourselves or outsource them
to external service providers has a considerable influence on our
Scope 1 emissions. In Rogaland, well-boat emissions are included
in Scope 1, while well-boat emissions in Finnmark are categorized
as Scope 3 due to contractual considerations. Finnmark’s
Scope 3 emissions from well-boat activities in 2021 total almost
3 200 tCO2e.
In BC, the 3% decrease in total emissions is attributable to a
32% decrease in harvested volume, which also caused relative
emissions per tonne to rise by 43%. As described in our Strategy
chapter, harvest volumes in BC vary significantly every other year.
While these fluctuations affect total emissions only marginally,
their primary impact is on relative emissions.
Grieg Seafood Newfoundland was acquired in April 2020, and
completed its first full-year greenhouse gas accounts in 2021.
Newfoundland has not yet started up seawater production.
However, the freshwater facility has been in operation throughout
the year. Its emissions, mostly attributable to the use of heavy
construction equipment and company vehicles, are still relatively
low but expected to increase noticeably once the first smolt
are transferred to the sea (expected mid-2022). Grieg Seafood
Newfoundland’s emissions 99% of our other emissions displayed
in Figure 2.18.
SCOPE 3 EMISSIONS
reasons for this development. Most importantly, we established
our own sales organization in 2021, which involved building up an
entirely new client base. This process has significantly influenced
the mode of transport used for distribution. In addition, air
transport opportunities where reduced significantly by Covid-19
in 2021 and it is assumable that the air transport percentage will
increase again in 2022. Lastly, the choice of transport mode is
influenced by logistical restrictions, harvest schedules, availability
and demand for certain sizes and qualities of fish, and prices.
In general, downstream transportation was calculated as
transport from harvesting facility to airport of departure to
destination country (capital) in tonne-kilometers (tkm). For all
sales from our Canadian operations (mostly delivered to the North
American market), transport was calculated to the state capital
in order to achieve an acceptable degree of precision. Value-
added processing and details of the exact transportation routes
were not taken into consideration due to a lack of data. With our
new sales organization and new technology, e.g. blockchain, we
aim to increase the level of detail in regard to tracking the path
our salmon takes from harvesting facility to the final consumer
in the years to come. We are open to collaboration projects and
participated, amongst others, in a sustainability reporting-related
workshop led by our seafood logistics software provider in early
2022.
Fish feed
Our emissions from fish feed are highly dependent on the different
feed materials used as well as the life cycle assessments and the
methodology chosen by our feed suppliers. More information about
the composition of our feed can be found in our chapter on feed
ingredients. The fish feed emission factors are calculated based on
life cycle assessments (LCAs) and appear to be variable over time
and different between our suppliers. The reason for this is that
data quality and transparency vary and increase with the efforts
made and resources allocated to those comprehensive analyses.
In 2021, we have seen a substantial decrease in carbon emissions
from our deforestation certified soy protein concentrate (SPC) from
ProTerra. The reduction originates from better and more accurate
data sources allowing us to use less general emission data. By
The two most substantial contributors to both Scope 3 and
suppliers regularly, we actively contribute to the improvements
overall emissions are downstream transportation and fish feed.
and increase in accuracy that are necessary.
Downstream transportation accounts for 15% and fish feed
for 70% of our total emissions (16% and 76% of our Scope 3
emissions, respectively). As shown in Figure 2.18, our total
Scope 3 challenges
We work to continuously improve our Scope 3 emissions data
emissions decreased by almost 40 000 tCO2e in 2021. This
collection. Some of the figures are only technical estimates of
substantial decrease is almost exclusively attributable to a shift in
downstream transportation from air to road transport.
Downstream transportation
In Rogaland, the percentage of air transport was almost halved.
In Finnmark, where air transport made up as little as 6% in 2020,
this proportion was reduced to only 2% in 2021. There are various
our actual emissions, calculated on the basis of science-based
emission research. However, we deem the disclosure of our
Scope 3 emissions an important step towards achieving awareness
of those emissions and encouraging our suppliers to also conduct
annual greenhouse gas accounting, even if data accuracy is an
aspect we need to improve on. This will help us, our industry and
all business sectors linked to our industry to improve in concert as
we go forward.
OUR GREENHOUSE GAS ACCOUNTS
FIGURE 2.18
GREENHOUSE GAS EMISSIONS SCOPE 1 + 2 + 3
REGION
Scope
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
ROGALAND
Downstream transportation
Fish feed
Other
Total (Scope 3)
Total GHG emissions Rogaland
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
FINNMARK
Downstream transportation
Fish feed
Other
Total (Scope 3)
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
BRITISH
COLUMBIA
Downstream transportation
Fish feed
Other
Total (Scope 3)
TOTAL EMISSIONS (tCO2e)
EMISSIONS (kgCO2e) / tonnes
2019
9 211
424
9 635
n/a
n/a
n/a
n/a
9 635
4 779
696
5 475
n/a
n/a
n/a
n/a
2020
8 875
420
9 295
2021
8 519
331
8 850
67 529
40 567
102 201
104 470
7 593
10 264
177 324
155 301
186 619
164 151
4 123
776
4 899
5 122
591
5 713
19 488
13 963
132 864
131 286
8 369
9 999
160 721
155 248
n/a
n/a
n/a
n/a
—
5
5
n/a
n/a
5
28 857
1 810
30 667
n/a
n/a
n/a
n/a
20 533
41 965
6 883
69 381
85 663
1 847
106
1 953
712
712
2 665
30 454
1 975
32 429
5 820
46 700
5 626
58 146
74 001
1 638
443
2 081
1 726
1 726
3 807
30 408
2 091
32 499
107 550
60 350
277 030
282 456
23 557
27 615
408 137
370 421
2019
2020
2021
382
403
332
n/a
382
7 695
8 099
5 823
6 155
169
182
166
n/a
169
5 970
6 152
4 502
4 668
n/a
1 101
3 276
4 044
4 025
5 122
428
456
430
n/a
428
5 737
6 193
4 900
5 330
Total GHG emissions British Columbia
15 552
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
Other
Total (Scope 3)
Total GHG emissions Other
Scope 1 (tCO2e)
Scope 2 location based (tCO2e)
Total Scope 1 + Scope 2 location based
Scope 3
TOTAL GROUP
Downstream transportation
Fish feed
Other
Total (Scope 3)
Total GHG emissions Group
30 667
440 566
402 920
* Newfoundland, Grieg Seafood ASA (HQ) and our Sales & Market organization
Total GHG emissions Finnmark
5 475
165 620
160 961
14 867
15 609
15 129
685
673
726
15 552
16 282
15 855
1 101
769
1 097
requesting documented and auditable emission factors from our
OTHER *
PA R T 0 2 : S U S TA I N A B L E F O O D
R E D U C I N G C A R B O N E M I S S I O N S
PA G E 41
REDUCING CARBON EMISSIONS
The chief sustainable officer and our sustainability team which
consists of members from each region work actively to develop
emission reduction initiatives. Capturing the majority of emission
data on an individual production site basis allows us to compare
the energy intensity of each production site across all regions,
and to develop strategic low-carbon transition plans for 2022 and
beyond.
•
In Rogaland and Finnmark, we are observing the benefits of
using onshore electricity, battery packs or hybrid solutions
instead of diesel generators to operate a growing number of
production sites.
• Our preventative approach to sea lice control is expected to
reduce our carbon footprint, as the use of large vessels in
treatments also causes greenhouse gas emissions (GHG).
Especially in BC, where sea lice challenges historically have
been most significant, the new semi-closed containment
systems not only contribute to solving biological challenges
but also to reducing GHG emissions. See BC’s ‘Operational
priorities’ chapter for further details.
• We have tested out methods to chill the salmon after harvesting,
which made it possible to avoid ice in packaging and reduced
the carbon footprint per kilo of packed salmon. We will invest in
this equipment in the years to come.
• Before making any investments, we evaluate their potential
carbon emissions and environmental impact.
Our Shetland operations, sold in December 2021, were excluded
from our greenhouse gas accounts both for 2021 and historically
in accordance with the Corporate Accounting and Reporting
Standard. This divestment has led to a decrease in our historical
absolute Scope 1 and Scope 2 GHG emissions of more than
10 000 tCO2e. It has also resulted in a base year recalculation, in
which Scope 1 and Scope 2 GHG emissions for 2018 are reduced by
approximately 12 500 tCO2e.
Since we are growth-oriented, and are targeting higher production
and harvest volumes, we cannot exclude an increase in our total
emissions in the short run. Nevertheless, we will continue to
work towards reducing both relative and total emissions, and to
achieve the reduction targets we revised from relative to total in
2020. The divestment of our Shetland operations in 2021 and the
acquisition of the Newfoundland operations in 2020, where we are
using state-of-the-art technology and where we are located closer
to the consumer market, are expected to contribute positively to
those ambitions.
GHG REPORTING STANDARD
Our greenhouse gas emissions are reported in accordance with
the Corporate Accounting and Reporting Standard, developed by
the Greenhouse Gas Protocol Initiative (GHG Protocol), using the
operational approach. We report on all seven greenhouse gases
covered by the Kyoto Protocol (CO2, CH4, N2O, HFC, PCFs, SF6, NF3),
which are converted to CO2e. 2018 is defined as our baseline year
in accordance with SBTi guidance that companies should "choose
the most recent year for which data is available as the base year".
Scope 1 emissions are those that are directly emitted by Grieg
Seafood’s activities and include emissions from the combustion
of fossil fuels for generators, heating and our own vehicles.
Emissions are calculated on the basis of recorded energy
cost using local energy prices. We also have a relatively small
consumption of hydrofluorocarbons (HFC) for cooling, which are
included in Scope 1. All Scope 1 emission factors used are from
DEFRA (Department for Environment Food and Rural Affairs, UK
Government). Underlying data is collected from financial cost.
Scope 2 emissions are indirect emissions relating to third-party
generation of the electricity we consume at our sites. Emissions
are reported as location-based emissions in accordance with the
GHG Protocol (market-based Scope 2 emissions can be found
in the response field of GRI standard 305-2 in our GRI index).
Location-based factors are from the International Energy Agency
(IEA), using three-year rolling averages. For electricity consumed
in Norway, Grieg Seafood applies the Nordic mix, since this is the
most representative emission factor for Norway. This is because
Norway is almost self-sufficient when it comes to electricity, while
the bulk of the electricity imported to Norway comes from Sweden
and Denmark (nve.no). The Nordic mix is calculated as a weighted
average of the Swedish, Norwegian, Finnish and Danish factors.
Underlying data is collected from financial cost and on-site meters.
Scope 3 emissions are all other indirect emissions (not included
in Scope 2) that occur in our value chain, including both upstream
and downstream emissions. In 2020, we were able to significantly
increase the level of detail of our data collection, and completed our
GHG accounting for Scope 3 for the first time. Thus, 2021 is the first
year with comparable Scope 3-figures. We mapped the emissions
in our supply chain in a comprehensive analysis and identified the
categories most relevant to Grieg Seafood. Upstream, we included
(1) Purchased goods and services, (3) Fuel- and energy-related
activities (not included in Scope 1 or Scope 2), (5) Waste generated
in operations, and (6) Business travel. Downstream, we included
(9) Downstream transportation and distribution, (12) End-of-life
treatment of sold products and (15) Investments. The categories
correspond to the 15 Scope 3 categories defined by the GHG
Protocol. An overview of this process is presented in Figure 2.19.
Underlying data is collected from production data, financial cost,
suppliers or estimated based on production data.
* Up until year-end 2020, we were using a Diesel emission factor containing the legally
required amount of biodiesel for the diesel consumed in Finnmark and partly also
Rogaland. However, this legal requirement applies only to diesel consumed by road
traffic. Since, most of our diesel is consumed by our boats and on our seawater sites,
we have used an emission factor not containing any biodiesel for our 2021 figures. For
Rogaland, the emission factor containing biodiesel was not used that much and the
difference was not significant. For Finnmark, however, this change in emission factor
makes up a difference of about 1 100 tCO2e in Scope 1. Without this change, Finnmark’s
Scope 1 and Scope 2 emissions would have decreased by 7%.
FIGURE 2.19
SCOPE 3 MAPPING PER COMPANY
Data collected and audited by PwC
Data to be published in 2021
Scoped out
Data not available
Category
Subcategory
GSFR GSFF
GSFBC GSFNL ASA
GSF Norway
GSF Sales
NA
Fish feed
1
Purchased goods and services
Well-boat services
Capital goods
EPS boxes
N/A
Fuel-and-energy-related activities
Well-to-Tank (WTT)
Upstream transportation and distribution
N/A
2
3
4
5 Waste generated in operations
Business travel
Employee commuting
Upstream leased assets
6
7
8
9
Waste
Air travel
Employee mileage
N/A
N/A
Downstream transportation and
distribution
Goods transportation
10 Processing of sold products
11 Use of sold products
N/A
N/A
12 End-of-life treatment of sold products
Rest raw materials
13 Downstream leased assets
14 Franchises
15 Investments
N/A
N/A
Nordnorsk Smolt
Tytlandsvik Aqua
FIGURE 2.20
DISTRIBUTION OF SCOPE 1 + 2 + 3
FIGURE 2.21
GREENHOUSE GAS EMISSIONS SCOPE 1 + 2
PA R T 0 2 : S U S TA I N A B L E F O O D
W A S T E M A N A G E M E N T
PA G E 4 2
WASTE MANAGEMENT
Grieg Seafood aims to produce salmon in a way that reduces our
consumption of resources and materials. A circular economy is
essential to ensure sustainable food production in the future.
OUR AP P R O A CH
We do not pollute the environment where we farm salmon. Waste
should be properly disposed, recycled where possible and fed back
into the circular economy.
Plastic waste in the ocean is harmful to the environment. Plastic
slowly breaks down into smaller fragments, eventually turning
into microplastics, which may impact ecosystems and wildlife
negatively. Plastic materials used by Grieg Seafood should not end
up in the ocean. It should be disposed properly and recycled where
possible.
USE OF FRESH WATER
We use freshwater at our land-based facilities for smolt and post-
smolt production. We also use freshwater at our harvesting plants
for hygiene purposes. None of our facilities are located in areas of
water scarcity and material fresh water risks. Still, we recognize
the importance of minimizing the use of fresh water.
OUR P R INCI P LE S
FRESH WATER USE
• We aim for a high water usage efficiency by utilizing technology
to recirculate water in land-based fresh water facilities. All
fresh water facilities have RAS technology, recycling at least
90 – 97% of fresh water used. Fresh water sourcing to the RAS
facilities are based on permits from local authorities in line
with local regulations.
• We treat waste water from processing plants and fresh water
facilities in accordance with local regulations. Our smolt facility
in Newfoundland has zero discharge of water.
• Assessing possible fresh water risks connected to our feed
ingredients is included in the Grieg Seafood feed project. Read
more here.
BIOLOGICAL WASTE
• Fish trimmings and dead fish from our farms are collected and
used for animal feed, biofuel, or fertilizer, depending on quality.
• Organic waste from our freshwater facilities is recycled and
used for biofuel or fertilizer production.
FARMING EQUIPMENT
• Old farming equipment is safely removed and handled through
recycling and waste management.
•
In Rogaland and Finnmark, we use traceable ropes that are
marked “Grieg Seafood” or have a distinct color.
PLASTICS
• No plastics in the ocean. All plastic consumed is managed
through proper waste collection and recycling.
•
Implement the 3 Rs throughout our production: Reduce, Re-
use, Recycle.
• Eliminate the use of plastics we do not need.
• Strive to use plastics that are reusable, recyclable, or
compostable.
• Collaborate with the industry to develop improved plastic
products and infrastructure for recycling.
• Ensure sustainable use, waste collection and recycling of
transport packaging materials.
•
Increase the amount of recycled plastic in the products we
purchase from third parties, and reduce our demand for virgin
plastic.
• Phase out environmental toxins (SVHC) used in plastic products.
• Use plastic products of high quality; focusing on longevity,
reduced microplastic formation and wear resistance.
OCEAN WASTE
• All regions engage in annual beach clean-ups around our
farms to remove ocean waste that have drifted onto the shores.
LEARN MORE ON OUR WEBSITE
→ Our policy for ocean plastics
PA R T 0 2 : S U S TA I N A B L E F O O D
W A S T E M A N A G E M E N T
PA G E 4 3
P R O JEC T S T O IMP R O V E
PLASTIC PILOT PROJECT WITH BELLONA
As part of Grieg Seafood’s partnership with the NGO Bellona,
MATERIAL ACCOUNTING
We have engaged Asplan Viak to help us establish materials
Finnmark has piloted a project on plastics. The results of this
accounting processes. By estimating our consumption of plastic
initiative include:
materials and comparing it to our waste management reports,
we get an indication of how we are progressing with our materials
• Mapping sources of plastics in our operations. At our sites,
handling. The estimation for Finnmark’s plastic consumption was
cages, moorings and ropes, nets, feeding tubes, sea lice skirts,
carried out in line with an established methodology (FHF project
and shelter for cleaner fish are the main sources of plastics.
901352). With this we aim to set key performance indicators for
A typical site with ten cages made up of 90 x 90 meter pens
plastic management that will be published in the future.
contains approximately 360 000 kg of plastic. It is estimated
that 0.5% of this, 1 800 kg, disappears.
Measuring our consumption of plastic is a key part of our plastic
• Developing plastics accounting, an overview of all plastics
management. We are currently involved in several process to
bought. The aim is to recycle all plastics and avoid loss.
improve our data quality and monitor our plastic consumption.
• Using separate containers to recycle plastics at sites, and
We perform annual, internal material accounting for each region
creating a culture for reducing the use of plastics and recycling
and aim to establish digital accounting solutions in the future.
what is used.
The value of our waste increases with the data quality allowing
• Working with suppliers to develop products that last longer and
the waste to be utilized in higher valued processes. We collaborate
are easier to recycle, such as sea lice skirts and artificial kelp
closely with manufacturers and the industry to end ocean plastic
forests for cleaner fish.
waste.
• Work with suppliers to develop return schemes. For instance,
nets made of nylon can be reused in various textiles and
As shown in the pie chart below, we have a better understanding
carpets, or turned into other nylon products.
of how the plastic material distribution is at a typical production
site. We will use this
information to
improve our plastic
Our pilot in Finnmark is now part of our daily routine. Rogaland are
management. Feeding tubes are not included in this distribution.
also collecting all their plastic waste and delivering it to a plastic
waste handler that recycle all of our plastic waste. Rogaland has
managed to improve the recycling rates and are working with
RESEARCH COLLABORATION
Grieg Seafood is a partner in the POCOplast project initiated in
Bellona to improve documentation and traceability. The project will
2019. POCOplast is short for: “Pathways to sustainable use of
be implemented in the Canadian regions as well.
INCREASING RECYCLING
We have established several agreements for closed-loop recycling
of particular aquaculture products, like feed tubes, pens and
worn hardened plastic (HDPE). The results show a high degree
of recycled material quality and promising outcomes. We have
also introduced plastic products produced of recycled materials,
where the aim is to close the loop of our consumption of plastic. In
post-consumer plastics in aquaculture”. The aim of the project is
to increase the value of recycled plastics, by utilizing used plastic
from the aquaculture industry in new products, thereby reducing
the demand for new plastic. This will also increase knowledge of
recyclability in the supply chain and reduce the loss of the material
value that many high-value plastics exhibit today.
NATIONAL ENGAGEMENT
We are member of a task force run by the Norwegian Fishfarmers
Rogaland we decided to use recycled plastic in our walkways used
Association with mandate to make a proposal for a National Plastic
around our pens. In Finnmark we have started using a new rope
policy for the total industry.
that is stronger and can be produced with used ropes.
MOOC ON PLASTIC WASTE
We have received funding from Norwegian Retailers’ Environment
Fund to establish a massive open online course (MOOC) on plastic
waste management in aquaculture. Together with Bellona and
NTNU (Norwegian University of Science and Technology), we aim
to provide the industry with e-learning and instructional videos on
the importance of proper plastic handling. The first MOOC will be
available in 2022.
FIGURE 2.22
PL ASTIC WEIGHT DISTRIBUTION
OF A PRODUCTION SITE IN GRIEG
SE AFOOD FINNMARK
Moorings
Sea lice skirts
Pens
Pen rings (top & bottom)
PA R T 0 2 : P R O F I T & I N N O VAT I O N
PA G E 4 4
OUR PROGRESS TOWARDS
A SUSTAINABLE FOOD SYSTEM
PROFIT & INNOVATION
P R O F I TA B L E O P E R AT I O N S
G R I E G S E A F O O D R O G A L A N D
G R I E G S E A F O O D F I N N M A R K
G R I E G S E A F O O D B R I T I S H C O L U M B I A
G R I E G S E A F O O D N E W F O U N D L A N D
S A L E S & M A R K E T
T H E G R I E G S E A F O O D S H A R E S
R E S P O N S I B L E B U S I N E S S C O N D U C T
K E Y P E R F O R M A N C E I N D I C AT O R S A N D
A LT E R N AT I V E P E R F O R M A N C E M E A S U R E S
4 6
4 8
51
5 4
5 7
5 9
6 2
6 4
6 5
Without a profitable business, we will not be able
to farm healthy salmon for people to eat all over
the world. To achieve good financial results, our
farming methods need to be both cost-effective
and sustainable.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
P R E C I S I O N FA R M I N G
PA G E 4 5
GR I EG SE A F OOD P R ECIS ION FAR MING
When digitalizing salmon farming, we apply advanced sensors, data analytics, artificial intelligence,
and automation, with the aim of supporting our farmers to take better decisions in everyday
operations. The aim is to work more preventatively, improve fish welfare, reduce our impact and
improve our farming.
We are at the very beginning of understanding how we can apply digital tools to improve our farming
operations. Today, everyday salmon farming is largely based on the experience of our very talented
employees, in addition to the increasing body of scientific research and knowledge. Going forward, we
believe digital tools and analytics will add to this decision making, for instance by predicting biological
events ahead of time, allowing the farmer to apply stronger preventative measures. We call it Grieg
Seafood Precision Farming.
Read more about Precision Farming here.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
P R O F I TA B L E O P E R AT I O N S
PA G E 4 6
PROFITABLE OPERATIONS
By combining skilled and motivated people with new technology,
and increasingly farming salmon on nature’s terms, we aim to ensure
sustainable and profitable growth in the years ahead.
OUR P R INCI P LE S
OUR TAR GE T
• We aim to expand globally through growth and value chain
innovation. Increasingly sustainable farming practices form the
Return On Capital
Employed (ROCE)
ROCE of 12%
very foundation of all areas of our strategy.
• To achieve sustainable growth and improve competitiveness,
we focus on reducing the time in sea, improving fish health
and welfare, and increase our operational insight through
digitalization.
• Our investments reflect our growth strategy and the evolution
of our position in the value chain, as well as our operational
focus on post smolt, fish health and welfare and digitalization.
• We aim to provide our shareholders with a competitive return
on capital invested.
OUR R E S ULT S
PROFIT AND LOSS
The Group harvested 75 601 tonnes GWT in 2021, up 4 459 tonnes
GWT from 71 142 tonnes GWT in 2020. Both the 2021 and 2020
figures are exclusive of Shetland, which we sold to Scottish
Sea Farms Ltd in 2021. Our Norwegian regions contributed
81% of the harvest volume in 2021, compared to 70% in 2020,
while British Columbia accounted for 19% in 2021 compared
to 30% in 2020. While both Rogaland and Finnmark increased
their harvested volume, BC decreased due to local production
region arrangements and larger farms with greater capacity on
the West Cost of Vancouver Island compared to the East Coast.
As a consequence, the region's volume varies every other year,
regardless of the underlying biology.
Total sales revenue for the year totaled NOK 4 599 million, up NOK
214 million from NOK 4 384 million in 2020. The sales revenue from
our farming regions totaled NOK 4 211 million in 2021, up NOK 455
million from NOK 3 756 million in 2020 (see Note 8 of the Group
Accounts). The increase in sales revenue for the Group is mainly
due to a higher volume harvested by Rogaland and Finnmark
compared to the year before. The Group's price achievement for
2021 was NOK 55.7 per kg, up NOK 2.9 per kg from NOK 52.8 per
kg in 2020. By comparison, the average NQSALMON NOK/kg price
for 2021 was 57.3, up NOK 3.6 per kg from NOK 53.7 per kg in
2020. The main reason for the deviation in price achievement when
comparing to NQSALMON was quality downgrades in Rogaland
and Finnmark.
FIGURE 2.23
KEY FIGURES GRIEG SE AFOOD GROUP
NOK MILLION
Sales revenues
EBITDA
EBIT
Harvest volume (tonnes GWT)
Farming cost/kg (NOK)
EBIT/ kg (NOK)
ROCE
2017
7 017
1 106
904
62 598
43.4
14.5
24%
2018
7 500
1 334
1 099
74 623
43.1
14.7
22%
2019
4 756
1 384
1 077
71 700
40.5
15.0
19%
2020
4 384
602
233
71 142
47.0
3.3
3%
2021
4 599
818
442
75 601
47.2
5.9
6%
The 2019 - 2021 figures are impacted by the held for sale- and discontinued operations-classification of Shetland and Ocean Quality. The figures for 2017 to
2018 is not re-presented (includes farming operations of Shetland, and sales activities attributable to Bremnes Fryseri). For more information, see Note 5 of
the Group Accounts.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
P R O F I TA B L E O P E R AT I O N S
PA G E 47
DIRECT ECONOMIC VALUE GENERATED
Taxes are important sources of government revenue. They are
central to the fiscal policy and macroeconomic stability of countries
and are acknowledged by the United Nations to as playing a vital
role in achieving its Sustainable Development Goals. Furthermore,
they are a key mechanism by which organizations contribute to the
economies of the countries in which they operate, i.e. Norway and
Canada for Grieg Seafood. By reporting our taxes paid country-by-
country, we indicate our scale of activity and the contribution we
make through tax in these jurisdictions. Living up to our obligation
to comply with tax legislation and our responsibility to meet our
stakeholders expectations with respect to good tax practice is
extremely important to us.
The information on the creation and distribution of economic value
shall provide a basic indication of how we create wealth for our
stakeholders. In addition, the components of the economic value
generated and distributed sharpen Grieg Seafood’s economic
profile, permit a different interpretation of the economic figures
and outline the overall economic value retained from the Group’s
ordinary operations during the year. In 2021, the economic value
retained came to NOK 306 million, corresponding to a decrease of
about NOK 124 million compared to 2020.
The Group's farming cost for 2021 ended at NOK 47.2 per kg,
up NOK 0.2 per kg from NOK 47.0 per kg in 2020. Our Norwegian
farming regions contributed to 76% of the farming cost in 2021,
compared to 65% in 2020, which materialized into an increase of
NOK 0.9 per kg in cost, from NOK 43.2 per kg in 2020 to NOK 44.1
per kg in 2021. The positive year-on-year change in Finnmark was
offset by higher costs in Rogaland compared to the year before.
In addition, British Columbia has, on a 32% lower harvest volume
year-on-year, realized a farming cost of CAD 8.8 per kg in 2021,
up CAD 0.8 per kg from CAD 8.0 per kg in 2020.
EBIT before production fee and fair value adjustments of biological
assets in 2021 ended at NOK 442 million, up NOK 209 million from
NOK 233 million in 2020, bringing EBIT per kg to NOK 5.9 for 2021,
up NOK 2.6 per kg from NOK 3.3 per kg in 2020. The higher EBIT
in 2021 compared to 2020 is primarily attributable to a 28% higher
volume harvested in Finnmark, which ended at 34 484 tonnes GWT,
in addition to the price achievement realized in 2021 by British
Columbia. Finnmark’s EBIT/kg rose from NOK 4.7 in 2020 to NOK
7.3 in 2021, primarily due to higher price achievement. On margin,
British Columbia performed well in 2021, with EBIT/kg increasing
by NOK 10.7 per kg, from NOK -0.4 per kg in 2020 to NOK 10.4 per
kg in 2021.
We have a long-term goal of delivering a ROCE of at least 12% per
year. Our EBIT performance is driven by a multitude of operational
factors that affect both revenues and costs. Producing salmon
takes two to three years from roe to harvest, and while the cost
of a harvested fish accumulates through the production period,
it does not impact the profit and loss statement (apart from
through fair value adjustment and any write-down from abnormal
mortality, if any) before the fish is harvested. Although EBIT per
kg (before production fee and fair value adjustment of biological
assets) is an important external benchmark for our regions, our
operational focus is not on the cost of the harvested fish, but on the
development of the cost drivers affecting our production volume
and the cost of salmon to be harvested in the future.
The ROCE for 2021 ended at 6%, below the target of 12% per
year. The figure was primarily impacted by salmon market prices
combined with higher operational cost, and an increased debt level
to finance the Group’s growth investments.
For a more detailed review of the Group’s financial performance in
2021, see the Board of Directors’ report.
FIGURE 2.24
DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED
NOK MILLION
Value generated
Revenues
Value distributed
Salaries and personnel expenses
Operating cost
Raw materials and consumables used
Other operating expenses
Payments to providers of capital
Net interest and other financial items
Paid dividends
Payments to government
Income tax expense
Value retained
All figures compiled from the audited Group accounts.
FIGURE 2.25
VALUE GENERATED IN 2021
2017
2018
2019
2020
6 545
483
3 287
1 457
62
474
339
443
7 017
483
3 724
1 725
64
467
198
356
1 328
-144
-473
-468
64
462
67
1 819
4 384
500
1 717
1 593
133
—
12
430
2021
4 599
577
1 738
1 527
200
—
249
306
FIGURE 2.26
TOTAL TA XES (INCOME AND PROPERT Y TA X) PAID IN
2021 (NOK 1 000)
Norway
Canada
Total taxes paid
10 842
3 988
14 830
PA R T 0 2 : P R O F I T & I N N O VAT I O N
R O G A L A N D
PA G E 4 8
GRIEG SEAFOOD
ROGALAND
Grieg Seafood Rogaland AS farms salmon in the county of Rogaland on the west
coast of Norway. The company has 16* seawater licenses and two licenses for land-
based production of smolt. We also operate our own broodstock activity in Erfjord,
with four broodstock licenses. All the salmon we harvest in this region is processed
and packed at our own facilities.
* In addition, we operate one educational license with Rogaland County Council and two R&D licenses.
26 670
9.1
TONNES GWT HARVESTED
EBIT/KG (NOK)
OP ER AT ION AL R E S ULT S
A total of 26 670 tonnes was harvested in 2021, an increase of 16%
The farming cost ended at NOK 44.6 per kg in 2021, up from NOK
compared to the 23 043 tonnes harvested in 2020. The increase is
42.1 per kg in 2020. The farming cost was impacted by harvesting
due to better utilization of our sites’ maximum allowable biomass
from PD-affected sites, which increased related fish handling and
(MAB) and a higher survival rate in seawater.
well boat costs, as well as the measures needed to handle the ISA
outbreak at our broodstock facility. We are working systematically
Sales revenue amounted to NOK 1 431 million in 2021, an increase
to improve fish health and welfare through general health and
of 13% compared to 2020 (NOK 1 263 million). The increase is
welfare measures. These include a greater focus on the freshwater
driven by a higher harvested volume compared to last year, though
phase, a preventive and targeted approach to diseases and sea
the figure was negatively impacted by quality cost. The Nasdaq
lice, the utilization of new digital technologies and shortening the
average spot price in 2021 was NOK 57.3 per kg, compared to
time our salmon spend at sea. Our efforts increased the 12-month
NOK 53.7 per kg in 2020. However, our price achievement in 2021
rolling survival rate from 90% in 2020 to 92% in 2021. A shorter
of NOK 53.7 per kg was negatively impacted by the sale of 33%
time at sea is also expected to reduce PD outbreaks going forward.
of our volume under fixed-price contracts, in addition to quality
Compared to several years ago, we have already seen a decline in
downgrades. The share of superior quality fish decreased from
the number of PD outbreaks. This can be attributed to vaccines
85% in 2020 to 81% in 2021, due to occurrences of winter ulcers
as well as the past few years’ gradual reduction in the time our
in the first half of the year and outbreaks of Pancreas Disease
salmon spend at sea, although some biological variations may
(PD). The PD situation has improved compared to previous years,
occur. Shortening the time at sea is also a key part of our efforts to
and at year-end two of our sites were affected by PD. Due to PD,
reduce the need for sea lice treatments. In 2021, 40% of the pens
we did not reach our target of a 93% superior share.
with fish harvested did not receive any sea lice treatment. This is a
continuation of an ongoing trend, where the region has managed
Our freshwater production has been good in 2021. We transferred
to minimize sea lice treatments (both medical and mechanical) in
7.5 million smolt to the sea in 2021, with an average weight of
the season where wrasse is available (August–November). For our
460 grams, compared to 395 grams in 2020. We also transferred
updated approach on the use of cleaner fish, please read here. We
our largest ever batch of post-smolt to the sea, with an average
aim to avoid using hydrogen peroxide whenever possible, but we did
weight of 960 grams. Some fish from this batch were harvested
need to use it during the first half of 2021 as a targeted and efficient
after only ten months at sea, with an average weight of 4.8 kg. The
measure to reduce high sea lice levels. However, the total amount
remaining fish will be harvested at the start of 2022. This is the
of hydrogen peroxide used during the year was substantially lower
first batch that will have a production time at sea of less than 12
than in 2020. Due to efforts to ensure robust fish health and good
months, and hence the first batch to run full-scale in accordance
results from vaccines, we have not used antibiotics in Rogaland
with our post-smolt strategy. The freshwater survival rate from
for several years. Cost recognized as abnormal mortality in the
our own facility was 94% in 2021, somewhat down from 95% in
income statement (cost of reduced survival) was NOK 30.8 million
2020. Unfortunately, we had an outbreak of Infectious Salmon
in 2021 (NOK 1.2 per kg), compared to NOK 63.7 million in 2020
Anemia (ISA) at our land-based broodstock facility towards the
(NOK 2.8 per kg).
end of the year. However, this will not impact our production as
we have secured external deliveries of eggs. Our insurance covers
most of the financial impact from the incident.
Overall, our seawater production performed well, though it has
been somewhat affected by the PD outbreak. The two remaining
PD-affected sites will be fully harvested at the beginning of 2022.
Due to continued focus on escape prevention, we did not have any
escape incidents in 2021. We also work on measures to minimize
our impact on local wildlife. In 2021, 13 birds got caught in our
nets, compared to 20 last year. We are not content with reporting
any dead birds, and will continue our effort to reduce this number.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
R O G A L A N D
PA G E 4 9
SUSTAINABILITY KPIs
PILLAR
KPI
APPROACH TARGET
2021
2020
2019
2018
2017
PROFIT &
INNOVATION
HEALTHY
OCEAN
Harvest volume (tonnes GWT)
EBIT per kg (NOK)
Farming cost per kg (NOK)
ASC certification (# of sites)
Survival rate in freshwater
Survival rate in seawater
Cost of reduced survival
(NOK 1 000)
Use of antibiotics
(g per tonne LWE) *
Use of hydrogen peroxide
(kg per tonne LWE) *
Sea lice treatments - in feed
(g per tonne LWE) *
Sea lice treatments - in bath
(g per tonne LWE) *
Escape incidents (# of fish)
Dead birds
Dead marine mammals
SUSTAINABLE
FOOD
Carbon emissions
(kgCO2e per tonne GWT)
Scope 1 + 2 location based
Scope 3
High quality product
Biological feed conversion ratio
(bFCR)
Economic feed conversion ratio
(eFCR)
PEOPLE
Employees
Absence rate
Lost time incident rate
Turnover rate
LOCAL
COMMUNITIES
Local procurement
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
30 000 tonnes in 2022
26 670
23 043
25 217
16 293
18 111
NOK 40/kg in 2022
All sites (11 eligible) by 2023
93% by 2022
9.1
44.6
0
94%
92%
12.7
42.1
0
95%
90%
22.5
35.9
0
93%
93%
13.5
40.3
0
90%
92%
21.7
38.4
0
94%
91%
30 804
63 664
26 127
48 609
35 988
No use of antibiotics
0.00
0.00
0.00
0.00
0.00
Minimize use of
pharmaceutical treatments
Minimize use of
pharmaceutical treatments
Minimize use of
pharmaceutical treatments
Zero escape incidents
Minimize impact on wildlife
Minimize impact on wildlife
35% reduction (from 2018)
in total emissions by 2030
1.58
7.21
11.94
3.46
10.79
3.74
0.00
0.03
1.09
0.15
0.63
0.02
0.00
0.00
0.00
0
13
0
0
20
0
0
2
0
332
403
5 823
7 695
382
n/a
0
24
0
256
n/a
0
20
0
230
n/a
81%
1.24
93% superior share
81%
85%
75%
74%
1.26
1.22
1.17
1.33
Below 4.5%
**
1.43
1.44
1.28
1.52
1.44
162
165
157
145
3.0%
3.0%
3.5%
4.7%
42
6%
9
n/a
15
n/a
60%
64%
64%
24
n/a
n/a
148
3.2%
11
n/a
n/a
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available or applicable.
General information on how we work systematically with the individual KPIs can be found in the report’s chapters linked in the
‘Approach’ column.
FIGURE 2.27
RESULTS FOR
ROGAL AND
NOK MILLION
Harvest (tonnes GWT)
Sales revenues from sale of Atlantic salmon
EBIT
EBIT / kg (NOK)
Farming cost / kg (NOK)
2017
2018
2019
2020
2021
18 111
16 293
25 217
23 043
26 670
1 150.2
393.1
21.7
38.4
959.6
219.6
13.5
40.3
1 538.9
1 263.1
1 430.9
568.2
292.3
242.0
22.5
35.9
12.7
42.1
9.1
44.6
FIGURE 2.28
EBIT AND HARVEST ROGAL AND
PA R T 0 2 : P R O F I T & I N N O VAT I O N
R O G A L A N D
PA G E 5 0
OP E R AT I ON A L P R IOR I T IE S
Grieg Seafood Rogaland harvested 26 670 tonnes of salmon in
Another important tool that will improve biology and drive growth,
2021. Our goal is to harvest 30 000 tonnes in 2022, increasing to
is our Precision Farming strategy. By using digitalization and
35 000 tonnes in 2025 by using more of our seawater capacity
analytics in our farming operations, for instance by predicting
and being cost competitive. The key to achieving this, is to reduce
biological events ahead of time, allowing the farmer to apply
production time in the sea, which will result in improved biological
stronger preventative measures, we will ensure more efficient
performance and a higher utilization of each site’s maximum
feeding. This will lead to reduced cost and improved growth going
allowable biomass (MAB). Larger smolt will significantly reduce
forward. All Precision Farming initiatives, such as dashboards
seawater production time, making the fish less exposed to issues
on feed, production, fish health and welfare, are connected to
such as sea lice and Pancreas Disease (PD). The average size of
our integrated operational center, which monitors and controls
the smolt transferred to the sea in 2021 was 460 grams, compared
production and feeding operations at all our farms in Rogaland.
to 120 grams in 2015. The transfer of larger smolt has produced
Initiative to utilize video analytics with machine learning algorithms
promising results, with the time the fish spend at sea reduced
to automize biomass control and sea lice counts is ongoing, and
from the previous norm of 18 months to less than 12 months. In
will be expanded to new areas such as behavioural based fish
2021, we harvested from pens with post-smolt that have spent less
welfare monitoring.
than ten months at sea. In 2021, more than 50% of fish harvested
were from post-smolt. We aim to increase this share to above 90%
Aquaculture Stewardship Council
(ASC) certification
is an
by 2024.
important objective, as we believe it provides our customers and
consumers with assurance that we are operating in a responsible
Our freshwater facilities at Trosnavåg and Hognaland have a
manner and producing high-quality seafood certified to the highest
production capacity of 1 200 tonnes smolt. We also have a 33%
social and environmental standards. We aim to certify all sites in
shareholding in Tytlandsvik Aqua, which will be expanded from
Rogaland according to ASC, with the first sites being certified in
its current smolt production capacity of 3 400 tonnes to 4 500
2022.
tonnes in 2022, with a further expansion to 6 000 tonnes in 2024.
Grieg Seafood Rogaland is entitled to 50% of the volume from
Our capital expenditures reflects our growth initiatives. In 2021
Tytlandsvik. We also use the sea-going closed-containment
we spent NOK 43 million in growth investments, mainly related
facility, FishGLOBE, to produce large smolt. In 2021, we doubled
to broodstock upgrades. While our post-smolt initiatives increases
our post-smolt production capacity from 450 to 900 tonnes when
the production cost of smolt, we expect benefits such as reduced
the second FishGLOBE was taken into use. We are planning to
health cost and increased survival as the production time in sea is
develop this technology further in a joint venture for grow-out
reduced. To secure high quality smolt, we need high quality eggs
salmon, with a globe ten times the current size. We have also
from our broodstock. We also spent NOK 40 million in maintenance
invested in Årdal Aqua, with a view to constructing a land-based
investments.
facility. The decision to start constructing will be taken in 2022.
Årdal Aqua is expected to produce at least 3 000 tonnes of post-
smolt annually. The aim is to increase production capacity further
and to gradually raise fish to harvestable size on land.
FIGURE 2.29
SURVIVAL RATE AT SE A IN ROGAL AND,
ROLLING 12 MONTHS
FIGURE 2.30
MAIN CAUSES FOR REDUCED SURVIVAL IN SE AWATER IN
ROGAL AND IN 2021
MAIN CAUSE
NUMBER OF FISH
TONNES OF FISH
Infectious
Virus
Bacterial
Gill infections
Non-Infectious
Life cycle
Treatments
Physical
Total
Abnormal seawater
mortality write-down
%
281 506
350 049
91
457 057
33 422
37 075
1 159 200
967 416
83%
1 022
998
1
1 265
123
109
3 517
3 426
97%
We report diseases, mortality, and other fish health indicators to the Norwegian
authorities on a weekly basis. This is publicly available information, please see
Barentswatch.
FIGURE 2.31
SE A LICE LEVELS (ADULT FEMALES) IN ROGAL AND
Our sites in Rogaland are located in Norwegian production area 2 (PO2), which has received a green light under Norway’s “traffic light” system (“green - low sea lice density"). The sea
lice counts are calculated as the average number of adult female sea lice per month. Sea lice levels shall stay below the legal limit of 0.5 adult female per fish, or 0.2 during April and May
when the wild salmon smolt migrate from the rivers and pass the fjordsWe report sea lice levels and sea lice treatments to the Directorate of Fisheries on a weekly basis. This is publicly
available information, please see Barentswatch.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
F I N N M A R K
PA G E 5 1
GRIEG SEAFOOD
FINNMARK
34 484
TONNES GWT HARVESTED
7.3
EBIT/KG (NOK)
Grieg Seafood Finnmark AS farms salmon in Troms and Finnmark, the northernmost
county in Norway. Of our 28* seawater licenses, eight are “green licenses” and therefore
subject to stricter environmental standards. In addition, we own one freshwater license.
In general, the salmon we harvest are processed and packed at our local facility in Alta.
* In addition, we have one long-term rental agreement with Troms and Finnmark County Council for one license.
OP ER AT ION AL R E S ULT S
A total of 34 484 tonnes was harvested in 2021, an increase of 28%
compared to the 26 919 tonnes harvested in 2020. This was due to
better utilization of our sites’ maximum allowable biomass (MAB)
and a higher survival rate in seawater.
Sales revenue amounted to NOK 1 756 million, an increase of
34% compared to NOK 1 314 million in 2020. The increase is mainly
related to a higher harvest volume and spot prices, in addition to
a higher quality share compared to last year. The Nasdaq average
spot price in 2021 was NOK 57.3 per kg, compared to NOK 53.7
per kg in 2020. Our price achievement in 2021 was NOK 50.9 per
kg, positively impacted by the sale of 27% of our volume under
fixed-price contracts, but suppressed by somewhat low average
harvested weight and a superior quality share of 82% due to winter
ulcers.
Freshwater production at our own facility at Adamselv was good
during the year. At our jointly owned Nordnorsk Smolt, a batch of
smolt was unfortunately culled in the fourth quarter, due to an
acute incident when the level of hydrogen sulfide became unstable.
The company is working on improvements, including technical
changes at the facility, to reduce the risk of similar events. This
incident will have no significant impact on our harvest target
going forward. We transferred a total of 10.1 million smolt with an
average weight of 190 grams to the sea in 2021. The freshwater
survival rate from our own facility improved from 89% in 2020 to
95% in 2021.
Seawater production was impacted by issues related to winter
ulcers during the first half of 2021, but improved significantly
during the summer and autumn. The farming cost was NOK 43.7
per kg in 2021, down from NOK 44.1 per kg in 2020. We achieved a
12-month survival rate of 95% in 2021 compared to 92% in 2020,
as we have seen reduced impact by winter ulcers. This is due
to improved management of this challenge. We are working to
improve survival rates through both general and targeted health
and welfare measures. Good results from vaccines and efforts to
ensure robust fish health have eliminated the need of antibiotics
for several years. However, we used the antibiotic Profenicol at the
start of the year to safeguard the welfare of fish at one sea farm
severely impacted by winter ulcers. Cost recognized as abnormal
mortality in the income statement was NOK 53.1 million in 2021
(NOK 1.5 per kg), compared to NOK 37.5 million in 2020 (NOK 1.4
per kg). NOK 15 million (NOK 0.4 per kg) of the 2021 total related
to a chlorine spill at our harvesting facility in Alta in August, where
we lost 96 000 (430 tonnes) fish ready for harvest. This implies that
cost related to abnormal mortality less the chlorine spill totaled
NOK 35.9 million (NOK 1.0 per kg), which is an improvement
compared to the previous year. An independent environmental
assessment of the chlorine spill was performed by a third party,
which concluded that the spill had a limited local impact and that
rapid recovery and recolonization of the seabed could be expected.
The majority of the financial loss was covered by our insurance.
Finnmark has low sea lice levels throughout the year. Generally,
lower seawater temperatures in the region are an advantage,
and the interconnectivity between the sites remains low. We use
targeted preventive methods, such as sea lice skirts and cleaner
fish, to ensure that the sea lice level is low. Nevertheless, sea lice
treatments were carried out during the year to prevent any surge
in numbers.
We have a continuous focus on escape prevention. Despite this,
however, the upper part of one pen was damaged at the start of the
year, due to an avalanche, which unfortunately led to one escape
incident. Based on recapture, we initially estimated that six salmon
had escaped. When the pen was harvested later in the year, we
noted a deviation of 4 352 fish between the number transferred to
the sea and the number of fish harvested. According to procedure,
this number was reported to the authorities as escaped fish. An
extensive avalanche monitoring system was put in place following
the event, and the farm was moved to a substantially less exposed
location. We are also working on measures to minimize our impact
on local wildlife. In 2021, eight birds got caught in our nets.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
F I N N M A R K
PA G E 5 2
SUSTAINABILITY KPIs
PILLAR
KPI
APPROACH TARGET
2021
2020
2019
2018
2017
PROFIT &
INNOVATION
HEALTHY
OCEAN
Harvest volume (tonnes GWT)
EBIT per kg (NOK)
Farming cost per kg (NOK)
ASC certification (# of sites)
Survival rate in freshwater
Survival rate at sea
Cost of reduced survival
(NOK 1 000)
Use of antibiotics
(g per tonne LWE) *
Use of hydrogen peroxide
(kg per tonne LWE) *
Sea lice treatments - in feed
(g per tonne LWE) *
Sea lice treatments - in bath
(g per tonne LWE) *
Escape incidents (# of fish)
Dead birds
Dead marine mammals
SUSTAINABLE
FOOD
Carbon emissions
(kgCO2e per tonne GWT)
Scope 1 + 2 location based
Scope 3
High quality product
Biological feed conversion ratio
(bFCR)
Economic feed conversion ratio
(eFCR)
PEOPLE
Employees
Absence rate
Lost time incident rate
Turnover rate
LOCAL
COMMUNITIES
Local procurement
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
38 000 tonnes in 2022
34 484
26 919
32 362
29 774
22 831
NOK 40/kg in 2022
All sites (18 eligible) by 2023
93% by 2022
7.3
43.7
18
95%
95%
4.7
44.1
15
89%
92%
17.9
37.7
10
87%
96%
20.0
35.6
4
89%
96%
15.4
40.7
2
86%
95%
53 133
37 495
15 055
624
16 965
No use of antibiotics
5.98
0.00
0.00
0.00
0.00
Minimize use of
pharmaceutical treatments
Minimize use of
pharmaceutical treatments
Minimize use of
pharmaceutical treatments
2.36
3.62
0.00
14.53
13.36
0.14
0.14
0.10
0.08
0.06
0.34
0.82
0.21
0.72
0.90
Zero escape incidents
1 (4 352)
Minimize impact on wildlife
Minimize impact on wildlife
35% reduction (from 2018)
in total emissions by 2030
8
0
0
6
0
0
2
0
0
1
0
166
182
4 502
5 970
169
n/a
254
n/a
93% superior share
82%
69%
86%
86%
1.21
1.20
1.14
1.12
0
18
0
224
n/a
78%
1.16
Below 4.5%
**
1.34
1.35
1.21
1.17
1.29
262
8.7%
22
8%
257
5.5%
28
n/a
256
4.9%
22
n/a
45%
60%
66%
247
5.4%
18
n/a
n/a
250
4.4%
24
n/a
n/a
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available.
General information on how we work systematically with the individual KPIs can be found in the report’s chapters linked in the ‘Approach’
column.
FINNMARK
2017
2018
2019
2020
2021
Harvest (tonnes GWT)
22 831
29 774
32 362
26 919
34 484
Revenue (NOK million)
1 265.2
1 671.3
1 815.3
1 313.5
1 756.3
EBIT (NOK million)
351.9
594.9
580.2
127.4
250.5
EBIT / kg (NOK)
Farming cost / kg (NOK)
15.4
40.7
20.0
35.6
17.9
37.7
4.7
44.1
7.3
43.7
FIGURE 2.32
RESULTS FOR FINNMARK
FIGURE 2.33
EBIT AND HARVEST FINNMARK
PA R T 0 2 : P R O F I T & I N N O VAT I O N
F I N N M A R K
PA G E 5 3
OP E R AT I ON A L P R IOR I T IE S
Grieg Seafood Finnmark harvested 34 484 tonnes of salmon in
As in all our regions, Grieg Seafood Finnmark focuses on improving
2021. Our goal is to harvest 38 000 tonnes in 2022, increasing to
fish welfare, achieving a high survival rate and working towards
45 000 tonnes in 2025 by using more of our seawater capacity,
sustainable production. As a result of our efforts in the area, all of
while still being cost competitive. The key to achieving this, is to
our sites (18 out of 18 eligible sites) were ASC certified by the end
reduce production time in the sea, which will result in improved
of the year. This is equivalent to 100% of net production (budget)
biological performance and a higher utilization of each site’s
for the year. New sites must reach peak biomass to be considered
maximum allowable biomass (MAB). We farm smolt at our own
for certification.
facility in Adamselv and at Nordnorsk Smolt, where we have 50%
ownership. We target a capacity increase of 4 000 tonnes of post-
In 2021, we spent NOK 45 million in growth investments related
smolt by 2025. Larger smolt will significantly reduce seawater
to upgrade of our processing facility and land sites, in addition
production time, decreasing the fishes’ exposure to issues such
to NOK 35 million in maintenance investments. Flexibility is a
as winter ulcers and Infectious Salmon Anemia (ISA), which have
requirement to achieve better utilization of our capacity, and we
been the most pressing challenges in this region in the last two
are also continuously looking for opportunities to secure access
years. These conditions negatively impact fish welfare, harvesting
to new locations.
weight, quality and price achievement. During the year, we have
implemented mitigating measures based on insights from the
analyses we have performed. Such measures include changing
the timing of when we transfer fish to the sea, altering the feed
composition and vaccinating the fish against ISA before transfer to
the sea. We have also improved the management and mitigation
of winter ulcers. We have also entered into a partnership for value
added processing capacity, to secure quality and sales margins as
and when required, should such conditions appear.
FIGURE 2.34
SURVIVAL RATE AT SE A IN FINNMARK,
ROLLING 12 MONTHS
FIGURE 2.35
MAIN CAUSES FOR REDUCED SURVIVAL
IN SE AWATER IN FINNMARK IN 2021
MAIN CAUSE
NUMBER OF FISH
TONNES OF FISH
Infectious
Bacterial
Virus
Non-Infectious
Life cycle
Physical
Treatments
Total
Abnormal seawater
mortality write-down
%
614 744
23 820
520 724
53 807
32 106
1 245 201
415 122
33%
1 982
26
895
114
53
3 072
1 571
51%
We report diseases, mortality, and other fish health indicators to the Norwegian
authorities on a weekly basis. This is publicly available information, please see
Barentswatch.
FIGURE 2.36
SE A LICE LEVELS (ADULT FEMALES) IN FINNMARK
The sea lice counts are calculated as the average number of adult female sea lice per month. Sea lice levels shall stay
below the legal limit of 0.5 adult female per fish. At the green licenses in Finnmark, the limit is 0.25 adult female sea lice
per fish, while during April and June, when wild salmon smolt migrate from the rivers and pass the salmon farms, the
limit is 0.2 adult female sea lice per fish. We report sea lice levels and sea lice treatments to the Directorate of Fisheries on a weekly basis. This is publicly available information, please
see Barentswatch.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
B R I T I S H C O L U M B I A
PA G E 5 4
GRIEG SEAFOOD
BRITISH COLUMBIA
Grieg Seafood BC Ltd farms salmon on the east and west sides of Vancouver
Island, and along the Sunshine Coast north of Vancouver. The company has 20
seawater licenses and one license for land-based production of smolt. We process
our BC salmon externally.
14 448
TONNES GWT HARVESTED
10.4
EBIT/KG (NOK)
OP ER AT ION AL R E S ULT S
A total of 14 448 tonnes was harvested in 2021, 32% lower than in
and a shorter period at sea will reduce exposure to biological
2020 (21 181 tonnes). Harvesting volumes vary significantly every
risks. This in turn will reduce the risk of disease outbreaks and the
other year in BC due to local production region arrangements and
need for antibiotics.
larger farms with greater capacity on the West Cost of Vancouver
Island compared to the East Coast. As a consequence, the region's
BC has low sea lice levels during the important outmigration period
volume varies every other year, regardless of the underlying
- when the juvenile and vulnerable wild salmon pass our farms
biology. Measures are being implemented to stabilize yearly
harvest volumes.
on their way from the rivers to the ocean. However, the region is
heavily influenced by sea lice pressure each autumn, during the
inmigration period when the adult wild salmon pass our farms on
Sales revenues for the year amounted to NOK 1 023 million, a
their way back to the rivers to spawn. In BC, unlike Norway, the
decrease of 13% compared to NOK 1 179 million in 2020. According
wild salmon population greatly outnumbers the farmed salmon
to Urner Barry, the average spot price (farm raised salmon Seattle
population. We are using preventative methods to keep the levels
West Coast, fresh, whole fish) was NOK 68.5 per kg in 2021,
stable. When additional measures are needed, we carry out the
compared to NOK 59.8 per kg in 2020. Our price achievement
type of treatment most appropriate to the biological situation.
was NOK 70.8 per kg in 2021, compared to NOK 55.7 per kg in
During 2021, treatment with hydrogen peroxide as well as in-
2020. Higher spot prices and a somewhat increased quality share
feed treatments were carried out to reduce and maintain a stable
compared to last year contributed to the price achievement. The
sea lice level. We have been able to achieve a higher efficacy at a
share of superior quality has been gradually rising recent years,
lower dose of both treatments. From 2022, we are introducing a
and ended at 87% in 2021.
locally developed barrier system between the farmed salmon and
the environment, which has shown promising results to control
Freshwater production was stable during the year, and the
sea lice and harmful algae without using medicines in trials.
freshwater survival rate improved from 78% in 2020 to 85% in
As from 2022, we are also adding the latest mechanical sea lice
2021. We transferred a total of 5.4 million smolt with an average
removal tool, which we expect to reduce our overall medication
weight of 120 grams to the sea in 2021.
and chemical use.
Seawater production was good in 2021, and the 12-month survival
Despite a continuous focus on escape prevention, we unfortunately
rate increased from 90% in 2020 to 92% in 2021. In previous years,
had two escape incidents during the year. One incident happened
the survival rate has been impacted by incidents of low oxygen
at our hatchery, where three small fish (fry) had gone through the
levels and plankton blooms. However, it is steadily increasing
water effluent screen. The fish were collected in a containment
due to positive results from our algae mitigation system, which
area before they entered the ocean, and would have no chance
stabilizes the survival rate in periods of challenging environmental
of survival at sea. Nevertheless, the incident was reported as an
conditions. Mortality related to algae blooms was reduced from
escape according to regulation. Corrective actions have been put in
3.4% in 2019, to 0.9% in 2020 and down to 0.4% in 2021, due to
place to prevent this from happening again. At one of our sea sites,
our efforts within algae mitigation, digital monitoring and aeration
we lost one fish outside the farm containment structure during
systems. The farming cost increased from CAD 8.0 per kg (NOK
harvest. Mitigating actions, such as the proper use of catch nets,
56.0) in 2020 to CAD 8.8 per kg (NOK 60.4) in 2021, mainly due to a
have been put in place. We also continue our efforts to minimize
lower harvest volume. Cost recognized as abnormal mortality in the
our impact on local wildlife. We regret to report that in 2021, eight
income statement (cost of reduced survival) was NOK 17.6 million
birds and one sea lion got caught in our nets. We are not content
in 2021 (NOK 1.2 or CAD 0.2 per kg), compared to NOK 66.1 million
with reporting any dead animals, and will continue striving to
in 2020 (NOK 3.1 or CAD 0.5 per kg).
reduce this number.
In 2021, we reduced the use of antibiotics compared to the
previous year. Nevertheless, the antibiotic Florfenicol was used to
treat both Redmouth and Yellowmouth to safeguard the welfare
of the fish. Our use of antibiotics is too high, and we are installing
infrastructure that will allow us to lower water temperatures and
salinity to help limit the transmission of diseases. We also pursue
non-therapeutic means to manage disease, such as vaccines and
an adapted diet. Our post-smolt strategy will enable us to have
better control of the fish’s environment for a longer period. It will
also make the fish more robust when they are transferred to sea,
PA R T 0 2 : P R O F I T & I N N O VAT I O N
B R I T I S H C O L U M B I A
PA G E 5 5
SUSTAINABILITY KPIs
PILLAR
KPI
APPROACH TARGET
2021
2020
2019
2018
PROFIT &
INNOVATION
HEALTHY
OCEAN
Harvest volume (tonnes GWT)
EBIT / kg (NOK)
Farming cost per kg (CAD)
ASC certification (# of sites)
Survival rate in freshwater
Survival rate at sea
Cost of reduced survival
(NOK 1 000)
Use of antibiotics
(g per tonne LWE) *
Use of hydrogen peroxide
(kg per tonne LWE) */ **
Sea lice treatments - in feed
(g per tonne LWE) *
Sea lice treatments - in bath
(g per tonne LWE) *
Escape incidents (# of fish)
Dead birds
Dead marine mammals
SUSTAINABLE
FOOD
Carbon emissions
(kgCO2e per tonne GWT)
Scope 1 + 2 location based
Scope 3
High quality product
Biological feed conversion ratio
(bFCR)
Economic feed conversion ratio
(eFCR)
PEOPLE
Employees
Absence rate
Lost time incident rate
Turnover rate
LOCAL
COMMUNITIES
Local procurement
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
22 000 tonnes in 2022
14 448
21 181
14 120
16 632
CAD 7/kg in 2022
All sites (15 eligible) by 2023
93% by 2022
10.4
-0.4
8.8
12
85%
92%
8.0
11
78%
90%
5.2
8.3
n/a
63%
88%
17.5
7.4
n/a
83%
88%
2017
9 600
12.5
7.4
n/a
81%
93%
17 617
66 082
73 327
88 454
17 395
No use of antibiotics
41.67
62.32
87.00
151.26
18.30
Minimize use of
pharmaceutical treatments
Minimize use of
pharmaceutical treatments
Minimize use of
pharmaceutical treatments
Zero escape incidents
Minimize impact on wildlife
Minimize impact on wildlife
35% reduction (from 2018)
in total emissions by 2030
2 (4)
8
1
0
12
1
0
14
0
1 097
769
1 101
93% superior share
87%
86%
4 025
3 276
1.18
1.23
n/a
86%
1.25
Below 4.5%
***
1.27
1.43
1.41
1.54
1.29
176
5.6%
6
30%
174
6.8%
36
n/a
171
2.0%
35
n/a
84%
83%
83%
148
1.8%
38
n/a
n/a
150
0.9%
16
n/a
n/a
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** As of 01.01.2021, the Government of Canada - Department of Fisheries and Oceans Canada (DFO) changed the calculation formula for the API of hydrogen peroxide from Paramove 50
from 1 L (Paramove 50) * 1.15 (density) * 0.45 (concentration) = 1 kg H2O2 to 1 L (Paramove 50) * 1.19 (density) * 0.49 (concentration) = 1 kg H2O2, which corresponds to the method used in
Norway. Previous years (2017 - 2020) have not been recalculated.
*** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available.
General information on how we work systematically with the individual KPIs can be found in the report’s chapters linked in the ‘Approach’
column.
35.66
46.62
6.01
5.83
9.17
0.30
0.22
0.52
0.32
0.14
0.00
0.00
0.00
0.00
0.00
FIGURE 2.37
RESULTS FOR BRITISH COLUMBIA
0
0
0
597
n/a
84%
1.23
0
0
0
702
n/a
81%
1.20
FIGURE 2.38
EBIT AND HARVEST BRITISH COLUMBIA
BRITISH COLUMBIA
Harvest (tonnes GWT)
Revenue (NOK million)
EBIT (NOK million)
EBIT / kg (NOK)
Farming cost / kg (NOK)
Farming cost / kg (CAD)
2017
9 600
580.3
120.2
12.5
49.8
7.4
2018
2019
2020
2021
16 632
14 120
21 181
14 448
1 075.3
861.4
1 178.9
1 023.5
290.9
17.5
50.0
7.4
73.3
5.2
55.3
8.3
-7.4
-0.4
56.0
8.0
150.2
10.4
60.4
8.8
PA R T 0 2 : P R O F I T & I N N O VAT I O N
B R I T I S H C O L U M B I A
PA G E 5 6
OP E R AT I ON A L P R IOR I T IE S
Grieg Seafood BC harvested 14 448 tonnes of salmon in 2021.
By 2025, the Canadian federal government aims to have created
Our goal is to harvest 22 000 tonnes in 2022, increasing to 35 000
a responsible plan to transition from the traditional open net-pen
tonnes in 2025 mainly by securing high-quality, larger smolt and
salmon farming in British Columbia. Grieg Seafood supports this
increasing survival at sea, which will enable us to better utilize
process. We embrace new strategies and technologies to align
our seawater sites. Access to high-quality smolt is key to ensuring
with the government’s transition, such as keeping the fish longer
sustainable production growth. With the expansion of the Gold
on land and a shorter time in the ocean, or by introducing barriers
River smolt facility, Grieg Seafood BC will increase smolt capacity
around the farms to limit interactions between the fish and the
from 500 tonnes to 900 tonnes. The first smolt transfer from the
environment. Such technologies not only reduce our impact on
facility to sea farms will take place in the spring of 2022.
wild salmon and the environment, but also improve our biological
control. Grieg Seafood is committed to be a constructive partner
Harmful Algae Blooms (HAB) and low oxygen events represent
for the Government and Indigenous communities in the 2025
significant biological risks in BC, which may impact our survival
transition process, and to find a path forward that works for all
rate. However, mortality related to algae blooms is reduced due to
stakeholders.
our successful efforts within algae mitigation, digital monitoring
and aeration systems. Algae movements and oxygen levels are
Our capital expenditures reflects our growth initiatives. In 2021, we
continuously monitored and analyzed using high-grade real-time
spent NOK 105 million in growth investments mainly related to the
in-pen sensors and machine learning with predictive environmental
expansion of Gold River, in addition to NOK 26 million in regular
data software. In addition, aeration systems have been installed
maintenance investments. The smolt facility will be completed in
to enable feeding also during challenging situations. We expect
2022, and secure BC access to high-quality smolt.
FIGURE 2.39
SURVIVAL RATE AT SE A IN BRITISH COLUMBIA,
ROLLING 12 MONTHS
FIGURE 2.40
MAIN CAUSES FOR REDUCED SURVIVAL IN SE AWATER IN
BRITISH COLUMBIA IN 2021
MAIN CAUSE
Infectious
Gill infections
Bacterial
Virus
Non-Infectious
Life cycle
Treatments
Total
Abnormal seawater
mortality write-down
%
NUMBER OF FISH
TONNES OF FISH
52 907
172 248
7 676
671 589
36 376
940 796
89 274
9%
169
120
7
1 339
44
1 680
351
21%
our efforts in the areas of algae mitigation and digital monitoring
to increase survival and harvest volume, and reduce cost going
forward, thereby ensuring we are cost competitive.
Obtaining ASC certification is prioritized, as it is an important
signal that our salmon is a responsible choice. ASC has strict
requirements with respect to minimizing fish farms’ impact on the
natural environment and supporting local communities. At the end
of 2021, a total of 12 out of 15 eligible sites were ASC certified
(corresponding to 69% of net production (budget))).
We are committed to develop our operations in line with the United
Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).
In BC, there is an ongoing process of reconciliation between the
government, businesses and First Nations, which we support. Our
main farming areas in BC are operated under agreements with the
Indigenous Peoples who are the Rightsholders of those territories,
and we are pursuing agreements with others. The Truth &
Reconciliation Commission: Call to Action #92 provides us with
guidance on our role in the reconciliation process. We are working
to operate in ways that fully respect the culture of our First Nations
partners, to deepen our understanding and to provide shared
opportunities. Read more about our journey of reconciliation in
BC here. In March 2022, the Coalition of First Nations for Finfish
Stewardship launched the report: "The Reality Is: Salmon Farming
is a path to self determination and reconciliation for many First
Nations in coastal BC". Read more about the coalition and the
report here.
FIGURE 2.41
SE A LICE LEVELS (MOTILE SE A LICE ) IN BRITISH COLUMBIA
The sea lice counts are calculated as the average number of motile sea lice per salmon. The limit as defined by the authorities is three motile sea lice per salmon in the period from March
to June during the out-migration period, recognized as a vulnerable time for wild salmon migrating out to sea.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
N E W F O U N D L A N D
PA G E 5 7
GRIEG SEAFOOD
NEWFOUNDLAND
Grieg Seafood Newfoundland is a greenfield project located in Placentia Bay
in Newfoundland. At year-end 2021, we had eight seawater licenses and one
freshwater license. Additional seawater licenses have been applied for.
S TAT U S
Our Recirculating Aquaculture System (RAS) facility in Marystown
EBIT for 2021 totaled NOK -116.9 million. We spent close to
Marine Industrial Park, close to Placentia Bay, is fully operational.
NOK 290 million in investments in the RAS facility and seawater
We had expected to transfer the first smolt to sea summer of 2021,
locations
in Newfoundland
in 2021. We are committed to
however this transfer was postponed to 2022 due to suspicion of
developing the project according to our long-term forecast and
ISA. The financial impact of the postponement was not significant
meeting all regulatory requirements from the authorities. We
as the first generation contained few individuals compared to
are well prepared with equipment, employees and knowledge of
regular operations. The second generation of eggs was received in
biological conditions, which enables us to provide a solid and safe
the facility in April and July 2021. The production of this freshwater
production. We are confident that we will be able to build a strong
generation has been on track, with high survival rates. We plan
farming region in Newfoundland over the coming years, realizing
to transfer between two to three million fish to the sea during the
synergies with our BC operations and creating jobs and value for
spring and summer of 2022, with harvesting commencing in 2023.
the local communities.
Preparation is on schedule and our focus is on ensuring that all
equipment and services needed for the seawater operations will
be in place when the fish are transferred to the sea. We have also
provided a group of employees destined for seawater operations
with proper training at our other farms in Norway.
Our seawater licenses in Newfoundland require use of sterile all-
female salmon in order to eliminate the risk of genetic pollution
of wild Atlantic salmon in case of escape. We base our operations
on developed knowledge and experience about farming triploid
salmon in both Norway and the UK. In accordance with best
practice, we optimize the times of the year to transfer fish to the
sea, the feed composition, and conditions during the freshwater
phase.
During the year, we were able to test the resilience of our seawater
equipment when a Category 1 hurricane swept over eastern
Newfoundland. The pen and equipment we have placed in one of
our seawater sites sustained no damages. The RAS facility also
withstood the hurricane winds with no damage. Power outages
and other disturbances were handled by our backup system and
caused no disruption to production.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
N E W F O U N D L A N D
PA G E 5 8
SUSTAINABILITY KPIs
PILLAR
KPI
APPROACH TARGET
PROFIT &
INNOVATION
HEALTHY
OCEAN
EBIT (NOK million)
Use of antibiotics
(g per tonne LWE) *
SUSTAINABLE
FOOD
Carbon emissions
(tCO2e)
Scope 1 + 2 location based
Scope 3
PEOPLE
Employees
Absence rate
Lost time incident rate
Turnover rate
LOCAL
COMMUNITIES
Local procurement
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
Ñ
2021
2020
-116.9
n/a
No use of antibiotics
0.00
0.00
35% reduction (from 2018)
in total emissions by 2030
Below 4.5%
**
2 066
1 927
735
69
1.3%
5
30%
642
73
n/a
n/a
n/a
44%
46%
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available. Our Newfoundland region is currently in development, with no seawater production in 2021. We will report on more indicators going
forward. As from 1 January 2021, Newfoundland has been reported as a region of the Group. See Note 8 of the Group Accounts.
General information on how we work systematically with the individual KPIs can be found in the report’s chapters linked
in the ‘Approach’ column.
OP P OR T UNI T Y
The US market is the world’s largest and fastest growing market
eight seawater licenses, but additional licenses have been applied
for Atlantic salmon, but only a third of US demand is currently met
for. The sites and production areas chosen in Placentia Bay are
by North American production. We already have a position in this
at least 100 meters deep, have good currents and optimal oxygen
market through our operations in British Columbia, where we have
levels. There are no known algae issues in the area. Our seawater
attained significant sales and market experience. With proximity
sites have favorable biological conditions for salmon farming, with
to important markets on the US East Coast, our Newfoundland
environmental conditions like northern Norway. The sites are
region significantly strengthens our US market exposure and
exposed to high seas and will be equipped with state-of-the-art
opens for synergies with our existing operations.
technology and systems for harsh environments. 40-meter-deep
Our high-end RAS facility in Marystown has technology employing
layers of super-chilled or potentially warm water.
close to 100% recirculation of water with no impact on the
surrounding environment. The facility currently consists of a
The project has a long-term annual harvest potential of 45 000
hatchery, nursery and a smolt unit with a capacity of 600 tonnes.
tonnes. By using cutting-edge technologies at all stages of the
We will gradually develop our operations, to ensure biosecurity,
production process, our Newfoundland region will strengthen our
fish health and profitability.
position as a global leader in sustainable salmon farming.
pens and underwater feeding will allow the fish to stay below
We have long-term exclusive farming rights to the Placentia Bay
area, an area which is highly isolated from other salmon farmers
in the region. Long distances and low interconnectivity between
sites lower the risk of biological contamination. We currently have
PA R T 0 2 : P R O F I T & I N N O VAT I O N
T H E S A L M O N M A R K E T
PA G E 5 9
SALES & MARKET
FIGURE 2.44
NQSALMON WEEKLY AVERAGE (NOK/KG)
Grieg Seafood is part of a global salmon market, supplying 3.4% of the global
volume of Atlantic salmon harvested in 2021. As part of our new strategy, we will
reposition Grieg Seafood in the value chain and become an innovative partner for
selected customers. By focusing on sustainable farming practices and good fish
health and welfare, we can provide the healthy, tasty, and high-quality product that
our customers and consumers demand.
FIGURE 2.42
GLOBAL ATL ANTIC SALMON HARVEST IN 2021*
FIGURE 2.43
GLOBAL ATL ANTIC SALMON CONSUMPTION IN 2021*
Source: NASDAQ Salmon Index
FIGURE 2.45
URNER BARRY FARM RAISED SALMON SE AT TLE
WEST COAST, FRESH, WHOLEFISH (NOK/KG)
Norway
Chile
UK
Canada
Other
EU & UK
USA
Brazil
Russia
Asia
Other
Source: Kontali Analyse AS
The UB Farm Raised Salmon Seattle West Coast, Fresh, Wholefish shown above is a weekly average of all weight classes (4-6 lb, 6-8 lb, 8-10 lb, 10-12 lb,12-14 lb, 14-16 lb, 16-18 lb) in
USD/lb, converted into NOK/kg using the weekly average of Norges Bank's daily exchange rate.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
T H E S A L M O N M A R K E T
PA G E 6 0
OUR SALES AND MARKET ORGANIZATION
GLOBAL MARKET DEVELOPMENTS IN 2021
In 2021, Grieg Seafood established its own sales and market
In 2021, the global volume of Atlantic salmon harvested increased
organization. Until year-end 2020, our fish was sold through Ocean
by approximately 7% compared to 2020, according to Kontali,
Quality, the sales organization of Grieg Seafood and Bremnes
continuing on a similar level as seen the last years. A total of
Fryseri. As part of our strategy, we have embarked on a journey
2 603 520 tonnes GWT (gutted weight equivalent) was estimated
to reposition Grieg Seafood in the value chain from being purely a
to have been harvested globally in 2021, up from 2 440 620 tonnes
supplier of farmed salmon from our regions to becoming a partner
in 2020. The largest contributors to the increase were Norway and
for selected customers in our main markets.
the Faroe Islands, with an increase in output of 146 790 and 22 410
tonnes, respectively, while Chile experienced a reduction of 52 380
During the first months of 2021, our new sales organization
tonnes.
handled approximately 50% of our harvested salmon. As of April
2021, the organization handled 100% of our harvested volume. Our
Market demand continued to be strong in 2021. It is estimated that
new sales organization is built on a mix of experienced seniors
consumption in all major markets increased in 2021. The largest
from the seafood industry and juniors taking their first steps. We
relative increases in consumption were found in the EU and the
are developing our organization for the future and are committed
UK, both up 8%, and the USA, up 13%. Total exports of salmon
to achieving this through a focus on nurturing young talent as well
from Norway in 2021 rose by 12% compared to 2020. Exports of
as continuous development of our experienced seniors.
fresh salmon (GWT) from Norway rose by 11% in 2021 compared
to 2020. The main export markets were Europe, at 77%; Asia, at
During autumn, we established our Value Added Product (VAP)
17%; and North America, at 3%. Exports of fresh filet from Norway
sales department, which will be a key factor in increasing our
in 2021 also increased significantly, up by 22% compared to 2020,
VAP product portfolio both from the Company’s Norwegian and
with the main volume increase to the US market. Volume supplied
Canadian regions in the coming years. We have also entered into an
by Canada increased by 3% in 2021 compared to 2020. The demand
agreement on VAP capacity in Norway and commenced processing
has been driven by supermarkets and grocery stores, in addition
some of our Norwegian salmon into fresh and frozen valued-added
to a recovery in the HoReCa (hotels, restaurant, catering) segment
products towards year-end. The finished products are sold through
towards the end of the year. Sales to the HoReCa market were
our VAP sales department to European and overseas markets.
low most of the year due to Covid-related restrictions, curfews
Based on this market introduction, our sales organization secured
and lockdowns in most markets. On the other hand, sales to the
a pipeline of VAP products for delivery in 2022. We will continue to
retail segment and home consumption have increased during the
evaluate both external opportunities to strengthen our processing
Covid-19 pandemic.
capacity, such as long-term partnerships with third parties in
Norway, North America and Europe, as well as the development of
Salmon prices noted on NASDAQ Salmon Index (NQSALMON)
existing internal processing infrastructure.
varied significantly in the last year due to the waves of restrictions
Read about our Chain of Custody certifications here.
North American market. The spot market price stood at NOK 45.1
and lockdowns in Europe. The same trend was observed in the
at the beginning of the year. It then fell to the low forties in the
second week of 2021, before regaining strength. The spot market
price according to NQSALMON closed the year at NOK 63.4 per
kg. The 12-month average NQSALMON for 2021 came to NOK 57.3
per kg, compared to NOK 53.7 in 2020. Spot salmon prices in the
US market started the year at NOK 59.6 per kg and ended the year
at NOK 72.6 per kg, with an average price of NOK 68.5 per kg, up by
NOK 12.1 per kg compared to 2020.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
T H E S A L M O N M A R K E T
PA G E 61
OUR MARKET DEVELOPMENT IN 2021
Grieg Seafood accounted for 3.4% of the global supply of Atlantic
decreased from 29% in 2020 to 27% in 2021. In 2021, 13% of sales
Our sales revenues amounted to NOK 4 599 million, an increase of
The Russian invasion of Ukraine in February 2022 has already had
salmon in 2021 (2.9% of the global supply excluding the volume
done by our own sales organization was to airborne markets, and
NOK 214 million or 4.9% from 2020. Our harvested volume in 2021
a global impact on food and food raw materials prices, though
harvested in Shetland up to 15 December 2021, when the
the remainder was sold to European markets, with a strong focus
was up 6% compared to 2020, and while the 12-month average
salmon demand has not yet been significantly affected. Further
Shetland business was sold). Continental Europe is by far our
on key markets in southern Europe. We did not have any sales to
NQSALMON for 2021 came to NOK 57.3 per kg compared to NOK
inflation in prices and distribution costs may impact demand going
most important market, taking 73% of our harvested volume and
Russia or Belarus in 2021.
contributing 65% of our sales revenue in 2021. North America is
53.7 in 2020, the Group's price achievement was NOK 55.7 per kg
forward. However as of the time of publishing this report, with the
compared to NOK 52.8 per kg in 2020. In 2021, we had a fixed-price
outlook for continuing strong demand and no supply growth in
our second largest market, accounting for 21% of our volume and
Sales in 2021 consisted mainly of fresh, head-on gutted salmon,
contract share of 30% in Norway, in line with our targeted contract
2022, we believe market prices will rise going forward. At year-
27% of our revenues. The market distribution of sales varies year
with a small share of fresh value-added products (representing
rate of 20-50%. For more information on our harvest volume and
end, the spot price for salmon, according to NQSALMON, was NOK
on year, depending on the harvested volumes across our regions.
approximately 4% of our volume). Processed products, including
sales performance, see the regional chapters in this report.
63.4 per kg, and the average price in the first months of 2022 was
The main change in our sales distribution was an increase to
the Grieg Seafood brand Skuna Bay, sold to the North American
Continental Europe from 45% in 2020 to 65% in 2021, mainly due
market constituted approximately 9% of the volume from our BC
to the 22% increase in harvested volume from our Norwegian
operations. We experienced good demand for ASC certified salmon
MARKET EXPECTATIONS
around NOK 78 per kg. Spot salmon prices in the US market ended
the year at NOK 72.6 per kg, and the average spot price for the first
months in 2022 was around NOK 83 per kg. The Fishpool forward
farming operations (the figures exclude sales from Shetland). In
in the European market and sold ASC volumes with a stable
The global harvest of Atlantic salmon in 2022 is expected to
price for Q2 2022 is close to NOK 78 per kg, and forward prices for
our BC region, we harvested 32% less volume in 2021 compared
market premium. See here for further details of sales revenues by
remain at a similar level to 2021, which came to 2 891 900 tonnes,
the second half of 2022 are close to NOK 64 per kg. We aim to sell
to 2020. However, due to exports from our Norwegian regions
markets and products.
to the USA, the volume sold to the North American market only
according to Kontali. Due to the increase in maximum allowed
20-50% of our Norwegian volume under fixed-price contracts, and
biomass (MAB) in Norway and good seawater conditions in the
our estimated contract share for 2022 is 17% as ta year-end 2021.
FIGURE 2.46
OUR MARKETS BY SALES REVENUES IN 2021
FIGURE 2.47
OUR MARKETS BY HARVESTED VOLUME IN 2021
second half of 2021, Norwegian salmon farmers are expected to
harvest 8 500 tonnes more in 2022 than in 2021. Chile is expected
to decrease its harvest in 2022 by approximately 3 500 tonnes, with
the decrease concentrated in the first half of the year. Canada is
expected to decrease its harvest by approximately 10 300 tonnes in
2022. The remaining salmon farming countries will increase their
volume by approximately 4 400 tonnes.
The Covid-19 pandemic has impacted the salmon market in the
last two years, with a significant shift in demand, away from hotels,
restaurants and catering (HoReCa), while the retail segment and
home consumption have been boosted. Going into 2022, salmon
demand is still impacted by the pandemic and partly characterized
by volumes channelled from the HoReCa market to the retail
segment. However, with global progress on vaccination against
Covid-19 and the lifting of restrictions in many countries, the shift
from HoReCa to retail is expected to be reversed to some extent.
Nevertheless, we believe retail consumption may increase as
consumers have become used to cooking salmon at home. Dietary
megatrends fueled by increased focus on health and sustainability
are expected to increase demand going forward, contributing to a
strong salmon market.
PA R T 0 2 : P R O F I T & I N N O VAT I O N
G R I E G S E A F O O D ’ S S H A R E S
PA G E 6 2
GRIEG SEAFOOD’S
SHARES
We aim to provide an attractive return
to our shareholders and contribute
to the correct pricing of our shares.
To achieve this, we are proactive in
disclosing reliable information about
our operations.
OUR P R INCIP LE S
OUR SH AR E S A ND S H AR EHOLDER S
T HE R E T UR N ON OUR S H A R E S
• Our ambition is to create shareholder value and deliver
Seafood was listed on the Oslo Stock Exchange on 21 June 2007,
at 31 December 2020 to NOK 83.1 as at 31 December 2021. No
competitive returns relative
to comparable
investment
under the ticker GSF. We have only one class of shares, and all
dividend has been paid out in 2020 and 2021 due the Covid-19
alternatives.
shares carry the same rights. As of 31 December 2021, the
pandemic and temporary amendments in the syndicated loan
• We engage with the investor community in an open, transparent
Company had 112 314 061 shares outstanding, at a nominal value
arrangements from Q4 2020 through Q3 2021, in addition to an
and continuous dialogue. Building trust and awareness is
of NOK 4.00 per share (excluding treasury shares). Total ordinary
extensive growth investment plan, including the freshwater facility
critical to ensure that the information disclosed to the financial
shares as at 31 December 2021 was 113 447 042.
and seawater sites in Newfoundland and the Gold River hatchery
Our shares are listed on the Oslo Stock Exchange/Euronext. Grieg
Grieg Seafood’s share price decreased by 2.2% from NOK 85.0 as
market, including current and potential investors, analysts
in British Columbia.
and other stakeholders, provides the best possible basis for a
As of 31 December 2021, we had 9 938 shareholders, with our ten
correct valuation of Grieg Seafood.
largest investors holding 69.5% of our shares, and the 20 largest
Grieg Seafood aims to provide shareholders with a competitive
O U R TA R G E T
Dividend
30-40% of the Group's net profit after tax
before fair value adjustments
investors holding 77.4%. The number of shareholders decreased
return on invested capital through payment of dividends and share
during the year, from 12 436 at year-end 2020. Norwegian-based
price increases. The Board of Directors maintains that, as an
shareholders own the majority of the Company’s shares, with Per
average over time, dividends should correspond to 30-40% of the
Grieg Jr. and the Grieg family controlling 53.2% of the outstanding
Group’s profit after tax, adjusted for the effect of the changes in fair
shares as of 31 December 2021. A further 4.7% was controlled by
value of biological assets. As at 31 December 2021, Grieg Seafood
the Norwegian National Insurance Fund (Folketrygdfondet) and
was in a solid financial position to execute strategic priorities
4.3% by OM Holding AS at year-end 2021. Grieg Seafood ASA held
and deliver a shareholder return. The Board recommends that a
a total of 1 132 981 treasury shares as of 31 December 2021. For
dividend of NOK 3.0 per share be distributed to shareholders.
FIGURE 2.48
GEOGRAPHICAL OWNERSHIP IN 2020
& 2021 (NUMBER OF SHARES)
In the period 2015 to 2019, we have had a dividend yield in the
range of 1.6-5.5%. Over the preceding years, we have had a
consistent pay-out ratio, only temporarily suspended due to
Covid-19 pandemic measures. The total accumulated dividend per
share since our initial public offering in 2007 is NOK 15.6 as at 31
December 2021.
a detailed breakdown of our 20 largest shareholders, please see
Note 18 in the Group Accounts.
T HE LIQUIDI T Y OF OUR SH AR E S
Since May 2016, the liquidity of our shares has increased
significantly compared to previous years. This development was
triggered by Mowi ASA realizing a set of old forward contracts,
acquiring nearly 29 million shares in Grieg Seafood ASA, and
immediately selling them in the market. Following this injection
of shares into the open market, the Grieg Seafood share has been
traded at a much higher volume. In 2021, a total of 86 million
shares were traded, with a median of 265 456 shares per trading
day, compared to a total of 100 million shares traded, with a
median of 317 106 shares per trading day in 2020.
2021
2020
Norway
UK
EU
USA
Norway
UK
EU
USA
LEARN MORE ON OUR WEBSITE
→ Our share, shareholders and dividends
PA R T 0 2 : P R O F I T & I N N O VAT I O N
G R I E G S E A F O O D ’ S S H A R E S
PA G E 6 3
FIGURE 2.49
FIVE YE AR REL ATIVE SHARE PERFORMANCE
Source data GSF
Source OBSFX
Source OBX
FIGURE 2.50
DIVIDEND PAID
Dividend paid
Dividend paid per share
FIGURE 2.51
KEY FIGURES
KEY FIGURES GRIEG SEAFOOD SHARE
2017
2018
2019
2020
2021
Number of shares at year-end (incl. own shares)
111 662 000
111 662 000
111 662 000
113 447 042
113 447 042
Number of shares traded
Number of shareholders
Total value of shares traded per day (NOK million)
Average number of shares traded per day
Median number of shares traded per day
143 109 533
116 144 510
72 001 397
99 831 798
85 769 401
4 433
40.7
570 158
486 933
5 124
42.1
466 444
411 341
4 968
33.7
289 162
240 801
12 436
37.5
396 158
317 106
9 938
28.5
340 355
265 456
Total market value OSE (NOK 1 000)
8 067 580
11 423 023
15 666 178
9 642 999
9 427 449
Share price at year-end (NOK)
Average share price (NOK)
Lowest closing price (NOK)
Highest closing price (NOK)
72.3
71.5
58.0
85.1
102.3
92.2
66.2
131.9
140.3
118.0
96.8
146.8
85.0
99.1
66.3
144.9
83.1
84.4
73.2
95.6
PA R T 0 2 : P R O F I T & I N N O VAT I O N
R E S P O N S I B L E B U S I N E S S C O N D U C T
PA G E 6 4
RESPONSIBLE BUSINESS CONDUCT
Business integrity is essential if we are to become a
preferred provider of sustainably produced salmon.
OUR AP P R O A CH
OUR TAR GE T
Grieg Seafood is committed to conducting its business ethically
and with integrity throughout our operations and value chain. We
promote and value transparency. We do not permit or tolerate
engagement in any form of corruption or money laundering
activities.
Responsible business
conduct
No incidents of non-compliance with our anti-
corruption and anti-money laundering policies
OUR P R INCI P LE S
OUR R E S ULT S
• We do not accept any form of corruption, or improper payments
(bribes) given or received to influence business and gain
advantage.
• We do not participate in any form of business conduct which
involves money laundering.
• We perform risk assessments of our operations and our value
chain, and implement mitigating measures or controls to
prevent corruption and money laundering activities.
• We aim to know our trading partners, including our customers,
by performing adequate integrity due diligence.
• Our Supplier Code of Conduct states our expectations related
to ethical principles, anti-bribery laws, anti-corruption and
business conduct for our suppliers, subcontractors, and other
business relationships.
• We comply with applicable anti-corruption and anti-money
laundering laws and regulations where we operate.
• We adhere to the relevant standards set out in the United
Nations Convention against Corruption.
• We follow our principles anywhere in the world, regardless of
local customs.
INVESTIGATIONS
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. Based on the EU investigation, US competition
authorities launched their own investigation into the matter in
November 2019. Two class-actions have been filed by direct and
indirect customers in the USA and three class actions have been
filed in Canada (none has yet been certified as a class action).
Grieg Seafood is not aware of any anti-competitive behavior within
the Group, neither in Norway, nor the EU, the USA or Canada. We
are fully collaborating with European and American authorities
in this matter and follow up the lawsuits in the USA and Canada
accordingly.
NON-COMPLIANCE
Our risk assessments in 2021 did not uncover any high-risk
activities that required specific mitigation actions. None of the
countries where we operate were considered high-risk countries
according to the Transparency International Corruption Perception
Index. We did not experience any incidents of corruption or money-
laundering activities in 2021. We had no corruption incidents that
resulted in the termination or non-renewal of contracts with a
business partner.
LEARN MORE ON OUR WEBSITE
→
→
Corporate Governance structure
Anti-money laundering and anti-corruption policies
FIGURE 2.52
NON-COMPLIANCE WITH L AWS AND REGUL ATIONS IN 2021
Area of non-compliance
Description
Fines (NOK)
Number of non-monetary sanctions
Dispute resolution mechanisms
Environmental
Social
Economic
n/a
n/a
n/a
0
0
0
0
0
0
None
None
None
PA R T 0 2 : P R O F I T & I N N O VAT I O N
A N A LY T I C A L I N F O R M AT I O N
PA G E 6 5
KEY PERFORMANCE INDICATORS
AND ALTERNATIVE PERFORMANCE
MEASURES (APM)
We believe that our financial statements only partially reflect
the underlying performance of our operations. We are therefore
working continuously to develop key operational performance
indicators and alternative performance measures (APM) that
we believe provide additional information when analyzing our
operational and financial performance.
The APMs used here have been defined by Grieg Seafood to
supplement its financial statements. These non-IFRS financial
measures could therefore deviate from similar APMs presented
by other companies.
EBITDA
Definition and calculation
Operating profit before amortization and depreciation, excluding
production fee and fair value adjustment of biological assets.
Unless otherwise specified, EBITDA before production fee and
fair value adjustment of biological assets is shortened to EBITDA.
This also applies to all key figures where EBITDA is a component,
including: EBITDA margin (%), and NIBD/EBITDA. The EBITDA is
included as a subtotal in the Group’s income statement.
Reason for applying APM
EBITDA before fair value adjustment provides a more informative
result, as it does not consider future gains or losses on fish not
yet sold. The fair value adjustment has a non-operational nature
and can affect the comparability of our performance from period
to period.
EBIT (EBIT BEFORE PRODUCTION FEE AND
FAIR VALUE ADJUSTMENT OF BIOLOGICAL
ASSETS)
Definition and calculation
Operating profit before amortization and depreciation, production
fee and fair value adjustment of biological assets. Unless otherwise
specified, EBIT before production fee and fair value adjustment of
biological assets is shortened to EBIT (earnings before interest
and taxes). This also applies to all key figures where EBIT is a
component, including EBIT/kg GWT, EBIT margin (%) and ROCE.
The EBIT before production fee and fair value adjustment of
biological assets is included as a subtotal in the Group’s income
statement.
REASON FOR APPLYING APM
EBIT before production fee and fair value adjustment provides a
more informative result as it does not consider country-specific
taxation on harvest volume and future gains or losses on fish not
yet sold. The fair value adjustment has a non-operational nature
and can affect the comparability of our performance from period
to period. This EBIT metric is generally considered the industry
measure for profitability.
SALES REVENUE/KG (GWT)
Definition and calculation
The sales revenue/kg (GWT) metric is calculated as sales revenue
from farming operations divided by harvested volume in kg gutted
weight equivalent. Sales revenue/kg is included in the Group’s
segment information (see Note 8 to the Group Accounts). See the
segment information in addition to the reconciliation disclosed in
this section. The per kg figure can be reconciled using the figures
in the segment information of the Group. The metric is calculated
by farming region, and for the Group as a whole. Sales revenue
from farming operations equals the revenue directly attributable
to the sale of Atlantic salmon, including the impact of fixed-
price contracts. The sales revenue from farming operations also
includes the margin generated by the sales department. For the
Group, the sales revenue from farming operations equals the sum
of the sales revenue from farming operations per farming region.
It therefore excludes the sales revenue generated by the Elim/
Other item in the Group’s segment reporting (see Note 8 to the
Group Accounts).
Reason for applying APM
Sales revenue/kg is a relative metric which ensures comparability
between our farming regions and across time. The metric captures
the price achievement generated by the Group and each farming
region.
FARMING COST/KG (GWT)
Definition and calculation
The farming cost/kg (GWT) metric is the sum of all costs directly
related to the production and harvest of salmon, divided by the
related harvest volume in kg gutted weight equivalent (GWT). Thus,
at the regional level, farming costs equal operational costs. Other
income is included in the farming cost metric as cost-reduction
activities. Therefore, farming cost can be calculated as sales
revenue from farming operations less EBIT. The farming cost/
kg is included in the Group’s segment information (see Note 8
operational profitability for the Group and each farming region.
to the Group Accounts). See the segment information in addition
EBIT/kg equals sales revenue/kg subtracted by farming cost/kg
to the reconciliation disclosed in this section. The per kg figure
and other costs incl. headquarter costs/kg.
can be reconciled using the figures in the segment information
of the Group. The metric is calculated by farming region, and for
the Group as a whole. Group farming cost equals the sum of the
regions’ farming costs, which excludes the net costs from the item
Elim/Other in the Group’s segment reporting.
Reason for applying APM
Farming cost/kg is a relative metric which ensures comparability
NET INTEREST-BEARING DEBT (NIBD)
Definition and calculation
Net interest-bearing debt (NIBD) comprises non-current and
current debt to financial institutions and other interest-bearing
liabilities, after deducting cash and cash equivalents. Amortized
loan costs are not included in NIBD.
between our farming regions and across time. The metric captures
NIBD is calculated in three ways:
the cost level of the farming operations. As Atlantic salmon is
1. NIBD includes all long-term and current debt to credit
traded largely as a commodity, and the prices achieved largely
reflect a general market price, the farming cost/kg captures the
underlying operational profitability for the Group and each farming
region.
OTHER COSTS INCL. OWNERSHIP AND
HEADQUARTERS COSTS/KG (GWT)
Definition and calculation
The Other costs incl. ownership and headquarters costs/kg (GWT)
metric captures all costs and revenue not directly related to the
production and harvesting of salmon. This includes costs deriving
from activities conducted by the parent company and other Group
institutions and other interest-bearing liabilities, incl. the effect
of IFRS 16 compared to the IFRS in force prior to 1 January
2019. This NIBD metric is disclosed in Note 12 to the Group
Accounts. This NIBD metric is included in the ROCE calculation.
2. NIBD includes all long-term and current debt to credit
institutions and other
interest-bearing liabilities, but
is
adjusted according to terms and conditions set out in the bank
loan agreement. This NIBD metric is disclosed in Note 12 to
the Group Accounts, and excludes the effect on NIBD of IFRS
16 compared to the IFRS in force prior to 1 January 2019, in
addition to other adjustments made according to the loan
agreement. This method of calculating NIBD is used in the
companies not related to production, divided by the Group's
calculation of NIBD/EBITDA.
harvest volume. In addition, until the first harvest in Newfoundland
3. NIBD includes all long-term and current debt to credit
is carried out, costs attributable to the Newfoundland region are
included as other costs/kg. The Other costs incl. headquarters
costs/kg is included in the Group’s segment information (see Note
8 to the Group Accounts), and is equal to the EBIT of elim/other and
Newfoundland over the group harvest volume (GWT). The metric
institutions and other interest-bearing liabilities but excludes
the effect of IFRS 16 compared to the IFRS in force prior to 1
January 2019. This metric is calculated as NIBD according to
bullet 1 above, subtracted by the effect of IFRS 16 as included
in the adjustment to the covenant relating to NIBD in bullet 2
is calculated for the Group, and can be reconciled in the Group’s
above.
segment information.
Reason for applying APM
Other costs incl. headquarters costs/kg is a relative metric which
A reconciliation of NIBD according to method 1 with the Financial
Statements have been disclosed. The NIBD according to method
1 and 2 can be reconciled using the reconciliation for method 1
ensures comparability when assessing the Group’s cost level over
below, and the NIBD note disclosures in Note 12 in the Group
time. The metric captures the costs of the Group which are not
Accounts.
deemed directly attributable to farming operations.
EBIT/KG (GWT)
Definition and calculation
The EBIT/kg (GWT), or EBIT/kg, metric is the EBIT before
production fee and fair value adjustment of biological assets
divided by harvested volume in kg gutted weight equivalent. The
EBIT/kg is included in the Group’s segment information (see Note
8 of the Group Accounts). The per kg figure can be reconciled using
the figures in the segment information of the Group. The metric is
calculated by farming region and for the Group as a whole.
Reason for applying APM
EBIT/kg is a relative metric which ensures comparability between
our farming regions and across time. The metric captures realized
Reason for applying APM
Net interest-bearing liabilities is a measure of the Group’s net debt
and borrowing commitments.
NIBD/EBITDA (NET INTEREST-BEARING
LIABILITIES DIVIDED BY EBITDA
ACCORDING TO LOAN AGREEMENT)
Definition and calculation
NIBD/EBITDA is calculated using the following inputs:
–
NIBD according to bullet 2 in the NIBD section of this
APM disclosure
–
EBITDA excluding the effect of IFRS 16 compared to the
IFRS in force prior to 1 January 2019
PA R T 0 2 : P R O F I T & I N N O VAT I O N
A N A LY T I C A L I N F O R M AT I O N
PA G E 6 6
Reason for applying APM
NIBD/EBITDA captures the leverage ratio of the Group, by
comparing the net borrowings of the Group, excluding the impact
of lessee accounting, to the EBITDA before fair value adjustment
of biological assets (excluding the impact of lessee accounting).
EQUITY RATIO
Definition and calculation
Equity ratio is calculated in two ways:
1. Equity according to the Statement of Financial Position divided
by total equity and liabilities according to the Statement of
The metric provides a measure of the Group’s financial solidity, in
Financial Position
addition to being one if the financial covenants of the syndicated
2. Equity ratio according to loan agreements (both the syndicated
loan agreement.
NIBD/HARVEST (NET INTEREST-BEARING
LIABILITIES DIVIDED BY HARVEST VOLUME
IN KG GUTTED WEIGHT)
Definition and calculation
NIBD/harvest is calculated using NIBD according to methods
1-3 as described in the NIBD section of this APM disclosure. The
applicable NIBD/harvest indicates which NIBD metric is used in
the calculation. The NIBD/harvest is calculated in two ways:
1. NIBD divided by actual harvest volume in kg gutted weight in
the last 12 months
2. NIBD divided by guided full-year harvest volume in kg gutted
weight
Reason for applying APM
NIBD/Harvest captures the leverage of the Group measured by
the harvest capacity and is utilized when optimizing the Group’s
leverage ratio. Actual harvest volume in the last 12 months
indicates the leverage ratio according to proven harvest capacity,
while guided harvest volume indicates the leverage ratio according
to business plans as the Group are targeting volume growth in an
annual basis.
RETURN ON CAPITAL EMPLOYED (ROCE)
Definition and calculation
Return on capital employed (ROCE) is calculated by comparing
EBIT before fair value adjustment of biological assets (but
including production fee), to capital employed. Capital employed
is calculated on annual and quarterly bases, both as a quarter-to-
date figure and a year-to-date figure. The quarter-to-date figure is
annualized. Capital employed is defined as total equity excluding
the equity component of the fair value adjustment of biological
assets, plus net interest-bearing liabilities according to the NIBD
calculation method 1, as described in the NIBD section of this APM
disclosure. Capital employed for the reporting period is calculated
as the average of the opening and closing balances.
Reason for applying APM
As the salmon farming industry is a capital-intensive line of
business, ROCE is an important metric to measure the Group’s
profitability relative to the investments made. The fair value
adjustment of biological assets is excluded from the calculation,
as this reflect estimated future gains or losses on fish not yet sold.
bank loan agreement and the bond loan agreement) is
calculated by dividing equity by total equity and liabilities. The
equity, and total equity and liabilities, are calculated as in bullet
1 above, but excludes the effect of IFRS 16 compared to the
IFRS in force prior to 1 January 2019 and its impact on equity,
and on lease liabilities (and thus total equity and liabilities).
Reason for applying APM
Equity ratio captures the financial solidity of the Group.
Furthermore, the equity-ratio according to calculation method 2
above is a covenant requirement for the Group.
GROSS INVESTMENTS
Definition and calculation
Gross investments equal the Group’s capital expenditures (CAPEX)
excluding the effect of IFRS 16 compared to the IFRS in force prior
to 1 January 2019. Thus, the gross investment figure includes
additions made on property, plant and equipment and intangible
assets owned by the Group, together with long-term lease
arrangements with credit institutions.
Reason for applying APM
The Group’s CAPEX monitoring shows that gross investments
are in line with the CAPEX monitoring of the Group. Historically,
leases which were recognized as financial leases under the IFRS
in force prior to 1 January 2019 have accounted for a significant
portion of the investments made in seawater assets (typically
cages and seawater production equipment). Such leases are
therefore included in the Group’s CAPEX monitoring procedures.
The accounting impact of IFRS 16 (capitalized operational leases)
is excluded from gross investments, as such leases are not treated
as part of CAPEX. Operational leases, such as well-boat charters,
are included in the Group’s operational budgets as running cost.
A reconciliation of gross investments with the Financial Statements
have been disclosed.
RECONCILIATION OF ALTERNATIVE
PERFORMANCE MEASURES
Below, the APMs derived in absolute figures are disclosed and
reconciled to the Income Statement, Statement of Financial
Position and Cash Flow Statement, respectively. The EBITDA
and EBIT are disclosed on the Income Statement, and are thus
indirectly reconciled on that statement.
FIGURE 2.53
SALES REVENUE FARMING OPERATIONS, FARMING COST AND EBIT (NOK MILLION)
2021
Sales revenue farming operations
Elim/Other
Sales revenue
EBIT farming operations
Farming cost
Elim/Other & Newfoundland
EBIT
2020
Sales revenue farming operations
Elim/Other
Sales revenue
EBIT farming operations
Farming cost
Elim/Other & Newfoundland
Source
Note 8
Note 8
Income Statement
Note 8
Note 8
Note 8
Income Statement
Source
Note 8
Note 8
Income Statement
Note 8
Note 8
Note 8
Rogaland
Finnmark
British Columbia
1 431
1 756
1 023
242
1 189
251
1 506
150
873
Rogaland
Finnmark
British Columbia
1 263
1 314
1 179
292
971
127
1 186
-7
1 186
EBIT
Income Statement
FIGURE 2.54
NIBD ACCORDING TO METHOD 1 (NOK MILLION)
Borrowings
Lease liabilities
Non-current liabilities
Current portion of borrowings
Current portion of lease liabilities
Current liabilities
Loans to associates
Cash and cash equivalents
Amortized loan costs
NIBD (method 1)
Source
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Note 7
Statement of Financial Position
Note 12
2021
2 381
578
2 959
54
178
233
2
928
-30
FIGURE 2.55
GROSS INVESTMENTS (NOK MILLION)
Property, plant and equipment
Intangible assets
Additions according to the Cash Flow Statement
Finance leases according to IFRS in force prior to 1 January 2019
Gross investments
Source
Cash Flow Statement
Cash Flow Statement
2 291
3 931
2021
561
4
565
5
570
2020
760
159
919
59
979
Group
4 211
388
4 599
643
3 568
-200
442
Group
3 756
629
4 384
412
3 343
-179
233
2020
3 376
532
3 908
104
153
258
2
275
-43
PA R T 0 2 : P E O P L E
PA G E 67
OUR PROGRESS TOWARDS
A SUSTAINABLE FOOD SYSTEM
PEOPLE
H U M A N R I G H T S A N D E T H I C S
E M B R A C I N G D I V E R S I T Y
C R E AT I N G AT T R A C T I V E J O B S
K E E P I N G O U R E M P L O Y E E S S A F E
6 8
7 0
7 2
74
Every single day, whether it is sunny, stormy or
freezing cold, our fantastic employees are out there
working hard in the hatcheries, on the farms or at
the harvesting plants. Their passion and dedication
drive Grieg Seafood forward.
PA R T 0 2 : P E O P L E
H U M A N R I G H T S
PA G E 6 8
HUMAN RIGHTS
Respecting the rights and dignity of all human beings is the very basis of a civilized
society. Human rights relevant to our operations range from labour rights and a ban
on child labour in our supply chain to privacy rights.
OU R AP P R O A CH
Respecting human rights is a fundamental part of Grieg Seafood
We recognize that we can contribute to the fulfilment of human
Group’s corporate responsibility and is vital to the sustainable
rights. We have a responsibility to prevent, mitigate, and address
operation of our business.
adverse human rights impacts in our own operations but we also
use our leverage to promote respect for human rights in our value
We are committed to respecting fundamental human rights in our
chain.
operations, our value chain, and in the communities where we
operate. We use our influence to promote the fulfilment of human
Our commitment is based on our company values, our Employee
rights and always seek to avoid involvement, even indirectly, in
Code of Conduct, and our Supplier Code of Conduct.
their abuse.
T R A NSP O R TAT ION AND R ISK S
Some areas in our supply chain entail a particularly high risk
of breaching human rights. One such area is labor rights in the
transportation industry. Most of our salmon is transported by
truck to European or North American markets. There are some
particular risks connected to this part of our supply chain, which
we are aware of and are working to mitigate. Read more about the
“Safe trucking” project and other initiatives here.
OUR P R INCI P LE S
Our approach to human rights is based on the UN Guiding
Principles on Business and Human Rights. We have a responsibility
to protect, respect, support, and promote human rights in all our
operating regions and throughout our value chain.
We have committed to respecting all the nine UN internationally
recognized conventions of human rights.
The Human Rights that are most relevant to our operations and
supply chains are:
• The Universal Declaration of Human Rights.
• The ILO Declaration on Fundamental Principles and Rights at
Work.
• The United Nations Convention on the Rights of the Child
(UNCRC).
• The United Nations Convention on the Elimination of
Discrimination against Women (CEDAW).
• The United Nations Declaration on the Rights of Indigenous
Peoples (UNDRIP).
•
International Covenant on Economic, Social and Cultural
Rights.
• The Organization for Economic Cooperation and Development
Guidelines for Multinational Enterprises (OECD Guidelines).
• The United Nations Global Compact.
IN OUR SUPPLY CHAIN
• We have our own Supplier Code of Conduct, which our suppliers
IN OUR OWN OPERATIONS
• Grieg Seafood welcomes and promotes unionization, collective
bargaining, and other formal employee representation arenas
appropriate to the business culture of each of our operating
countries. All our employees have the right to join or not
join a labour union. All employees have access to third-party
representation regardless whether they are a union member
or not.
• We conduct our activities without discrimination, we treat our
employees fairly and compensate fairly by offering competitive
salary and benefit packages. We use the Kornferry methodology
to benchmark our salaries yearly and ensure that we are paying
market rates as a minimum. We pay the same rates for same
type of work regardless of gender, culture or other origin.
• We offer sick-pay to all our employees based on the national
laws of the countries we operate in regardless of if they are
permanent or temporary staff. We demand that our external
hired staff and contractors have sick pay included in their
contracts.
• All our employees are offered good and reasonable working
hours, in accordance with union agreements, to maintain a
good work-life balance.
• Everyone who is employed by us works here of their own free
will in alignment with the ILO Declaration.
• We have zero tolerance for bullying, unwanted sexual attention,
or harassment.
• We promote diversity with respect to employee gender, age,
ethnicity, physical abilities, personality, skills, experiences and
backgrounds.
• We respect employees’ rights to privacy. The General Data
are obligated to follow. Suppliers must abide by the same rules
Protection Regulation (GDPR) became Norwegian law in 2018.
as those we have laid down for our own employees.
The GDPR provides assurance that personal information a
• Grieg Seafood has implemented the UN Guiding Principles of
company has a legitimate need to collect and use will not be
Business and Human Rights.
used for other purposes. Basically, it concerns the weighing of
• Grievance mechanisms are available on our regional websites.
interests. With the GDPR, the individuals’ rights are highlighted,
• Grieg Seafood is a member of the Coalition for Responsible
clarified and prioritized.
Business. The Coalition calls for a Norwegian human rights law
• We contribute to economic, social and cultural development
for business, based on the United Nations Guiding Principles
in the rural communities where we operate. Recognizing that
on Business and Human Rights. The Coalition is comprised
our operations are based on natural capital, belonging to local
of Norwegian civil society, trade unions and businesses, and
communities as a whole, we strive to minimize our impact and
Grieg Seafood is a signatory.
create shared opportunities.
• We recognize the rights of indigenous peoples in our relevant
production regions, as laid down in the United Nations
Declaration on the Rights of Indigenous Peoples (UNDRIP), and
we take particular care to avoid infringing such rights.
OUR TAR GE T S
Whistleblowing
Code of Conduct
Compensation
Professional handling of harassment and
whistleblowing cases
100% of employees completed the Code of
Conduct program
Annual evaluation of salaries and benefits to
ensure fairness
LEARN MORE ON OUR WEBSITE
→
→
Our policy and grievance mechanisms for human rights
Human rights in our operations and value chain
PA R T 0 2 : P E O P L E
H U M A N R I G H T S
PA G E 6 9
OU R R E SULT S
In 2021, we performed our annual evaluation of the salaries and
We have conducted a first version of a human rights due diligence
benefits of our employees, by using the Kornferry methodology to
covering our operations and supply chain, and identified the main
benchmark our salaries.
risk areas. The assessment will be published on our web site.
FIGURE 2.56
UNIONIZED EMPLOYEES (%) AT YE AR END 2021
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market
Share
30%
39%
0%
0%
0%
0%
We accept and welcome labour union memberships among employees. Grieg Seafood has established a good, collaborative relationship with our union representatives. This collaboration
extends beyond periodic salary negotiation to a variety of internal improvement projects.
The numbers reflect memberships of the United Federation of Trade Unions (Fellesforbundet) and The Norwegian Food and Allied Workers Union (NNN), the largest labour unions in our
industry. Due to privacy and security laws, we do not have access to data on all types of memberships, such as association for professionals and graduates. It is therefore assumable that
the actual number of unionized is higher than depicted.
FIGURE 2.57
CODE OF CONDUCT PROGRAM
FIGURE 2.58
HARASSMENT INCIDENTS
FIGURE 2.59
WHISTLEBLOWER CASES
95%
2
1
95% of our 753 employees (ex contractors) have
completed our Code of Conduct program. See also
Figure 2.60 for more information on our Code of Conduct
program.
For the Group (excluding Shetland), two harassment
incidents were reported in 2021. For reasons of privacy
protection, those incidents are not commented further.
For the Group (excluding Shetland), one case was
reported through our whistle blower channel in 2021.
For reasons of privacy protection, those incidents are
not commented further.
FIGURE 2.60
HUMAN RIGHTS TRAINING
FIGURE 2.61
NON-DISCRIMINATION TRAINING
95%
57%
In 2021, 719 employees (95%) were given human
rights training. One completed Code of Conduct test
corresponds to one hour of training.
57% of our 753 employees (ex contractors) have
completed a non-discrimination training course (54% of
our employees completed the course in 2021). This does
not include our Code of Conduct program which also
also includes a non-discrimination section.
OUR EM P L O YEE S'
R IGH T T O P R I VA C Y
• Declarations of Consent
• Right to access personal
information
• Right to erase personal information
• Right to breach notification
• Right to be informed
• Right to correct erroneous
information
• Right to limited processing of
information
• Right to oppose processing of
information
• Right to transmit information to
new employer
PA R T 0 2 : P E O P L E
E M B R A C I N G D I V E R S I T Y
PA G E 7 0
EMBRACING DIVERSITY
Diversity is not only the right thing to do ethically. It leads to greater
employee retention and improves productivity. Bringing together
employees with different experiences, backgrounds, and educations
spurs creativity and can lead to new and innovative ideas.
OUR AP P R O A CH
Grieg Seafood is committed to being an equal opportunity employer.
Having a diverse workforce is crucial for our organization and is
part of our company culture. This means all our business units
select and appoint the most suitable person for a position on the
basis of their skills, qualifications, and aptitudes.
Grieg Seafood is committed to supporting gender equity in the
workplace. We aim to ensure that all our staff have the same
opportunities, rights, and respect, regardless of their gender. To
ensure fairness, strategies must often be available to compensate
for historical and social disadvantages that prevent women and
men from operating on a level playing field. Gender equity leads to
gender equality, where there are equal rights, responsibilities, and
opportunities for women and men.
OUR P R INCI P LE S
DIVERSITY
We always:
• Employ the most suitable person regardless of age.
• Employ the most suitable person regardless of race or ethnicity.
• Employ the most suitable person regardless of gender.
• Employ the most suitable person regardless of political,
religious, or sexual persuasion.
• Employ the most suitable person regardless of national origin.
• Employ people with disabilities provided they can safely
perform the task in a competent manner and any changes
to accommodation requirements are reasonable and do not
create an undue hardship on the operation of our business.
GENDER EQUITY
We:
• Ensure our workplace provides equitable opportunities for
our male and female employees, and foster an organizational
culture which supports gender equity.
• Promote a family-friendly workplace for men and women
through the following activities:
— Parental leave options for both men and women.
— Flexible working arrangements for staff.
— Working from home options for staff.
• Create an equitable, respectful, and enabling environment for
men and women within the organization through the following
activities:
— Ensuring that there is gender representation in all cross-
functional teams, interview and assessment panels.
— Ensuring that gender equity exists with regards to
remuneration of employees. We perform annual
benchmarking of all female salaries to ensure fairness and
equality through a third-party provider.
— Seeking opportunities to encourage gender diversity in
traditionally gender-typical positions historically filled by
gender stereotypes.
• Demonstrate gender equity social responsibility through the
following community related activities:
— Requiring our suppliers to support our principles through
our Supplier Code of Conduct.
— Ensuring senior representation on external networks that
address gender equity issues.
• Support external organizations that demonstrate gender equity.
OUR TAR GE T S
Gender equality
40% female representation in management
positions by 2026
40% female representation at level 2, 3 and
4 by 2026
Education diversity*
Employ the best candidates regardless of
origin and culture
Cultural diversity*
Employ more candidates from other
countries
*To ensure our recruitment process is open and fair with regard to candidates with
different backgrounds, from other industries, and regardless of origin and culture.
LEARN MORE ON OUR WEBSITE
→
→
→
Our policy for diversity
Our policy for gender equity
Embracing diversity
PA R T 0 2 : P E O P L E
E M B R A C I N G D I V E R S I T Y
PA G E 7 1
THREE IMPORTANT TASKS FOR
MAKING CHANGES TOWARDS AN
EQUAL WORKFORCE
Bold leadership
Top management have defined policies,
strategies, goals and practices.
Measuring equality targets openly
A diverse leadership team that sets,
shares and measures equality targets
openly.
An empowering environment
One that trusts employees, respects
individuals and offers equal
opportunities.
01
02
03
OUR R E S ULT S
In 2022, we received a score of 73 points (High score) in the
SHE index. The average score across Norwegian companies was
71. We have reported on the SHE Index since 2019 in order to be
transparent about the gender balance in our organization. The
SHE Index is a voluntary measurement of how companies perform
on gender balance, gender equality policies and diversity and
inclusion. Our goal is to improve gender balance and diversity to
become a preferred employer. Change takes time, and we should
pay more attention to the work being done to create greater
diversity and inclusion. During 2021, Grieg Seafood has taken
several steps to improve our gender balance. This includes filling
vacant management positions with women both with internal and
external candidates, as well as having our first female regional
director. In 2021, 40% of our new hires were women. We have also
pledged to support the International Organization for Women in
the Seafood Industry.
FIGURE 2.62
GENDER BAL ANCE AT YE AR-END 2021
At year end 2021, the Grieg Seafood Group had 753 employees (208 women and 545 men), including full-time and temporary workers but
excluding contractors. Hence, women make up 28% of the workforce, while 72% are men. The ratio between male and female employees
is similar across Rogaland, Finnmark, and BC. In Newfoundland, the share is higher due to focus on gender balance when the organization
was set up. In addition to Newfoundland, the management and support functions at Grieg Seafood ASA and the Sales & Market teams have
the highest proportion of female employees. For the group, 40% of our recruits were female in 2021.
Employee data is registered in a dedicated HR database. Only HR personnel are allowed access to register employee data, which is reviewed regularly to ensure its continued quality.
PA R T 0 2 : P E O P L E
C R E AT I N G AT T R A C T I V E J O B S
PA G E 7 2
CREATING ATTRACTIVE JOBS
To reach our goals and resolve the challenges we face, we need the
best people. A good working environment is key to attracting and
retaining the best talent.
O U R AP P R O A CH
Our goal is to attract the best skills, and to be the preferred
employer, regardless of industry. We have a fair and transparent
recruitment process. We believe that a good working environment
creates attractive jobs. We need to adapt to a fast-changing global
environment, and we believe that a continuous development of our
employees is the key to staying competitive and attractive.
OU R P R INCIP LE S
COMPENSATION
• We comply with the laws and regulations related to employment
protection, compensation, and working hours in the countries
where we operate.
• All our employees have written employment contracts.
• We offer fair compensation. Our pay and benefits policies are
based on a bi-annual survey to ensure that we always pay
market rates or above for all jobs (there are some differences
in the payment and benefit arrangements for temporary
employees due to the number of hours worked).
• All permanent employees are part of our annual bonus
program.
• Amongst others, we offer paid maternity and paternity leave
and a competitive pension scheme.
• We share our profits with our employees through our employee
share purchase program.
OU R TAR GE T
Job satisfaction
Above average in Great Place to Work survey
EMPLOYEE DEVELOPMENT
• We offer employees training and further education to support
the development of necessary skills.
• We offer aquaculture apprenticeships.
• Through the use of new technology and digitalization, e.g. our
Precision Farming scheme, we aim to offer untraditional and
exciting positions. Sensor technology, big data, and analytics
demand further development and training of our employees,
and will also attract people with new skills to the industry.
DIALOGUE AND CULTURE
• We live by our values: Open, Ambitious, and Caring.
• We hold quarterly feedback meetings to discuss important
initiatives with our labour union representatives in order to
encourage good and constructive dialogue.
• We focus on internal communication. Through our shared
communications platform, Workplace by Facebook, all our
employees are given a voice and an opportunity to participate
actively in discussions, and to share knowledge and information
across borders.
OUR R E S ULT S
FIGURE 2.63
GRE AT PL ACE TO WORK 2021
FIGURE 2.64
APPRENTICESHIP PARTICIPATION AT
YE AR-END 2021
FIGURE 2.65
APPRENTICESHIP ACHIEVEMENTS IN
2021
85%
28
19
Great Place
to Work assesses and evaluates
organizations and the practices that underpin workplace
culture, based on the experience of employees. In
2021, we took part in the Great Place to Work survey
for the fourth time in Norway, and for the third time
globally. We are proud to announce that all our regions
maintained the Great Place to Work certification in
2021. The Group achieved a total score of 85%, which
was very satisfactory and an improvement from 84% in
2020. The high score shows that Grieg Seafood is among
the best companies to work for. 83% of our employees
also confirmed that they feel a sense of pride when
they look at what we have accomplish at Grieg Seafood,
which is better than the best companies in the survey.
With a record high participation, this certification is
an enormous credit to the employees and their hard
work and loyalty, in particular during a time of global
pandemic.
At year-end 2021, a total of 28 employees were
participating in an apprenticeship, thereof nine in
Rogaland, 12 in Finnmark, and seven in Newfoundland.
British Columbia did note have any apprentices in 2021.
In 2021, a total of 19 employees received their certificate
of apprenticeship, thereof eight in Rogaland, ten in
Finnmark, and one in Newfoundland.
In cooperation with the North Island College and
Fleming College, Grieg Seafood British Columbia has
prepared
the “Seawater Technician Advancement
Program” (TAP). The program provides mandatory
additional training for technicians, as well as further
training for higher positions within aquaculture. The
program has so far been a success.
PA R T 0 2 : P E O P L E
C R E AT I N G AT T R A C T I V E J O B S
PA G E 7 3
FIGURE 2.66
THE WORKFORCE AT YE AR-END 2021
FIGURE 2.68
TURNOVER RATE
2020
2021
Overall, 87% (670 of 773) of our workers are permanent employees. We have some temporary employees, particularly seasonal workers
in our processing facilities and apprentices at the farms. Most of our apprentices are offered a permanent position with us after their
apprenticeship is over. Contractors are mainly used in Norway during peak periods of harvesting.
Employee data is registered in a dedicated HR database. Only HR personnel are allowed access to register employee data, which is reviewed regularly to ensure its continued quality.
* Excluding Grieg NL Development. In 2021, Grieg NL Development was closed. The first half of the year saw the conclusion of construction and commissioning of the first feed and
smoltification units. Grieg NL Development ceased operations and the remaining construction and support staff were laid off. Since Grieg NL Development was a stand-alone sole purpose
construction company, those employees were not included in the 2021 turnover figures.
These figures are calculated based on the total number of permanent employees since it is only these employees who are meant to stay with the company permanently. Temporary
employees and contractors have been excluded from these figures. As per GRI definition, employee turnover includes all employees who leave the organization voluntarily or due to
dismissal, retirement, or death in service.
In Rogaland and Finnmark, turnover in 2021 was fairly constant compared to 2020, while ASA and our Sales & Market organizations have a
low turnover.
FIGURE 2.67
THE WORKFORCE AT YE AR-END 2021
Region
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market
Total
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Permanent
Temporary
Contractor
Total
to attract candidates in a competitive market. We continue to support our good relationships with First Nations and local communities to
Grieg Seafood BC has experienced high turnover this year, which has been common through all industries in this region, as it was challenging
Full-time
Part-time
Full-time
Part-time
Full-time
Part-time
24
100
41
178
43
124
28
34
13
24
19
18
5
12
5
1
0
0
0
1
0
0
0
0
3
16
8
19
3
3
5
1
0
0
1
3
0
2
5
5
3
0
0
0
1
0
1
4
5
8
0
0
1
1
0
1
0
0
1
0
646
24
62
21
17
0
0
0
0
0
0
0
0
0
3
0
0
3
37
138
59
203
50
128
33
37
14
27
22
25
773
help attract potential employees from the region. We also work closely with training institutions to offer employment to applicants that have
chosen aquaculture as their desired career path. Through our commitment to supporting the Truth and Reconciliation process in Canada,
employment priority goes to First Nations candidates who want to work in their traditional territories.
Grieg Seafood Newfoundland experienced a large turnover in 2021. The cull of the first generation resulted in the layoff of the marine team
and supporting staff as well as downsizing of the land-based staff complement in early fall.
PA R T 0 2 : P E O P L E
K E E P I N G O U R E M P L O Y E E S S A F E
PA G E 74
KEEPING OUR EMPLOYEES SAFE
Accidents can be prevented through the development of adequate operating
procedures, a safety-focused corporate culture, and by improving equipment
quality. We never compromise on health and safety.
SAFETY MANAGEMENT PRINCIPLES
• All locations shall establish annual safety targets with action plans (what,
who, when).
• All locations shall have high standards of housekeeping.
• All managers shall carry out safety walk-arounds (Walk - Observe -
Communicate).
• All employees shall participate in safety meetings on a regular basis.
• The use of personal protective equipment and life jackets shall be
mandatory for employees, contractors, and visitors.
• A safety assessment shall be carried out for all jobs, equipment, and
potentially hazardous materials.
• Annual audits of HSE-related activities shall be conducted.
• All regions shall have safety procedures, to help facilitate a safety focus
throughout the organization.
• A program for systematic and regular safety training shall be in place.
• All accidents and near-misses shall be reported and investigated, including
a root-cause analysis, and corrective actions implemented within a
reasonable period of time.
OUR AP P R O A CH
We work systematically to safeguard our employees’ health, safety,
and working environment. Our aim is to prevent and manage
work-related injuries, illness, accidents, and fatalities. We have a
zero-tolerance philosophy with respect to accidents.
OUR P R INCI P LE S
SYSTEMS, PROGRAMS, AND RISK
ASSESSMENT
• All aspects of work are covered by our health and safety
systems. We use occupational health and safety systems and
standards in line with local regulations in each country.
HAZARD MANAGEMENT
• Our occupational health services provider helps to map and
assess the risk of the work environment, including physical,
organizational and psychosocial factors and include areas such
as:
— help working out guidelines for work processes.
— suggestions for preventative safety measures.
— training and
information about occupational health,
industrial hygiene, ergonomics, external environment,
chemicals, and general health and safety.
— work environment evaluation and adaptation.
— measurement of physical, chemical and biological factors.
— help with following up workplace absenteeism.
— help with conflict resolution and harassment.
• Job risks in each department are formally evaluated and
categorized using a risk matrix. Job hazard assessments are
INCIDENT REVIEW
• All incidents are recorded in our health and safety system, and
also carried out for non-routine jobs.
CREATING AN HSE CULTURE
• All employees receive health and safety training when they join
us, and are required to re-take the courses regularly.
reviewed. After corrective action is taken, the result of the action
is disseminated to the rest of the region for implementation.
PROMOTING EMPLOYEE HEALTH
• External health services provide health checks and advice to
— As a general guide, employees are provided with appropriate
employees. In some regions they are represented on our Health
training on
joining Grieg Seafood,
joining specific
and Safety committees.
departments or transfer between posts. This is particularly
• We provide a health-plan for employees, ranging from dental
important when increased risks are identified due to
and medical to counselling depending on the region.
changes in tasks or responsibilities, changes in equipment
• We offer a variety of health programs to the employees
or technology, or changes in the system of work.
(competitions, gym membership).
— Formal orientation training are given to all new site
employees to Grieg Seafood based on the position and are of
responsibility and will include instruction on general health
IN OUR SUPPLY CHAIN
• Our Supplier Code of Conduct requires suppliers to provide a
and safety provisions and any area specific hazards.
safe and healthy environment for their workers and contractors,
— Office staff are given an orientation on workplace safety
and minimize workers´ exposure to potential safety hazards.
during their onboarding process.
Furthermore, we expect our suppliers to adhere to all
• Employees have the possibility to actively participate in and
applicable laws and regulations.
contribute to the development of their workplace safety through
their shop steward representing them.
• We have dedicated HSE managers in each region, who are
certified according to local laws. We perform annual HSE
exercises to ensure that everyone knows what to do in case of
an emergency.
• All our staff have the right to stop any type of work or task
if they feel unsafe or that they are not competent enough to
carry out their duties. These routines are established in all our
regions and all new employees are given the information about
how these systems work and they can also report anonymously
through their union representative, employee representative or
our whistleblowing channel for major issues which is handled
by an external partner EY.
• We have a "no reprisal" policy when it comes to reporting health
and safety issues. This is described in our Code of Conduct.
OUR TAR GE T
Absence rate
Absence rate below 4.5%
LEARN MORE ON OUR WEBSITE
→
Health and safety principles
PA R T 0 2 : P E O P L E
K E E P I N G O U R E M P L O Y E E S S A F E
PA G E 7 5
OU R R E SULT S
In Norway, we commit to workers’ health, safety, and welfare by
the use of the GLOBALG.A.P. GRASP module which is designed
to assess social practices on the farms. GRASP provides the
minimum compliance criteria for a good social management
system and we are audited on regular basis from external parties.
The QMS requirement addresses specific aspects of our workers'
health, safety and welfare.
Grieg Seafood BC has obtained an occupational health and safety
management system certification named OSSE (Occupational
Standard of Safety Excellence). The OSSE Certifications
is
granted to BC companies who have successfully developed and
implemented a comprehensive health & safety management
system and is coordinated by WorkSafeBC.
Grieg Seafood Newfoundland has
implemented an EHS
(Environment, Health & Safety) system throughout its operations
based on standard
industry best practices and legislative
requirements.
FIGURE 2.70
ABSENCE RATE
Target: 4.5%
FIGURE 2.69
FATALITIES IN 2021
0
We had zero fatalities in 2021.
FIGURE 2.71
SAFET Y INDICATORS IN 2021
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market **
Hours worked *
Total work-related
injuries
High-consequence
work-related injuries
214 291
347 947
309 344
207 050
66 663
38 464
10
14
23
1
0
0
0
5
0
1
0
0
* Excluding overtime.
** Estimate based on number of employees and general annual working hours.
Health and safety incidents are registered in our systems and reviewed as part of our monthly HSE meetings. In BC, quality control of incident data is achieved
through support from a third party (WorkSafeBC). Injuries are caused mainly by being struck by objects, handling equipment, crushing, cuts, slips, and falls.
Risk assessments show that high-consequence injuries derive from being struck by an object, crushing and cuts. High-consequence injuries incurred in 2021
related to being struck by an object, falls and crushing. The injuries were assessed and reported to other sites to prevent similar accidents from happening.
Our improvement initiatives are based on preventive measures and risk assessments on all accidents and near misses that are reported in our deviation
system. Examples of measurements: service on machinery, ordering of new equipment’s, training of employees, change in procedures and instructions.
FIGURE 2.72
H1-FACTOR/LTIR
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market
Group
H1-factor/LTIR *
Absence rate
2017
2018
2019
2020
2021
11
24
16
n/a
0
n/a
n/a
24
18
38
n/a
0
0
15
22
35
n/a
0
0
n/a
n/a
9
28
36
n/a
0
0
24
2017
3.2%
4.4%
0.9%
n/a
1.0%
n/a
2018
4.7%
5.4%
1.8%
n/a
0.1%
2019
3.5%
4.9%
2.0%
n/a
0.3%
0.6%
0.5% **
42
22
6
5
0
0
16
3.2% **
3.3% **
3.2% **
2020
3.1%
5.6%
6.8%
n/a
1.1%
0.0%
4.9%
2021
3.0%
8.7%
5.6%
1.3%
0.5%
0.9%
5.0%
In British Columbia, ASA and Rogaland, the absence rate has decreased compared to the year before, while in Finnmark and Sales & Market, the absence
rate increased. The absence rate in Finnmark and British Columbia is above our target of 4.5%, mainly due to long-term sickness and Covid-19 implications.
While the absence rate in British Columbia declined compared to 2020, we continue to monitor the situation and implement actions to reduce it further.
In Finnmark, we have an ongoing process related to facilitating reduced work assignments and we are introducing training in absence follow-up for all
employees. All in conjunction with employee representatives.
* H1-factor/LTIR: number of lost-time injuries divided by the total number of hours worked (incl. overtime from and including 2020), multiplied by 1 000 000. Permanent and temporary
employees are included in our incident data. Information on contractors is not currently available.
** including Shetland
An LTIR target has not been defined in order to avoid under-reporting of incidents.
In BC, the number of LTI incidents from 2020 decreased substantially. Countermeasures taken and risk assessments conducted in 2020 helped us to achieve
this substantial reduction of LTI incidents. The WorkSafeBC framework which we use to compare ourselves with the industry average has been one of the
tools used to decrease the number of LTI incidents. The relatively high number of work-related injuries is also referable to the improved reporting schemes.
In Grieg Seafood BC we have for a couple of years been working on our openness and reporting to create a more mature safety performance culture. We
implemented the BrainSafe program as a pilot project in BC. The intention is to roll this out to all our regions based on its success. Our ultimate goal is that
people feel safe, that we have an open reporting culture and that HSE always are on top of our agenda. In our quarterly Business Reviews with our regions, we
always start the meetings with going through the HSE statistics. We conduct audits, execution of inspections and execution of safety action plans as well as
safety observations execution (and, if possible, quality of observations and closure of actions). We also participate in safety training and safety meetings.
PA R T 0 2 : L O C A L C O M M U N I T I E S
PA G E 76
OUR PROGRESS TOWARDS
A SUSTAINABLE FOOD SYSTEM
LOCAL COMMUNITIES
R E L AT I O N S H I P S W I T H L O C A L C O M M U N I T I E S
C O M M U N I T Y S U P P O R T
7 7
7 8
We are grateful to our local communities for giving us
permission to farm salmon in their fjords and inlets. In
return, we do not only do what we can to ensure local
biodiversity and sustainable farming methods. We also
contribute to vibrant local communities in the many
rural areas where we operate.
PA R T 0 2 : L O C A L C O M M U N I T I E S
R E L AT I O N S H I P W I T H L O C A L C O M M U N I T I E S
PA G E 7 7
RELATIONSHIPS WITH
LOCAL COMMUNITIES
Grieg Seafood operates in many rural communities across our regions.
We are grateful to these local communities for giving us permission to
farm salmon in their inlets and fjords. We need their social license to
operate to achieve sustainable growth.
OUR AP P R O A CH
OUR P R INCI P LE S
We earn our social license to operate first and foremost by
• We create jobs and opportunities in the rural areas where we
constantly striving to reduce our impact on the local environment
operate.
and overcome the practical challenges we face. We report on
• We use local suppliers as often as we can.
our efforts in these areas in the chapters Healthy Ocean and
• We hire local apprentices and support aquaculture schools and
Sustainable Food.
training facilities.
Secondly, we earn it by creating shared opportunities and
• We engage in local environmental projects to mitigate impacts
contributing to local value creation and vibrant local communities.
from our operations.
• We sponsor sports and cultural activities
in our local
Transparency, honesty, and open dialogue underpins our
communities.
relationships with local communities. Grieg Seafood aims to be
• We support the implementation of UNDRIP in British Columbia.
open and honest with local communities about our production
We use the Truth and Reconciliation Commission’s “Call to
methods, our successes, and our remaining challenges. We view
Action” for businesses as guidance on how we can support
it as our responsibility to engage in constructive dialogue with all
the reconciliation process between Indigenous Peoples, the
stakeholders and groups that are impacted by our activities.
government and businesses in the province.
In British Columbia, Grieg Seafood is farming in areas that belong
how we can advance indigenous culture where we farm salmon.
to indigenous peoples, while Finnmark has been home to the Sami
• We provide a grievance mechanism for local communities on
people for millennia. We recognize that these groups have special
our regional websites.
•
In Finnmark, Grieg Seafood is also in a process to understand
rights, as acknowledged in the United Nations Declaration on the
Rights of Indigenous Peoples (UNDRIP), and take particular care
to avoid infringing them.
LEARN MORE ABOUT OUR
RELATIONSHIPS WITH OUR LOCAL
COMMUNITIES ON OUR WEBSITE
→
→
→
→
Rogaland
Finnmark
British Columbia
Newfoundland
Learn more about our approach to the
implementation of UNDRIP and our
journey of reconciliation with Indigenous
Peoples in British Columbia here.
PA R T 0 2 : L O C A L C O M M U N I T I E S
C O M M U N I T Y S U P P O R T
PA G E 7 8
GRIEG SEAFOOD
ROGALAND
GRIEG SEAFOOD
FINNMARK
GRIEG SEAFOOD
BRITISH COLUMBIA
GRIEG SEAFOOD
NEWFOUNDLAND
ORGANIZATIONS
We support organizations that engage in beach cleaning and
SHERPA HIKING TRAIL
We support the construction of a safe and robust Sherpa trail to
EHATTESAHT FIRST NATION’S DOCK
We have upgraded the Ehattesaht First Nation’s dock in Zeballos
SPONSORSHIP OF LOCAL AQUARIUM
As a valued member of the Mini Aquarium family, we sponsored
reduce greenhouse gas emissions, such as Klimapartnere-
Mount Tyven (the Thief), the mountain that “steals” the sun from
in BC, which is used for transferring farmed fish. This investment
the Petty Harbour Mini Aquarium for the 2021 season. This
Stiftelsen Grønn by. Grønn by is a platform for cooperation between
Hammerfest in the winter.
has also contributed to the local community economy, fishing,
sponsorship helped the Aquarium continue its mission of marine
companies in the Stavanger region.
water sports and nature tours.
education through the winter.
CULTURAL EVENTS
We support cultural events for children and young people, to make
LOCAL SPORTS CLUBS
Amongst other clubs, we support the local sports clubs Bossekopp
and Øksfjord IL. Both clubs offer local sports activities for all
SPONSORSHIP AND DONATION PROGRAM
We continued to support wild salmon enhancement and beach
DONATION TO HEALTH CARE
The Burin Peninsula Health Care Foundation held several events
participation in cultural activities affordable for those with few
ages. Bossekopp is located in Alta, where we have our local
restorations projects in 2021, both financially and in-kind through
during the year which we have supported, including the Smile
financial resources. In Stavanger, for instance, we supported a
administration office and our harvesting plant. Øksfjord IL is
equipment donation and employee support. We also supported
Cookie campaign and the Golf FORE Healthcare fundraisers. The
boat called Svanå, where they teach the public about local coastal
located in a small village and means a lot for the local community.
local food banks in six communities on Vancouver Island and
donations went directly to the local health care centers to improve
culture.
SPORTS CLUBS
We support sports clubs in all the municipalities where we have
farms. Our aim is to contribute to the health and social life of local
children and young people.
FINNMARKSLØPET
We sponsored Finnmarksløpet – the longest dog sled race in
Europe. The 1 200 km race starts in Alta, with the course going all
the way to the Russian border and back again. Competitors must
tackle challenging terrain and harsh winter conditions.
in the lower mainland region of BC, through financial support
the quality of care for patients and long term care residents.
and fish donations. Other donations include local First Nations
organizations, supporting Elder programs
in recognition of
The Grace Sparks House provides safe, supportive accommodations
Orange Shirt Day, which in 2021, was also the first National Truth
to women and children who are fleeing family violence. We
and Reconciliation Day. In December, we assisted two remote
sponsored a family during the Christmas season and continue to
Indigenous communities with home deliveries of supplies for
support their initiatives by raising awareness against violence.
Christmas dinner. Residents in these communities normally
have to travel hours to the closest grocery stores. Several other
community initiatives were also supported, including sporting
events and the continued clean-up efforts in Nootka Sound where
a sunken commercial cargo vessel was leaking oil.
162
employees
262
employees
176
employees
69
employees
NOK 780 million
goods and services purchased from local suppliers in the county
of Rogaland
NOK 643 million
goods and services purchased from local suppliers in the county
of Troms and Finnmark
NOK 890 million
goods and services purchased from local suppliers in BC
NOK 160 million
goods and services purchased from local suppliers in Newfoundland
60%
of total purchases were from local suppliers
NOK 0.5 million
donated to local cultural and sports activities
45%
of total purchases were from local suppliers
84%
of total purchases were from local suppliers
44%
of total purchases were from local suppliers
NOK 1.7 million
donated to local infrastructure projects and sports activities
NOK 2.9 million
allocated to a local infrastructure project and our sponsorship and
NOK 0.1 million
donated to local cultural activities and health care initiatives
donation program
NOK 10.7 million
direct support from the Norwegian Aquaculture Fund to the
municipalities where we operate, based on the production fee of
NOK 0.40/kg (gutted weight)
NOK 13.8 million
direct support from the Norwegian Aquaculture Fund to the
municipalities where we operate, based on the production fee of
NOK 0.40/kg (gutted weight)
OUR FINANCIAL
RESULTS
By always improving our operational excellence,
reflecting our holistic performance approach, we
are driving sustainable value creation.
PA R T 0 3
B O A R D O F D I R E C T O R S ’ R E P O R T
C O R P O R AT E G O V E R N A N C E
A N N U A L A C C O U N T S 2 0 2 1
A U D I T O R ’ S R E P O R T
8 1
96
10 3
161
PA R T 0 3 : S E C U R E F I N A N C I A L C A PA C I T Y
PA G E 8 0
B O A R D OF DIR EC T OR S
Our Board of Directors will provide leadership to the Company and deliver
shareholder value over the long term.
Find the presentation of our Board of Directors here.
GR O UP M A N A GE MEN T T E AM
Our management team is responsible for overseeing the Group’s day-to-day
operations and working to realize our vision, values and targets.
Find the presentation of our management team here.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 8 1
BOARD OF
DIRECTORS’ REPORT
G R I E G S E A F O O D ’ S V I S I O N A N D A M B I T I O N S
C O V I D -19
O P E R AT I O N A L R E V I E W
F I N A N C I A L P E R F O R M A N C E G R O U P F I N A N C I A L S TAT E M E N T
F I N A N C I A L P E R F O R M A N C E G R I E G S E A F O O D A S A
( PA R E N T F I N A N C I A L S TAT E M E N T )
R I S K A N D R I S K M A N A G E M E N T
C O R P O R AT E A N D S O C I A L R E S P O N S I B I L I T I E S
P O S T- B A L A N C E S H E E T E V E N T S
O U T L O O K
G O I N G C O N C E R N
S TAT E M E N T F R O M T H E B O A R D O F D I R E C T O R S A N D T H E C E O
8 2
8 5
8 5
8 6
9 1
9 2
9 3
94
94
94
9 5
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 8 2
MAIN ACHIEVEMENTS
• Highest ever harvest volume of 89 327 tonnes, or 75 601 tonnes ex Shetland
• EBIT before production fee and fair value adjustment of NOK 442 million, with EBIT/kg of NOK 5.9 driven by the
harvested volume and good prices
• Strong operational performance, with increased seawater survival in all regions
• Restructured our business with the sale of Shetland operations to narrow focus to the regions with greatest
potential for profitable growth: Eastern and Western Canada, and Northern and Southern Norway
• Fully operational sales and market organization, with value added processing as part of our downstream strategy
• Continued focus on certification for sustainable farming, 62% of net production ASC certified
• Ranked 2nd by the Coller FAIRR Protein Producer Index of the world’s most-sustainable protein producers
• Received Leadership (A) score by the CDP for our transparency and actions related to climate change
FIGURE 3.1
HARVEST VOLUME (1 000 TONNES GWT)
Group ex. Shetland
Shetland (Sold 15 December 2021)
90
80
70
60
50
40
30
20
10
0
2017
2018
2019
2020
2021
2022E
GR IEG SE AF OOD’S V IS ION AND
GR IEG S E AF OOD’S V ISI ON AND
AMBI T I ONS
AMBI T I ONS
Another strategic milestone reached
in 2021 was
the
establishment of an in-house sales and market organization as
part of the downstream strategy. An impressive sales organization
was in place within a short time, and a value added product (VAP)
The Grieg Seafood Group is one of the world's leading salmon
sales department was also established as an important first step
farmers. The Group has licenses for seawater farming and land-
towards repositioning the company in the market.
based smolt production in Finnmark and Rogaland in Norway, and
British Columbia and Newfoundland in Canada. Up until December
The Group aims to be cost competitive. The farming cost per kg
2021, the Group also had farming and sales activities in Shetland.
decreased in Finnmark, while the cost increased in Rogaland
The operations in Shetland was sold 15 December 2021.
and BC. Biological control is the main cost driver and the
main operational focus area. The Group also has several cost
The Group was established in 1992, and over the years has
improvement initiatives, in the area of research and development
grown into a leading industry player. The Group's vision "Rooted
(R&D) and the utilization of new technologies, which, combined
in nature – farming the ocean for a better future", represents
with a higher harvest volume, are expected to reduce the farming
how the Group intends to make a difference and what it aims to
cost. However, rising global inflation is expected to increase the
accomplish. It also encompasses the foundation for the Group's
majority of the cost elements going forward.
operational development – a healthy ocean, sustainable food,
profitable growth and innovation, good jobs for everyone, and
Creating shareholder value is a prerequisite for company growth
local value creation. With its 2025 strategy, the Group aims to
and survival, and Return on Capital Employed (ROCE) is the
harvest 130 000 tonnes in 2025 at a competitive cost level, and
Group’s ultimate financial performance indicator. The ROCE for
to evolve from purely a commodity supplier to an innovation
2021 ended at 6%, below the target of 12% per year. This is mainly
partner for selected customers. Sustainable farming practices
attributable to salmon market prices combined with higher cost,
are the foundation of Grieg Seafood’s operations. Achieving the
and an increase in debt to finance the Group’s growth investments.
lowest possible environmental impact and the best possible fish
welfare are both an ethical responsibility and a prerequisite for
The sustainability scoreboard
includes some of
the key
long-term profitability. To achieve sustainable growth and improve
performance indicators (KPIs) for the Group´s five pillars -
competitiveness, the Group focuses on reducing the time fish
Healthy ocean, Sustainable food, Profit & Innovation, People,
spend at sea, improving fish health and welfare, and providing
and Local Communities. Sustainability and financial results go
digital decision-making support to its farmers.
TARGETS AND ACHIEVEMENTS
hand in hand. Good financial results are needed to develop the
Group's operations sustainably, and sustainable operations are
needed to safeguard long-term financial results and performance,
and create or maintain value for all stakeholders. That is why
sustainable farming practices form the very foundation of all
areas of Grieg Seafood’s strategy. The Board was pleased to see
Global growth, value chain repositioning and cost leadership are
that Grieg Seafood was rated 2nd on the Coller FAIRR Protein
the key areas of the Group’s strategy to 2025.
Producer Index, as one of the world’s most-sustainable protein
producers. Grieg Seafood also received the Leadership (A) score
As part of the strategy, the Shetland operations were sold to
from the CDP for its transparent reporting and actions related to
concentrate the Group’s focus on the regions with greatest
climate change. The Group has climate reduction targets approved
potential for profitable growth - Norway and Canada. After several
by the Science Based Target initiative (SBTi), with the overall aim
improvement initiatives, the Shetland region was turned around
of reducing carbon emissions by 100% by 2050. In 2021, the Group
and delivered an overall profit for 2021. The sale strengthened the
reduced total emissions by 9% compared to last year, mainly due
Group’s financial position substantially, and will allow it to further
to reduction in transport emissions. The absolute Scope 1 (direct
pursue its growth strategy. An important project is the development
emissions from company-owned and controlled resources) and
of Grieg Seafood Newfoundland. Fish are currently growing well in
Scope 2 (indirect emissions from the generation of purchased
the freshwater facility. The first fish will be transferred to the sea
energy) greenhouse gas emissions remained at the same level
in mid-2022. The Group harvested 75 601 tonnes GWT (or 89 327
tonnes including Shetland) in 2021. Despite being somewhat
below the original expectation of 80 000 tonnes for the year, due to
biological challenges, the Board is pleased with this performance,
which is a result of the hard work, passion and dedication of the
employees.
as last year, while production increased by 6%. Measured as
kilograms of C02 equivalents per tonne harvested, emissions
decreased by 6%. Scope 3 emissions (emissions that occur
upstream and downstream in the value chain) accounted for 92%
of total emissions. Even though farmed Atlantic salmon already
has a low carbon footprint, more work needs to be done to reduce
the impact from the global food system.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 8 3
Aquaculture Stewardship Council
(ASC) certification
is an
Unfortunately, the Group reported three escape incidents in
important objective for the Group, as it provides the market with
2021. Management has taken steps to prevent similar incidents
assurance of responsible operations and production of high-
from happening again. In addition to ensuring that farms have
quality seafood certified to the highest social and environmental
high technical standards and procedures are being followed, all
standards. As at year-end, 62% of the Group’s net production
employees regularly attend courses on escape prevention.
was ASC certified. Finnmark managed to become 100% certified,
while only three sites remain to be certified in BC. The Group will
The Group does not compromise on occupational health and
continue its focus on certification for sustainable farming, and
safety, and follows up accidents and absence rates. The Group
Rogaland will have its first sites certified in 2022.
had no major incidents in 2021. The Group targets an absence
Production and harvest volumes depend on the number of smolt
Management has routines in place to monitor developments in this
transferred to the sea, and how well that fish performs in terms
area. The Group conducted the global Great Place to Work survey
of growth and survival. By effectively preventing and combating
also in 2021. The Board is proud to report that all regions received
sea lice and health issues, and by understanding the salmon’s
their Great Place to Work certification. The total score of 85% for
behavior, the Group’s farming regions have worked continuously to
the Group was very satisfactory, and an improvement from 84%
improve survival and growth rates. The operational performance
last year, proving that Grieg Seafood is among the best companies
rate of below 4.5%, which was not reached in Finnmark and BC.
in 2021 was good in all regions. Although the Group targets no use
to work for.
of antibiotics, they were used in Finnmark and BC during the year
as the last resort to treat bacterial diseases and thereby safeguard
Grieg Seafood operates in many rural communities, and is grateful
the welfare of the fish. Due to the successful use of preventive
for their permission to farm salmon in their inlets and fjords.
measures, the Group managed to reduced its use of pharmaceutical
The Group aims to create local jobs and opportunities, use local
sea lice treatments compared to the previous year. Also, due to the
suppliers, and engage in and support various local projects and
systematic improvements of fish health and welfare measures, the
activities. Communities’ social license to operate is essential for
survival of fish improved in all regions. Finnmark reached a strong
sustainable growth.
12-month survival rate of 95%, and Rogaland and BC reached 92%.
It is expected that the Group’s post-smolt program will further
improve fish health and welfare, as it provides better control of the
fish’s environment for a longer period of time. Post-smolt makes
the fish more robust before they are transferred to the sea farms,
and reduces their exposure to seaborne biological risks. Other
initiatives to improve fish health and welfare include the selection
of roe with specific qualities related to sea lice and diseases, feed
customized for the various stages of the salmon’s lifecycle, and
vaccinations to immunize against specific diseases.
Diseases, winter ulcers and other biological issues can affect
the quality of salmon. A superior quality salmon gives a positive
overall impression, with good meat quality and no external
damage or faults, while downgraded salmon has external and/or
internal faults or damage, and obtains a lower price in the market.
The Group aims for 93% of its salmon to be graded as superior
quality. As biological issues negatively impacted the quality of the
fish harvested in 2021, none of the regions reached this target. The
Group’s post-smolt program, with reduced exposure in the sea, and
other initiatives to improve fish health and welfare, are expected to
contribute to an increased superior share going forward.
FIGURE 3.2
FARMING COST PER KG
45.0
Rogaland (NOK/kg)
Finnmark (NOK/kg)
British Columbia (CAD/kg)
Target
9.0
FIGURE 3.3
ROCE AND EBIT/KG
30%
EBIT/kg
ROCE
ROCE target
30
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 8 4
FIGURE 3.4
SURVIVAL RATE AT SE A
Rogaland
Finnmark
British Columbia
Target
FIGURE 3.5
SUPERIOR SHARE OF SALMON
Rogaland
Finnmark
British Columbia
Target
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 8 5
C O V ID -1 9
C O V ID -1 9
OP ER AT ION AL R E V IE W
OP ER AT ION AL R E V IE W
2021 was another year with the Covid-19 pandemic. Grieg Seafood’s
Grieg Seafood harvested a total of 75 601 tonnes of Atlantic
priorities have been to protect employees, local communities,
salmon in 2021, excluding Shetland, a 6% increase from 2020.
partners and business operations, and to secure liquidity and
As the volume harvested in Shetland (up until its sale on 15
financial strength.
December 2021) was 13 726 tonnes in 2021 and 15 705 tonnes in
2020, a record-high volume of 89 327 tonnes was achieved in 2021,
Since the outbreak of Covid-19, employee well-being has been the
compared to 86 847 in 2020.
number one priority for Grieg Seafood. Crisis management teams
have been operational at head office and in each region. The Group
Market demand remained strong in 2021. It is estimated that
has followed the advice of the local authorities. Measures to lower
consumption in all major markets increased in 2021. The largest
the risk of transmission and safeguard business continuity have
relative increases in consumption were found in the EU and the
been in place. These include strict rules at production sites and
UK, both up 8%, and the USA, up 13%. Demand has been driven
harvesting facilities to limit physical contact and encourage social
by supermarkets and grocery stores, in addition to recovery in the
distancing. Working from home has been encouraged whenever
HoReCa (hotels, restaurant, catering) segment towards the end of
possible, and business travel has been restricted.
the year.
Despite the challenging circumstances, Grieg Seafood has been
Sales revenues (excluding Shetland) for 2021 totaled NOK 4 599
able to maintain efficient operations throughout the year. The
million, up NOK 214 million or 4.9% from NOK 4 384 million in
pandemic has impacted the salmon market in the last two years,
2020. The average salmon spot price (NQSALMON weekly average
with a significant shift in demand away from hotels, restaurants
less distributor margin) for the year was NOK 3.6 per kg higher
and catering (HoReCa), while the retail segment and home
in 2021 than in 2020, up from NOK 53.7 per kg in 2020 to NOK
consumption have been boosted. The overall demand for Atlantic
57.3 per kg in 2021. The NQSALMON price stood at NOK 63.4 per
salmon has remained strong. Supply lines have remained largely
kg as at 31 December 2021. Spot salmon prices in the US market
open, though somewhat limited availability has made airfreight
averaged NOK 68.5 per kg, up NOK 8.8 per kg from NOK 59.8
expensive. The bulk of the salmon supplied by the Group has
per kg in 2020. The Urner Barry spot price (farm-raised salmon
been shipped by truck from Norway to European markets, or from
Seattle West Coast) stood at NOK 72.6 per kg as at 31 December
Canada to the USA. The Group’s diversified geographical presence
2021. Fixed-price contracts accounted for 30% of the volume in
has provided flexibility and reduced logistical challenges.
Norway in 2021, in line with the Group’s targeted contract share of
Due to higher market uncertainty, the risk of bad debts increased
market, accounting for 65% of sales revenues in 2021, and 73%
during the pandemic. Grieg Seafood has good routines for
of the volume sold. The market distribution of sales varies year
collecting and managing trade receivables, and has had an open
on year, depending on the volumes harvested across the Group’s
dialogue with customers. A significant portion of the sales volume
regions. The main change in the sales distribution was an increase
has been credit insured. The Group has not recorded any significant
to Continental Europe, from 45% in 2020 to 65% in 2021, mainly
20-50%. Continental Europe is by far the Group’s most important
loss on receivables in 2021.
due to the 22% increase in harvested volume from the Group’s
Norwegian farming operations. BC harvested 32% less volume
Ensuring financial stability has been a priority for the Group. No
in 2021 compared to 2020. However, due to exports from the
dividend was distributed in 2021 due to risk related to the pandemic
Norwegian regions to the USA, the volume sold to the North
and commitments to growth investments. At the beginning of
American market only decreased from 29% in 2020 to 27% in 2021.
2022, the Group refinanced its bank loans, and has a solid financial
position.
In general, freshwater production through the year was good. For
further details, see the separate regional chapters in Part 2 Profit
The Group did not receive any government grants or support
& Innovation. The Group continues to follow its growth strategy
concerning Covid-19 in 2021.
and transferred 22 944 709 smolt to the sea during 2021. Seawater
production has been good, with increased survival rates in all
regions. The group farming cost ended at NOK 47.2 per kg in 2021,
compared to NOK 47.0 per kg in 2020. Abnormal mortality totaled
NOK 2.2 per kg in 2021, compared to NOK 2.5 per kg in 2020. Feed
comprised 37% of the Group’s costs in 2021, similar to 2020. Feed
prices are sensitive to changes in exchange rates, marine and
vegetable raw material prices, seasonal variations, fish catches,
and production. As at year-end 2021, it is expected that feed prices
will rise. However, estimates are uncertain, especially due to
the current situation in Ukraine, as Ukraine is one of the world’s
FIGURE 3.6
ROGAL AND EBIT/KG YE AR-OVER-YE AR
largest producers of wheat (a fish feed ingredient).
As part of the Group’s strategy, Grieg Seafood has restructured its
business and narrowed its operational focus to the regions with
the greatest potential for sustainable and profitable production
through the sale of its Shetland operations to Scottish Sea Farms
Ltd. The transaction was finalized on 15 December 2021. The
closing settlement is expected to be finalized in Q2 2022. In 2021,
the Group established its own sales organization. All shares in the
previous sales organization Ocean Quality AS were sold in 2020.
For more information, see Note 5 to the Group’s consolidated
financial statements.
CONTINUED OPERATIONS
Source: Group Accounts Note 8
ROGALAND
Grieg Seafood Rogaland harvested 26 670 tonnes in 2021, an
FINNMARK
Grieg Seafood Finnmark harvested 34 484 tonnes in 2021, an
increase of 16% compared to the 23 043 tonnes harvested in 2020.
increase of 28% compared to the 26 919 tonnes harvested in 2020.
Sales revenues amounted to NOK 1 431 million, compared to NOK
Sales revenues amounted to NOK 1 756 million, an increase of 34%
1 263 million in 2020. The average spot price in 2021 was NOK
compared to NOK 1 314 million in 2020. The increase is mainly
57.3 per kg, compared to NOK 53.7 per kg in 2020, while price
related to higher harvest volume and spot prices, in addition to a
achievement was NOK 53.7 per kg in 2021, down NOK 1.2 per kg
higher quality share compared to last year. The average spot price
from NOK 54.8 per kg in 2020. Price achievement in 2021 was
in 2021 was NOK 57.3 per kg, compared to NOK 53.7 per kg in 2020.
negatively impacted by the sale of 33 % of the volume under fixed-
Finnmark achieved an average price of NOK 50.9 per kg in 2021, up
price contracts, in addition to quality downgrades. The share of
NOK 2.1 per kg from NOK 48.8 per kg in 2020. Price achievement
superior quality fish decreased from 85% in 2020 to 81% in 2021,
was positively impacted by the sale of 27% of the volume under
due to occurrences of winter ulcers in the first half of the year and
fixed-price contracts, but depressed by a somewhat low average
outbreaks of Pancreas Disease (PD).
harvested weight and a superior share of 82% due to winter ulcers.
Freshwater production in Rogaland performed well in 2021.
Freshwater production at the company's facility in Adamselv was
7.5 million smolt were transferred to the sea, with an average
good during the year. A total of 10.1 million smolt with an average
weight of 460 grams, compared to an average weight of 395 grams
weight of 190 grams were transferred to the sea in 2021. Seawater
on the smolt transferred to the sea in 2020. Seawater production
production was impacted by issues related to winter ulcers during
also performed well, though it has been somewhat affected by
the first half of 2021, but improved significantly during the summer
the PD outbreak. The efforts made in fish health and welfare have
and fall. The farming cost was NOK 43.7 per kg in 2021, down NOK
contributed to a 12-month rolling survival rate of 92% in 2021, up
0.4 per kg from NOK 44.1 per kg in 2020. A 12-month survival
from 90% in 2020. Cost recognized as abnormal mortality in the
rate of 95% was accomplished, compared to 92% in 2020, due to
income statement (cost of reduced survival) was NOK 30.8 million
a reduction in the impact of challenges related to winter ulcers.
in 2021 (NOK 1.2 per kg), compared to NOK 63.7 million in 2020
Cost recognized as abnormal mortality in the income statement
(NOK 2.8 per kg). The farming cost ended at NOK 44.6 per kg in
was NOK 53.1 million in 2021 (NOK 1.5 per kg), compared to
2021, up NOK 2.4 per kg from NOK 42.1 per kg in 2020. The farming
NOK 37.5 million in 2020 (NOK 1.4 per kg).
cost was impacted by harvesting from PD-affected sites, which
increased related fish handling and well-boat costs.
EBIT before fair value adjustments ended at NOK 251 million,
EBIT before fair value adjustment of biological assets for the year
7.3 per kg in 2021, up NOK 2.5 per kg from NOK 4.7 per kg in 2020.
was NOK 242 million compared to NOK 292 million in 2020, which
corresponds to NOK 9.1 per kg in 2021, down NOK 3.6 per kg from
NOK 12.7 per kg in 2020.
Please read more about Grieg Seafood Finnmark’s operational
priorities in the regional chapter in Part 2 Profit & Innovation.
compared to NOK 127 million in 2020, which correspond to NOK
Please read more about Grieg Seafood Rogaland’s operational
priorities in the regional chapter in Part 2 Profit & Innovation.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 8 6
FIGURE 3.7
FINNMARK EBIT/KG YE AR-OVER-YE AR
In 2021, EBIT before production fee and fair value adjustment of
the biological assets ended at NOK 150.2 million for BC, compared
to NOK -7.4 million in 2020, which corresponds to NOK 10.4 per kg
in 2021, up NOK 10.7 per kg from NOK -0.4 per kg in 2020.
DISCONTINUED OPERATIONS
market. Price achievement is measured relative to the relevant
observed market price or reference price. There are several
In 2020, the assets relating to the operations in Shetland were
reference prices for salmon. In Norway, Fish Pool provides historic
classified as held for sale, and the activity presented under
price information, as well as future salmon derivative prices FCA
discontinued operations. On 15 December 2021, the Shetland
Oslo as part of the NASDAQ Salmon Index (NQSALMON). In the
Please read more about Grieg Seafood BC’s operational priorities
assets were sold to Scottish Sea Farms Ltd. In addition, all shares
USA, Urner Barry provides reference prices for North American
in the regional chapter in Part 2 Profit & Innovation.
FIGURE 3.8
BRITISH COLUMBIA EBIT/KG YE AR-OVER-YE AR
Source: Group Accounts Note 8
BRITISH COLUMBIA
Grieg Seafood British Columbia (BC) harvested 14 448 tonnes in
2021, 32% lower than in 2020 (21 181 tonnes). Harvesting volumes
vary significantly every other year in BC due to local production
region arrangements and fewer farms on the West Coast of
Vancouver Island compared to the East Coast. As a consequence,
the region's volume varies every other year, regardless of the
underlying biology. Measures are being implemented to stabilize
yearly harvest volumes.
Source: Group Accounts Note 8
NEWFOUNDLAND
Grieg Seafood acquired a greenfield project in Newfoundland in
Sales revenues for the year amounted to NOK 1 023 million, a
2020. As of year-end 2021, the freshwater facility at Grieg Seafood
decrease of 13% compared to NOK 1 179 million in 2020. According
Newfoundland is fully operational, with fish growing well. The first
to Urner Barry, the average spot price (farm-raised salmon
fish will be transferred to the sea in mid-2022. Read more about
Seattle West Coast) was NOK 68.5 per kg in 2021, compared to
Grieg Seafood Newfoundland in the regional chapter in Part 2
NOK 59.8 per kg in 2020. Price achievement in BC was NOK 70.8
Profit & Innovation.
in Ocean Quality AS had been sold by year-end 2020, and the
salmon in Seattle and Chilean salmon in Miami. Market prices are
activities of Ocean Quality not related to the sale of fish produced
correlated across regions, but significant short-term variations
by Grieg Seafood were therefore presented under discontinued
between markets are not uncommon.
operations. See Note 5 in the Group Accounts for further details.
FIN A NCI A L P ER F OR M A NCE
FIN A NCI A L P ER F OR M A NCE
GROUP FINANCIAL STATEMENTS
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
(IFRS).
In 2021, Grieg Seafood sold Grieg Seafood Shetland Ltd,
which compromises the UK farming and sales operations (the
Shetland assets), to Scottish Sea Farms Ltd. The transaction was
announced on 29 June 2021, and approval was received from the
relevant competition authorities in the UK in December 2021. The
transaction was finalized on 15 December 2021. However, the
closing settlement is expected to be finalized in Q2 2022. Grieg
Seafood classified the Shetland assets as assets held for sale
in 2020 and throughout 2021 up until the sale. The operations in
Shetland were presented as discontinued operations in 2020, and
have been presented as such throughout 2021 up until the sale.
For more information, see Note 5 to the Group Accounts.
PROFIT AND LOSS
The Group's price achievement for 2021 was NOK 55.7 per kg,
up NOK 2.9 per kg from NOK 52.8 per kg in 2020. By comparison,
the average NQSALMON NOK/kg price for 2021 was 57.3, up NOK
3.6 per kg from NOK 53.7 per kg in 2020.
The sensitivity analysis below illustrates the impact changes in
sales revenue/kg has on the EBIT/kg.
FIGURE 3.9
SENSITIVIT Y ANALYSIS SALES REVENUE/KG 2021
Actual for 2021
+/- 2.5 %
+/- 5.0 %
+/- 7.5 %
+/- 10.0 %
+/- 12.5 %
Sales revenue/kg
EBIT/kg impact
55.7
57.1 / 54.3
58.5 / 52.9
59.9 / 51.5
61.3 / 50.1
62.7 / 48.7
n/a
1.4
2.8
4.2
5.6
7.0
The calculation is performed bottom-up, based on separate calculations for Rogaland,
Finnmark and British Columbia, by analyzing incremental percentage changes in sales
revenue, all other factors remaining unchanged.
Total sales revenue for the year totaled NOK 4 599 million, up NOK
214 million from NOK 4 384 million in 2020. The sale revenue from
the Group’s farming regions totaled NOK 4 211 million in 2021,
up NOK 455 million from NOK 3 756 million in 2020 (see Note 8
per kg in 2021, compared to NOK 55.7 per kg in 2020. Higher spot
prices and a somewhat increased quality share compared to last
year contributed to the price achievement. The share of superior
SALES & MARKET
In 2021, Grieg Seafood established its own sales and market
Sales revenue and harvested volume
The Group harvested 75 601 tonnes GWT in 2021, up 4 459 tonnes
quality has been gradually rising in recent years, and ended at 87%
organization as part of the downstream strategy. Until year-
GWT from 71 142 tonnes GWT in 2020. Both the 2021 and 2020
to the Group Accounts). The increase in sales revenue is primarily
in 2021.
end 2020, the fish was sold through Ocean Quality, the sales
organization of Grieg Seafood and Bremnes Fryseri. During
figures are exclusive of our operations in Shetland, which we
due to a higher volume harvested by Rogaland and Finnmark
sold to Scottish Sea Farms Ltd in 2021. The Norwegian regions
compared to the year before.
Freshwater production was stable during the year, and a total
the first months of 2021, the new sales organization handled
contributed 81% of the harvest volume in 2021, compared to 70% in
of 5.4 million smolt with an average weight of 120 grams were
approximately 50% of the Group’s harvested salmon. As of April
transferred to the sea in 2021. Seawater production was good, and
2021, the organization handled 100% of the volume. During the fall,
the 12-month survival rate increased from 90% in 2020 to 92% in
a Value Added Product (VAP) sales department was established,
2021. In previous years, the survival rate has been impacted by
as a key contributor to increase the VAP product portfolio in the
incidents of low oxygen levels and plankton blooms. However, it is
coming years. The Group has also entered into an agreement
steadily increasing due to positive results from an algae mitigation
on VAP capacity in Norway and, towards year-end, commenced
2020, while British Columbia accounted for 19% in 2021, compared
The difference between the total sales revenue for the Group of
to 30% in 2020. While both Rogaland and Finnmark increased
NOK 4 599 million and sales revenue from farming regions of NOK
their harvested volume, BC decreased due to local production
4 211 million is attributable to the item Elim/Other effect (see
region arrangements and larger farms with greater capacity on
Note 8 to the Group Accounts), which includes the gross uplift on
the West Cost of Vancouver Island compared to the East Coast.
sales revenue for the Group generated by the sales organization.
As a consequence, the region's volume varies every other year,
The change in revenue from Elim/Other (Note 8 to the Group
system, which stabilizes the survival rate in periods of challenging
processing salmon into fresh and frozen valued added products.
regardless of the underlying biology.
environmental conditions. The farming cost increased from
CAD 8.0 per kg (NOK 56.0) in 2020 to CAD 8.8 per kg (NOK 60.4)
in 2021, mainly due to a lower harvest volume. Cost recognized
as abnormal mortality in the income statement (cost of reduced
survival) was NOK 17.6 million in 2021 (NOK 1.2 per kg, or CAD 0.2
per kg), compared to NOK 66.1 million in 2020 (NOK 3.1 per kg, or
CAD 0.5 per kg).
For more information on the sales organization and the markets,
see the Sales & Market chapter in Part 2 Profit & Innovation.
The Group’s main product, whole gutted Atlantic salmon, is
traded largely as a commodity, and the prices achieved largely
reflect a general market price. The prices achieved will, to some
extent, deviate from the spot market price, based on quality, sales
contracts, and the ability to place the salmon effectively in the
Accounts) from NOK 629 million in 2020 to NOK 388 million in
2021, is primarily due to lower sales of processed fish (fresh and
frozen), which decreased by NOK 252 million (see Note 8 to the
Group Accounts). The Group is building VAP capacity through its
wholly owned sales organization. However, as the previous sales
organization (Ocean Quality) had some VAP capacity (purchase of
processed fish for resale as VAP), there has been a reduction in
sales revenue from VAP in 2021 compared to 2020.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 8 7
The Group’s primary market is Continental Europe. Sales to
Grieg Seafood did not have sales to Russia in 2021 or 2020. Sales to
Continental Europe comprised 65% of sales revenue in 2021 (73%
Ukraine accounted for 1% of Grieg Seafood’s total revenue in 2021,
of volume sold), up from 45% of the sales revenue in 2020. The USA
compared to 0% in 2020.
and Canada, or North America, is the second largest market, and
Farming cost
Costs directly related to the production and harvesting of
harvest weight of about 4-5 kg, the expensed farming cost through
the income statement at the point of harvest reflects all costs for
salmon constitute the farming cost. The inputs needed to raise
all past periods (if not previously expensed as abnormal mortality).
a live salmon from roe to harvestable size account for the bulk
totaled 27% of sales revenue in 2021 (21% of volume sold), down
As with VAP sales, the sale of fresh salmon in 2021 was affected
of the farming cost. In addition, costs related to harvesting and
Production cost capitalized to inventory (biological assets excluding
from 29% of the sales revenue in 2020. The year-on-year changes
by the fact that sales from Norway were carried out by the newly
processing are included. Performance is tracked through the
fair value adjustment) comprises feed as well as health, treatment
reflect the 22% increase in harvested volume from the Norwegian
established sales organization, while sales from Norway in
farming cost per kg of harvested salmon. Tracking the underlying
and fish welfare-related expenses. In addition, the production
farming operations (excluding sales from Shetland), which is
2020 were handled by Sjór AS through the Ocean Quality sales
drivers that influence the cost of salmon to be harvested in the
cost capitalized to inventory includes salary, depreciation of fixed
primarily sold in Europe, and the 32% lower harvest volume from
partnership, which ceased at year-end 2020. The new sales
future, such as survival, feeding and growth, is therefore vital. The
assets and administration costs that are allocated to production.
British Columbia. The decreased volume from British Columbia
organization has not inherited customer lists from Sjór AS,
regional EBIT is calculated as sales revenue less the farming cost.
Feed cost comprises the largest individual part of the production
to the USA and Canada was partly offset by sales of fish from
and has therefore built new customer relationships under the
See Note 8 to the Group Accounts and Alternative Performance
cost.
the Norwegian farming regions into the North America market.
Grieg Seafood brand. This inherently impacts sales revenue by
Measures for more information.
Sales to Asia accounted for 6% of the sales revenue in 2021 (4%
geographical and product mix composition, and thus comparability
At year-end 2021, it is expected that global inflation will increase
of the volume). Even though salmon is regarded as a commodity,
with the 2020 figures.
prices vary across geographical markets, with the (relatively)
highest price/kg generated in Asia and North America. In addition,
VAP sales to Europe were low in 2021, while VAP sales in North
America - relative to sales volume - remained stable. These
factors explain why sales to Continental Europe comprise 65% of
the sales revenue but 73% of the volume sold.
Until harvest, the production cost of the salmon is capitalized
the salmon feed costs. Consensus estimates indicate an expected
to inventory and included in the line item ‘biological assets’ in
increase in the cost base (including feed) of NOK 2-5 per kg, which
the balance sheet. The production cycle for a salmon, from roe
would, for the 2021 financials, imply a change of approx. 4-11% in
to harvest weight, is about three years, whereas the production
farming cost per kg. The sensitivity analysis illustrates the impact
cycle after smoltification is about 12-24 months. Working capital
changes in farming cost/kg has on the EBIT/kg, expressed as
requirement is generally progressive throughout the production
percentage changes in the 2021 financials.
cycle. Due to the long production cycle for Atlantic salmon with a
FIGURE 3.10
GRIEG SE AFOOD SALES REVENUE AND VOLUME SOLD BY GEOGRAPHICAL MARKET
FIGURE 3.11
FARMING COST
SALES REVENUE 2021
VOLUME SOLD 2021
Continental Europe
UK
North America
Asia
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 8 8
FIGURE 3.12
SENSITIVIT Y ANALYSIS FARMING COST/KG 2021
Salmon growth, survival rates and the economic feed conversion
rate (eFCR), are strongly linked to fish health, disease and sea
lice. Treatments, fasting and reduced appetite negatively impact
Farming cost/kg
EBIT/kg impact
growth, reduce our harvested volumes and increase the cost per
Actual for 2021
-/+ 2.5 %
-/+ 5.0 %
-/+ 7.5 %
-/+ 10.0 %
-/+ 12.5 %
47.2
46.0 / 48.4
44.8 / 49.6
43.7 / 50.7
42.5 / 51.9
41.3 / 53.1
n/a
1.2
2.4
3.5
4.7
5.9
The calculation is performed bottom-up, based on separate calculations for Rogaland,
Finnmark and British Columbia, by analyzing incremental percentage changes in
farming cost, all other factors remaining unchanged.
kg of harvested fish.
The Group's farming cost for 2021 ended at NOK 47.2 per kg,
up NOK 0.2 per kg from NOK 47.0 per kg in 2020. The Norwegian
farming regions contributed to 76% of the farming cost in 2021,
compared to 65% in 2020, which materialized into an increase of
NOK 0.9 per kg in cost, from NOK 43.2 per kg in 2020 to NOK 44.1
per kg in 2021. The positive year-on-year change in Finnmark was
thus offset by higher costs in Rogaland compared to last year. In
addition, British Columbia has, on a 32% lower harvest volume
year-on-year, realized farming cost of CAD 8.8 per kg in 2021,
In the recent years, the industry has faced challenges with respect
up CAD 0.8 per kg from CAD 8.0 per kg in 2020.
to sea lice. This has caused an increase in costs directly related
to treatments and increased investments in equipment and
The salmon farming industry might be volatile, due to both
technologies. This development has had a noticeable effect on the
biological and market conditions. The sensitivity analysis of
relative allocation of cost factors, as well as the total cost level in
2021 illustrates the impact changes in eFCR has on the EBIT/kg,
the industry. In terms of cost per kg, however, the loss of harvested
calculated as percentage changes on the 2021 financials.
volumes has had a significantly larger impact than the direct cost
increases. As production cost per kg has risen in recent years,
the directly variable cost of feed has become a smaller part of the
total incurred cost per kg produced salmon. At the same time,
other costs, such as salaries, health costs, and maintenance, have
become a larger share of the total.
In addition to purchase prices for inputs to production, profitability
is also influenced by how quickly the salmon grow and how
efficiently feed is converted into weight gain (feed conversion rate).
Water temperatures, biological conditions, farming practices and
fish survival are key drivers for salmon growth. Higher seawater
temperatures increase growth, but also increase biological risks
in the form of diseases, sea lice and algal blooms. This may in
turn result in lost feeding days, lower growth and reduced survival.
Through the introduction of improved sensor technology, use of
advanced imaging analysis and other technologies, the Group is
continuously improving the ability to make informed decisions
about feeding and protective measures.
FIGURE 3.13
SENSITIVIT Y ANALYSIS ECONOMIC FEED CONVERSION
RATIO (EFCR) 2021
Actual for 2021
-/+ 2.5 %
-/+ 5.0 %
-/+ 7.5 %
-/+ 10.0 %
-/+ 12.5 %
eFCR
EBIT/kg impact
1.3
1.3 / 1.4
1.3 / 1.4
1.2 / 1.5
1.2 / 1.5
1.2 / 1.5
n/a
0.4
0.9
1.3
1.8
2.2
The calculation is performed bottom-up based on separate calculations for Rogaland,
Finnmark and British Columbia, by analyzing incremental percentage changes in eFCR,
all other factors remaining unchanged.
Raw materials, salaries and other operating expenses
Raw materials and consumables, which consist mainly of the
Group’s freshwater and seawater fish stocks, in addition to
feed, ended at NOK 1 738 million, up NOK 21 million compared
Efficient feed conversion is crucial to being cost competitive. Feed
to NOK 1 717 million in 2020. Salaries and personnel expenses
accounted for 37% of the total cost per kg harvested fish in 2021,
ended the year at NOK 577 million, an increase of NOK 77 million
the same as in 2020. Strong and healthy fish, combined with high
from NOK 500 million in 2020. The increase was partly driven
feed quality and good feeding practices, are the key to achieving a
by Newfoundland, which is preparing to transfer fish to the sea
low production cost. Farming performance is measured through
in 2022. Other operating expenses ended at NOK 1 527 million,
the economic feed conversion rate, or eFCR, and relative growth
down NOK 66 million compared to NOK 1 593 million in 2020.
indices (achieved growth compared to own and feed supplier
expectations). The eFCR measures how much fish feed is used to
produce one kilogram of live salmon (net of mortality). The main
difference between eFCR and bFCR (biological feed conversion
rate) is that bFCR does not adjust the production figure for
mortality.
EBIT
EBIT before production fee and fair value adjustments of biological
assets in 2021 ended at NOK 442 million, up NOK 209 million from
NOK 233 million in 2020. This brought EBIT per kg to NOK 5.9 per
kg for 2021, up NOK 2.6 per kg from NOK 3.3 per kg in 2020.
FIGURE 3.14
ECONOMIC FEED CONVERSION RATE
FIGURE 3.15
GRIEG SE AFOOD GROUP EBIT/KG YE AR-OVER-YE AR
Source: Group Accounts, Note 8
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 8 9
FIGURE 3.16
KEY FIGURES
Rogaland
Finnmark
British Columbia
Newfoundland
Elim/Other
Harvest volume GWT tonnes
EBIT/kg (NOK)
EBIT (NOK million)
2021
26 670
34 484
14 448
—
—
2020
23 043
26 919
21 181
—
—
2021
9.1
7.3
10.4
—
—
5.9
2020
12.7
4.7
-0.4
—
—
3.3
2021
242
251
150
-117
-84
442
2020
292
127
-7
—
-179
233
Grieg Seafood Group
75 601
71 142
Newfoundland (acquired in Q2 2020) is reported as a region in the segment information as from 2021. However, it is included in "Elim/Other" in 2020, when the region was under
development.
The higher EBIT in 2021 compared to 2020 is primarily attributable
NOK 425 million. The closing settlement is expected to be finalized
to the 28% increase in harvest volume from Finnmark, which
in Q2 2022. See Note 5 to the Group Accounts for further details.
ended at 34 484 tonnes GWT, as well as the price achievement
in British Columbia. Combined with higher price achievement,
The Group's goodwill, licenses, other intangible assets, and
the increase in harvest volume boosted Finnmark’s EBIT/kg from
property plant and equipment including right-of-use assets totaled
NOK 4.7 in 2020 to NOK 7.3 in 2021. On margin, British Columbia
NOK 5 636 million as at 31 December 2021, up NOK 418 million
performed well in 2021, as EBIT/kg rose by NOK 10.7 per kg, from
from 31 December 2020. Measured relative to total assets, these
NOK -0.4 per kg in 2020 to NOK 10.4 per kg in 2021.
assets contributed to 53% of the balance sheet as at 31 December
2021, compared to 49% as at 31 December 2020.
Production fee and fair value adjustment of biological
assets
The production fee on the harvested volume (gutted weight) in
Biological assets measured at cost totaled NOK 2 479 million as
at 31 December 2021, up NOK 280 million from NOK 2 199 million
Norway came to NOK 24 million in 2021. The Fair value adjustment
(excluding Shetland) as at 31 December 2020. Measured relative
of biological assets impacted the Group positively by NOK 523
to total assets, the accumulated capitalized cost of inventory
million in 2021, up NOK 813 million from NOK 290 million in 2020.
contributed to 23% of the balance sheet as at 31 December 2021,
EBIT after production fee and fair value adjustment of biological
compared to 21% as at 31 December 2020. The biological assets
assets was NOK 941 million in 2021, up NOK 998 million from NOK
of Grieg Seafood are primarily fish at sea, which was 93% of the
-57 million in 2020.
Financial items
Net financial items came to NOK -87 million in 2021, up NOK 161
book value of biological assets, excluding fair value adjustment, as
at 31 December 2021. The compared figure for 31 December 2020
was to 94%. In tonnes, the biological assets totaled 59 121 at year-
end 2021, up 6 502 tonnes from 52 619 tonnes as at year-end 2020,
million from NOK -248 million in 2020. Compared to 2020, the
of which the biological assets stocked at sea accounted for 99% at
debt service cost in 2021 was higher due to the NOK 1 500 million
year-end 2021 (99% as at year-end 2020. The average live weight
Green Bond issue in 2020. However, the higher debt service cost
of the fish on land and at sea was 1.0 kg as at 31 December 2021,
was offset by differences in net currency gains/losses compared
compared to 1.1 kg at year-end 2020. The increase in the volume
to 2020.
Taxes and net profit
Profit before tax in 2021 was NOK 854 million, which is an increase
of biological assets at year-end 2021 compared to 31 December
2020 is in line with the Group’s overall strategy to increase Grieg
Seafood’s annual harvest capacity.
of NOK 1 158 million from NOK -304 million in 2020. The tax
The cash balance at the end of the year was NOK 928 million,
expense for 2021 came to NOK 249 million, compared to a tax
up NOK 653 million from NOK 275 million as at 31 December 2020.
expense of NOK 12 million in 2020. This brings net profit from
Current assets (excluding fair value adjustment of biological assets)
continuing operations in 2021 to NOK 604 million, up NOK 920
over current liabilities measured 3.5 as at 31 December 2021,
million from NOK -316 million in 2020. In 2021, Grieg Seafood
compared to 3.0 as at 31 December 2020. In addition, the Group
sold its Shetland assets. Net profit from discontinued operations
had undrawn credit facilities of NOK 885 million as at 31 December
in 2021 came to NOK 600 million, up NOK 799 million from NOK
2021, compared to NOK 1 203 million as at 31 December 2020. The
-199 million in 2020. In 2021, NOK 424 million of the net profit from
change in undrawn liquidity is due to NOK 600 million of undrawn
discontinued operations represents the gain (including recycling of
bridge loan financing being included in the available credit as at
accumulated OCI) from the sale of the Shetland assets. The closing
year-end 2020, while the revolving credit facility limit was reduced
settlement was expected to be finalized by the end of Q1 2022,
from NOK 1 500 million as at 31 December 2020 to NOK 1 225
as communicated in Grieg Seafood’s report for Q4 2021. Due to
million as at 31 December 2021.
minor disagreements of the closing balance, the final settlement
is postponed to Q2 2022. For more information on discontinued
Total equity as at 31 December 2021 was NOK 5 563 million,
operations and the sale of the Shetland assets, see Note 5 to the
up NOK 1 192 million from NOK 4 371 million as at 31 December
Group Accounts.
FINANCIAL POSITION
As at 31 December 2021, the book value of the Group's assets
totaled NOK 10 714 million, up NOK 65 million from NOK 10 650
million as at 31 December 2020. On 15 December 2021, the Group
completed the sale of its Shetland assets. In December 2021, the
Group received, in cash, the preliminary purchase price of NOK
2 087 million. The settlement has been partly used to settle the
bridge loan facility of NOK 600 million and the term loan facility of
2020. The equity ratio as at 31 December 2021 was 52% compared
to 41% as at 31 December 2020. The Group’s increased equity and
equity ratio are due to a combination of higher EBIT/kg compared
to 2020 and differences in expected market prices after the
reporting date, which result in fair value adjustment of biological
assets as at 31 December 2021 of NOK 970 million, compared to
NOK 347 million as at 31 December 2020. In addition, the sale of
the Shetland assets impacting equity by NOK 341 million (gain/loss
net of recycling of OCI). Furthermore, the Group used part of the
preliminary settlement it received for the Shetland assets to pay
off interest-bearing liabilities, which has affected the equity ratio.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 9 0
As at 31 December 2021, net interest-bearing liabilities (NIBD)
(See Note 12 to the Group Accounts) was green (NOK 1 500 million
Grieg Seafood aims to provide shareholders with a competitive
620 million of the negative cash flow from investment activities in
excluding the effect of IFRS 16 totaled NOK 1 895 million,
Green Bond), compared to 36% as at 31 December 2020. The
return on invested capital through payment of dividends and
2020 derived from the acquisition of Grieg Newfoundland. Besides
down NOK 1 784 million from NOK 3 679 million as at 31 December
Green Bond matures in 2025, while the syndicated debt, as at 31
share price increases. The Board of Directors maintains that, as
the NOK 620 million cash consideration for the shares in Grieg
2020. NIBD including the effects of IFRS 16 was NOK 2 291 million,
December 2021, matures in Q1 2023. The increase in the relative
an average over time, dividends should correspond to 30-40% of
Newfoundland, differences in cash flow from investing activities
down NOK 1 640 million from NOK 3 931 million as at 31 December
share of green financing since 31 December 2020 was primarily
the Group’s profit after tax, adjusted for the effect of fair value of
are due to MAB capacity purchased in 2020 (NOK -159 million)
2020. The change in NIBD was primarily due to the completion of
due to the impact that completion of the Shetland transaction had
biological assets. As at 31 December 2021, Grieg Seafood was in
under the government traffic light scheme, as well as the NOK
the Shetland transaction, where the preliminary purchase price
on the Group’s financial position and liquidity as at 31 December
a solid financial position to execute strategic priorities and deliver
-85 million impact on cash of the deconsolidation of Sjór (Ocean
from Scottish Sea Farms was receved in December 2021 in cash
2021. Part of the cash consideration received from Scottish Sea
shareholder return. The Board recommends that a dividend of
Quality). In 2021, in addition to investments made in property, plant
(see Note 5 to the Group Accounts). NIBD including the effect of
Farms Ltd in December 2021 was utilized to settle syndicated
NOK 3.0 per share be distributed to shareholders in the first half
and equipment, the Group invested NOK 2.5 million in Årdal Aqua
IFRS 16 relative to total assets measured 21% as at 31 December
debt, reducing the gross interest-bearing liabilities.
of 2022.
2021, compared to 37% as at 31 December 2020. NIBD excluding
the effect of IFRS 16 divided by the last twelve months’ actual
In Q1 2022, Grieg Seafood has finalized a refinancing of the Group's
harvest volume (tonnes GWT) equalled NOK 25.1 per kg, or NOK
syndicated financial liabilities, with an aggregate of NOK 3 200
21.1 per kg when measured over the Group's 2022 guided harvest
million in five-year senior secured sustainability-linked loans and
volume.
credit facilities. This represents the completion of the funding
process, since the bank loan as at 31 December 2021 matures
The Group was in compliance with its financial covenants as at
in February 2023. The new debt structure comprises a NOK 750
31 December 2021. As at 31 December 2021, the leverage ratio
million term loan, an EUR 75 million term loan, a NOK 1 500 million
NIBD/EBITDA was 2.6 and equity ratio according to covenant
revolving credit facility and a NOK 200 million overdraft facility. See
was 54%, compared to 43% as at 31 December 2020. As at
Note 12 to the Group Accounts for more information.
31 December 2021, 47% of the gross interest-bearing liabilities
CASH FLOW
Net cash flow from operating activities in 2021 totaled NOK 601
million, up NOK 189 million from NOK 412 million in 2020. The
higher cash flow from operating activities derives largely from
a higher EBIT in 2021 compared to 2020, as the sum of timing
differences, including tax payments, in 2021 was fairly similar to
2020.
For the year, net cash flow from investing activities totaled NOK -560
million, up NOK 1 033 million from NOK -1 593 million in 2020. NOK
AS and NOK 12.5 million in Nordnorsk Smolt AS (injection of new
capital), a total of NOK 15 million for the year.
Net cash flow from financing activities for the year totaled NOK
-1 430 million, down NOK 2 909 million from NOK 1 478 million
in 2020. In 2020, the Group issued the green bond, raising total
proceeds of NOK 1 500 million. Besides the green bond issue,
repayments on NOK and EUR term-loans of approx. NOK 100
million were made, with NOK 178 million in lease payments and
NOK -133 million from net interests and other financial items. In
2021, the debt service expenses increased, impacting cash flow
by NOK -200 million. Following the refinancing of the syndicated
FIGURE 3.17
EQUIT Y-RATIO AND NIBD/HARVEST
NIBD/Harvest calculated as NIBD according to covenant divided by last 12 months harvest volume
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 9 1
FIGURE 3.18
GROSS INVESTMENTS, HARVEST VOLUME TONNES GWT
AND GROSS INVESTMENTS/KG EXCL. SHETL AND
Cash payment made on the acquisition of Grieg Newfoundland of NOK 620 million is not included in the 2020 figure presented in the chart above. All figures
in the chart above are exclusive of Shetland. The peak in 2020 (gross investments of NOK 13.8/kg) is largely attributable to capital investments in the
freshwater facility in Newfoundland. The freshwater facility in Newfoundland was completed in 2021.
loans in Q1 2022, debt service costs is expected to be positively
in particular the green bond issue of NOK 1 500 million, which
impacted by a lower margin. Lease payments totaled NOK 185
carries payable interest of approximately NOK 65 million per year
million in 2021, while installments of NOK 528 million on loans
(according to the interest rate as at 31 December 2021, see Note 3
were paid. This includes settlement of the NOK term loan facility.
to the Group Accounts).
The remaining differences are due to cash management by
utilization of the revolving credit facility.
At the end of the year, Grieg Seafood was in compliance with
its financial covenants. The leverage ratio NIBD/EBITDA was
The net change in cash and cash equivalents from continued
measured at 2.6, well within the maximum allowable leverage
operation for the year was NOK -1 389 million, down NOK 1 686
according to the loan agreement. At year-end, Grieg Seafood ASA
million from NOK 298 million in 2020. In December 2021, a
had an equity ratio of 48%, compared to 43% the year before. This
preliminary cash settlement for the sale of Shetland of NOK 2 087
corresponds to a book value of equity of NOK 2 744 million in 2021
million was received. This is included as a NOK 2 040 million net
compared to NOK 2 670 million in 2020.
change in cash and cash equivalents from discontinued operations
in the 2021 cash flow statement. The net change in cash and
During the year, no dividend payments were made, as the Board
cash equivalents from discontinued operations therefore rose by
decided to postpone ordinary dividend for 2020 (as for 2019) due
NOK 2 279 million from NOK -239 million in 2020.
to the increased volatility and uncertainty caused by the Covid-19
As at 31 December 2021, the Group had a cash balance of
Group. On 15 December 2021, Grieg Seafood Shetland was sold. A
NOK 928 million, up NOK 653 million from NOK 275 million in 2020.
cash consideration of NOK 2 087 million was received in December
situation, combined with an extensive investment plan for the
GR IEG SE AF OOD A S A
GR IEG SE AF OOD A S A
PROFIT FOR THE YEAR
The parent company’s financial statements have been prepared in
2021, which was used to settle the NOK 600 million bridge loan and
the NOK 425 million outstanding principal of the NOK term loan.
Grieg Seafood ASA recorded a gain of NOK 143 million from the
Shetland transaction. In February 2022, Grieg Seafood finalized
a refinancing of the Group's syndicated financial liabilities, with
an aggregate of NOK 3 200 million in five-year senior secured
accordance with Norwegian accounting principles (NGAAP).
sustainability-linked loans and credit facilities.
The parent company recorded an operating loss of NOK 77 million
The parent company´s net cash flow from operations in 2021
in 2021, compared to a loss of NOK 73 million in 2020. Grieg Seafood
totaled NOK 147 million, compared to NOK -277 million in 2020.
ASA is the holding company of the farming and sales operations in
The difference in net cash flow from operations in 2021 from 2020
the Grieg Seafood Group. Grieg Seafood ASA is the employer of
is primarily due to lower taxes paid in 2021, and differences in net
Group management as well as centralized functions of the Group.
working capital items.
In line with the Group’s growth ambitions, these functions were
enhanced during 2021, which materializes in a higher overhead,
Cash flow from investing activities came to NOK 1 611 million (NOK
primarily through payroll.
-1 232 million in 2020). The difference from 2020 to 2021 for the net
cash flow from investing activities is primarily due to the Shetland
The company has a syndicated loan provided 50/50 by DNB and
transaction being finalized on 15 December 2021, in connection
Nordea. The financing agreement includes two term loans of NOK
with the cash consideration of NOK 2 087 million in December
600 million and EUR 60 million, respectively; a revolving credit
2021. In 2020, on the other hand, Newfoundland was acquired and
facility of NOK 1 250 million (down from NOK 1 500 million in
green bond proceeds were distributed to applicable green projects
2020), alongside an overdraft facility of NOK 100 million. This has
in the group companies.
been refinanced in February 2022. In addition to bank loans, Grieg
Seafood ASA has a green bond of NOK 1 500 million issued in 2020,
Net cash flow from financing activities came to NOK -1 149 million,
with maturity in 2025. At the end of the year, NOK 885 million of
compared to NOK 1 687 million in 2020. The change in net cash flow
the revolving credit facility and the overdraft facility was available
from financing activities from 2020 to 2021 is primarily due to the
for utilization.
Group contributions from subsidiaries are included in net financial
items in the amount of NOK 308 million in 2021 (NOK 100 million
in 2020).
green bond issue of NOK 1 500 million received in 2020, while net
repayments of approx. NOK 1 100 million on revolving credit facility
and term-loans were made in 2021. In addition, debt service costs
were higher in 2021 due to the green bond issue and the temporary
amendment to the term loan agreement with banks.
Interest expenses from external financing increased in 2021. This
is primarily due to increased external funding compared to 2020,
As at 31 December 2021, available cash totaled NOK 793 million
compared to NOK 184 million as at 31 December 2020.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 9 2
FINANCIAL RESULTS AND ALLOCATIONS –
GRIEG SEAFOOD ASA
The aim of the Group is to offer a competitive return on invested
million. The book value of live fish at cost at year-end 2021 was
The risk of cyber attacks are also relevant for the Group. Cyber
NOK 2 479 million, or 23% of the balance sheet. Biological risks
attacks may cause disruption in the ordinary course of operations,
include oxygen depletion, diseases, viruses, bacteria, parasites,
both within the Group and at third parties, as well as damage
capital to its shareholders through a combination of dividends
algae blooms, jelly fish and other contaminants. To reduce this
and share price appreciation. The Group’s dividend policy is that
risk, the Group focuses on improving fish health and welfare
the dividend should, over time, average 30-40% of the Group's
through several initiatives, including joint fallowing and area-
net profit after tax before fair value adjustment of biological
based management, switching from pharmaceutical to mechanical
assets. At the same time, the Group’s net interest-bearing debt
delousing treatment methods, and use of sensor technology to
per kg harvested salmon should remain below NOK 30, but can
reduce algae challenges. The Group’s post-smolt strategy, where
be exceeded in periods of growth investments. At year end, the
fish are grown to a larger size on land, thereby shortening the time
and/or incapacitate critical infrastructure necessary to operate
the Group’s freshwater and seawater sites. The outcome of a
cyberattack may adversely impact fish welfare at affected sites, the
Group’s reputation and financial performance. The cybersecurity
risk is high on management’s agenda, and is addressed through
securing the digital systems and infrastructure, as well as
awareness and training, and strengthening the focus on securing
financial position of Grieg Seafood ASA was solid, and the Board
they spend in open sea pens, is an important part of the effort to
remote access for employees and vendors.
proposes that a dividend of NOK 3.0 per share be distributed to
reduce biological risk.
shareholders.
Throughout the year, production at the Group’s freshwater and
The parent company, Grieg Seafood ASA, recorded a profit after
seawater locations has been good. Biological conditions have
tax of NOK 407 million for 2021, which the Board proposes that the
been stable, with increasing survival rates. As at year-end, Grieg
Annual General Meeting allocate as follows:
FIGURE 3.19
ALLOCATION OF PROFIT/LOSS FOR THE YE AR, GRIEG
SE AFOOD ASA
Seafood Rogaland had two sites infected by Pancreas Disease
(PD), the fish at these sites will be harvested during Q1 2022. In
Finnmark, measures have been taken to reduce the risk of winter
ulcers and ISA, and the region experienced significantly lower
impact from winter ulcers this year compared to last year.
Provision for dividends
Transfer to retained equity
Total allocated
NOK million
336.9
70.4
407.3
R I SK A ND R ISK M A N A GEMEN T
R I SK AND R ISK M AN A GEMEN T
The aquaculture industry has experienced major issues with sea
lice and algae in recent years. The Group collaborates actively
with the authorities and other aquaculture players to implement
measures and initiate activities to reduce biological risk. Some of
the initiatives are joint fallowing and area-based management. The
Group has initiated a digitalization process to facilitate operational
improvements. The aim is to use sensor technology to reduce the
algae challenges in BC in particular. The introduction of sensor
The Group is exposed to risks in numerous areas, such as biological
technology to monitor algal blooms enables the type of algae to be
production, the effects of climate change, degradation of nature,
determined at an early stage and the appropriate feeding response
compliance risk, the risk of accidents, changes in salmon prices,
selected. This is of vital importance as different types of algae have
COMPLIANCE RISK
Grieg Seafood is committed to conducting its business ethically
and with integrity. The Group perform risk assessments of it’s
operations and value chain, and has implemented mitigating
measures and controls to prevent corruption and money laundering
activities. The Group did not experience any incidents of corruption
or money-laundering activities in 2021. The Group would adhere to
any relevant sanctions related to Russia and Belarus.
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. Based on the EU investigation, US competition
authorities launched their own investigation into the matter in
November 2019. Two class-actions have been filed by direct and
indirect customers in the USA and three class actions have been
filed in Canada (none has yet been certified as a class action).
Grieg Seafood is not aware of any anti-competitive behavior within
the Group, neither in Norway, nor the EU, the USA, or in Canada.
The Group is fully collaborating with European and American
authorities in this matter and follow up the lawsuits in the USA
and Canada accordingly.
FINANCIAL RISK
MARKET RISK
Salmon prices are highly volatile, with major fluctuations within
relatively short time spans. However, there has been a stable rise
in demand for salmon over recent years, while the growth in supply
has been limited. The global harvest volume of Atlantic salmon
in 2022 is not expected to increase compared to 2021. Combined
with high demand, this is expected to drive prices. Supply is also
impacted by other factors, such as government regulations, sea
temperatures, sea lice, outbreaks of disease, and other indirect
and direct factors which affect production and therefore also
supply. Grieg Seafood did not have sales to Russia in 2021. Sales to
Ukraine accounted for 1% of Grieg Seafood’s total revenue in 2021.
The Covid-19 pandemic and the measures implemented by
authorities worldwide to deal with it, impacted global demand
Financing risk
The Group operates within an industry characterized by high
for salmon and disrupted global supply chains in both 2020 and
volatility, which entails financial risk. The Group’s business and
2021. Sales to the HoReCa market have been low most of the
future plans are capital intensive. To the extent that sufficient
year due to Covid-related restrictions, curfews and lockdowns in
cash is not generated from operations in the long term, additional
most markets. On the other hand, sales to the retail segment and
funding needs to be raised to pursue its growth strategy and
home consumption have increased during the Covid-19 pandemic.
finance capital expenditures. Adequate sources of capital funding
Continental Europe is the Group’s most important market, with
might not be available when needed, or may only be available on
and the risk of politically motivated trade barriers. The Covid-19
different effects on the salmon. In BC, mortality related to algae
North America being the second largest market. Salmon spot
unfavorable terms.
pandemic has posed a risk to most of the Group's operational
blooms was reduced from 3.4% in 2019, to 0.9% in 2020 and down
prices have varied significantly over the last year, due to the
areas during the year. The Group’s internal controls and risk
to 0.4% in 2021, due to the efforts within algae mitigation, digital
exposure are subject to continuous monitoring and improvement,
and efforts to reduce risk in different areas have a high priority.
monitoring and aeration systems.
Management has established a framework for managing and
The feed industry is characterized by large global suppliers
eliminating most of the risks that could prevent the Group from
operating under cost-plus contracts, and feed prices are accordingly
attaining its goals. See the Group’s risk overview here. A summary
directly linked to the global markets for fishmeal, vegetable meal,
of some of these risks, in the context on the short- and medium
animal proteins and fish/vegetable/animal oils, which are the main
term, is included below
ingredients in fish feed. While access to marine feed ingredients
has increased, access to terrestrial feed ingredients continues to
waves of restrictions and lockdowns both in Europe and North
The Group renegotiated its syndicated bank loan agreement in
America. The spot market price (NQSALMON) was NOK 45.1 at
2018, which will secure the working capital needed to achieve the
the beginning of the year, and closed the year at NOK 63.4 per
Group’s growth targets. The agreement matures in 2023. These
kg. The 12-month average NQSALMON for 2021 came to NOK 57.3
facilities have been refinanced in Q1 2022, see Note 12 and 29 of
per kg compared to NOK 53.7 in 2020. Spot salmon prices in the
the Group Accounts. The Group also has a senior unsecured green
US market started the year at NOK 59.6 per kg, and ended the year
bond, with a drawdown of NOK 1 500 million. The bond matures on
at NOK 72.6 per kg, with an average price of NOK 68.5 per kg, up
25 June 2025. In December 2021, Grieg Seafood sold its Shetland
by NOK 12.1 per kg compared to 2020. For Norway, on aggregate
assets. The transaction and the refinancing have significantly
for the year, fixed-price contracts did not impact sales revenue/
improved the Group's financial flexibility.
The members of the Board of Directors and the CEO are insured.
be limited, and feed prices are expected to increase. At year-end
kg. The volume sold under fixed-price contracts was 30% of the
The insurance provides liability cover for members of the Board
2021, the expectation was that the cost of feed would increase, and
of Directors and the CEO with respect to claims arising from
consensus estimates indicated an expected increase in the cost
harvested volume in Norway. The percentage was in line with the
Financial and contractual hedging is a matter of constant
targeted contract share of 20-50%. The Group does not have fixed-
consideration,
in combination with operational measures.
decisions or actions they may take on behalf of Grieg Seafood ASA.
base (incl. feed) of NOK 2-5 per kg, which would, based on the 2021
price contracts in BC.
OPERATIONAL RISK
The greatest operational risk relates to biological developments
within the Group’s smolt and aquaculture operations. The
book value of live fish in the balance sheet at year-end was
NOK 3 449 million, of which the fair value adjustment was NOK 970
financials, imply a change of approx. 4-11% in farming cost per kg.
In addition, the Ukraine crisis is predicted to lead to higher costs,
due to the likelihood of significantly lower volumes of wheat being
supplied to the market in 2022.
The internal sales and market organization sells all of the Group’s
fish. The Group also has a Value Added Product (VAP) sales
department and has secured value-added processing capacity
in Norway, as a step towards repositioning the company in the
market.
Management draws up rolling liquidity forecasts, extending over
five years. These forecasts are based on conservative assumptions
for salmon prices and form the basis for calculating liquidity
requirements. This forecast also forms the basis for the Group’s
financing needs.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 9 3
Liquidity risk
The Group has invested substantial amounts during the last
financial institutions, transactions with customers, including trade
Disclosures (TNFD), as a Taskforce Member. TNFD aims to develop
Local Communities. These pillars define the Group’s focus areas.
receivables, fixed contracts and loans to associates. The Group
a risk management and financial disclosure framework on nature-
They are founded on external expectations, based on dialogues
year, such as the build-up of its biomass and the acquisition of
has procedures to ensure that products are only sold to customers
related risks, and will support organizations to report and act
with stakeholders, and the company’s own goals and ambitions.
Grieg Newfoundland. The Group utilizes factoring agreements to
with satisfactory creditworthiness. The Group normally sells to
on both their impacts and dependencies on nature. The finalized
The Group has published an overview of their pillars, targets and
finance its trade receivables. The trade financier purchases 100%
new customers solely against presentation of a letter of credit
framework is earmarked for release in late 2023. For further
Group policies here.
of the credit-insured trade receivables from the Norwegian sales
or against advance payment, and credit insurance is used when
information, visit the TNFD’s website.
organization, transferring significant risk and control to the credit
deemed necessary.
insurer. The receivables purchased by the trade financier are
derecognized from the Group’s statement of financial position.
CLIMATE AND NATURE RISK
The effects of climate change, such as extreme weather events,
The Group’s liquidity reserve is monitored at group level, in
fluctuating temperatures in seawater and a decline in biodiversity,
collaboration with the operating companies. Management and the
could have a significant financial impact in the coming decades.
Board seek to maintain a high equity ratio (52% at 31 December
Knowledge of the possible financial consequences of global
2021), to be well positioned to meet financial and operational
warming, biodiversity loss, or even ecosystem collapse, and the
challenges.
Currency risk
The Group is primarily impacted by currency exposure to CAD, USD,
GBP and EUR. The production companies sell in local currencies
integration of climate risk and nature risk, are an essential part of
Grieg Seafood’s risk management strategy. Grieg Seafood aims to
increase their understanding of climate and nature-related risks,
in order to find solutions to reduce adverse impacts.
The company’s reporting on corporate social responsibility is
Inspired by background work on nature risk launched by WWF
based on several standards, such as the Euronext guidance on
Norway in 2019, and in order to support the adoption and
ESG reporting, OECD guidelines for multinational enterprises,
implementation of TNFD recommendations, Grieg Seafood joined
the Global Reporting Initiative (GRI), the Global Salmon Initiative
WWF Norway, Storebrand Asset Management and the Norwegian
(GSI), and the Task Force on Climate-related Financial Disclosures
Institute for Nature Research (NINA) in a pilot project to test a
(TCFD), amongst others. Grieg Seafood is also committed to the UN
framework for reporting on nature-related risks in the aquaculture
Global Compact, and has signed the Sustainable Ocean Principles.
sector. The aim is to demonstrate how a company can report on
The Group’s sustainability strategy is described in Part 1, while the
nature-related risks in a way that allows its investors to identify
activities and results are presented in Part 2 of this Annual Report.
potential risk exposure and engage with its portfolio company in
an active, structured and informed way. The pilot report will be
launched in 2022.
RESEARCH AND DEVELOPMENT –
ACHIEVING SUSTAINABLE GROWTH
The main objectives of Grieg Seafood’s R&D activities are to
to the sales organization, which hedges its transactions against
Climate change is likely to present a range of challenges to the
The salmon farming industry is regulated to avoid impact on
create value, ensure sustainability and promote innovation in the
currency fluctuations related to CAD/USD, EUR/NOK, GBP/EUR
aquaculture industry. Grieg Seafood has mapped its climate-
biodiversity and the marine environment. In addition, certifications
company. The activities and priorities are anchored in the strategy
and USD/NOK, and other currencies if required.
related risks in accordance with the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD)
like the Aquaculture Stewardship Council (ASC) help raise the
and annual priorities. A continuous process of identifying the
bar above regulatory limits. As of year end, 62% of the Group’s
most important issues to be addressed forms the basis for R&D
The currency exposure is continuously assessed against the
for the third consecutive year. The risks identified include acute
net production is ASC certified. Grieg Seafood acknowledges
activities. A vital part of this is to ensure that results from the R&D
volatility of the currencies. The remaining net exposure is
physical risks caused by extreme weather events, such as damage
that there are still challenges to overcome, and believes that
projects can be implemented in the Group’s operations and thus
monitored frequently. However, the Group may not be successful in
to production facilities and infrastructure, increased employee
preventive farming is key to reducing impact on both climate and
create innovation and value.
hedging against currency fluctuations and significant fluctuations
accident rates and increased downtime due to harsh weather,
nature. Several of the Group’s ongoing initiatives target climate
may have a material adverse effect on the Group's financial results
and higher risks of escapes due to structural impairment. The
and nature-related challenges, such as shortening the time the
The project portfolio covers all areas of Grieg Seafood work
and business. The Group is also exposed to currency fluctuations
Group also faces chronic physical risks, such as increased water
fish spend at sea and are exposed to risks; using real-time ocean
stream. The majority of projects are in fish health and welfare,
on long-term lease agreements, primarily operational equipment
temperature or extreme variations in water temperature. Overall,
data, data analytics, machine learning and artificial intelligence to
environmental documentation and impact, feed and feeding,
including well boat charter hire. Lastly, the Group is also exposed
the Group expect the impacts of climate-related risks to be
better predict outcomes and implement mitigating actions early;
as well as novel and improved production methods both in the
to EUR, as part of its credit facility is in EUR.
moderate in the short term, with no quantifiable impact as per
year end 2021, but these impacts could become more severe in
and experimenting with new farming technologies that create
freshwater and the seawater phases of the production. An
barriers between the fish and the natural environment, such as
internal R&D strategy provides guidance in the process of project
Part of the long-term loans to subsidiaries from Grieg Seafood
the medium to long term. Any significant physical change is likely
semi-closed sea-based systems, land-based farming and offshore
prioritization and qualification to secure the project's relevance
ASA are in the local currency and are regarded as net investments,
to interfere with the Group’s current business model or damage
farming.
as there are no set plans for their repayment. The currency effect
the facility infrastructure, both of which could be costly. Similarly,
of these net investments is included in the Group's consolidated
the transitional risks related to
increased climate-change
statement of other comprehensive income (OCI).
Interest rate risk
The Group is exposed to interest rate risk through its borrowing
regulation or significant changes in consumer preferences could
likely affect the bottom line and access to capital. On the other
hand, Grieg Seafood is uniquely placed to mitigate these risks
and take advantage of climate-related opportunities. To get a full
C OR P OR AT E AND S O CI AL
C OR P OR AT E AND S O CI AL
R E SP ONSIBILI T Y
R E SP ONSIBILI T Y
and industry value. This comes in addition to the close contact with
Grieg Seafood’s production regions to ensure the relevance and
possible applicability of the planned endeavors. Annual meetings
with the regions to map out R&D needs as well as quarterly
meetings with the global functional team for R&D are established
communication channels that will be further developed. Short
descriptions of the ongoing projects are available in an internal
activities, and to fluctuating interest rate levels in connection with
overview over how these climate-related risks and opportunities
Sustainability underpins Grieg Seafood’s operations – it is the
project archive, and finalized projects and results are shared. The
the financing of its activities in the various regions. The Group's
may evolve and affect the Group, likelihood and impacts analyses
license to operate and the motivation to perform. Sustainability
global functional team for R&D are continually working together
existing loans are at floating interest rates, but separate fixed-rate
under different emission pathways and time horizons have been
is also core business, driving results and generating value for all
with the farming regions, facilitating the implementation of the
contracts have been entered into to reduce interest rate risk. Grieg
developed and will be regularly revised. The Group’s TCFD report
stakeholders. Grieg Seafood’s overarching goal is to sustainably
R&D results into the operations.
Seafood’s policy is to have 20–50% of interest-bearing debt hedged
including the climate-related scenario analysis is available here.
through interest rate swap agreements. A given proportion shall
be at floating rates, while consideration will be given to entering
and exiting hedging contracts for the remainder.
Credit risk
Credit risk is managed at Group level. Credit risk arises from
transactions involving derivatives and deposits in banks and
The Group also acknowledge that biodiversity, diversity within
and between species, and diversity of ecosystems, is declining
globally faster than at any other time in human history. Nature
and ecosystems provide the basic building blocks of the global
economy, and biodiversity loss and ecosystem collapse will also
affect the Group’s operations, supply chains and markets. In 2021,
Grieg Seafood joined the Taskforce on Nature-related Financial
produce food in the ocean. This is expressed in the company’s
vision "Rooted in nature – farming the ocean for a better future",
which demonstrates the Group’s commitment to corporate social
responsibility and the desire to operate profitably and sustainably
in a manner that conforms with fundamental ethical norms and
respect for the individual, society as a whole, and the environment.
Grieg Seafood’s sustainability strategy is built on the five pillars:
Healthy ocean, Sustainable food, Profit & innovation, People, and
EMPLOYEES
To reach goals and to solve challenges, Grieg Seafood needs the
best people, regardless of their gender or background. A good
working environment is key to attracting and retaining the best
talent. For the fourth time in Norway, and the third time globally,
the Group participated in the Great Place to Work survey. The
Board is proud to announce that all regions maintained the Great
Place to Work certification in 2021.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 9 4
The majority of the Group’s employees, including managers,
The remuneration report for Grieg Seafood ASA will be published
cooking salmon at home. Dietary megatrends fueled by increased
are men. In total, 753 people were employed at the Group as at
at the time notice of the 2022 Annual General Meeting is issued.
focus on health and sustainability are expected to increase demand
31 December 2021, of whom 208 were women and 545 were men.
The Annual General Meeting is scheduled for 9 June 2022.
going forward, contributing to a strong salmon market.
The Group’s employment policy facilitates the recruitment and
retention of qualified employees independent of gender. A good
The Board wishes to thank all employees for their dedication,
The Russian invasion of Ukraine in February 2022 has already had
working environment is key to attracting and retaining the best
efforts, and contributions in 2021.
talent. Grieg Seafood annually monitors and report on gender
balance, pay gaps, women in management positions and key roles
through the SHE Index. In the last SHE Index, published in March
CORPORATE GOVERNANCE
Grieg Seafood ASA seeks to comply, where applicable, with the
2022, the Group received 73 points (High score), compared to an
Norwegian Code of Practice for Corporate Governance, last revised
average score across Norwegian companies of 71.
on 17 October 2018. The Grieg Seafood Group follows NUES’s latest
recommendations and has updated its existing rules and defined
a global impact on food and food raw materials prices, though
salmon demand has not yet been significantly affected. Further
inflation in prices and distribution costs may impact demand going
forward. However as of the time of publishing this report, with the
outlook for continuing strong demand and no supply growth in
2022, the expectation is that market prices will rise going forward.
The Group conducts yearly assessments of its pay structure to
values in accordance with changes to the Norwegian Code of
identify any pay gaps between men and women performing the
Practice published in 2021. The company’s corporate governance
same jobs. The non-administrative positions are covered by union
policies and practices are disclosed in the "Corporate governance"
For the past 25 years, literally all new fish volumes have come
from aquaculture. Wild fishing has long had to cope with smaller
catches, quotas and other regulatory restrictions. Since 1990,
PRODUCTION
At the time of issuing this report, the Group is experiencing good
biological production in all regions. The farming operations are
running as normal, and salmon is being harvested according to
plan. The emphasis is on continued optimization of production,
focusing on fish health and welfare. For 2022, Grieg Seafood
expects a total harvest of 90 000 tonnes GWT. As at year-end 2021,
Grieg Seafood expects cost inflation on raw materials and key
input for production. However, it is uncertain how the Ukraine war
will impact raw material supplies and the prices of inputs used in
the salmon farming production. The potential impact of inflation
on the Group’s cost base is kept under continuous scrutiny.
FINANCIAL POSITION
As at 31 December 2021, Grieg Seafood was in a solid financial
agreements and there are no differences between women and
section of this Annual Report, and on the Grieg Seafood website.
the volume of farmed fish has multiplied more than six-fold, with
position. In February 2022, Grieg Seafood finalized a refinancing
men. The only differences that may occur are based on seniority,
which is also regulated by the union agreements. The Group uses
the Korn Ferry methodology to benchmark salaries and benefits
against the market. Salaries that are not on the median level are
P O S T-B AL ANCE SHEE T E V EN T S
P O S T-B AL ANCE SHEE T E V EN T S
salmon making up less than 2.5% of the volume. In line with the
of the Group's syndicated financial liabilities, with an aggregate
ongoing global megatrends relating to health and sustainability,
of NOK 3 200 million in five-year senior secured sustainability-
there has been growing interest in the health and potential
linked loans and credit facilities.The sale of the Shetland assets in
environmental benefits of sustainable aquaculture. Currently,
December and the refinancing of the Group's syndicated financial
adjusted according to the benchmark – both for women and men.
In February 2022, Grieg Seafood finalized a refinancing of the
Europe is the largest and most mature market for Atlantic salmon,
liabilities have significantly
improved the Group's financial
The Group’s positions and pay structure are based on a matrix
200 million in five-year senior secured sustainability-linked loans
however, countless ongoing initiatives to introduce salmon to a
Board’s recommendation of a dividend of NOK 3.0 per share,
where all positions are given a score/number based on their
and credit facilities. This represents the completion of the funding
larger number of new consumers across the globe. An increase in
the Group aims to continue execution of its growth strategy. The
responsibility, mandate and content. There is no gender-based
process. The new debt structure comprises a NOK 750 million term
consumption per capita in large markets and growing economies
Group aims to invest NOK 750 million in 2022, where of growth
discrimination in this matrix. Salaries are based on roles and
loan, an EUR 75 million term loan, a NOK 1 500 million revolving
such as the USA, Brazil, China and India is expected to contribute
investment amounts to NOK 385 million.
Group's syndicated financial liabilities, with an aggregate of NOK 3
consuming more per capita than other continents. There are,
flexibility. In addition to deliver a shareholder return, with the
responsibility, not on gender, culture or origin. The Group offers
credit facility and a NOK 200 million overdraft facility. The NOK and
to rising demand for Atlantic salmon over time.
flexible working hours to office staff and seeks to ensure a good
EUR term loans carry installments equal to a 12-year repayment
work-life balance throughout its operations. The goal is to improve
profile until balloon payment at five years. The revolving credit
workplace diversity and become a preferred employer.
facility matures at five years, while the overdraft facility is subject
to annual renewal. The interest rate is three months NIBOR plus
Human resources are managed locally
in compliance with
margin. The loan is linked to sustainability-linked KPIs, of which
local rules and regulations, and in accordance with the Group’s
the scoring impact the interest rate margin paid on the facilities.
guidelines. The Group is working continuously to strengthen global
The sole financial covenant for the new facilities is a minimum
routines and guidelines for human resources and health and safety
book value of equity ratio of 31%, excluding the effect of IFRS 16
throughout the Group, and actively seeks to reduce sick leave and
compared to the IFRS in force prior to 1 January 2019.
the number of health and safety incidents. All such incidents are
registered and reviewed as part of monthly HSE meetings. The
Group’s employee policy is described in detail in the People section
OU T L OOK
OU T L OOK
of this Annual Report.
MARKET EXPECTATIONS AND
POSSIBILITIES
Business integrity is essential for the Group, which has zero
tolerance for fraud, corruption or other misconduct. In 2021, there
The global harvest of Atlantic salmon in 2022 is expected to remain
were no reported incidents of corruption. One whistleblowing case
at a similar level to 2021. The Covid-19 pandemic has impacted
was reported during the year, and the case was handled according
the salmon market in the last two years, with a significant shift
to procedures. To strengthen the corporate culture and encourage
in demand away from hotels, restaurants and catering (HoReCa),
employee loyalty, Grieg Seafood continues to give its employees
while the retail segment and home consumption have been
the opportunity to become company shareholders through the
annual share program.
The Norwegian Parliament has adopted new rules on the wage
policy of listed public companies, which came into force in January
2021. New wage policy and reporting guidelines were approved by
the Annual General Meeting of Grieg Seafood ASA on 2 June 2021.
The guidelines for management remuneration are available here.
boosted. Going into 2022, salmon demand is still impacted by
the pandemic and partly characterized by volumes channelled
from the HoReCa market to the retail segment. However, with
global progress on vaccination against Covid-19 and the lifting
of restrictions in many countries, the shift from HoReCa to retail
is expected to be reversed to some extent. Nevertheless, retail
consumption may increase as consumers have become used to
GOING C ONCER N
GOING C ONCER N
The Board is of the opinion that the financial statements give a true
and fair presentation of the Group’s assets and liabilities, financial
position, and financial results. Based on the above presentation of
the Group’s results and financial position, and in accordance with
the Norwegian Accounting Act, the Board confirms that the annual
financial statements have been prepared on a going concern basis,
and that the requirements for so doing have been met.
There is a consensus in the market that the existing coastal, open-
pen aquaculture industry will achieve modest organic growth. This
will primarily be driven by the opening of new sites and areas for
sea farms, new and improved technologies and farming practices,
and better cooperation both between industry players and with
the public authorities. In addition to this incremental growth,
more experimental attempts to farm salmon, either offshore or
on land, may supplement the traditional salmon farming industry
with additional volumes in the longer term. Grieg Seafood has
already invested in post-smolt, where we keep the fish longer
on land before we transfer them to the sea, as an important step
towards reducing the impact on nature. Grieg Seafood may also
explore other technologies, such as offshore farming. In 2021, the
Group received four and a half development licenses for the “Blue
Farm” concept that it applied for in 2016. The concept is based on
technology from the Norwegian oil and gas industry, and the aim
is to eventually relocate these innovative farms offshore. Another
technology Grieg Seafood will explore, is land-based salmon
farming through the joint venture Årdal Aqua. Grieg Seafood
believes that inshore farming will remain the backbone of the
industry going forward. However, land-based and offshore farming
are great supplements, and the Group looks forward to taking part
in the development of these technologies.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 9 5
S TAT EMEN T FR OM T HE B O AR D O F
S TAT EMEN T FR OM T HE B O AR D OF
DIR EC T OR S AND CEO
DIR EC T OR S AND CEO
We hereby confirm that, to the best of our knowledge, the financial
statements for the period from 1 January to 31 December 2021
have been prepared in accordance with applicable accounting
standards and give a true and fair view of the Group and of the
Group’s assets, liabilities, financial position, and overall results.
We also confirm that the Board of Directors’ Report gives a true and
fair view of the development and performance of the business and
the position of the Company and the Group, as well as a description
of the principal risks and uncertainties facing the Company and
the Group.
Bergen, 30 March 2022
The Board of Directors of Grieg Seafood ASA
PER GRIEG JR.
Chair
TORE HOLAND
Vice Chair
NICOLAI HAFELD GRIEG
Board Member
MARIANNE RIBE
Board Member
KATRINE TROVIK
Board Member
ANDREAS KVAME
CEO
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 9 6
CORPORATE GOVERNANCE
In keeping with our vision of farming the ocean for a better future,
Grieg Seafood demonstrates its commitment to corporate social
responsibility by operating profitably and sustainably in a manner
that conforms to fundamental ethical norms and respect for the
individual, society as a whole and the environment. At the same
time, we face risks to our business strategy, operational risks, and
risks associated with the protection of our employees, assets, and
reputation. Because our operations are clearly connected with a
multitude of external expectations, we seek to maintain a regular
dialogue with our stakeholders, as they are the basis for our social
license to operate. Transparency and disclosure are vital in building
trust, and by engaging in a dialogue with our stakeholders we are
able to better understand the role we play in local communities
and in society as a whole.
GOVERNANCE STRUCTURE
Grieg Seafood believes that strong corporate governance is an
essential element in achieving our overall objectives and acting as
a responsible organization. The Board of Directors is committed
to sound corporate governance, and our governance structure
helps enable the Board to fulfil its duties to our shareholders and
ensure our long-term success. The Board exercises oversight and
assesses relevant sustainability elements that have an impact on
strategic, operational and financial matters, including the factors
that constitute our major risks. The Audit Committee, which
consists of two members of the Board of Directors, has been given
a particular responsibility to monitor critical business risks and
RISKS RELATED TO CLIMATE AND NATURE
One of the many factors that could materially and adversely
affect our business and financial results is the long-term effect
of climate change and decline in biodiversity on general economic
conditions and the salmon farming industry in particular. Changes
in the supply of feed raw materials and requirements to cut carbon
emissions and limit our impact on biodiversity could also affect us.
More information on our risk management procedures, and risks
related to the climate and nature in particular, is included in the
Board of Directors’ report in the Annual Report.
COMPLIANCE
As salmon farming is a highly regulated industry, we are subject
to strict standards for fish welfare, environmental impact, food
production and production equipment. We must also comply with
operational requirements related to the use of medicines and
chemicals, biomass levels, sea lice levels, stock density, water
quality, etc. We report regularly to public authorities on, for
instance, biomass levels, sea lice levels, disease outbreaks and
mortality rates for salmon and cleaner fish. We are also subject to
regular inspections and audits by local, national and international
stakeholder groups and authorities. See here for more information
about our ASC certificates.
CODE OF CONDUCT AND BUSINESS
BEHAVIOR
Our Values and Code of Conduct underpin the way we conduct
address the quality and effectiveness of relevant risk-reducing
ourselves and our approach to corporate social responsibility. Our
measures. The Audit Committee reviews the Group’s governing
Code of Conduct sets out the ethical principles and standards that
policies annually and assesses our risk management quarterly.
must be upheld by each and every employee, and any agent that
We have an internal Sustainability Steering Committee to review
acts on our behalf, including our Board of Directors. Through our
and update our group policies on the basis of a holistic assessment
Supplier Code of Conduct, we demonstrate that we expect no less
of economic, environmental, social and governance (ESG) issues.
from our supply chain. As part of our risk management process,
Our group management team, consisting of eight senior executives
we continuously assess all our operations for risks related to
and representing all aspects of our operations, are the approval
corruption. However, corruption is not considered a significant
committee for these policies. The Board of Directors holds the
risk and we have controls in place to minimize exposure to it.
group management team accountable for following its strategies
and policies, maintaining a high standard of ethical and responsible
Grieg Seafood refrains from anti-competitive behavior, anti-trust
business conduct, taking care of our employees and safeguarding
and monopolistic practices, as this can severely affect consumer
human rights, and assessing risks related climate change and the
choice, pricing and other factors that are essential for efficient
environment. The group management team convenes weekly. We
salmon markets. For more information, see the Responsible
also have quarterly business review meetings with our farming
Business Conduct chapter in the Annual Report.
and sales operations. In 2021, most of these meetings were
held on digital platforms, which has worked well. We also have
a dedicated, cross-functional Sustainability Team, led by the
Chief Sustainability Officer, consisting of members of the group
management team and employees with particular functional
responsibilities. Day-to-day
implementation and assessment
are, however, a line management responsibility. This means that
corporate social responsibility is an integral component of all our
operations, for all management teams, units and departments.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 9 7
CORPORATE GOVERNANCE PRINCIPLES
Adopted by the Company’s Board of Directors on 20 April 2007,
and updated on 30 March 2022.
FIGURE 3.20
GRIEG SEAFOOD'S COMPLIANCE WITH THE NORWEGIAN CODE OF PR ACTICE FOR CORPOR ATE GOVERNANCE
Section of the Norwegian Code of Practice for Corporate Governance
Deviation from the Code of Practice
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Statement of corporate governance
Activities
Share capital and dividends
Equal treatment of shareholders and transactions with related parties
Negotiablility
General Meeting
Nomination Committee
Corporate Assembly and Board of Directors - composition and independence
Work of the Board of Directors
Risk management and internal control
Directors' fees
Remuneration of executive personnel
Information and communication
Company takeovers
Auditor
No deviation
No deviation
No deviation
No deviation
No deviation
One deviation, see below
One deviation, see below
No deviation
No deviation
No deviation
No deviation
No deviation
No deviation
No deviation
No deviation
1. I MP LEMEN TAT ION AND R EP O R T I NG O N C OR P OR AT E G O V ER N A NC E
1. I MP LEM EN TAT ION AND R EP OR T ING ON C O R P O R AT E GO V E R N A NCE
1. I MP LEMEN TAT ION AND R EP O R T I NG O N C OR P OR AT E G O V ER N A NC E
PRESENTATION OF CORPORATE GOVERNANCE
Responsibility for ensuring that the Company has good corporate governance rests with the Board of Directors (the Board). The Board and
management annually review Grieg Seafood Group’s corporate governance principles.
The Company abides by the Norwegian Code of Practice for Corporate Governance as recommended by the Norwegian Corporate Governance
Board (NUES) on 17 October 2018. The Grieg Seafood Group follows NUES’s latest recommendations and has updated its existing rules and
defined values in accordance with changes to the Norwegian Code of Practice published in 2021.
The Company has adopted the “follow or explain principle” with respect to the Code’s application. This means that the Company provides an
explanation whenever it deviates from the Code of Practice.
This Annual Report offers a full account of the Company's principles for corporate governance, which is available here.
Deviations from the Norwegian Code of Practice: None
2. BU SI NE S S
2. BU SI NE S S
GRIEG SEAFOOD ASA
The Company's business is defined in Article 3 of its Articles of Association: “The object of the Company is to engage in the production and
sale of seafood and in naturally related activities, including investment in companies engaged in the production and sale of seafood and in
other naturally related activities.”
The Company is established and registered in Norway, and is required to comply with Norwegian law, including laws and regulations
pertaining to companies and securities. Find our Articles of Association here.
GRIEG SEAFOOD ASA’S VISION AND OVERALL OBJECTIVES
In keeping with Grieg Seafood’s vision “Rooted in nature - farming the ocean for a better future”, we demonstrate our commitment to
corporate social responsibility by operating profitably and sustainably in a manner that conforms to fundamental ethical norms and respect
for the individual, society as a whole and the environment. Through its five pillars, Grieg Seafood is committed to creating sustainable and
long-term value. Sustainability is fundamental to the industry and strongly impacts our financial performance. Our 2025 strategy is rooted
in our desire for sustainable salmon farming. Focus areas are global growth, cost competitiveness, and value chain repositioning.
The Board is committed to sound corporate governance, and our governance structure helps enable the Board to fulfil its fiduciary duties to
our shareholders and ensure our long-term success. The Board has established objectives, strategies and risk profiles for the Company’s
defined business scope, in order to create value for its shareholders. The Board has an annual plan for its endeavors and follows a five-year
cycle in its strategy work. This includes a review of risk areas and internal controls, as well as approving the strategy, objectives and risks
relating to sustainable development.
The Company aims to comply with all relevant laws and regulations, and with the Norwegian Code of Practice for Corporate Governance.
This also applies to all companies controlled by the Group. To the extent possible, therefore, this statement of principle also applies to all
companies within the Group. The Company has its own Code of Conduct, which all employees and contract workers must abide by. The
Company also has its own Supplier Code of Conduct, which we expect all our suppliers to comply with.
MANAGEMENT OF THE GROUP
Control and management of the Group is divided between the shareholders, represented by the General Meeting, the Board of Directors and
the CEO, and is exercised in accordance with prevailing company legislation.
Deviations from the Norwegian Code of Practice: None
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 9 8
3. EQU I T Y AND DI V IDEN DS
3. EQU I T Y AND DI V IDENDS
EQUITY
At any given time, the Group shall have a level of equity and a capital structure that are appropriate to the Group’s cyclical activities. The
Board requires that, as a minimum, equity consistently complies with current loan covenants.
As at 31 December 2021, the Company's consolidated equity totaled NOK 5 563 million, equivalent to 52% of total assets, and a debt-to-
equity ratio of 0.9. The Board of Directors considers the current capital structure to be satisfactory in relation to the Company’s objectives,
strategy, and risk profile.
DIVIDEND
The Group’s objective is to give shareholders a competitive return on invested capital through dividend payments and appreciation in the
value of the share, at a level at least equivalent to other companies with comparable risk.
Any future dividend will depend on the Group’s future earnings, financial situation, and cash flow. The Board believes that the dividend paid
should keep pace with the Group’s profit growth, while at the same time ensuring that equity remains at a healthy and optimal level. In
addition, the Board must ensure that there are adequate financial resources to pave the way for future growth and investment, and meet its
desire to minimize capital costs.
The Board has adopted a dividend policy whereby the average dividend, over a period of several years, should correspond to 30-40% of profit
after tax before fair value adjustment of biological assets. Furthermore, although a net interest-bearing debt per harvested kg of up to NOK
30 is considered reasonable, it may be exceeded in periods of growth-related investments. Based on this, the size of the dividend could be
4. EQU AL T R E AT MEN T OF S H AR EHOLDER S A ND T R ANS A C T I ONS W I T H
4. EQU AL T R E AT MEN T OF S H AR EHOLDER S A ND T R ANS A C T I ONS W I T H
R EL AT ED PAR T IE S
R EL AT ED PAR T IE S
SHARE CLASS
The Company has one class of shares, and all shares carry the same rights. As at 31 December 2021, the Company had 113 447 042 outstanding
shares, including treasury shares.
TREASURY SHARES
If the Company trades in its own (treasury) shares, the Norwegian Code of Practice’s provisions relating to the equal treatment of
shareholders and transactions with related parties shall be observed.
As at 31 December 2021, the Company held 1 132 981 treasury shares.
APPROVAL OF AGREEMENTS WITH SHAREHOLDERS AND OTHER RELATED PARTIES
All non-immaterial transactions between the Company and a shareholder, board member, senior employee, or their related parties, shall be
subject to valuation by an independent third party. If the consideration exceeds one-twentieth of the Company’s share capital, transactions
of this kind shall be approved by a General Meeting of shareholders, in so far as this is required under Section 3-8 of the Norwegian Public
Limited Companies Act. The Board has approved an internal policy for the Company’s as of 3 February 2021.
There have been no transactions with related parties in 2021.
CAPITAL INCREASES
Should shareholders’ preferential subscription right be waived, the Norwegian Code of Practice shall be observed. There have been no
adjusted within the margin set out above.
capital increases in 2021.
In 2020 and 2021, the Company did not pay out any dividend due to the increased volatility and uncertainly caused by the Covid-19 situation,
Deviations from the Norwegian Code of Practice: None
combined with an extensive investment plan.
BOARD AUTHORIZATIONS
The Board can ask the Annual General Meeting (AGM) to grant a general mandate to pay out dividends in the period until the next AGM. An
explanation must be given for the Board´s proposal. The dividend will be based on the Group's current policy. Dividends should be paid on
the basis of the last financial statements approved within the scope of the Norwegian Public Limited Companies Act. Upon authorization
being granted, the Board determines from which date the shares are to be traded ex-dividend.
The Board has a general authorization to increase the Company’s share capital through share subscription for a total amount not exceeding
NOK 45 378 817, divided into not more than 11 344 704 shares at the nominal value of NOK 4.00 each. The authorization covers merger
decisions as provided for in Section 13-5 of the Norwegian Public Limited Companies Act. The Board is entitled to increase the share capital
on several occasions and may itself determine the amount of the share capital increase in each case.
The Board has a general authorization to acquire the Company’s own (treasury) shares in accordance with the provisions of Chapter 9 of the
Norwegian Public Limited Companies Act for an aggregate nominal amount not exceeding NOK 45 378 817. The Company shall pay not less
than NOK 4.00 per share and not more than NOK 180.00 per share when acquiring treasury shares. As at 31 December 2021, no shares have
5. S H A R E S AND NEGO T I A BILI T Y
5. S H A R E S AND NEGO T I A BILI T Y
There are no limitations with regards to owning, trading or voting for the Company’s shares. All shares are freely negotiable to all parties.
Deviations from the Norwegian Code of Practice: None
6. GENER AL MEE T ING S
6. GENER AL MEE T ING S
The Company’s highest decision-making body is the General Meeting of shareholders.
With respect to the timing and facilitation of General Meetings, the Board of Directors will do its best to ensure that as many shareholders
as possible may attend and exercise their rights, thereby making the General Meeting an effective forum for the views of shareholders and
been acquired pursuant to this authorization.
the Board of Directors.
This authorization remains in effect until the next AGM, but not later than 30 June 2022. Going forward, the Company will observe the
Norwegian Code of Practice in respect of new proposals to authorize the Board to implement capital increases and acquire treasury shares.
Deviations from the Norwegian Code of Practice: None
The Company’s Annual General Meeting (AGM) shall be held each year before the end of June. The Board will assess whether the meeting is
to be conducted physically or via a digital meeting platform. The AGM shall consider and, if thought fit, adopt the annual financial statements,
the annual report and the proposed dividend, as well as deciding on other matters which under current laws and regulations pertain to the
AGM. From 2021, new guidelines are in accordance with the new Norwegian Public Limited Liability Companies Act, Section 6-16a and the
regulations about guidelines and reporting for remuneration of executive personnel. The new guidelines for Grieg Seafood were adopted by
the AGM in June 2021. Pursuant to Sections 6-16a and 6-16b of the Public Limited Liability Companies Act, the remuneration report must
be approved by the AGM in 2022.
The Board may convene an Extraordinary General Meeting (EGM) at whatever time it deems necessary or when such a meeting is required
under current laws or regulations. The Company’s auditor and any shareholder or group of shareholders representing more than 5% of the
Company’s share capital may require the Board to convene an EGM.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 9 9
The Board must give at least 21 days’ notice that a General Meeting is to be held. During this period, the notice and documents pertaining
to matters to be considered at the General Meeting shall be accessible on the Company’s website. The same applies to the Nomination
Committee’s recommendations. When documents are made available in this manner, the statutory requirements for distribution to
shareholders do not apply. Nevertheless, a shareholder may ask to be sent physical documents concerning matters to be considered at the
General Meeting.
The deadline to register for attendance at the General Meeting is set by the Board in the notice, normally five days prior to the meeting’s
scheduled date.
The members of the Nomination Committee are elected for a term of one year. At least 2/3 of the Nomination Committee’s members shall
be independent of the Board, and may not be board members. The CEO cannot be a member of the Nomination Committee. The Nomination
Committee shall have meetings with the directors, CEO and relevant shareholders.
The Nomination Committee´s recommendations to the AGM must be submitted well ahead of time and accompany the notice of the AGM,
no later than 21 days before the meeting. The Nomination Committee’s recommendations must include information about each candidate’s
impartiality, competence, age, education and professional experience. Upon proposal for re-election, the recommendation should include
additional information about how long the candidate has been a board member, as well as details of their attendance at board meetings.
Shareholders can vote on each individual matter, including on each individual candidate nominated for election. Shareholders unable to
attend may vote by proxy. An authorization form containing a vote option for each agenda item will be enclosed with the notice of meeting.
Shareholders may also authorize the Board’s chair or the CEO to vote on their behalf.
All shareholders are entitled to submit proposals to the Nomination Committee for candidates to the Board of Directors and other
appointments. Proposals must be submitted to the Nomination Committee no later than two months prior to the AGM. Information on how
to propose candidates can be found on the Company’s website.
The Company will publish the minutes of General Meetings in accordance with the stock exchange regulations, in addition to making them
Recommendations concerning candidates for the Nomination Committee itself should also include relevant information about the
available for inspection at the Company’s registered offices.
candidates.
The Board’s chair, a member of the Nomination Committee and the CEO will attend the General Meeting. The Board’s chair will normally
chair the General Meeting. The Board of Directors will ensure that, if it so requests, the General Meeting is also able to appoint an
independent chair.
The Board shall not contact the Company’s shareholders outside the General Meeting in a manner which could be deemed to constitute
preferential treatment or which could be in conflict with current laws or regulations.
Deviations from the Norwegian Code of Practice:
GSF Group deviates from the Norwegian Code of Practice in one way.
1. The Code of Practice recommends that all shareholders should be able to submit proposals to the Nomination Committee for candidates
to the Board of Directors and other appointments in a simple and easy manner. Currently, shareholders must contact the Nomination
Committee directly. The Company will observe the Norwegian Code of Practice in respect of new proposals to facilitate that all
shareholders can propose candidates to the Board and Nomination Committee.
The Nomination Committee proposes candidates for election to the Board by the AGM.
In 2021, Grieg Seafood Group held its AGM on 2 June as a digital meeting, as recommended due to Covid-19.
Deviations from the Norwegian Code of Practice:
GSF Group deviates from the Code of Practice in two ways.
1. The AGM is not led by an independent chair, but by the Board’s chair. This is in accordance with its Articles of Association. Given the
matters considered by the AGM, an independent chair has not been considered necessary. In cases that involve related parties, the AGM
is chaired by an independent board member.
2. Not all members of the Board or the Nomination Committee attend the AGM. The Board of Directors considers it sufficient that the
Board’s chair and the chair of the Audit Committee are present. Other board members and members of the Nomination Committee
attend as needed.
7. NOM I N AT ION C OMMI T T EE
7. NOM I N AT ION C OMMI T T EE
On 13 February 2009, the AGM approved a resolution to establish a Nomination Committee. This is described in Article 8 of the Articles of
Association. At the same time, the AGM adopted instructions for the Nomination Committee. According to these instructions, the Nomination
Committee should safeguard the interests currently set out in the Norwegian Code of Practice for Corporate Governance.
The present Nomination Committee was elected at the AGM on 2 June 2021.
Nomination Committee
Elisabeth Grieg
Yngve Myhre
Marit Solberg
Role
Chair
Member
Member
Considered independent
Served since
No
Yes
Yes
12.06.2018
07.06.2017
02.06.2021
Term expires
AGM 2022
AGM 2022
AGM 2022
8. B O AR D OF DIR EC T OR S:
8. B O AR D OF DIR EC T OR S:
C OMP O S I T I ON AND INDEP ENDENCE
C OMP O S I T I ON AND INDEP ENDENCE
NUMBER OF BOARD MEMBERS
Pursuant to Article 6 of its Articles of Association, the Company’s Board of Directors comprises up to seven members elected by the General
Meeting.
The Board’s chair is elected by board members. In the event of a tied vote, the Board’s chair has the casting vote. The CEO is appointed by
the Board and has both a right and a duty to attend board meetings. The CEO is only entitled to vote on board decisions if he or she is an
elected member of the Board.
ELECTION PERIOD
All board members are elected by the AGM. The board members’ term of office is one year. Board members may be re-elected.
INDEPENDENT BOARD MEMBERS
As at 31 December 2021, the Board of Directors consisted of the following members:
Name
Per Grieg Jr.
Tore Holand
Nicolai Hafeld Grieg **
Marianne Ødegaard Ribe
Katrine Trovik
Role
Chair
Vice chair
Board member
Board member
Board member
Considered
independent
Served since
Term expires
2021 Meeting
attendance
% of shares in GSF
per 31.12.2021
No
Yes
No
Yes
Yes
20.05.2009
AGM 2022
12.06.2018
AGM 2022
04.11.2021
AGM 2022
14.05.2020
AGM 2022
14.05.2020
AGM 2022
100%
100%
40%
100%
100%
53.2*
0.0%
1.87% ***
0.0%
0.0%
*Per Grieg Jr. and indirectly via the Grieg Group.
**Nicolai Hafeld Grieg was elected as a board member at an Extraordinary General Meeting, because Sirine Fodstad resigned as a member of the Board before her term of office expired.
He will serve for the remainder of Sirine Fodstad’s term of office.
***Nicolai Hafeld Grieg does not personally own shares in Grieg Seafood ASA. However, he does own shares indirectly through his private investment company Maneo Holding AS.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 10 0
The Company's annual report and the website provide information on board members’ backgrounds and expertise. An overview of board
As at 31 December 2021, the Audit Committee consisted of:
members’ shareholdings in the Company appears in Note 18 to the Group Accounts in the Annual Report.
Deviations from the Norwegian Code of Practice: None.
9. T HE W OR K OF T HE B O AR D OF DIR EC T OR S
9. T HE W OR K OF T H E B O AR D OF DIR EC T OR S
DUTIES AND ANNUAL PLAN
The Norwegian Public Limited Liability Companies Act regulates the duties and workings of the Board of Directors. In addition, the Board
has adopted supplementary rules of procedure covering the duties of the Board and the Group’s CEO, the division of labor between the
Board and the CEO, the annual plan for the Board, notices of board proceedings, administrative procedures, minutes, board committees,
transactions between the Company and shareholders, and confidentiality.
The Board has overall responsibility for the Group and for overseeing its day-to-day management and business activities. The Company
shall be managed by an effective Board, which is collectively responsible for the success of the Company. The Board represents and is
accountable to the Company’s shareholders.
The Board’s duties include drawing up the Group’s strategy and ensuring that the adopted strategy is implemented, effective supervision of
the CEO, control and supervision of the Group’s financial situation, internal control, anti-corruption, and the Company’s responsibility to and
communication with the shareholders. The Board shall initiate any investigations it considers necessary to perform its duties. The Board
shall also initiate any investigations requested by one or more board members.
To ensure all matters are given unbiased and satisfactory consideration, members of the Board and executive management cannot consider
matters in which they have a special and prominent interest. The Board jointly assess each board member´s impartiality with respect to
matters under consideration.
INSTRUCTIONS
The Board has drawn up a set of instructions for its members and executive management, which contain a more detailed description of the
Board’s duties, meetings, the CEO’s duties in relation to the Board, the meeting schedule for the Board, participation, separate entries in
the minutes, and duty of confidentiality.
The Board and the CEO have separate roles, and there is a clear division of responsibility between the two. The CEO is responsible for the
Company’s group management team. The Board underlines that special care must be exercised in matters relating to financial reporting
and the remuneration of the group management team.
In matters of importance where the Board’s chair is or has been actively involved, the Board’s discussions shall be chaired by the vice chair.
Board members and the group management team shall inform the Board if they have any significant interest in a transaction to which the
Company is a party. For further information, please see Note 23 to the Group Accounts in the Annual Report.
Board´s Audit Committee
Katrine Trovik
Tore Holand
Role
Chair
Member
Considered independent
Yes
Yes
REMUNERATION COMMITTEE
The Remuneration Committee is governed by a separate set of instructions adopted by the Board of Directors. The members of the
Remuneration Committee are appointed by and from among the members of the Board of Directors and shall be independent of the
Company's executive management. As at 31 December 2021, the Remuneration Committee consisted of:
Board's Remuneration Committee
Per Grieg Jr
Marianne Ødegaard Ribe
Role
Chair
Member
Considered independent
No
Yes
The primary purpose of the Remuneration Committee is to assist and facilitate the Board’s decision-making in matters related to the
remuneration of the group management team, review recruitment policies, career planning and management development plans, and
prepare matters relating to other material employment issues with respect to executive management. At the AGM in 2021, new guidelines
were approved. The Remuneration Committee monitors that remuneration is in line with the guidelines and will prepare a remuneration
report which must be both audited by the Company’s auditor and approved by AGM in June 2022. In compliance with Section 6-16a of the
Norwegian Public Limited Liability Companies Act, the new guidelines include the remuneration payable to board members.
The committee shall hold discussions with the CEO concerning his/her financial terms of employment. The committee shall submit a
recommendation to the Board concerning all matters relating to the CEO’s financial terms of employment.
The committee shall also keep itself updated on and propose guidelines for determining the remuneration of the group management team
in line with the new laws that come into force from 2021. The committee is also the advisory body for the CEO in relation to remuneration
schemes which cover all employees to a significant extent, including the Group’s bonus system and pension scheme. Matters of an unusual
nature relating to personnel policy, or matters considered to entail an especially great or additional risk, should be put before the committee.
The Remuneration Committee reports and makes recommendations to the Board, but the Board retains responsibility for implementing
such recommendations.
The composition of the committee is subject to assessment each year.
Deviations from the Norwegian Code of Practice: None.
RISK MANAGEMENT AND INTERNAL CONTROL
The Board has a responsibility to ensure that the Group has proper risk management and such internal control as is required by statute.
The Audit Committee has been given a particular responsibility to monitor critical business risks and address the quality and effectiveness
of relevant risk-reducing measures. Management performs a risk assessment quarterly, which is reviewed by the Audit Committee in
The instructions for the Board and executive management were last revised by the Board on 20 September 2017.
connection with quarterly reporting. The Audit Committee updates the Board after each meeting.
ANNUAL ASSESSMENT
Each year, the Board shall carry out an assessment of its work in the previous year. The assessment is based on the results of a questionnaire
completed anonymously by each member of the Board and the group management team.
AUDIT COMMITTEE
The Board has set up a sub-committee (Audit Committee) comprising a minimum of two and a maximum of three members elected from
among the Board’s members, and has drawn up a mandate for its work.
The committee assists the Board to exercise its supervisory responsibility by monitoring and controlling the financial reporting process,
systems for internal control and financial risk management, external audits and procedures for ensuring that the Company complies
with laws and statutory provisions as well as the Company’s own guidelines. From 1 January 2021, a new Audit Act was implemented
in Norway. The mandate for the Audit Committee was updated in 2021, in line with the principles and requirements of the new Act.
Each year, the external auditor carries out a review of the internal control which is an element of financial reporting. The auditor’s review is
submitted to the Audit Committee. Internal control means activities and procedures carried out by the Group to safeguard its resources and
those of its customers, and to realize its goals through appropriate operations. The achievement of these goals also requires systematic
strategy development and planning, identification of risk, choice of risk profile, as well as establishing and implementing control measures
to verify that the goals are achieved.
The Group’s core values, external guidelines and corporate social responsibility constitute the external framework for internal control.
The Group is decentralized, and considerable responsibility and authority are therefore delegated to the regional operating units. Day-to-
day implementation and assessment are a line management responsibility. This means that corporate social responsibility is an integral
component of all our operations, for all management teams, units, and departments. Risk management and internal control are designed
to take account of this.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 10 1
Internal control is an on-going process that is initiated, implemented, and monitored by the Group’s Board of Directors, management and
other employees. Internal control is designed to provide reasonable assurance that the Group’s goals will be achieved in the following areas:
11. R EMUNER AT I ON OF T HE B O AR D OF DI R EC T OR S
11. R EMUNER AT I ON OF T HE B O AR D OF DI R EC T OR S
• Targeted, efficient, and appropriate operations
• Reliable internal and external reporting
• Compliance with laws and regulations, including internal guidelines
The Group has implemented the 2017 COSO Enterprise Risk Management (COSO ERM) scheme as the main framework for risk management,
where risks and opportunities are positioned in the context of objectives and performance. The framework includes a description of the
Group’s risk management policy, as well as financial control processes. There is an ongoing risk assessment of the main transaction
processes, describing key controls and ensuring that these controls are in place. This means assessing all processes to determine the
probability of non-conformity arising, and how serious the economic consequences would be of any such non-conformity. The establishment
of controls in each region is intended to reduce the likelihood of non-conformities with major economic consequences from arising.
The Group categorizes its main risks as: strategic risk, operational risk, financial risk, compliance risk, and climate and nature risk.
Management conducts continuous assessments of acute risks and scenarios for possible outcomes, such as the situation we have had for
the last two years with the Covid-19 pandemic, and are currently witnessing with the Russian invasion of Ukraine.
The Group’s greatest risk relates to biological development during the production of smolt and sea farming. The Group therefore works
continuously and systematically to develop processes that safeguard animal welfare and reduce disease and mortality, and ensure that
Proposals concerning the remuneration of the Board are submitted by the Nomination Committee. The new guidelines approved by the
AGM in June 2021 provided that remuneration to Board members shall be a fixed remuneration and not performance-based remuneration.
Remuneration shall reflect the position’s complexity, responsibility and time spent, with remuneration reflecting the
levels at comparable companies. No board member has any special duties in relation to the Company over and above those they have as a
board member. No board members participate in any incentive or share programs.
Board remuneration is shown in the financial statements of both the parent company and the Group.
Deviations from the Norwegian Code of Practice: None.
12. R EMUNER AT I ON OF T HE GR OUP M AN A GEMEN T T E AM
12. R EMUNER AT I ON OF T HE GR OUP M AN A GEMEN T T E AM
The objective of the new guidelines approved by the AGM in June 2021 for salary and other remuneration payable to senior employees within
the Group is both to attract people with the required competence and retain key personnel. The new guidelines shall create a wage culture
which promotes Grieg Seafood ASA’s long-term interests, business strategy and financial strength. The guidelines should also motivate
"best practices" are implemented at all levels. Control routines have been prepared for employee working conditions, as well as for escape
employees to work with a long-term perspective to achieve the Group´s goals.
prevention, animal welfare, pollution, water resources and food safety.
The long-term effect of changes in the climate and natural environment on general economic conditions could also have a material impact
on the Group. The Group’s climate risk management has been mapped in accordance with the recommendations of the Task Force on
• Ensuring that salaries and other remuneration are competitive and motivating for each executive and for everyone in executive
Climate-related Financial Disclosures (TCFD). Management is also involved in a project to map risks related to the loss of nature, based on
management.
a similar framework as the TCFD.
• Linking salaries and other remuneration to, among other things, the Company’s value creation, the Company’s stakeholders and
The determination of salary and other remuneration payable to the Group’s executive personnel is based on the following guidelines:
shareholders.
The Group is exposed to the following financial risks: market risk (including foreign exchange risk, interest rate risk, and price risk), credit
• Attracting, motivating and keeping an executive management team with qualifications that correspond to the Company’s size and
risk and liquidity risk. The Group’s overall risk management plan focuses on the unpredictability of the capital markets and seeks to
complexity.
minimize any potentially negative effects on the Group’s financial results. The Group uses financial derivatives to hedge against some risks.
• Developing competence and creating continuity in management.
Risk management is undertaken at Group level and involves identifying, evaluating and hedging financial risk in close cooperation with the
• Ensuring transparency and publishing management’s remuneration in the Company.
Group’s operational units. The Group has written principles for risk management related to foreign exchange and interest rate risk, price
risk, and the use of financial instruments.
The Board has established procedures for reporting financial risk within the Group. At the start of each year, the Board adopts a budget
for the year. Deviations from the budget are reported on a monthly basis. Forecasts are drawn up for the next five years and updated every
month.
Every month, group management reviews a set of Key Performance Indicators (KPIs) with each farming region and our sales and market
organization. Some of the main KPIs are: number of smolt transferred to the sea, freshwater and seawater production, production cost, feed
factor, harvested volume, harvest cost, farming cost and EBIT/kg. Analyses are made and measured against budget figures and forecasts.
The performance data is summarized in a report submitted to the Board.
Each quarter, group management holds meetings with the managements of each region. The aim of the meeting is to follow up the results
achieved in relation to the strategies and goals that have been set.
Deviations from the Norwegian Code of Practice: None.
The principles used to determine salary and other forms of remuneration shall be simple and understandable to employees, shareholders
and the public at large.
The salary paid to the group management team in 2021 consists of a fixed and a variable element. A fixed basic salary is the
main component of executive compensation and should be competitive, taking into consideration the industry and the individual’s
qualifications, and ensuring effective operations to influence the Company’s strategic direction. The variable element depends on the
budget being met and good financial results being achieved. The fixed salaries for executive management are evaluated annually using
Grieg Seafood’s internal routines for salary adjustments. The Company´s Board approved the allocation of cash options based on the
AGM´s resolution on the share and cash options program. The last approval granted by the AGM dates from 2 June 2021. Members of
group management are included in the synthetic options program, see Note 17 to the Group Accounts in the Annual Report. The option
agreements have been entered within the scope of the resolution adopted by the AGM. Minutes of this AGM can be accessed here.
OPTION PROGRAM
A synthetic option scheme has been established for executive management and regional directors. The Board desires that executive
management and regional directors are shareholders through the option program. The Board believes this is a decisive tool for realizing
its ambitions and building the Company, by allowing executive management and regional directors to take part in the Company’s dividends
from growth and success.
INCENTIVE PLAN
Grieg Seafood ASA has also established an incentive plan that applies to all employees. Its aim is to stimulate goal achievement, while
promoting good risk management, preventing excessive risk taking and contributing to the avoidance of conflicts of interest. Annual goal
achievement and pay-outs from the incentive plan are regulated by the Remuneration Committee, which prepares the Board’s decision
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
PA G E 10 2
about a pay out if the incentive goals are achieved. Taking into consideration the Company’s financial position and risks and
costs for the Company in terms of capital requirements and liquidity, the committee will decide if the payment of variable
compensation under the incentive plan is acceptable. If the Company cannot achieve the financial results associated with
the
incentive plan, no bonus pay-out will be awarded. The variable salary cannot exceed six times the monthly salary.
General schemes for the allocation of variable benefits, including bonus schemes and option programs, are determined by the Board
according to the guidelines approved of the AGM. Schemes which entail an allotment of shares, subscription rights, options and other forms
of remuneration related to shares or the development of the Company’s share price, are determined by the AGM. The Board must each year
report to AGM that remuneration to executive personnel complies with the guidelines. The Board´s statement on management remuneration
is a separate item on the AGM’s agenda. The AGM votes separately on guidelines to the Board and on remuneration comprising the synthetic
SHAREHOLDER INFORMATION
The Board shall ensure that information is provided on matters of importance for shareholders and for the stock market’s assessment of
the Company, its activities and results, and that such information is made publicly available without undue delay. Publication shall take
place in a reliable and comprehensive manner, and by means of information channels which ensure that everyone has equal access to the
information.
All information shall be provided in English. The Company has procedures to ensure that this is done. The Board of Directors’ communication
with shareholders and other stakeholders is delegated to the Board’s chair, or other appointed persons in specific cases. The Board’s chair
shall ensure that the shareholders’ views are communicated to the entire Board.
options program. The guidelines and the remuneration report will be published on the Company’s website.
Deviations from the Norwegian Code of Practice: None.
SEVERANCE PAY
Salary, other remuneration and key terms for the CEO are evaluated annually by the Remuneration Committee, which prepares the
Board’s decision about remuneration to the CEO. The committee shall hold discussions with the CEO about financial terms annually
and, at the latest, by the end of June each year. The Remuneration Committee presents its evaluation to the Board which makes the final
decision. Salaries, other remuneration and important terms for the executive management team are evaluated by the CEO annually. The
14. TAK EO V ER S
14. TAK EO V ER S
CHANGE OF CONTROL AND TAKEOVERS
The Company has no established mechanisms which can prevent or avert takeover bids. Any such decision must be made by a General
CEO is entitled to 12 months’ severance pay after termination of the employment relationship by the Company. The CEO is further entitled
Meeting of shareholders and requires a majority of two-thirds of the votes cast and of the share capital represented. After a takeover bid has
to full salary during sick leave lasting up to 12 months’ duration.
become known, the Board will not use its authority to prevent it without the approval of the General Meeting. If a takeover bid is received,
management and the Board will ensure that all shareholders are treated equally. The Board will obtain a valuation from a competent
A severance pay agreement has also been established for the CFO, providing for 12 months’ severance pay after termination of the
independent party and advise the shareholders whether to accept or reject the bid. Shareholders will be advised of any difference of views
employment relationship by the Company.
Deviations from the Norwegian Code of Practice: None.
13. INF O R M AT ION AND C OMMUNIC AT ION
13. INF OR M AT ION AND C OMMUNIC AT ION
FINANCIAL INFORMATION
The guidelines for reporting financial and other information to the stock market are defined within the framework established by securities
and accounting legislation and the rules and regulations of the stock exchange. The Company also complies with the Oslo Stock Exchange
(Euronext) Code of Practice for IR, published on 1 July 2019.
The Board of Directors has adopted an investor relations policy to clarify roles and responsibilities related to financial reporting and
to regulate contact with shareholders and the investor market. This policy is based upon the key principles of transparency and equal
treatment of market participants to ensure they receive correct, clear, relevant, and up-to-date information in a timely manner. The IR policy
is available on the Company’s website.
among board members in the Board’s statements on the takeover bid.
At its meeting of 13 October 2015, the Board adopted some core principles for how it will act in the event of any takeover bid. These core
principles accord with the Norwegian Code of Practice.
Deviations from the Norwegian Code of Practice: None.
15. A UDI T OR
15. A UDI T OR
Through its Audit Committee, the Board seeks to collaborate fully and transparently with the Company’s auditor. Each year, the Audit
Committee obtains confirmation that the auditor meets the requirements of the Norwegian Auditing Act concerning the independence and
objectivity of the external auditor.
The Board of Directors ensures that the auditor’s auditing plan is submitted to the Audit Committee once a year. In particular, the Audit
Committee considers whether the auditor is performing a satisfactory control function.
In addition, the Board has adopted a separate manual on the disclosure of information, which sets forth the Company's disclosure obligations
Both the Company’s management and the auditor comply with guidelines issued by the Financial Supervisory Authority of Norway concerning
and procedures.
the extent to which the auditor may provide advisory services.
The Company shall at all times provide its shareholders, the Oslo Stock Exchange (Euronext), and other stakeholders (through the Oslo
Stock Exchange information system) with timely and accurate information. The Board shall ensure that the Company’s quarterly reports
give a correct and complete picture of the Group’s financial and commercial position, and whether the Group’s operational and strategic
objectives are being met. Financial reporting shall also contain realistic forecasts for the Group’s commercial and performance-related
development.
The Company publishes all information on its own website and through stock exchange/press releases. Quarterly reports, annual reports
and stock exchange/press releases are published on the Company’s website in accordance with the Company’s financial calendar. The
presentation of each quarter’s results is available as a webcast.
The Board invites the auditor to meetings which address the annual financial statements. The Audit Committee has an additional meeting
with the auditor at least once a year to review the auditor’s report on the Group’s accounting principles, risk areas and internal control
procedures. Moreover, each year the Board has a meeting with the auditor at which neither the CEO nor anyone else from company
management is present.
The auditor also attends meetings of the Audit Committee to consider quarterly reports and other relevant matters. The auditor’s fee
appears in the relevant note in the Annual Report, showing the breakdown of the fee between auditing and other services.
Deviations from the Norwegian Code of Practice: None.
The Company shall be open and active with respect to investor relations, and shall hold regular presentations in connection with the
announcement of its annual and interim results.
Bergen, 30 March 2022
Grieg Seafood ASA
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 10 3
GRIEG SEAFOOD
GROUP ACCOUNTS
GR OUP A C C OUN T S
104
104
105
106
107
Income statement
Comprehensive income statement
Statement of financial position
Statement of changes in equity
Cash flow statement
NO T E S
108
109
115
119
120
122
122
123
125
126
128
129
131
133
134
135
136
137
139
139
140
141
141
142
142
143
143
144
144
NOT E 1
NOT E 2
NOT E 3
NOT E 4
NOT E 5
NOT E 6
NOT E 7
NOT E 8
NOT E 9
General information
Accounting policies
Financial risk management
Critical accounting estimates and judgements
Non-current assets held for sale and discontinued operations
Business combinations
Investment in associates
Segment information
Biological assets and other inventories
NOT E 10
Intangible assets
NOT E 11
Property, plant and equipment incl. right-of-use assets
NOT E 12
NOT E 13
NOT E 14
NOT E 15
NOT E 16
NOT E 17
NOT E 18
NOT E 19
NOT E 2 0
NOT E 21
NOT E 2 2
NOT E 2 3
NOT E 24
NOT E 25
NOT E 26
NOT E 27
NOT E 2 8
NOT E 2 9
Borrowings
Leases
Classifications of financial instruments
Taxes
Salaries and personnel expenses
Share based payments
Share capital and shareholder information
Earnings per share and dividend per share
Cash and cash equivalents
Trade receivables
Other current receivables
Related parties
Financial income and financial expenses
Other operating expenses
Other current liabilities
New accounting policies
Contingent liabilities
Post-balance sheet events
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 10 4
INC OM E S TAT EMEN T
INC OM E S TAT E ME N T
C OMP R EHENS I V E INC O ME S TAT EMEN T
C OMP R EHENSI V E INC OME S TAT EMEN T
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
2021
2020
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
CONTINUING OPERATIONS
Sales revenues
Other income
Other gains/losses
Share of profit from associates
Raw materials and consumables used
Salaries and personnel expenses
Other operating expenses
EBITDA before fair value adjustment of biological assets
Depreciation of property, plant and equipment and right-of-use assets
Amortization of licenses and other intangible assets
EBIT before fair value adjustment of biological assets
Production fee
Fair value adjustment of biological assets
EBIT after fair value adjustment of biological assets
Financial income
Financial expenses
Net financial items
Profit before tax from continuing operations
Income tax expense
Net profit for the year from continuing operations
DISCONTINUING OPERATIONS
Net profit for the year from discontinued operations
Net profit for the year
ALLOCATED TO
Controlling interests
Non-controlling interests
PROFIT AVAILABLE TO SHAREHOLDERS IN PARENT COMPANY
Earnings per share from continuing operations (NOK)
Diluted earnings per share from continuing operations (NOK)
Earnings per share - total (NOK)
Diluted earnings per share - total (NOK)
8
8
8
7
9
16/17
13/21/25
11/13
10
3/9
24
24
15
5
5
19
19
19
19
4 598 585
4 384 357
NET OTHER COMPREHENSIVE INCOME THAT MAY BE RECLASSIFIED TO PROFIT/LOSS IN SUBSEQUENT YEARS
Net profit for the year
Currency effect on investment in subsidiaries
Currency effect on loans to subsidiaries
Cash flow hedges
Tax effect
Recycle of accumulated OCI (sale of Shetland)
Tax effect of recycle of accumulated OCI (sale of Shetland)
3
5
5
NET OTHER COMPREHENSIVE INCOME NOT TO BE RECLASSIFIED TO PROFIT/LOSS IN SUBSEQUENT YEARS
Change in fair value of equity instruments
Total other comprehensive income for the year, net of tax
Total comprehensive income for the year
ALLOCATED TO
Controlling interests
Non-controlling interests
70 745
-6 752
-1 486
-1 738 267
-577 434
-1 527 347
818 044
-368 482
-7 192
442 370
-24 463
523 036
940 944
125 233
-212 499
-87 266
853 678
-249 301
604 377
28 688
-4 786
3 350
-1 717 279
-499 546
-1 592 852
601 932
-360 178
-8 696
233 057
—
-289 705
-56 648
103
-247 895
-247 792
-304 440
-11 557
-315 997
600 291
-198 823
1 204 668
-514 820
1 204 668
—
-541 054
26 234
5.4
5.4
10.7
10.7
-2.8
-2.8
-4.8
-4.8
2021
1 204 668
42 112
32 222
—
-7 089
-105 848
22 709
—
-15 894
1 188 774
2020
-514 820
-50 298
-23 667
-786
5 380
—
—
-433
-69 804
-584 624
1 188 774
—
-611 210
26 586
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 10 5
S TAT EM EN T OF FI N ANCI AL P O SI T ION
S TAT E MEN T OF FIN ANCI AL P O S I T ION
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
31.12.2021
31.12.2020
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
31.12.2021
31.12.2020
ASSETS
Deferred tax assets
Goodwill
Licenses incl. warranty licenses
Other intangible assets incl. exclusivity agreement
Property, plant and equipment incl. right-of-use assets
Indemnification assets
Investments in associates
Other non-current receivables
Total non-current assets
Inventories
Biological assets
Trade receivables
Other current receivables
Derivatives and other financial instruments
Cash and cash equivalents
Total current assets
Assets held for sale
Total assets
15
6/10
6/10/12
6/10/12
11/13
6
7
7/22
9/12
9/12
3/12/21
22
3/14
3/20
5
59
660 071
1 536 319
36 828
3 402 629
40 000
104 675
90 897
5 871 477
128 299
3 449 412
151 793
147 332
37 592
928 342
4 842 771
—
29 293
638 019
1 508 452
38 015
3 033 154
40 000
84 421
9 476
5 380 830
78 001
2 545 903
179 384
133 069
84 189
275 427
3 295 972
1 972 725
EQUITY AND LIABILITIES
Share capital
Treasury shares
Contingent consideration (acquisition of Grieg Newfoundland AS)
Other equity
Retained earnings
Total equity
Deferred tax liabilities
Share based payments
Borrowings
Lease liabilities
Total non-current liabilities
Current portion of borrowings
Current portion of lease liabilities
Share based payments
Trade payables
Tax payable
Public duties payable
10 714 248
10 649 527
Derivatives and other financial instruments
Other current liabilities
Total current liabilities
Liabilities directly associated with the assets held for sale
Total liabilities
Total equity and liabilities
BERGEN, 30 MARCH 2022
GRIEG SEAFOOD ASA
PER GRIEG JR.
Chair
MARIANNE RIBE
Board Member
TORE HOLAND
Vice Chair
KATRINE TROVIK
Board Member
NICOLAI HAFELD GRIEG
ANDREAS KVAME
Board Member
CEO
18
18
6
15
17
12
12/13
12
12/13
17
3
15
3/14
26
5
453 788
-4 532
701 535
68 205
4 344 307
5 563 302
1 069 802
11 115
2 381 000
577 797
4 039 714
54 475
178 032
29
523 196
88 641
32 088
22 350
212 422
1 111 232
—
5 150 946
10 714 248
453 788
-4 686
701 535
84 401
3 135 880
4 370 918
908 958
491
3 376 178
531 644
4 817 272
104 435
153 195
2 411
562 848
14 791
21 867
14 346
94 616
968 509
492 829
6 278 609
10 649 527
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 10 6
S TAT E MEN T OF CH A NGE S IN EQUI T Y
S TAT E MEN T OF CH ANGE S I N EQUI T Y
TREASURY
SHARES1
CONTINGENT
CONS.2
OTHER
EQUITY3
RETAINED
EQUITY
NON-
CONTROLLING
INTERESTS
GRIEG SEAFOOD GROUP NOK 1 000
Equity at 01.01.2020
Profit for 2020
Other comprehensive income 2020
Total comprehensive income 2020
Contribution in kind
Contingent consideration2
Sale of treasury shares to employees1
Establishment costs Grieg Seafood
Norway AS
Dividend
Sale of subsidiary - derecognition of
non-controlling interests4
Transactions with owners [in their
capacity as owners] 2020
Total change in equity 2020
SHARE
CAPITAL
446 648
—
—
—
7 140
—
—
—
—
—
7 140
7 140
-4 855
—
—
—
—
—
169
—
—
—
169
169
—
—
—
—
—
701 535
—
—
—
—
701 535
701 535
701 535
154 559
3 487 859
—
-541 054
-70 156
-70 156
—
—
—
—
—
—
—
—
-541 054
186 002
—
3 086
-13
—
—
189 075
-70 156
-351 979
84 401
3 135 880
Equity at 31.12.2020
453 788
-4 686
Equity at 01.01.2021
Profit for 2021
Other comprehensive income 2021
Total comprehensive income 2021
Sale of treasury shares to employees1
Transactions with owners [in their
capacity as owners] 2021
Total change in equity 2021
453 788
-4 686
701 535
84 401
3 135 880
—
—
—
—
—
—
—
—
—
154
154
154
—
—
—
—
—
—
—
1 204 668
-15 894
-15 894
—
1 204 668
—
—
3 456
3 456
-15 894
1 208 124
Equity at 31.12.2021
453 788
-4 532
701 535
68 506
4 344 004
1 The recognized amount equals the nominal value of the parent company's holding of treasury shares
2 Contingent consideration related to the acquisition of Grieg Newfoundland AS, see Note 6.
3 Other equity, reclassified through OCI
4 Sale of Ocean Quality AS (Sjór AS) in 2020, see Note 5.
TOTAL
4 140 843
-514 820
-69 804
-584 624
193 142
701 535
3 255
-13
-17 658
56 632
26 234
352
26 586
—
—
—
—
-17 658
-65 560
-65 560
-83 218
-56 632
—
—
—
—
—
—
—
—
—
814 701
230 076
4 370 918
4 370 918
1 204 668
-15 894
1 188 774
3 610
3 610
1 192 384
5 563 302
SPECIFICATION OF RETAINED EQUITY NOK 1 000
Book value at 01.01.2020
Changes in 2020
Changes in 2021
Book value at 31.12.2021
EFFECT OF
SHARE-BASED
REMUNERATION
PURCHASE/
SALES OF
TREASURY
SHARES *
ACCUMULATED
INCOME LESS
ACCUMULATED
DIVIDEND
1 094
—
—
1 094
-8 562
3 086
3 456
-2 020
3 495 326
-355 065
1 204 668
4 344 929
* The amount classified under "purchase of treasury shares" equals the cost price in excess of nominal value. See also Note 2.
SPECIFICATION OF ACCUMULATED OTHER
COMPREHENSIVE INCOME
NOK 1 000
CHANGES IN
FAIR VALUE
OF EQUITY
INSTRUMENTS
CURRENCY
EFFECT ON
LOANS TO
SUBSIDIARIES
CURRENCY
EFFECT ON
INVESTMENT IN
SUBSIDIARIES
CASH FLOW
HEDGES
Book value at 01.01.2020
Changes in 2020
Reclassification in 2020
Changes in 2021
Recycle of accumulated OCI (sale of Shetland)*
Book value at 31.12.2021
*See Note 5 for more information.
396
-433
—
—
—
-37
84 361
-50 298
-7 694
25 134
-80 513
-29 010
76 529
-18 461
—
42 111
-2 626
97 553
-6 728
-965
7 694
—
—
—
TOTAL
3 487 858
-351 979
1 208 124
4 344 004
TOTAL
154 558
-70 157
—
67 244
-83 139
68 506
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 10 7
C A SH FL O W S TAT EMEN T
C A SH FL O W S TAT E MEN T
GRIEG SEAFOOD GROUP NOK 1000
EBIT after fair value adjustment of biological assets
Depreciation and amortization
Gain/loss on sale of property, plant and equipment
Share of profit from associates
Fair value adjustment of biological assets
Change in inventories and biological assets excl. fair value
Change in trade and other receivables
Change in trade payables
Change in other accruals
Change in non-current, cash-settled share option liability
Taxes paid
Net cash flow from operating activities - continued operations
Proceeds from sale of property, plant and equipment
Payments on purchase of property, plant and equipment
Payments on purchase of intangible assets incl. licenses
Payments on business combinations
Accumulated cash acquired in business combinations
Sale of subsidiary, deconsolidation of cash and cash equivalents
Government grant
Investment in associates and other invest.
Net cash flow from investing activities - continued operations
Revolving credit facility (net draw-down/repayment)
Proceeds of long-term int. bearing debt
Repayment long-term int. bearing debt
Repayment lease liabilities
Interests paid
Other financial items
Net cash flow from financing activities - continued operations
Net change in cash and cash equivalents - continued operations
Net change in cash and cash equivalents - discontinued operations
Net change in cash and cash equivalents - total
Cash and cash equivalents - 01.01.
Currency translation of cash and cash equivalents
Cash and cash equivalents - 31.12.
NOTE
10/11
7
9
15
11
10
6
6
5
12
12
12
12/13
24
24
20
2021
940 944
375 674
-88
1 486
-523 036
-330 555
13 327
-39 652
159 654
10 624
-6 895
601 484
11 229
-561 041
-3 833
—
—
—
8 443
-15 000
-560 202
-556 222
39 147
-527 652
-184 925
-189 381
-11 021
-1 430 055
-1 388 773
2 040 350
651 577
275 427
1 339
928 342
2020
-56 648
368 874
4 786
-3 350
289 705
-83 434
166 467
75 674
-136 869
-7 888
-205 162
412 156
781
-760 089
-159 066
-620 464
30 628
-84 754
—
20
-1 592 944
364 135
1 527 493
-102 267
-177 931
-94 665
-38 268
1 478 498
297 710
-238 762
58 948
214 497
1 982
275 427
The Cash Flow Statement is presented for the Group’s continuing operations. See further information in Note 5, including information on net cash flows from operating-, investing- and
financing activities from discontinued operations.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 10 8
NO T E 1 GENE R A L INF OR M AT ION
NO T E 1 GE NE R AL INF OR M AT ION
G R O U P L E G A L S T R U C T U R E
All amounts in these financial statements with note disclosures
Grieg Seafood Sales North America Inc. Grieg Seafood Sales
are stated in NOK thousand unless otherwise specified.
USA Inc (domiciled in the USA) is owned 100% by Grieg Seafood
GRIEG SEAFOOD
SALES USA INC.
ÅRDAL AQUA
AS (37.04%)
Grieg Seafood ASA is an integrated Norwegian seafood company
engaged in salmon farming and processing. Grieg Seafood ASA is
Grieg Seafood Group comprised the following entities at
31 December 2021:
a public limited company registered in Norway. Its head office is
located at C. Sundtsgt. 17/19, Bergen, Norway. The Company was
Grieg Seafood Sales Ltd (owned 100% by Grieg Seafood Norway
listed on the Oslo Stock Exchange (Euronext) on 21 June 2007 and
AS) is domiciled in the UK. Grieg Seafood Sales Ltd was not part
has operations in Norway and Canada. Until 15 December 2021,
of the Shetland disposal group, and the entity has been dormant
we also had operations in Shetland in the UK. The consolidated
throughout 2021. Grieg Seafood BC Ltd (and its 100% owned
financial statements have been prepared in accordance with
subsidiary Grieg Seafood Sales North America Inc) is domiciled in
International Financial Reporting Standards (IFRSs) as adopted by
British Columbia, Canada, while Grieg Seafood Newfoundland Ltd
the EU, and were approved by the Board of Directors on 30 March
(incl. the subsidiaries Grieg Marine NL Ltd and Grieg NL Nurseries
2022.
Ltd) is domiciled in Newfoundland, Canada. Grieg Seafood
Premium Brands Inc (domiciled in the USA) is owned 100% by
In the following, "Group" describes information relating to the
and owned by Grieg Seafood ASA.
Norway AS. The remaining subsidiaries are domiciled in Norway
Grieg Seafood Group, while "Company" refers to the parent
company, Grieg Seafood ASA.
Grieg Seafood Canada AS and Grieg Seafood Newfoundland AS
are holding companies within the Group, and wholly own the
In November 2020, we announced that the Board of Grieg Seafood
production companies Grieg Seafood BC Ltd. (incl. subsidiaries)
had decided to divest our investment and operations in Shetland,
and Grieg Seafood Newfoundland Ltd (incl. it’s subsidiaries),
as we wished to focus on our operations in Norway and Canada
respectively.
going forward. Grieg Seafood ASA sold 100% of the shares in
Grieg Seafood Hjaltland Ltd on 15 December 2021 to Scottish Sea
Grieg Seafood Rogaland AS has investments in two associated
Farms Ltd. Grieg Seafood Hjaltland Ltd owned in turn 100 % of
companies; Tytlandsvik Aqua AS (33.33%) and Årdal Aqua (37.04%),
Grieg Seafood Shetland Ltd, which operated the Group's salmon
while Grieg Seafood Finnmark owns 50% of Nordnorsk Smolt AS.
farming (and as from 2021 related sales) operations. Grieg
Seafood Shetland Ltd owned 100% of the (up until 15 December
2021) dormant company Isle of Skye Salmon Ltd. Grieg Seafood
Hjaltland Ltd, together with Grieg Seafood Shetland Ltd and Isle of
Skye Salmon Ltd, form the Shetland disposal group. The operations
of the Grieg Seafood Hjaltland UK Ltd Group were, from Q4 2020
until their sale on 15 December 2021, classified as held for sale in
the consolidated statement of financial position, and presented as
discontinued operations in the consolidated income statement and
consolidated cash flow statement of Grieg Seafood. The Shetland
disposal group includes the prior reporting segment of Shetland
UK, in addition to the UK sales operations. The Shetland disposal
group was deconsolidated from the Group as of 15 December 2021.
The financial position of the Shetland disposal group is therefore
not included in Grieg Seafood’s consolidated statement of financial
position at year-end 2021. For more information, see Note 5.
GRIEG
SEAFOOD
ASA
The Grieg Sefood
Hjaltland Group
was sold from Grieg
Seafood ASA at 15
of December 2021
OWNER
SHARE: 99%
OWNER
SHARE: 100%
GRIEG SEAFOOD
HJALTLAND LTD
(REPORTED AT HELD
FOR SALE THROUGH
2021)
GRIEG SEAFOOD
SHETLAND LTD
(HELD FOR SALE)
ISLE OF SKYE
SALMON LTD
(DORMANT)
SOLD
15.12.2021
UK (HELD
FOR SALE)
GRIEG SEAFOOD
NORWAY AS
GRIEG SEAFOOD
ROGALAND AS
GRIEG SEAFOOD
FINNMARK AS
GRIEG SEAFOOD
CANADA AS
GRIEG SEAFOOD
NEWFOUNDLAND AS
GRIEG SEAFOOD
SALES UK LTD
TYLANDSVIK
AQUA AS (33,33%)
NORDNORSK
SMOLT AS (50%)
GRIEG SEAFOOD
BC LTD
GRIEG SEAFOOD
NEWFOUNDLAND LTD
GRIEG SEAFOOD
SALES NORTH
AMERICA INC
GRIEG SEAFOOD
PREMIUM BRANDS
INC.
GRIEG MARINE
NL LTD
GRIEG NL
NURSERIES LTD
S E G M E N T S T R U C T U R E T H R O U G H 2 0 21
GRIEG
SEAFOOD
ASA
NOR
NOR
CAN
CAN
ROGALAND
FINNMARK
BRITISH COLUMBIA
NEWFOUNDLAND
SHETLAND
GRIEG SEAFOOD
ROGALAND AS
GRIEG SEAFOOD
NORWAY AS
GRIEG SEAFOOD
SALES USA INC.
GRIEG SEAFOOD
FINNMARK AS
GRIEG SEAFOOD
B.C. LTD
GRIEG SEAFOOD
NEWFOUNDLAND LTD
GRIEG SEAFOOD
SHETLAND LTD
GRIEG SEAFOOD
NORWAY AS
GRIEG SEAFOOD SALES
NORTH AMERICA INC
GRIEG SEAFOOD SALES
NORTH AMERICA INC
GRIEG SEAFOOD
SALES UK LTD
GRIEG SEAFOOD
SALES USA INC.
GRIEG SEAFOOD
SALES USA INC.
GRIEG SEAFOOD SALES
NORTH AMERICA INC
GRIEG SEAFOOD SALES
NORTH AMERICA INC
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 10 9
NO T E 2 A C C OUN T I NG P OLI CIE S
NO T E 2 A C C OUN T ING P OLICIE S
associate, including any other unsecured receivables towards the
• Represents a separate major line of business or geographical
entity, the Group does not recognize further losses, unless it has
area of operation.
incurred obligations or made payments on behalf of the associate.
•
Is part of a single coordinated plan to dispose of a separate
If necessary, the associates’ financial statements are restated to
major line of business or geographical area of operations, or;
The principal accounting policies applied in the preparation
Contingent consideration classified as equity shall not be
achieve consistency with the Group’s accounting policies.
•
Is a subsidiary acquired exclusively with a view to resale.
of these consolidated financial statements are set out below.
remeasured and its subsequent settlement shall be accounted for
These policies have been consistently applied to all the periods
within equity. Other contingent considerations shall be measured
At the end of each accounting period, the Group determines
Discontinued operations are excluded from the results of
presented, unless otherwise indicated.
at fair value at each reporting date and changes in fair value shall
whether there is any need to recognize an impairment of the
continuing operations and are presented as a single amount as
be recognized in the income statement.
investment in the associate. In such cases, the impairment
profit or loss after tax from discontinued operations in the income
BASIS OF PREPARATION
The consolidated financial statements have been prepared in
Intragroup transactions, intercompany balances, and unrealized
amount of the investment and its carrying value, and the difference
amount is measured as the difference between the recoverable
statement.
accordance with International Financial Reporting Standards
profits and losses between Group companies are eliminated.
is recognized in the income statement together with share of profit
Disclosures for the Group’s discontinued operations are provided
(IFRS) as adopted by the EU.
Reported figures from the subsidiaries are restated when this
or loss in “Share of profit from associates”.
in Note 5. All other notes to this consolidated financial statement
is necessary to achieve consistency with the Group's accounting
refer to the Group’s continuing operations, unless the note
The consolidated financial statements have been prepared under
policies.
the historical cost convention, modified for biological assets, equity
instruments and financial assets/liabilities (including derivative
instruments) at fair value through profit or loss. The preparation of
financial statements in accordance with IFRS requires the use of
CHANGES IN SHAREHOLDINGS IN SUBSIDIARIES
WITHOUT LOSS OF CONTROL
Transactions with non-controlling owners of subsidiaries that do
In the event of any gains or losses on transactions between the
explicitly states otherwise.
Group and its associates, only the proportionate share relating
to external shareholders is recognized. Unrealized losses are
eliminated unless there is a need to recognize an impairment
SEGMENT REPORTING
Operating segments are reported in a manner consistent with
for the asset that was the subject of the transaction. Accounting
internal reporting to the chief operating decision-maker. The
estimates. It also requires management to exercise its judgement
not involve loss of control are treated as equity transactions. When
policies of associates are changed when necessary to ensure
chief operating decision-maker, who is responsible for allocating
in the process of applying the company’s accounting policies.
shares are purchased from non-controlling owners, the difference
consistency with the accounting policies adopted by the Group.
resources and assessing performance of the operating segments,
Areas involving a higher degree of judgement or complexity,
between the consideration and the proportionate percentage of
Dilution gains and losses arising on investments in associates are
has been identified as the group management.
or areas where assumptions and estimates are material to the
net assets recognized in the subsidiary’s statement of financial
recognized in the income statement.
consolidated financial statements are described in Note 4.
position relating to such shares is recognized in the parent
company’s owners’ equity. Gains or losses on disposals of non-
In the event of a reduction in a shareholding in an associate
NEW STANDARDS ADOPTED BY THE GROUP
No new IFRS accounting standards have been implemented in
2021. See Note 27 for more information.
CONSOLIDATION PRINCIPLES
SUBSIDIARIES
Subsidiaries are all entities (including structured entities) over
which the Group exercises control. Control over an entity arises
when the Group is exposed to variability in the return from the
entity and has the ability to impact this return by virtue of its
influence over the entity. Subsidiaries are consolidated from the
day control arises and deconsolidated when control ceases.
The acquisition method of accounting is applied for acquisitions.
The consideration is measured as the fair value of any transferred
assets, liabilities or issued equity instruments. The fair value of
all the assets or liabilities resulting from contingent consideration
agreements is included in the consideration. Identifiable assets
and liabilities and contingent liabilities assumed in a business
combination are initially measured at fair value at the acquisition
date. Non-controlling interests in the acquired entity are measured
from time to time either at fair value, or at their proportionate
share of net assets of the acquired entity.
Costs relating to business combinations are expensed as they are
incurred. In the case of multi-stage acquisitions, the proportion of
ownership from any earlier purchases is restated at fair value at
the date of control, with changes in value recognized in the income
statement.
controlling owners are similarly recognized in equity.
DIVESTMENT OF SUBSIDIARIES
When the Group no longer has control, any residual ownership
interest is measured at fair value with changes in value recognized
in profit or loss. Using this fair value as deemed cost, the interest
is subsequently classified either as an investment in associates
or as a financial asset. Amounts previously recognized in other
comprehensive income relating to this company are treated as if
the Group had disposed of the underlying assets and liabilities.
This could mean that amounts that were previously recognized in
other comprehensive income are reclassified to profit or loss.
ASSOCIATES
Associates are entities over which the Group exercises significant
influence, but not control. Significant influence will generally exist
when the Group has a shareholding of between 20% and 50% of
the voting rights. Investments are recognized at cost at the time
of acquisition, and the Group’s share of the results in subsequent
periods is recognized through profit or loss. The amount recognized
in the statement of financial position includes any implicit goodwill
identified at the date of purchase.
The Group’s share of its associates’ post-acquisition profits or
losses is recognized in the income statement, the share of other
comprehensive income is recognized in the consolidated statement
of comprehensive income and both are added to the investment in
associates in the statement of financial position. When the Group’s
share of losses in an associate equals or exceeds its interest in the
where the Group continues to exercise significant influence, only
a proportionate share of amounts previously recognized in other
comprehensive income is reclassified to profit or loss.
NON-CURRENT ASSETS HELD FOR SALE
AND DISCONTINUED OPERATIONS
The Group classifies non-current assets and disposal groups as
held for sale if their carrying amounts will be recovered principally
FOREIGN CURRENCY TRANSLATION
The financial statements of each of the Group’s entities are
generally measured using the currency of the economic area
in which the entity operates (“the functional currency”). The
consolidated financial statements are presented in Norwegian
Kroner (NOK), which is the parent company’s functional and
presentation currency.
Transactions and balance sheet items
Foreign currency transactions are translated into the functional
through a sale transaction rather than through continuing use.
currency using the exchange rates in force at the transaction date.
Non-current assets and disposal groups classified as held for sale
Foreign exchange gains or losses resulting from the settlement
are measured at the lower of their carrying amount and fair value
of such transactions, are recognized in profit or loss. Translation
less costs to sell. Costs to sell are the incremental costs directly
differences on monetary items (assets and liabilities) that are
attributable to the disposal of an asset (disposal group), excluding
not denominated in the entity´s functional currency are also
finance costs and income tax expense.
recognized through profit or loss.
The criteria for held for sale classification is regarded as met only
when the sale is highly probable and the asset or disposal group
Group companies
The income statements and statements of financial positions
is available for immediate sale in its present condition. Actions
of the Group entities (none of which has the currency of a
required to complete the sale should indicate that it is unlikely that
hyperinflationary economy) that have a functional currency
significant changes to the sale will be made or that the decision
different from the presentation currency are translated into the
to sell will be withdrawn. Management must be committed to the
presentation currency as follows:
plan to sell the asset and the sale expected to be completed within
one year from the date of the classification.
• The statement of financial position is translated using the
Property, plant and equipment and intangible assets are not
depreciated or amortized once classified as held for sale. A disposal
group qualifies as a discontinued operation if it is a component of
an entity that either has been disposed of, or is classified as held
for sale, and it:
•
closing rate at the end of the period.
Income and expense items are translated at average exchange
rates for the period (if the average is not a reasonable estimate
of the cumulative effects of using the transaction rate, the
transaction rate is used).
• Translation differences are recognized in other comprehensive
income and specified separately.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 110
When a foreign operation is sold, the exchange difference, which in
Amortized licenses are tested for impairment only if there are
permit scope. The Aquaculture Act is administered centrally by the
Salmon farming companies can lease educational licenses from
previous periods was recognized in other comprehensive income,
indications that future earnings do not justify the asset’s carrying
Ministry of Trade, Industry and Fisheries, with the Directorate of
the educational institution. Part of the students’ training will then
is not accrued. The accumulated exchange difference on the sale
value.
of the foreign operation is hence reversed in other comprehensive
income. Gains or losses on the sale are recognized on a basis of
zero exchange difference in the net profit on ordinary activities.
GOODWILL
Goodwill represents the excess of the cost of an acquisition over
Fisheries as the supervisory authority. Regionally, several industry
take place at these salmon farms.
authorities jointly manage full administrative and supervisory
responsibility within the regulating range of the Aquaculture Act.
Harvesting pen licenses
The county council is the regional administrative body, while the
Licenses utilized for holding pens where live fish are kept prior to
the fair value of the Group’s share of the net identifiable assets
Directorate of Fisheries serves as appellate body in locality and
harvesting. These relate to specific locations.
Goodwill and fair value adjustments of assets and liabilities on the
of the acquired entity at the date of acquisition. Goodwill on
licensing matters.
acquisition of a foreign entity are treated as assets and liabilities
acquisitions of subsidiaries is classified as an intangible asset.
Duration and renewal
of the foreign entity and are translated using the closing currency
Goodwill on the purchase of a share in an associate is included
Seawater licenses
The Ministry may in individual decisions or regulations specify
rate at the balance sheet date.
in “investments in associates”. Goodwill is tested annually for
Each license for the farming of salmon in the sea is subject to a
further provisions on the content of aquaculture licenses, including
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is stated at historical cost less
impairment and carried at cost less accumulated impairment
production limit in the form of “maximum allowed biomass” (MAB)
matters relating to scope and time limitations, see Section 5(2)
losses. Impairment losses on goodwill are not reversed. Gains and
at two levels, company and location level. The system means the
of the Aquaculture Act. Nonetheless, the preparatory work for
losses on the disposal of an entity include the carrying amount of
license holder can at no time have a standing biomass (number of
the Aquaculture Act specifies that licenses are normally granted
depreciation and impairment losses. Historical cost includes
goodwill relating to the entity sold.
expenditure that is directly attributable to the acquisition of the
asset. Cost may also include gains or losses transferred from
equity as a result of hedging the cash flow in foreign currency on
the purchase of property, plant and equipment.
Improvements are recognized in the asset’s carrying amount or as
which the goodwill arose.
a separate asset when it is probable that future economic benefits
associated with the improvement will flow to the Group and the
LICENSES
Fish-farming licenses with an indefinite useful life are not
For the purpose of impairment testing, goodwill is allocated to
of tonnes of fish is set, based on the location and environmental
Grieg Seafood’s general fish farming and hatchery licenses are
those cash-generating units or groups of cash-generating units
conditions on the site. The normal size of a permit is 780 tonnes
not time-limited under current regulations. After the reform in
that are expected to benefit from the business combination in
at the license level, with the exception of the county of Troms
2009, a number of licenses were time-limited, mainly for 15 years.
kg of live fish in seawater) that exceeds the company level MAB.
without a time limit.
In connection with the approval of a locality, a maximum level
and Finnmark where the permit is 945 tonnes. While the extent
As no government practices have been established relating to
of biomass a company can possess primarily depends on the type
the renewal of broodstock licenses, the current understanding
and number of licenses, the limitation at site level is primarily
is that they will be renewed upon application. Expiration of
dependent on the site’s environmental sustainability. See Section 15
licenses allows for application for renewal on demand. A license
cost of the item can be reliably measured. All other repairs and
amortized but reviewed for
impairment annually, or more
of the Salmon Allocation Regulation (“Laksetildelingsforskriften”).
for harvesting pens is valid for ten years and must be renewed
maintenance are recognized in the income statement during the
frequently if there are indications that the carrying value may have
financial period in which the costs are incurred.
decreased.
Norway also has green licenses, with stricter environmental
approved harvesting facility.
criteria. The sea lice limit is half that of regular licenses, with
on expiration, provided that the license is still connected to an
Land and buildings mainly comprise freshwater facilities and
The Group considers the following licenses to have indefinite
stricter criteria for escape prevention technologies and limits on
Disposal and withdrawal
offices. Land is not depreciated. Other operating assets are
useful lives:
the amount of medical treatment permitted per generation.
All licenses can be transferred and mortgaged in accordance with
depreciated in accordance with the straight-line method so that
the cost, or remeasured value, is written down to residual value
over its expected useful economic life as follows:
• Buildings/real estate 10–50 years
• Plants, barges, onshore power supply 5–30 years
• Nets/cages/moorings 5–25 years
• Other equipment 3–35 years
Licenses granted with an indefinite useful life, where the company
Hatchery licenses
Section 19 of the Aquaculture Act. Transfers and mortgages must
be recorded in a separate register (the Aquaculture Register). It is
has no other contractual restrictions relating to the use of the
Young salmon are defined as eggs, juveniles, parr or smolt to
not permitted to rent out licenses or license capacity.
license. Licenses granted with a finite useful life, but where
be released at another location, see Section 4(f) of the Salmon
the license holders can renew the licenses without incurring
Allocation Regulation. Such licenses are not limited and thus
Section 9 of the Aquaculture Act sets out the basis for withdrawal
considerable expenses.
subject to continuous application for new licenses or changes to
of an aquaculture license. This states that there must be significant
existing licenses. Pursuant to the regulations, annual production
breaches of the terms of an aquaculture license before it can be
Licenses with a finite useful life are amortized over their useful
is limited to 15 million fish.
revoked.
The assets’ useful lives and residual values are estimated at each
lives. These relate to water licenses for hatcheries and some
balance sheet date and adjusted if necessary. In 2021 there has not
been any changes of useful life relative to EU taxonomy or other
specific seawater licenses. The following sections provide a
R&D and broodstock licenses
description of licenses relating to the Norway and Canada (BC)
These licenses are not limited in number. The purpose of
BC
Grieg Seafood BC Ltd (GSF BC) has farms on both the west and
climate regulations. This will will continuously be considered and
segments. See Note 10 Intangible assets for an overview of the
broodstock licenses is to produce roe and milt from salmon
east coasts of Vancouver Island. In order to operate farms in British
adjustments if necessary.
number and types of licenses, as well as impairment testing.
with improved and/or specific traits. The purpose of an R&D
Columbia, Canada, the following three licenses must be in place:
An asset’s carrying value is written down to its recoverable amount
if the carrying value is greater than its estimated recoverable
NORWAY
The licensing regime for the production of salmon in Norway is
bring the Norwegian aquaculture industry forward. Permits are
1. Aquaculture license – issued by the Department of Fisheries
means tested, meaning that the applicant must demonstrate a
and Oceans and the First Nations.
amount. Gains and losses on disposals are recognized on a net
enacted by the Norwegian Parliament through the Aquaculture
need for the production of eggs, specific research projects or for
2. License of Occupation (Tenures) – issued by the Ministry of
basis and represent the difference between the sales price and the
Act. The Ministry of Trade, Industry and Fisheries grants permits
educational purposes. Broodstock licenses include both a land
Forest, Lands and Natural Resource Operations.
license is to encourage important research projects that can
carrying value.
INTANGIBLE ASSETS
Intangible assets that arise internally within the Group are not
recognized. Goodwill and licenses with an indefinite economic
life are subject to annual impairment tests. Impairment tests
are performed more frequently if indications of impairment exist.
for aquaculture (licenses). All aquaculture operations are subject
to licensing and no one can produce salmon without permission
from the authorities, see Section 4 of the Aquaculture Act.
The aquaculture permit allows the production of salmon in limited
geographic areas within the current determined limitations of the
and sea phase, i.e. broodfish and egg production are covered by
the same licensing process.
3. Navigation Water Permit – issued by Transport Canada
(Canadian public authority).
Educational licenses
Educational licenses in Norway are given to universities, colleges
or high schools offering aquaculture-related courses of study.
For restrictions regarding production quantity, see table in Note
10.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 111
Duration and renewal
under AP 8 Site Utilization. If sites are not being utilized
component, the Group initially measures a financial asset at its
1. Aquaculture license – duration of one year, renewal each year
based on approved plans on file, they may not be renewed.
fair value plus, in the case of a financial asset not at fair value
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in
In June 2018, the Government of British Columbia announced
line method over the estimated useful life, as follows:
• Financial assets at fair value through profit or loss
is a formality.
2. License of Occupation – duration of 2–20 years. Renewal is
applied for on expiration.
OTHER INTANGIBLE ASSETS
Acquired customer portfolios and computer software licenses
3. Navigation Water Permit – duration of five years, but possible
are recognized in the statement of financial position at cost and
to apply for renewal.
New renewal process in Canada West
amortized over their estimated useful lives. Customer portfolios
are recognized in the statement of financial position at cost on the
date of purchase. Amortization is calculated using the straight-
a new policy regarding renewal of aquaculture licenses in the
Broughton area. The new policy requires agreement with the local
First Nations prior to applying for license renewal from Fisheries
and Ocean Canada (DFO). The new policy will be effective from
June 2022. The authorities want to cooperate with companies
that have licenses where production might conflict with the wild
• Customer portfolios 6 years
• Computer software 3–10 years
IMPAIRMENT OF NON-FINANCIAL ASSETS
Assets with an indefinite useful life are not amortized but are tested
through profit or loss, transaction costs. The Group has financial
the statement of financial position at fair value, with net changes
assets classified as follows:
in fair value recognized in the income statement.
• Financial assets at amortized cost (debt instruments)
This category includes derivative instruments and listed equity
• Financial assets designated at fair value through OCI with no
investments which the Group had not irrevocably elected to classify
recycling of cumulative gains and losses upon derecognition
at fair value through OCI. Dividends on listed equity investments
(equity instruments)
Financial assets measured at amortized cost
The Group measures financial assets at amortized cost if both of
the following conditions are met:
are recognized as other income in the income statement when
the right of payment has been established. Derivatives are initially
recognized at fair value on the date a derivative contract is entered
into, and are subsequently stated at fair value on an ongoing basis.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or
salmon and find alternative solutions, such as moving the licenses
annually for impairment. Assets that are subject to amortization
objective to hold financial assets in order to collect contractual
(i.e., removed from the Group’s consolidated statement of financial
to new areas. The process leading up to this decision is currently
are reviewed for impairment whenever there are indications that
cash flows and,
position) when:
under judicial review. Grieg Seafood BC has one site in this area.
future earnings do not justify the carrying value.
The production at Grieg Seafood’s farm in the Discovery Island
• The contractual terms of the financial asset give rise on
a. The rights to receive cash flows from the asset have expired, or
specified dates to cash flows that are solely payments of
b. The Group has transferred its rights to receive cash flows from
area has been moved to other farms and harvest volumes for 2022
An impairment loss is recognized for the amount by which the
principal and interest on the principal amount outstanding.
the asset or has assumed an obligation to pay the received
will not be impacted. The current agreements we have with First
asset’s carrying value exceeds its recoverable amount. The
cash flows in full without material delay to a third party under a
Nations last until 2037 - 2045. See note 4 for more information.
recoverable amount is the higher of an asset’s fair value less
Financial assets at amortized cost are subsequently measured
“pass-through” arrangement; and either
NEWFOUNDLAND
Grieg Seafood Newfoundland has exclusive farming rights
costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for
using the effective interest (EIR) method and are subject to
i. the Group has transferred substantially all the risks and
impairment. Gains and losses are recognized in profit or loss when
rewards of the asset, or
which there are separately
identifiable cash flows
(cash-
the asset is derecognized, modified or impaired.
• The financial asset is held within a business model with the
part of a group of similar financial assets) is primarily derecognized
to Placentia Bay. In order to operate aquaculture sites in
generating units). Non-financial assets, other than goodwill,
ii. the Group has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred
Newfoundland, Canada, the following approvals and licenses must
that have suffered an impairment are reviewed for indicators
The Group's financial assets at amortized cost includes trade
control of the asset.
be in place:
of possible reversal of the impairment at each reporting date.
receivables and other short-term deposit. Trade receivables that
• Aquaculture License – issued by the Department of Fisheries
Forestry and Agriculture
• Lease License for Occupancy – issued by Crown Lands division
of Department of Fisheries Forestry and Agriculture
• Canadian Navigable Waters Act - issued by Transport Canada
FINANCIAL INSTRUMENTS
A financial instrument is any contract that gives rise to a financial
asset for one entity and a financial liability or equity instrument for
another entity. The classification is performed in accordance with
do not contain a significant financing component are measured
at the transaction price determined under IFRS 15 Revenue from
Impairment of financial assets
The Group recognizes an allowance for expected credit losses
Contracts with Customers.
Equity instruments designated at fair value through OCI
Upon initial recognition, the Group can elect to classify irrevocably
(ECLs) for all debt instruments not held at fair value through
profit or loss. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract and
all the cash flows that the Group expects to receive, discounted
• Water Use Approval – issued by Department of Environment,
the substance of the contractual arrangement, and in line with the
its equity investments as equity instruments designated at fair
at an approximation of the original effective interest rate. ECLs
Climate Change, and Municipalities
definitions of a financial asset, a financial liability and an equity
value through OCI when they meet the definition of equity under
are recognized in two stages. For credit exposures for which
instrument.
IAS 32. The classification is determined on an instrument-by-
there has not been a significant increase in credit risk since initial
Duration and Renewal
Aquaculture licenses are granted for a six-year term. Each year,
Ordinary purchases and sales of investments are recognized on
licensees must complete the validation process and abide by
the trade-date, the date on which the Group commits to purchase
the legislative references: Aquaculture Act and the Policy cross
or sell the asset. All financial assets that are not stated at fair
references as Aquaculture License Renewal AP 6, Annual reporting
value through profit or loss are initially recognized at fair value
AP 7 and site utilization. For renewal, licensees are required to
plus transaction costs.
instrument basis.
recognition, ECLs are provided for credit losses that result from
default events that are possible within the next 12-months (a
An equity instrument is any contract that evidences a residual
12-month ECL). For those credit exposures for which there has
interest in the assets of an entity after deducting all of its liabilities.
been a significant increase in credit risk since initial recognition,
Gains and losses on these financial assets are never recycled to
remaining life of the exposure, irrespective of the timing of the
a loss allowance is required for credit losses expected over the
profit or loss. Dividends are recognized as other income in the
default (a lifetime ECL).
income statement when the right of payment has been established,
follow and comply with the requirements set out in AP 6 License
Renewal. Licensees must abide by license conditions, policies and
regulations at all times. Licenses may be suspended or cancelled
if a breach occurs, or they may not be renewed.
The timeline supports two production cycles and promotes
longer-term
Ensuring sites are
being utilized and developed by license holders in accordance
falls
with approved plans on file with
investment and stability.
the department
FINANCIAL ASSETS
Financial assets are classified, at
initial recognition, as
except when the Group benefits from such proceeds as a recovery
See the “Trade receivable” section in this note for specific
subsequently measured at amortized cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends
on the financial asset’s contractual cash flow characteristics and
the Group’s business model for managing them. With the exception
of trade receivables that do not contain a significant financing
of part of the cost of the financial asset, in which case, such gains
are recorded in OCI. Equity instruments designated at fair value
through OCI are not subject to impairment assessment.
The Group elected to classify irrevocably its equity investments
under this category.
accounting principles on expected credit loss on trade receivables.
FINANCIAL LIABILITIES
Financial liabilities are classified, at
initial recognition, as
amortized cost (loans and borrowings), or as financial liabilities at
fair value through profit or loss.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 112
Financial liabilities at amortized cost (loans and
borrowings)
After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortized cost using the EIR method.
Gains and losses are recognized in profit or loss when the liabilities
are derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part
of the EIR. The EIR amortization is included as finance costs in the
income statement.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include
financial derivative contracts. Derivatives are initially recognized
at fair value on the date a derivative contract is entered into, and
are subsequently stated at fair value on an ongoing basis.
Derecognition of financial liabilities
A financial liability is derecognized when the obligation under the
liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated
as the derecognition of the original liability and the recognition of
a new liability. The difference in the respective carrying amounts is
recognized in the income statement.
HEDGING
Hedge accounting
The Group do not utilize the hedge accounting principles of IFRS 9.
Non-hedge accounting
The Group engage in short-term derivative contracts to hedge
currency- and interest risk. Such contracts are recognized at fair
value through profit or loss and presented as financial income/
financial expenses.
NASDAQ FISH POOL SALE AND PURCHASE AGREEMENTS
For the financial contracts entered into with Nasdaq Fish Pool,
changes in unrealized gains and losses on the sale and purchase
agreements are recognized net in the income statement as a
value adjustment of biological assets, while the carrying value is
reported as a derivative in the statement of financial position at
the gross carrying amount of sales and contracts, respectively.
Assets/liabilities in this category are classified as current assets/
current liabilities when they are intended to be disposed of within
12 months, otherwise as non-current assets/liabilities.
INVENTORIES
Inventories are stated at the lower of cost and net realizable value.
Cost is determined using the first-in, first-out (FIFO) method. The
net realizable value is the estimated sales price less the estimated
costs of completion and sale.
BIOLOGICAL ASSETS
The accounting treatment of live fish by enterprises applying IFRS
is regulated by IAS 41 Agriculture. IAS 41 comprises a hierarchy
of methods for the measurement of biological assets at level 3.
The basic principle is that such assets shall be measured at fair
value less costs to sell. Fair value is defined in IFRS 13 as “the
price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants
at the measurement date”. According to IFRS 13, the highest and
best use of the biological asset establishes the valuation premise.
Biological assets comprise of smolt and fish in the sea. The fish
are divided into two main groups, depending on the stage of the life
cycle. At the earliest stage of the life cycle, the fish are classified in
group 1) roe, fry and smolt. Group 1 biological assets is disclosed
as “biological assets onshore” in Note 9, see the tables “Status of
biological assets” and “abnormal mortality – write down”. Roe, fry
and smolt are kept onshore.
When the fish are large enough to be transferred to the sea, they
are classified in group 2) biomass in sea. The group 2 biological
assets classification is further decomposed in Note 9 as “immature
fish in sea, round weight < 4.60 kg” and “mature fish in sea, round
<
weight > 4.60 kg” – see the tables “Status of biological assets”
<
and “abnormal mortality – write down”.
• Fish onshore (smolt) are recognized at accumulated cost. The
best estimate of fair value is considered to be the accumulated
cost because of very little biological transformation. This
assessment must be seen in the light of the fact that smolt are
currently transferred to the sea at a stage when their weight is
still relatively low.
• For fish in sea, the fair value is calculated by applying a cash-
flow based present value model.
The fair value of fish in the sea is estimated for each location.
In accordance with the principle relating to highest and best use,
the Industry Group considers that the fish have optimal harvest
weight when they have a live weight of 4.60 kg, which corresponds
to 4 kg gutted weight. Fish with a live weight of 4.60 kg or more are
classified as ready for harvest (mature fish), while fish that have
still not achieved this weight are classified as not ready for harvest
(immature fish).
The cash-flow based present value model does not rely on historical
and company specific factors. In a hypothetical market with perfect
competition, a hypothetical buyer of live fish would maximum be
willing to pay the present value of the estimated future profit from
the sale of the fish when it is ready for harvest. The estimated
future profit, considering all price adjustments and payable fees
for completion, constitutes the cash flow. No deductions are made
for sales expenses, as these are not observable in the market.
Such expenses are also deemed immaterial.
Incoming cash flow is calculated as a function of estimated volume
Changes arising from physical delivery contracts are recognized
multiplied by estimated price. For fish not ready for harvest, a
as “fair value adjustment of biological assets”. The liability in the
deduction is made to cover estimated residual costs to grow the
statement of financial position is recognized as other current
fish to harvestable weight. The cash flow is discounted monthly
liabilities.
by a discount rate. The discount rate comprises three main
components: 1) the risk of incidents that influence cash flow, 2)
Fish farming naturally comes with a certain level of loss of fish
hypothetical license lease and 3) the time value of money. Please
along the production cycle, and our budgets are typically produced
refer to the Note 4 on significant accounting estimates for more
with an inherent assumption of a 0.5-1% monthly mortality. The
detailed information.
losses associated with normal levels of survival are not directly
recognized in the income statement. In periods where specific
When estimating the actual accumulated cost at the respective
abnormal incidents lead to reduced survival, we immediately
seawater facility, direct costs (fish feed and similar) are allocated
recognize write-downs of the biomass inventory to better reflect
to each group of fish transferred to the sea at the same location.
the actual biomass in the sea or on land. The write-down costs
Financial costs are not included in the costs of production.
are recorded in the income statement as they arise, under raw
materials and consumables used.
The sales price for fish in the sea is based on the forward price
from Fish Pool. Fish Pool is a marketplace for financial purchase
and sale agreements for superior Norwegian Salmon size 3-6
TRADE RECEIVABLES
Trade receivables arising from the trading of goods or services
kg gutted weight. The volume on Fish Pool is limited, but Grieg
within the ordinary operating cycle and under normal terms of
Seafood’s opinion is that the observable forward prices must be
payment are initially recognized at nominal value. Trade receivables
seen as the best approach to a price for the sale of salmon. With
with longer terms of payment are discounted to present value, and
regard to foreign countries, the most relevant price information
represents the Group’s unconditional right to consideration from
available for the expected harvesting period is applied. For fish
the customer.
in the sea, the forward price in Norway is adjusted for historical
differences in achieved prices between Norway and Canada.
The price/net sales value is adjusted for quality differences
Expected credit loss (ECL) on trade receivables
For trade receivables, the Group applies a simplified approach in
(superior, ordinary and prod.), and for logistics expenses and sales
calculating ECLs. Therefore, the Group does not track changes
commissions. Estimated harvesting expenses are deducted.
in credit risk, but instead recognizes a loss allowance based on
lifetime ECLs at each reporting date. For receivables where the
The volume (biomass) is based on the actual number of individuals
credit risk has
increased substantially after establishment,
in the sea at the balance sheet date, adjusted to cover estimated
a write-down shall be made for the expected credit loss over
mortality up to harvest date and multiplied by the estimated
the maturity of the receivables. The model for calculating loss
harvest weight per individual at the time of harvest. The fish in sea
allowance classifies the trade receivables into two groups: normal
figure is adjusted for gutting waste, as the price is measured for
risk and high-risk, based on their country of origin. Furthermore,
gutted weight. Budgeted harvesting and freight costs are applied.
the trade receivables are classified as credit-insured receivable
Foreign currency forward contracts associated with the date of
or not. The provision is the difference between nominal and
harvesting are applied when translating the price into CAD.
recoverable amount, which is the present value of estimated
future cash flows, discounted at the original effective interest rate.
The change in the fair value of biological assets is recognized
Loss allowance is recognized as “other operating expenses” in the
through profit or loss and presented as “fair value adjustment of
income statement.
biological assets”.
Onerous contracts are contracts where the expenses of fulfilling
Factoring agreements
The Group is engaged in factoring agreements that cover financing
the contracts are higher than the economic yield the company
of outstanding receivables for the sales organization in Norway. The
expects to gain by fulfilling the contracts. The Group enters into
factoring agreement for Grieg Seafood Norway was established
contracts related to future deliveries of salmon. As biological
in 2021, and as such factoring arrangements for the Group
assets are recognized at fair value, the fair value adjustments of
were re-established in 2021. The Group previously had factoring
the biological assets will be included in the estimated expenses
required to fulfil the contract. This implies that the Group may
experience loss-making (onerous) contracts according to IAS 37
even if the contract price for physical delivery contracts is higher
than the actual production cost for the products. If that occurs, a
provision is made for the estimated negative value.
arrangements through Sjór AS, which was sold at year-end 2020.
The accounting treatment of the factoring arrangement for Grieg
Seafood Norway is similar to the prior factoring arrangement,
as the receivables purchased by the factoring company are
derecognized from the statement of financial position. See the
section “Derecognition of financial assets“ in this note for the
related accounting principle.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 113
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash in hand, bank deposits and
other short-term highly liquid investments with original maturities
of three months or less. The overdraft facility is included in current
borrowings in the statement of financial position.
pension payment calculations are based on standard assumptions
•
it is more likely than not that an outflow of resources will be
Cash refunds are given to the customer if the sold product is
relating to the development of mortality and disability as well as
required to settle the obligation;
delivered with discrepancies compared to the agreed sales
other factors such as age, years of service and remuneration.
• the amount of the obligation can be reliably estimated.
contract, or if the product is damaged. Generally, refunds are not
Pension premiums are recognized in the income statement
material.
through operations as they arise.
Restructuring provisions comprise lease termination penalties and
SHARE CAPITAL
Ordinary shares are classified as equity. Costs directly attributable
SHARE-BASED REMUNERATION
The Group operates a share-based management remuneration
employee termination payments. Provisions are not recognized for
Revenue is shown net of value added tax, returns, rebates and
future operating losses.
discounts and after eliminating intragroup sales.
to the issue of new shares or options, net of tax, are shown in
scheme with settlement in cash. Under the scheme, individual
Where there are a number of similar obligations, the likelihood
equity as a deduction, net of tax, from the proceeds.
employees may buy shares shares proportionate to their annual
that an outflow will be required in settlement is determined by
Other revenue streams
In addition to the sale of fresh and frozen salmon, the Group also
BORROWINGS
Borrowings are initially recognized at fair value when the funds
for the grant of the options is recognized as an expense. The total
recognized even if the likelihood of an outflow with respect to any
made up a non-significant part of the total sales of Grieg Seafood.
amount to be charged over the vesting period is calculated on the
one item included in the same class of obligations may be small.
Furthermore, the Group offers harvesting services to other
salary. The fair value of the employee services received in exchange
considering the class of obligations as a whole. A provision is
sells roe, smolt and ensilage. Together, these have historically
are received, net of transaction costs incurred. Borrowings are
basis of the fair value of the options granted, excluding the impact
Provisions are measured as the present value of the expenditures
aquaculture companies in the event of surplus capacity, also
subsequently stated at amortized cost applying the effective
of any non-market vesting conditions (for example, profitability and
expected to be required to settle the obligation, using a pre-tax
historically being non-significant compared to the total revenue of
interest method. Any difference between the proceeds (net of
sales growth targets). Non-market vesting conditions are included
discount rate that reflects the current market situation and the
the Group.
transaction costs) and the redemption value is recognized in the
in assumptions about the number of options that are expected to
income statement over the period of the borrowings. Borrowings
vest. At each balance sheet date, the company revises its estimates
risks specific to the obligation. The increase in the provision due to
the change in value because of the passage of time is recognized
are classified as current liabilities unless the Group has an
of the number of options that are expected to be vested and
as a financial expense.
unconditional right to defer settlement of the liability for at least
recognizes the impact of the revision relative to original estimates,
12 months after the reporting date.
DEFERRED TAX
Deferred tax is provided for in full at nominal value, using the
liability method, on temporary differences arising between the
value of assets and liabilities for tax and accounting purposes.
Deferred tax is determined using tax rates and laws that have been
enacted or substantively enacted by the reporting date and that are
expected to apply when the related deferred tax asset is realized,
or the deferred income liability is settled. Deferred tax assets are
recognized to the extent that it is probable that future taxable
income will be available, from which the temporary differences
can be deducted. Deferred tax is calculated on temporary
differences arising on investments in subsidiaries and associates,
except where the timing of the reversal of the temporary difference
is controlled by the Group and it is probable that the temporary
difference will not be reversed in the foreseeable future.
EMPLOYEE BENEFITS
PENSION OBLIGATIONS
The Company pays premiums to local, defined-contribution
schemes for all employees. The Company's Norwegian pension
schemes meet the requirements of the Norwegian Mandatory
Occupational Pension Act. Pension premiums are recognized
in the income statement through operations on an ongoing
basis. Employer’s social security contributions are expensed
based on paid pension premiums. The Group companies Grieg
Seafood Rogaland AS and Grieg Seafood Finnmark AS have a
contractual early retirement pension scheme (AFP). The financial
commitments associated with this scheme are included in the
Group’s pension expenses. The AFP early retirement scheme
follows the rules for public sector AFP, and both companies are
members of the Norwegian Confederation of Trade Unions (LO)/
the Confederation of Norwegian Enterprise (NHO) scheme. The
if any, in the income statement. The Black and Scholes option
pricing model is used for valuation. The company´s obligations
are recognized under non-current liabilities if the latest possible
redemption date is more than one year into the future.
SHARE SAVINGS PROGRAM
Grieg Seafood established a share savings program for its
employees in 2018 and it was continued throughout 2021. It is the
Board's intention that the plan shall be a continuing part of the
company's employee incentive scheme. The Board shall, however,
have the right to decide, at its sole discretion, whether the plan will
be extended in the future, and the terms of the plan.
TERMINATION BENEFITS
Termination benefits are payable when employment is terminated
by the Group before the normal retirement date, or whenever an
employee accepts voluntary redundancy in exchange for these
benefits. The Group recognizes termination benefits when it is
demonstrably committed to either terminating the employment
of current employees according to a detailed formal plan without
the possibility of withdrawal or providing termination benefits as a
result of an offer made to encourage voluntary redundancy.
PROFIT-SHARING AND BONUS SCHEMES
The Group recognizes a provision where it has a contractual
obligation or where there is a past practice that has created a
constructive obligation.
PROVISIONS
Provisions (e.g. environmental improvements, restructuring costs
and legal claims) are recognized when:
• the Group has a present legal or constructive obligation as a
result of past events;
Contract assets
A contract asset is the right to consideration in exchange for
goods or services transferred to the customer. If the Group
transfers goods or services to a customer before the customer
pays consideration or before payment is due, a contract asset is
REVENUE RECOGNITION
Revenue from contracts with customers is recognized when
control of the goods or services are transferred to the customer
recognized for the earned consideration that is conditional. The
at an amount that reflects the consideration to which the Group
Group’s consideration becomes unconditional at the point of
expects to be entitled in exchange for those goods or services.
delivery, and as the contracts generally hold one performance
The Group’s revenue derives primarily from the sale of whole and
obligation (fulfilled at the time of delivery), the Group does not hold
processed fish and some roe, smolt and ensilage. Sales contracts
material contract assets. As such, the Group does not disclose
cover both spot sales and fixed-price deliveries. Revenue from
further information on contract assets other than receivables with
the sale of salmon is generally recognized upon delivery, as the
an unconditional right to consideration.
Group considers delivery as the point in time when control of the
goods/service is transferred to the customer. Each sales contract
– either for a spot sale or a fixed delivery – is considered as one
Contract liabilities
A contract liability is the obligation to transfer goods or services to
performance obligation. Each week, the sale of fish is settled with
a customer for which the Group has received consideration (or an
the customer. The fixed-price delivery contracts that are entered
amount of consideration is due) from the customer. If a customer
into with customers, specify a per-week volume.
pays consideration before the Group transfers goods or services to
the customer, a contract liability is recognized when the payment
The sales price is determined upon contract settlement and is
is made. Contract liabilities are recognized as revenue when the
based on available market price (for example Nasdaq prices
Group fulfills the performance obligation(s) under the contract.
including transport and margin, and the price is per kilogram). The
See “revenue recognition” in this note for further details.
price varies according to the quality of the salmon and its size, and
the fish is mainly sold Delivery Duty Paid (DDP) to the customer.
Payment is settled upon delivery, and the performance obligation
DIVIDEND INCOME
Dividend income from investments or equity instruments is
related to the sale of fish is satisfied at delivery. That also applies
recognized when the right to receive payment is established.
to the fulfillment of physical delivery contracts.
Dividend income from entities recognized under the equity method
are not recognized but recorded as a reduction in the carrying
The normal credit term of the Group’s sales transactions is 30
value of the investment.
days. Based on the nature of the sale of fresh and frozen fish, the
Group generally has no material contract liabilities. The Group
does not generally engage in customer contracts where fulfillment
of the performance obligation lies more than one year in the
future. Therefore, the Group does not disclose further information
on contract liabilities and related performance obligations.
GOVERNMENT GRANTS
Government grants are recognized when it is reasonably certain
that the company will meet the conditions stipulated for the grants
and that the grants will be received. Operating grants are recognized
systematically during the grant period. Grants are deducted from
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 114
the cost which the grant is meant to cover. Investment grants are
capitalized and recognized systematically over the asset’s useful
Right-of-use assets
The Group measures the right-of-use asset at cost, less any
life. Investment grants are recognized either as deferred income
accumulated depreciation and impairment losses, adjusted for
or as a deduction of the asset’s carrying amount.
any remeasurement of lease liabilities. The cost of the right-of-
LEASES
IDENTIFYING A LEASE
At the inception of a contract, The Group assesses whether the
contract is, or contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
RECOGNITION OF LEASES AND EXEMPTIONS
At the lease commencement date, the Group recognizes a
lease liability and corresponding right-of-use asset for all lease
agreements in which it is the lessee, except for short-term leases
(defined as 12 months or less) and lease agreements where the
leased asset is of low value.
Lease liabilities
The Group measures the lease liability at the present value of the
lease payments for the right to use the underlying asset during the
lease term that are not paid at the commencement date. The lease
term represents the non-cancellable period of the lease, together
with periods covered by an option either to extend or to terminate
the lease when the Group is reasonably certain to exercise this
option.
The lease payments included in the measurement comprise:
• Fixed lease payments (including in-kind fixed payments), less
any lease incentives receivable
use asset comprises:
• The amount of the initial measurement of the lease liability
recognized,
• Any lease payments made at or before the commencement
date, less any incentives received, and
• Any initial direct costs incurred by the Group.
The Group presents its right-of-use assets on the financial
statement line item “Property, plant and equipment incl. right-of-
use assets”.
The Group applies the depreciation requirements in IAS 16
Property, Plant and Equipment when depreciating the right-of-
use asset, except that the right-of-use asset is depreciated from
the commencement date to the earlier of the lease term and the
remaining useful life of the right-of-use asset. The Group applies
IAS 36 Impairment of Assets to determine whether the right-of-
use asset is impaired and to account for any impairment loss
identified.
DIVIDENDS
Dividends payable to the company’s shareholders are recognized
as a liability in the Group’s financial statements when the dividends
are approved by the AGM.
BORROWING COSTS
Borrowing costs incurred during the construction of operating
• Variable lease payments that depend on an index or a rate,
assets are capitalized during the period of time that is required
initially measured using the index or rate in effect on the
to complete and prepare the asset for its intended use. Other
commencement date
borrowing costs are expensed in the income statement.
Lease payments generally also include any exercise price of a
purchase option/payments of penalties for terminating a lease,
CONTINGENT ASSETS AND LIABILITIES
Contingent liabilities are defined as:
provided that the Group is reasonably certain to exercise such an
• possible obligations resulting from past events whose existence
option.
depends on future events,
• obligations that are not recognized because it is not probable
The lease liability is subsequently measured by increasing the
that they will lead to an outflow of resources entailing financial
carrying amount to reflect interest on the lease liability, reducing
benefits from the company,
the carrying amount to reflect the lease payments made and
• obligations that cannot be measured with sufficient reliability.
remeasuring the carrying amount to reflect any reassessment or
lease modifications, or to reflect adjustments in lease payments
Contingent liabilities are not recognized in the annual financial
due to an adjustment in an index or rate.
statements apart from contingent liabilities resulting from the
acquisition of an entity. Material contingent liabilities are disclosed,
The Group presents its lease liability separately from other
liabilities in the statement of financial position.
with the exception of contingent liabilities where the probability of
the liability crystallizing is remote.
Contingent liabilities acquired through the purchase of operations
(an acquisition) are recognized at fair value even if it is not probable
that the liability will become unconditional. The assessment of
probability and fair value is subject to constant review. Subsequent
measurement is at the higher of the amount initially recognized
(less any amount recognized as revenue) and the amount according
to the general provision-measurement rules.
Contingent assets are not recognized in the statement of financial
position, but are disclosed if it is likely that a benefit will accrue to
the Group.
CASH FLOW STATEMENT
The Group’s cash flow statement shows the overall cash flow
broken down into operating, investing and financing activities
using the indirect method. The cash flow statement illustrates the
effect of the various activities on cash and cash equivalents. Cash
flows resulting from the divestment of operations are presented
under investing activities.
The Group has prepared an overview of cash and non-cash changes
in the Group’s liabilities, which is included in Note 12.
Changes in financial assets are disclosed if cash flows have been,
or will be, included in the cash flow from financing activities. This
may be the case, for instance, for assets pledged as security for
financial liabilities.
EARNINGS PER SHARE
Earnings per share are calculated by allocating the profit for the
year to the Company’s shareholders based on a weighted average
of the number of issued ordinary shares during the year. Diluted
earnings per share are calculated by adjusting the weighted
average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares.
EVENTS AFTER THE REPORTING PERIOD
New information on the Group’s financial position at the close of the
reporting period, which becomes known after the reporting period,
is recognized in the annual accounts. Events after the reporting
period which do not affect the Group’s financial position on the
close of the reporting period but which will affect the company’s
financial position in the future are disclosed if significant.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 115
NO T E 3 FIN ANCI A L R IS K M A N A GEMEN T
NO T E 3 FIN ANCI AL R ISK M AN A GEMEN T
CAPITAL MANAGEMENT
The Group aims to ensure sufficient access to capital to enable the business to develop in accordance with adopted strategies and thus
continue to be one of the leading players in the sector. Historically, the industry has always been vulnerable to price fluctuations in the
market. For this reason, accounting results may fluctuate considerably from year to year. Consequently, the Group also strives to ensure
that the business maintains an appropriate level of disposable liquidity.
Grieg Seafood aims to provide shareholders with a competitive return on invested capital through payment of dividends and share price
increases. The Board of Directors maintains that, as an average over time, dividends should correspond to 30-40% of the Group’s profit
after tax, adjusted for the effect of fair value of biological assets. As at 31 December 2021, Grieg Seafood was in a solid financial position to
execute strategic priorities and deliver shareholder return.
At 31 December 2021, the Group had net interest-bearing liabilities, including lease liabilities, of NOK 2 291 million, see Note 12. The
Group’s funding is primarily a green bond issue of NOK 1 500 million issued in 2020, bank loans and leasing liabilities. At year-end 2021, 47%
(2020: 36%) of our gross interest-bearing liabilities derived from green financing. The level of liabilities and alternative forms of funding are
subject to constant evaluation. In Q1 2022, the Group's bank loans were refinanced, see Note 12 for more information.
FINANCIAL RISK FACTORS
The Group is exposed to a number of financial risks; market risk (including foreign exchange risk, interest rate risk and price risk), credit
risk and liquidity risk. The Group’s overall risk management program focuses on the volatility of the financial markets and seeks to minimize
potential adverse effects on the Group’s financial performance. The Group uses financial derivatives to reduce certain risks. As at 31
December 2021, the Group did not apply hedge accounting. Nor did it as at 31 December 2020. The Group identifies, evaluates and hedges
financial risks in close cooperation with the Group’s operational units. The Board has established written principles for the management of
foreign exchange risk, interest rate risk and use of the Group´s financial instruments.
IBOR reform
The Group is exposed to the ongoing IBOR reform, as the Group has bank and bond loans, and engage in interest-rate swaps that are
exposed to the NIBOR rate. The bank loans’ interest rate is 3M NIBOR plus a margin set per interest period according to a margin ratchet.
The 3M NIBOR and the margin is set per interest period. The bond loan’s interest rate is 3M NIBOR plus a margin of 3.4 percentage points.
3M NIBOR is set per interest period.
The Group monitors the IBOR reform and its potential impacts on the Group. As at 31 December 2021, the IBOR reform is not expected to
significantly impact the Group. The information concerning our interest rate swaps disclosed below, explicitly states the swaps exposed
to NIBOR. At the very end of this Note, we have disclosed the maturity profile on the bank loans and bond loan. See also Note 12 for more
information on our interest-bearing liabilities.
Our bank loan was refinanced in Q1 2022. The maturity profiles in this Note are forward looking as at 31 December 2021. The interest rate
for the refinanced loan agreement is 3M NIBOR plus a margin set per interest period according to a margin ratchet.
I) MARKET RISKS
(i) Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk from various currency exposures, primarily CAD, USD, GBP and
EUR. Foreign exchange risk arises from future commercial transactions, recognized assets, and liabilities and net investments in foreign
operations. The Group enters into foreign currency forward contracts to manage this risk.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
TRADE RECEIVABLES AND
TRADE PAYABLES
CURRENCY IN NOK 1 000
2021
Trade receivables
Trade payables
2020
Trade receivables
Trade payables
NET INTEREST-BEARING LIABILITIES
CURRENCY IN NOK 1 000
2021
NOK
USD
EUR
GBP
CAD
JPY
OTHER
CURRENCIES
TOTAL
44 591
64 959
23 912
—
18 907
-576
391 599
2 298
9 608
15 494
101 844
121 859
409 259
39 234
12 708
—
1 145
—
—
18 291
139 736
—
—
—
—
151 793
2 353
523 196
—
—
179 384
562 848
NOK
USD
EUR
GBP
CAD
JPY
OTHER
CURRENCIES
TOTAL
Cash and cash equivalents
-22 537
44 252
58 346
750 778
94 238
Loans to associated companies
Interest-bearing liabilities*
2 111
2 893 312
—
—
—
—
—
—
—
327 662
44
—
—
3 223
928 342
—
2 111
— 3 220 974
Net interest-bearing liabilities
2 913 737
-44 252
-58 346
-750 778
233 424
-44
-3 223
2 290 520
2020
Cash and cash equivalents
309 278
33 717
603
-104 272
36 098
Loans to associated companies
Interest-bearing liabilities*
1 910
3 567 768
—
—
—
533 985
—
—
—
106 466
Net interest-bearing liabilities
3 256 580
-33 717
533 383
104 272
70 368
—
—
—
—
2
—
275 426
1 910
— 4 208 218
-2
3 930 882
*See Note 12 for more information on the Group’s net interest-bearing liabilities.
The Group has set up a group account scheme (cash pool agreement), in which Grieg Seafood ASA, the parent company, is the legal account
holder. Subsidiaries participating in the agreement can utilize the group cash pool arrangement by going into overdraft on individual bank
accounts provided that Group's total bank deposit is positive. Not all subsidiaries are part in the cash pool arrangement. The subsidiaries
participating in the group account scheme are jointly and severally liable for the entire amount of the commitment under the scheme. Cash
and cash equivalents include the currency exposure in the group account scheme. At 31 December 2021, the net amount of bank deposits
in the group account scheme amounted to NOK 787 million (2020: NOK 181 million).
The Group has investments in foreign subsidiaries whose net assets are exposed to foreign currency translation risk. Currency exposure
arising from the net assets of the Group’s foreign operations was previously primarily managed through borrowings denominated in the
relevant foreign currencies.
The base currency of the syndicated bank loan was previously solely in NOK, however after the renegotiation of the syndicate agreement in
February 2018, the term loan was split into NOK 600 million and EUR 60 million. This was carried forward as a great proportion of the sales
revenues are denominated in EUR, and hence the EUR loan would act as a hedge against currency fluctuation. Further, converting to EUR
loan would reduce the interest cost. The bank loans have been refinanced in Q1 2022. See Note 12 for more information.
In 2020, we issued a green bond totaling NOK 1 500 million through two tap issues. The bond matures in 2025, and is denominated in NOK.
The holding companies in the Group extend current and non-current loans to the subsidiaries denominated in these companies’ functional
currency. The non-current loans, with some exceptions, are considered to be equity in these companies, as no repayment of the principal
amount outstanding is planned. The currency effect of loans is recognized under "currency effect on loans to subsidiaries" in the Other
Comprehensive Income statement. The numerical effects for 2021 and 2020 are presented below.
CURRENCY EFFECTS ON LOANS TO SUBSIDIARIES NOK 1 000
Currency effect
Tax effect (22%)
Currency effect - recycle accumulated of OCI (Sale of Shetland)*
Tax effect (22 %) - recycle accumulated of OCI (Sale of Shetland)*
Net effect recognized in equity through OCI
*See Note 5 for more information.
PA G E 116
2020
-23 667
5 207
—
—
-18 460
2021
32 222
-7 089
-103 223
22 709
-55 380
Sensitivity analysis
A sensitivity of +/- 10% change in NOK foreign exchange rates against USD, CAD, GBP and EUR at the reporting date (all other factors
remaining unchanged) would be expected to have the following effects on net interest-bearing liabilities (NOK 1 000). The numerical
effects on net interest-bearing liabilities for year-end 2021 and 2020 are presented below.
SENSITIVITY NOK 1 000
31.12.2021:
Assets
Liabilities
Net interest-bearing liabilities
31.12.2020:
Assets
Liabilities
Net interest-bearing liabilities
10 % change in
FX-rate
USD
EUR
GBP
CAD
-/+
-/+
-/+
-/+
-/+
-/+
-4 425
—
4 425
-3 372
—
3 372
-5 835
-42 452
-36 618
-60
-53 399
-53 338
-75 078
—
75 078
10 427
—
-10 427
-9 424
-32 766
-23 342
-3 610
-10 647
-7 037
A depreciation of NOK versus USD/EUR/GBP/CAD will, in general, decrease the assets (which increases net interest-bearing liabilities), and decrease the liabilities, which reduces the
net interest-bearing liabilities.
FORWARD CURRENCY CONTRACTS
Hedge accounting has been applied to foreign currency forward contracts relating to non-current physical delivery contracts in 2020. The
effect on profit is recorded in other comprehensive income. As at 31 December 2020 and through the year to 31 December 2021, the Group
did not apply hedge accounting. Value changes in current forward contracts affect profit and loss, as these contracts are recognized at fair
value through profit and loss, see accounting policies (Note 2).
FORWARD CURRENCY CONTRACTS AT FAIR VALUE THROUGH PROFIT AND LOSS
SOLD
EUR
EUR
USD
Total
AMOUNT
CURRENCY
IN 1 000
BOUGHT
AMOUNT
CURRENCY IN 1 000
WEIGHTED
HEDGING RATE
MARKET RATE
MATURITY INTERVAL *
6 408
1 000
7 771
NOK
NOK
CAD
63 597
10 031
9 921
9.9246
1.2651
1.2767
9.9888
01.02.2022 - 31.12.2022
9.9888
01.01.2022 - 31.01.2022
1.2692
01.01.2022 - 28.02.2022
*Maturity specified as an interval for multiple contracts
FORWARD CURRENCY CONTRACTS AT FAIR VALUE THROUGH PROFIT LOSS
AMOUNT
CURRENCY
IN 1 000
BOUGHT
AMOUNT
CURRENCY IN 1 000
WEIGHTED
HEDGING RATE
MARKET RATE
MATURITY INTERVAL *
3 710
5 502
GBP
CAD
3 351
7 078
0.9031
1.2865
0.9047
1.2721
10.03.2021..12.01.2022
04.01.2021-05.02.2021
SOLD
EUR
USD
Total
MARKET VALUE
NOK 1 000
31.12.2021
-1 149
42
404
-704
MARKET VALUE
NOK 1 000
31.12.2020
69
532
601
*Maturity specified as an interval for multiple contracts
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 117
(ii) Interest rate risk
Since the Group has no significant interest-bearing assets apart from bank deposits, its income and operating cash flows are largely
as part of the fair value adjustment of biological assets. As biological assets are recognized at fair value, the expected costs to meet contract
terms will be included in the fair value adjustment. As at 31 December 2021, the Group had unrealized financial salmon contracts totaling
independent of changes in market interest rates. The Group’s interest rate risk arises from borrowings. Borrowings at variable rates expose
NOK -20.6 million. As at year-end 2021, the Group did not have any physical delivery contracts recognized as a liability. This was also true
the Group to cash flow interest rate risk. Fixed-interest contracts are used to reduce this risk. The Group continuously monitors its interest
at year-end 2020.
rate exposure. The Group calculates the impact on profit and loss of a defined interest rate change. The same change in the interest rate is
used for all currencies in each simulation. The scenarios are only run for liabilities that represent major interest-bearing positions.
Sensitivity calculations show the following expected values: If the interest rate had been 1% lower (higher) throughout the year, all other
factors remaining unchanged, the pre-tax profit would have increased (decreased) by NOK 38.5 million in 2021 and NOK 26.6 million in 2020,
due to the floating rate of interest on loans and deposits. The sensitivity analysis is based on average net interest-bearing liabilities from our
bank loans (term loans in NOK and EUR, as well as revolving credit facility) and bond loan during 2021 and 2020, irrespective of concluded
Fair value of financial derivatives
The carrying value of derivatives and other financial instruments as at 31 December 2021 and 31 December 2020 is shown below. The
carrying value equals fair value. Positive values are classified as an asset, while negative values are classified as a liability in the balance
sheet. All the financial derivative instruments included in the table below are measured according to level 2 of the fair value hierarchy. For
more information, see Note 14.
interest rate swap agreements.
SENSITIVITY NOK 1 000
Effect on profit before income tax
CHANGE IN INTEREST RATE POINTS
2021
2020
FAIR VALUE OF FINANCIAL DERIVATIVES NOK 1 000
-/+1%
+/-38 545
+/-26 577
Forward currency contracts at fair value through profit or loss
The sensitivity table is for our bank and bond loans. A reduction in interest rates will increase the profit before tax.
INTEREST RATE SWAP AGREEMENTS
The purpose of the Group’s risk management activities is to establish an overview of the financial risk that exists at any given time and
to provide more time to adapt to relevant developments. To this end, the Group has chosen to employ interest rate swap agreements to
establish greater stability for the Group’s variable-rate loan interest expenses. The Group has decided that at any given time, a certain
percentage of its variable interest-bearing liabilities should be hedged using interest rate swap agreements. The Group does not apply
hedge accounting. A given proportion will always be at a floating rate, while the remainder will be subject to potential hedging. This situation
is constantly reviewed in light of the market situation. The interest rate swap agreements have a duration of four years. The Group constantly
evaluates whether these periods should be rolled over.
INTEREST RATE SWAP
PRINCIPAL
NOK 1 000
FIXED
RATE (%)
BASIS OF
FLOATING RATE
MATURITY
Fixed rate paid - floating rate received
NOK 260 million
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
1.28
1.61
1.35
1.07
0.71
0.72
Nibor 3 months
20.10.2021
Nibor 3 months
28.08.2023
Nibor 3 months
04.03.2024
Nibor 3 months
05.07.2024
Nibor 3 months
18.12.2024
Nibor 3 months
18.12.2024
Total
Interest rate swap contracts assessed at market value excluding accrued interest
INTEREST RATE DERIVATIVE CONTRACT
PRINCIPAL
RATE (%)
MATURITY
Interest rate derivative contract
NOK 200 million
0.38/0.72
18.12.2024
Total
CROSS CURRENCY INTEREST RATE SWAP
PRINCIPAL
MATURITY
Cross-currency interest rate swap (NOK/EUR)
NOK 200 million / EUR 23 million
25.06.2025
Interest rate option, floor
Total
NOK 250 million
25.06.2025
MARKET VALUE
NOK 1 000
31.12.2021
MARKET VALUE
NOK 1 000
31.12.2020
—
-590
874
2 628
5 561
5 524
13 997
-1 867
-5 465
-4 402
-2 612
372
—
-13 975
MARKET VALUE
NOK 1 000
31.12.2021
MARKET VALUE
NOK 1 000
31.12.2020
—
—
310
310
MARKET VALUE
NOK 1 000
31.12.2021
MARKET VALUE
NOK 1 000
31.12.2020
22 327
233
22 560
6 692
423
7 115
(iii) Price risk
Financial salmon price contracts allow the buyer and seller to agree prices and volumes for future delivery. As at 31 December 2021, 17%
of the estimated harvest volumes in 2022 in Norway will be sold under fixed-price contracts. The total share of fixed-price contracts in 2021
was 30% for Norway. The financial contracts are presented gross in the balance sheet with changes in value recognized through profit/loss
Forward currency hedging contracts at fair value through
comprehensive income
Cross-currency interest rate swap w/ interest rate floor-
Interest rate swap agreements
Financial salmon contract - purchase contracts
Financial salmon contract - sales contracts*
Total financial instruments at fair value**
2021
2020
ASSETS
446
—
22 560
14 587
—
—
37 592
CURRENT
LIABILITIES
-1 149
—
—
-590
—
-20 611
-22 350
ASSETS
601
—
7 115
682
—
75 792
84 189
CURRENT
LIABILITIES
—
—
—
-14 346
—
—
-14 346
*As at year-end 2021, Grieg Seafood had NOK 13 million classified as current liabilities (see note Note 26) related to realized financial salmon contracts. This amount represents settled
price contracts, not part of the fair value-derivative amount. As at year-end 2020, the comparable figure was NOK 27 million classified as a current receivable (see Note 22).
**Measured according to level 2 of the fair value hierarchy.
II) CREDIT RISK
Credit risk is managed at Group level. Credit risk arises from transactions involving derivatives and deposits in banks and financial institutions,
transactions with customers, including trade receivables, and fixed contracts as well as loans to associates. The Group has procedures to
ensure that products are only sold to customers with satisfactory creditworthiness. The Group normally sells to new customers solely
against presentation of a letter of credit or against advance payment. Credit insurance is used when deemed necessary. For customers
who have a reliable track record with the Group, sales up to certain previously agreed levels are permitted without any security. A factoring
arrangement was re-established in 2021. At 31 December 2020, other than factoring liabilities classified as liabilities directly associated
with the Shetland assets held for sale, the Group was not exposed to factoring liabilities.
In 2021, the sale of fish was carried out by our wholly owned sales organization. Up until year-end 2020, all fish produced in the Group was
sold to Ocean Quality Group, which in turn sold it to external customers. The sales company secures the bulk of its sales through credit
insurance and bank guarantees. At year-end 2020, Ocean Quality AS had been deconsolidated and renamed Sjór AS. NOK 79 million of the
Grieg Seafood Group’s trade receivables at year-end 2020 comprised intercompany receivables from the newly external Sjór AS.
The book value of financial assets represents the maximum credit exposure. For further information about loss allowance, please refer to
Note 21.
MAXIMUM CREDIT RISK EXPOSURE NOK 1 000
Trade receivables
Cash and cash equivalents
Total
III) LIQUIDITY RISK
NOTE
21
20
2021
50 443
928 342
978 786
2020
146 347
275 427
421 774
The Group adopts a prudent approach to liquidity risk management, which includes maintaining sufficient cash and marketable securities,
securing funding through sufficient credit facilities and maintaining the ability to close market positions when considered appropriate.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 118
Due to the dynamic underlying nature of the business, the Group aims to secure flexibility through available credit lines. The Group
maintains a financing agreement through a 50/50 syndicate with DNB and Nordea. The agreement includes a non-current credit facility and
FAIR VALUE ESTIMATION
a bank overdraft facility. The arrangement was refinanced in Q1 2022. For further information about the agreement and other non-current
See Note 14 for information on classes of financial instruments measured at fair value, in addition to information on the fair value hierarchy.
liabilities, see Note 12.
The information below describes valuation techniques for fair value estimation used by Grieg Seafood, including leases and the fair value
Management monitors the Group’s liquidity reserve, which comprises credit facilities (see Note 12) and cash and cash equivalents (Note 20),
based on expected cash flows. This is generally carried out at Group level in cooperation with the operating companies. At year-end 2021,
(I) FINANCIAL DERIVATIVE INSTRUMENTS
adjustment of biological assets.
the Group had undrawn credit facilities of NOK 885 million, in addition to cash reserves of NOK 928 million. The Group had an equity ratio
The fair value of quoted financial assets classified as financial assets at fair value through OCI is determined by reference to published price
of 52%, while equity ratio according to covenants was 54%. Bank loans have been refinanced in Q1 2022, significantly impacting available
quotations in an active market. The fair value of financial instruments that are not traded in an active market is determined using valuation
liquidity (see Note 12). The Group continuously monitors liquidity levels. Cash flow forecasts for all farming regions, sales and the Group are
techniques (see Note 14). The Group uses different methods and makes assumptions based on market conditions at each reporting date.
performed regularly, and simulation/stress tests of the liquidity risk carried out.
The fair value of forward currency contracts is determined using the forward exchange rate at the end of the reporting period. The fair value
of interest rate swaps is determined by the present value of future cash flows. The fair value of options is determined using option pricing
The following table shows a breakdown of the Group’s non-derivative financial liabilities (including estimated interest payments), classified
models. For all the above-mentioned derivatives, the fair value is confirmed by the financial institution with which the Group has entered into
by maturity structure. The amounts in the table are undiscounted contractual cash flows. Note 12 shows the payment profile for the Group’s
the contracts. The fair value of financial salmon price contracts is determined using forward prices from Fish Pool.
non-current liabilities.
31.12.2021
NOK 1 000
Green bond loan installments
Green bond loan interest - floating
Non-current term-loan installments
Term-loan interest - floating
Non-current credit facility
Interest non-current credit facility
Other non-current liabilities
Interest on other non-current liabilities
< 3 M
<
—
15 840
24 972
2 248
—
2 330
4 873
912
3 M
- 1 Y
—
Y 2
—
Y 3
Y4
— 1 500 000
49 500
65 700
65 880
32 760
24 972
374 580
8 283
2 619
— 440 000
9 361
3 076
—
—
—
—
—
—
—
—
Y 5 > 5 YRS
>
TOTAL
—
—
—
—
—
—
— 1 500 000
— 229 680
— 424 524
—
13 150
— 440 000
—
14 767
—
11 773
12 310
2 396
3 037
2 541
9 200
2 049
8 114
2 816
54 353
100 622
15 288
29 040
(II) TRADE RECEIVABLES, OTHER RECEIVABLES AND TRADE PAYABLES
The nominal value less write-downs for realized losses on trade receivables and trade payables is assumed to correspond to the fair value
of these items, as they are short term and entered into on “normal” terms and conditions.
(III) CASH AND CASH EQUIVALENTS
The carrying amount of cash and cash equivalents is approximately equal to fair value since these instruments have a short term to maturity.
(IV) BANK- AND BOND LOAN
The carrying amount of bank loans is assessed to be approximately equal to fair value because the floating interest rate is adjusted to reflect
current conditions. The fair value of the bond loan is disclosed in Note 12.
Lease liabilities (prior IAS 17 finance leases)
18 502
54 415
67 410
57 199
43 909
39 525
79 535
360 496
Interest on lease liabilities (prior IAS 17 finance leases)
2 523
6 831
7 420
5 752
4 357
3 178
3 596
33 658
(V) LEASES
Lease liabilities (prior IAS 17 operational leases)
22 140
82 632
81 209
80 980
51 033
37 084
40 255
395 332
The fair value of financial assets and liabilities recognized at their carrying amount is calculated as the present value of estimated cash
leases)
Trade payables
Other current liabilities
Total liabilities
KEY FOR TABLE
M = Months Y = Year
YRS = Years
3 453
9 209
9 298
6 030
3 621
2 084
4 127
37 823
523 196
36 603
—
—
—
—
—
—
—
—
—
—
— 523 196
—
36 603
657 593
247 600 1 066 123
230 692 1 646 928
92 801
197 153 4 138 891
31.12.2020
NOK 1 000
Green bond loan installments
Green bond loan interest - floating
Non-current term-loan installments
Term-loan interest - floating
Non-current credit facility
Interest non-current credit facility
Other non-current liabilities
Interest on other non-current liabilities
< 3 M
<
—
14 625
51 176
3 M
- 1 Y
—
Y 2
—
Y 3
—
Y4
Y 5 > 5 YRS
>
TOTAL
— 1 500 000
44 688
59 313
59 313
59 475
29 575
51 176
102 352
767 636
8 643
24 438
15 077
2 311
—
8 792
1 514
630
—
— 996 646
26 281
17 441
569
1 833
2 820
2 625
2 819
7 281
2 503
—
—
—
—
—
—
—
—
5 867
2 214
6 160
1 916
— 1 500 000
— 266 988
— 972 339
—
50 468
— 996 646
—
30 185
4 537
55 334
54 395
16 259
Lease liabilities (prior IAS 17 finance leases)
16 755
61 014
71 771
64 930
55 337
43 932
119 448
433 186
leases)
3 025
8 257
9 159
7 289
5 707
Lease liabilities (prior IAS 17 operational leases)
20 739
54 687
66 526
38 955
29 109
1 993
5 293
4 457
3 459
2 606
562 848
—
—
—
—
690 740
278 234
351 539 1 953 141
160 314 1 594 231
200 654 5 228 853
4 348
7 354
946
—
6 771
44 555
34 284
251 653
5 429
24 182
— 562 848
leases)
Trade payables
Total liabilities
KEY FOR TABLE
M = Months Y = Year
YRS = Years
flows discounted by the interest rate that applies to corresponding liabilities and assets at the end of the reporting period. This applies to
lease liabilities, see Note 13.
(VI) BIOLOGICAL INVENTORIES
Fish in the sea is measured at estimated fair value. Consequently, the value of biological inventories is likely to vary more than the value
of inventories based on cost. The estimated fair value varies for a number of reasons, including volatility in the price of Atlantic salmon,
factors relating to production, changes in harvesting schedules and changes in the composition of inventories. Grieg Seafood considers
three components to be key parameters for valuation: price, estimated harvest biomass volume and the applied monthly discount rate.
The monthly discount rate is applied to expected future cash flows to account for risk, the time value of money and the cost of contributory
assets. The following table is a sensitivity analysis, showing the change in the fair value of the biological assets, and hence the Group profit
before tax, in the event of changes in these parameters.
SENSITIVITY ANALYSIS OF BIOMASS - EFFECT ON PRE-TAX PROFIT NOK 1 000
Change in discount rate +1%
Change in discount rate -1%
Changes in sales price +1 NOK/kg
Changes in sales price -1 NOK/kg
Changes in sales price +5 NOK/kg
Changes in sales price -5 NOK/kg
Changes in biomass volume +1% kg
Changes in biomass volume -1% kg
2021
-130 357
158 916
62 677
-59 093
316 740
-289 634
37 936
-35 376
2020
-120 801
108 247
81 184
-54 322
304 472
-223 100
23 458
-23 458
Note that changes in harvest volume have a linear effect on the fair value of biological assets. Therefore, any change in harvest volume as a
multiple of the numbers in the above table, will have the similar multiple effect on the fair value of biological assets.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 119
NO T E 4 A C C OUN T I NG E S T IM AT E S AND JUDGEMEN T S
ACCOUNTING ESTIMATES AND ASSUMPTIONS
Management is required to make estimates and assumptions
In British Columbia, licenses are renewed by the federal
Department of Fisheries and Oceans (DFO) on a regular basis,
Island area has been moved to other farms and harvest volumes
for 2022 will not be impacted. All in all, Grieg Seafood envisions
Sales price
Salmon sales prices are volatile. The sales price is based on
that we will uphold our production volume in BC. The current
forward prices and/or the most relevant pricing information
agreements we have with First Nations last until 2037 - 2045.
available for the period in which the fish is expected to be mature
Even though the agreements cannot be said to be everlasting, the
(ready for harvesting). Changes in price assumptions have the
Group has nevertheless classified the licenses as having indefinite
greatest impact on the fair-value estimate. The market price
concerning the future, which affect the reported amounts
with the next renewal in June 2022. The current Canadian federal
lives, since finding the right depreciation profile is very difficult.
constitutes the basis for calculating fair value for both mature and
for assets and liabilities, as well as income and expenses for
Government has in its mandate letter to the Minister of Fisheries,
Given that it is desirable for both First Nations and the Group to
immature fish. The forward prices for superior Norwegian salmon
the accounting year in accordance with IFRS. Estimates and
Ocean and Canadian Coast Guard stated that a responsible plan
have close and good working relationships and that they want
weighing 3-6 kg gutted weight from Nasdaq Fish Pool are applied.
underlying assumptions are continuously evaluated and are based
should be developed by 2025 in collaboration with Indigenous
the Group to operate in the area, the Group’s best estimate is
For fish ready for harvest, the forward price for the following
on historical experience and other factors, including expectations
communities and the BC Province, outlining how the industry will
that the licenses will still be classified as having indefinite lives.
month is applied. For fish not ready for harvest the forward price
of future events that are believed to be probable under the
transition from open-net pen in coastal BC. The mandate letter
This will be continuously assessed. If the situation changes and
for the month when the fish is expected to be harvested is applied.
present circumstances. The final outcomes may deviate from
does not define what the industry should transition to. Grieg
the Group agrees not to use the option to extend the duration of
The price is adjusted for export margin and clearing costs. This
these estimates. Changes in accounting estimates are recognized
Seafood supports the 2025 transition and have started introducing
the agreement, the estimate of the remaining depreciation period
accounts for both fish ready for harvest and not.
in the period in which the estimates are changed. The Group is
new technologies that moves away from traditional open net-pen
must be re-evaluated. For further information, please see Note
involved in claims and complaints related to the sale of goods on a
practices, such as post smolt which increases the production time
10.
continuous basis. As of year-end there were no material ongoing
on land as well as robust barriers between the farmed fish and
Volume
Estimated harvest volume is based on the estimated number of fish
issues.
ESTIMATED IMPAIRMENT OF GOODWILL, LICENSES AND
PROPERTY, PLANT AND EQUIPMENT
The Group tests whether goodwill and licenses have suffered
the environment. Grieg Seafood is committed to work with the
government and Indigenous communities to find a viable path
forward.
In April 2020, Grieg Seafood acquired 99% of Grieg Newfoundland
at the reporting date less estimated future mortality multiplied by
AS, the holding company of the Canadian Grieg Newfoundland Ltd
optimal harvest weight (4.60 kg). Actual harvest volume may differ
Group. Grieg Newfoundland had eight approved farming licenses.
from the estimated volume due to changes in biological conditions
The licenses are granted for terms of six years. To renew the
or due to special events, such as a mass mortality. The estimated
In addition, farm tenures in BC are renewed by the province on a
licenses, licensees must follow the Provincial Aquaculture policy
number of fish is based on the number of smolt transferred to the
any impairment on an annual basis, in accordance with the
regular basis. From 2022, farm tenures that are not accepted by
and procedures manual. As long as licenses follow and comply
sea, and mortality is a given percentage of the fish in the sea. The
accounting policy stated in Note 2. The recoverable amounts of
the First Nation, who is the Rightsholder of the territory where the
with the requirements, the license will be renewed. For this
normal estimated harvest weight is assessed to be the live weight
cash-generating units are generally determined on the basis of
farm is located, will not be renewed. Grieg Seafood supports the
reason, the licenses are classified as having indefinite lives and,
of fish that results in a gutted weight of 4.0 kg. If there are any
value-in-use calculations. These calculations require the use of
implementation of the United Nations Declaration on the Rights
as such, are not amortized.
estimates of future cash flows from the cash-generating unit, and
of Indigenous Peoples (UNDRIP) into BC regulations, and we are
specific conditions at the reporting date resulting in the fish being
harvested before they reach optimal weight, the estimated harvest
the application of a discount rate to calculate the present value
engaging in the ongoing process of reconciliation between the
Grieg Seafood Newfoundland has the exclusive long-term right to
weight is adjusted. Mortality during the period from the reporting
of future cash flows. Expectations of future cash flows will vary
government, First Nations and industries. In 2022, the Coalition of
farm salmon in the Placentia Bay area. The fair value of the right
date to the date when the fish reach harvest weight is estimated to
over time. Changes in market conditions and expected cash flows
First Nations for Finfish Stewardship was launched, highlighting
to operate exclusively will be amortized when production in the
be 1% of the number of incoming fish per month.
can result in losses due to future value decreases. The value of
the positive role that the salmon farming industry can play as a
sea starts in the spring/summer of 2022 over the duration of the
long-term growth in demand, changes in market competition, the
part of the reconciliation process. Grieg Seafood recognizes the
agreement.
comments on tests relating to value impairment.
Nation applied for another farm in the Clio Channel in their name,
value of expected cash flow. Valuation is based on a variety of
which Grieg Seafood will operate. We have three existing farms in
premises, many of which are non-observable. The premises are
this area, operating under agreement with Tlowitsis First Nation.
divided into the four following categories:
strength of the production stage in the value chain and thus also
First Nations as an additional level of government where we
expectations of the long-term profit margin are also of significance.
operate, and we are working to ensure that our production is
The different parameters could variously affect the value of the
under agreements with the Rightsholders of the territories where
licenses over time. Any changes in these critical assumptions will
it takes place. Grieg Seafood’s main farming areas are under long-
result in related write-downs, or the reversal of write-downs of
term agreements with the First Nations of those areas, and we
the value of licenses in accordance with the accounting policies
are pursuing agreements with more Nations. In 2020 an additional
described in Note 2. Please also refer to Note 10 for further
farm under agreement was approved. In 2021, the Tlowitsis First
CLASSIFICATION OF LICENSES
A significant judgement is whether a license should be amortized
One farm in the Discovery Island was removed after former Minister
over its definite life, or whether it is deemed to have an indefinite life
of Fisheries, Oceans and the Canadian Coast Guard, Bernadette
and tested for impairment only. All licenses where the Group has
Jordan, in 2020 announced she would not renew licenses in this
no other contractual restrictions relating to the use of the licenses
area, siting lack of social license. Grieg Seafood’s farm, which
have indefinite lives and, as such, are not amortized. Also, licenses
represented 4% of our production capacity or approximately 2
granted with a finite useful life, but where the license holder can
renew the licenses without incurring considerable expenses are
assessed as having indefinite lives. However, the Group’s licenses
in each country are subject to certain requirements and the Group
risks penalties, sanctions or even license revocation if the Group
fails to comply with license requirements or related regulations.
Also, local governments may change the way licenses are renewed.
600 GWT of our total annual harvest volume in BC, was not under
agreement with the First Nations of the territory where it was
placed. However, some of these Nations also stated that they were
not sufficiently consulted before the Minister’s decision was made.
The process leading up to this decision is currently under judicial
review. The production at Grieg Seafood’s farm in the Discovery
Discount rate
The sales income and remaining expenses are allocated to the
BIOLOGICAL ASSETS
The Group’s biological assets comprise smolt and fish in the sea.
same period in which the fish is harvested. The cash flows from
all localities where the Group has fish in the sea will then be
Biological assets are measured at fair values less costs to sell.
distributed over the entire period it takes to farm the fish in the
The measurement unit is the individual fish. However, for practical
sea. With the current size of the smolt released and the frequency
reasons, cash flows and estimates are carried out per locality. The
of the smolt transfers, this period may be from 12 to 18 months.
fair value model assessed by the Group calculates the net present
The estimated future cash flow is discounted by a monthly rate,
1. Sales price
2. Production cost
3. Volume
4. Discount rate
which is 5.0% for Rogaland and Finnmark, and 3.5% for British
Columbia as of December 2021. The discount rate considers
both risk adjustment (risk related to volume, cost and price),
compensation for the value of the licenses (hypothetical rent) and
time value (tying up capital). The reason for differentiating the
discount factor at the regional level is the different prerequisites
for biological production, which also requires a differentiation of
For mature fish (ready for harvesting) at the balance sheet date,
the recognized synthetic license rent. The risk adjustment shall
uncertainty mainly involves realized prices and volume. For
immature fish (not ready for harvesting), the level of uncertainty
is higher. Price, volume, discount rate are the main uncertainty
factors. However, uncertainty
is also related to biological
transformation and mortality prior to the harvest date for the fish.
reflect the price discount a hypothetical buyer would demand as
compensation for the risk assumed by investing in live fish rather
than a different object. The longer it takes to reach harvest date,
the higher the risk that something may occur that will affect the
cash flow. Three significant factors could have an impact on the
cash flow: volume, costs and price. The one thing all three factors
have in common is that the sample space is asymmetrical.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 12 0
Due to limited access to licenses for the farming of fish, the license
value is currently considered to be very high. For a hypothetical
buyer of live fish to take over and continue to farm the fish, the
NON-CURRENT ASSETS HELD FOR SALE AND
DISCONTINUED OPERATIONS
In 2021, we defined one disposal within the Grieg Seafood Group,
buyer needs a license, locality and other permits required for such
which has been classified as assets held for sale and presented
production. However, in a hypothetical market for the purchase
as a discontinued operation during the year. Grieg Seafood
and sale of live fish, one must assume that this would be possible.
Group’s activities have been divided into continuing operations
In that scenario, a hypothetical buyer would claim a significant
and discontinued operations. The disposal is “Shetland”, the
discount to allocate a sufficient share of the returns to the buyer's
assets of which had been divested by year-end 2021. In 2020, Grieg
own licenses. It is difficult to create a model that would allow a
Seafood Group had two disposal groups which were presented
hypothetical annual lease cost to be derived from prices for sold
as discontinued operations during the year. These were Shetland
licenses as the curve in the model would be based on projections
and “Ocean Quality AS” (Sjòr AS). At year-end 2020, Ocean Quality
of future profit performance in the industry.
was divested. All the note disclosures in the consolidated financial
statements for 2020 and 2021 have been prepared for the Group’s
A discount must be made for the time value of the tied-up capital
continuing operations, unless otherwise explicitly stated in the
linked to the share of the present value of the cash flow allocated to
specific note disclosure.
the biomass. The buyer who is investing in live fish rather than some
other type of object, would claim compensation for the alternative
On 29 June 2021, Grieg Seafood ASA entered into an agreement
cost. The production cycle for salmon in the sea currently takes up
with Scottish Sea Farms Ltd for the disposal of all shares in Grieg
to 18 months. The cash flow will therefore extend over a similar
Seafood Hjaltland UK Ltd, the holding company of Grieg Seafood
period. Assuming a constant sales price throughout the period, the
ASA’s Shetland business. On 8 December 2021, the Competition
cash flow would decrease for each month, as costs are incurred
and Markets Authority in the UK approved the transaction. The
to farm the fish to harvest weight. The cost increases for every
transaction was closed on 15 December 2021. On the closing
month the fish are in the sea. As such, the effect of deferred cash
date of the transaction, Grieg Seafood received a preliminary
flow is lower than would be the case if the cash flow had been
purchase price for the Shetland assets of NOK 2 087 million. The
constant. This component is, however, deemed important due to
preliminary purchase price has been calculated pursuant to a pre-
the substantial value the stock of fish represents. Please refer to
closing statement which was prepared in good faith and which set
Note 2 and Note 9 for further information on the estimation and
out, among other things, the net debt and net working capital of
calculation of fish values.
Estimating remaining cost
The planned point of harvesting is assumed to be when the fish
reaches a live weight of 4.60 kg, however, there may be uncertainty
regarding the estimated growth rate. For immature fish, the fair
value is adjusted by the estimated remaining cost necessary to
grow the fish to optimal harvest weight. Forecast production
costs include provisions for estimated feed prices, the cost of lice
treatments and other costs to prevent biological accidents. Here,
estimations are affected by uncertainty regarding the number of
lice treatments to be carried out, the sea temperature and other
conditions affecting growth and costs.
Significant assumptions sensitivity
The estimate of fair value of the biomass will always be based on
uncertain assumptions, even though the Group has built expertise
in assessing these factors. There are three key parameters for
valuation: average price, estimated biomass volume and monthly
discount rate. Please refer to Note 3 for a sensitivity analysis of
these factors.
the Shetland assets. Grieg Seafood does not expect a significant
adjustment from the preliminary purchase price. The final
purchase price is expected to be finalized in Q2 2022. For more
information on the Shetland disposal group, see Note 5.
IMPACT FROM CHANGES IN CLIMATE
Climate plays an important role in our operations. The effects
of climate change, such as extreme weather events, fluctuating
temperatures in seawater and a decline in biodiversity, could have
a significant financial impact in the coming decades. Knowledge
of the possible financial consequences of global warming and
the integration of climate risk, is an essential part of our risk
management strategy. We aim to increase our understanding of
how changes in climate may affect us, in order to find solutions
to reduce adverse impacts. We have mapped our climate-related
risks, which we report in accordance with the recommendations
of the Task Force on Climate-related Financial Disclosures
(TCFD). We have also prepared a climate-related scenario
analysis, assessing the impact of transitional risks and physical
risks. There is still much uncertainty relating to impact of climate
changes, when such impacts will occur and where. These risks
and opportunities are part of our risk assessment as part of our
regular forecast process. Overall, the Group expect the impacts
of climate-related risk to be moderate in the short term, with no
quantifiable impact as per year ended 2021.
NO T E 5 NON- CUR R EN T A S SE T S HELD F O R S AL E AND
NO T E 5 NON- CUR R EN T A S S E T S HELD F OR S A LE A ND DI S C O N T INU E D
DIS C ON T INUED OP ER AT I ONS
OP ER AT IONS
All note disclosures in these consolidated financial statements for
According to the sales purchase agreement, the closing statement
2021 have been prepared with respect to the Grieg Seafood Group’s
and the calculation of the final purchase price was expected to
continuing operations, unless explicitly stated in the specific note
be finalized by the end of Q1 2022, as communicated in Grieg
disclosure. This Note 5 of the consolidated Grieg Seafood financial
Seafood’s report for Q4 2021. Due to minor disagreements of the
statements has been prepared for the Group's assets classified as
closing balance, the final settlement is postponed to Q2 2022.
held for sale and discontinued operations only.
SHETLAND
In November 2020, we announced our intention to divest our
As at 31 December 2021, the calculation of the gain/loss from sale
of the Shetland assets has been based on the preliminary purchase
price. The preliminary gain after income tax resulting from the
investment and operations in Shetland, as we wish to focus on
sale of the Shetland assets is NOK 424 million. The preliminary
our operations in Norway and Canada going forward. On 29 June
gain has been calculated by deducting Grieg Seafood Group's book
2021, Grieg Seafood ASA entered into an agreement with Scottish
value of the Shetland assets on the closing date and transaction
Sea Farms Ltd for the disposal of all shares in Grieg Seafood
costs from the sum of the preliminary purchase and the settlement
Hjaltland UK Ltd, the holding company of Grieg Seafood ASA's
of the Seller’s debt. In addition, the gain/loss calculation includes
Shetland business (the "SPA"). The transaction was subject to
recycling of accumulated OCI of NOK 106 million before tax and
certain customary closing conditions, such as merger clearance.
NOK 83 million after tax, whereas the tax expense of NOK 23
The UK Competition and Markets Authority (CMA) approved
million relates to the tax position on the Seller’s debt.
the transaction on 8 December 2021. Closing of the transaction
occurred on 15 December 2021, at which time Grieg Seafood
Hjaltland UK Ltd and Grieg Seafood Shetland Ltd (the Shetland
assets/Shetland disposal group) were deconsolidated from the
Grieg Seafood Group.
The discontinued operations have been defined by Grieg Seafood
as the farming and sales operations in Shetland. Thus, the
discontinued operation in Shetland includes the prior reporting
segment of Shetland UK and the UK sales operations. Certain
invoiced intercompany services from Grieg Seafood ASA to Grieg
Seafood Shetland have not been eliminated, and are included in
the discontinued operations' result. These costs are considered
directly associated with the assets held for sale, and will cease
following finalization of the sales transaction.
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 long-term loan granted by Grieg Seafood
ASA ("Seller’s debt"). The preliminary purchase price has been
calculated pursuant 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.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
OCEAN QUALITY
On 23 May 2020, we entered into an agreement with Bremnes Fryseri to dissolve the Ocean Quality sales partnership. The transaction was
finalized at year-end 2020. See Note 5 of the 2020 Annual Report for more information on the Ocean Quality disposal group.
CASH FLOWS FROM DISCONTINUED OPERATIONS
(NOK 1 000)
SHETLAND
OCEAN QUALITY
TOTAL
2021
2020
2021
2020
2021
PROFIT (LOSS) FROM DISCONTINUED OPERATIONS
TOTAL (NOK 1 000)
SHETLAND*
OCEAN QUALITY
TOTAL
2021
2020
2021
2020
2021
2020
Operating income
Operating expenses
951 334
968 729
-775 822
-1 191 934
EBIT before fair value adjustment of biological assets
175 512
-223 205
Production fee
Fair value adjustment of biological assets
-5 219
75 697
-5 368
-97 039
EBIT after fair value adjustment of biological assets
245 990
-325 613
Net financial items
Impairment loss recognized on the remeasurement to fair
value less cost to sell
Profit before tax from discontinued operations
Income tax expense
1 902
-6 744
—
—
247 893
-332 357
-71 280
100 838
Profit for the period from discontinued operations
176 613
-231 519
Gain on the sale of the subsidiary after income tax
423 678
—
Net profit for the period from discontinued operations
600 291
-231 519
*Depreciation ceased from 1 October 2020, in accordance with IFRS 5.
GAIN ON THE SALE OF THE SUBSIDIARY AFTER INCOME TAX
(NOK 1 000)
Sale/purchase price
Transaction costs
Recycling of accumulated OCI
Total consideration
Book value
Gain on the sale of the subsidiary after income tax
The recycled accumulated OCI in the gain/loss calculation consists of:
Currency effect on investment in subsidiaries
Currency effects on loans to subsidiaries
Other gains and losses
Tax effects
Reserve of disposal group classified as held for sale
—
—
—
—
—
—
—
—
—
—
—
—
—
3 084 108
951 334
4 052 837
-3 058 240
-775 822
-4 250 174
25 868
175 512
-197 337
—
—
25 868
10 271
-5 219
75 697
-5 368
-97 039
245 990
-299 745
1 902
3 527
—
—
—
36 139
-8 476
27 663
5 033
32 696
247 893
-296 218
-71 280
92 362
176 613
-203 856
423 678
5 033
600 291
-198 823
TOTAL
2021
2 087 494
-26 950
83 139
2 143 683
1 720 004
423 678
3 261
103 223
-636
-22 709
83 139
2020
66 853
-875
—
65 978
60 945
5 033
—
—
—
—
—
Net cash flow from operating activities
Net cash flow from investing activities
Net cash flow from financing activities
Sum
Cash discontinued operations cash and cash equivalents -
other changes
145 228
2 041 801
-24 966
-77 905
-145 836
-118 796
2 041 193
-221 667
-842
-525
Net change in cash and cash equivalents from discontinued
operations
2 040 350
-222 193
—
—
—
—
—
—
CLASSES OF ASSETS AND LIABILITIES OF THE DISPOSAL GROUP (NOK 1 000)
Classes of assets and liabilities of the disposal group
Deferred tax assets
Intangible assets
Property, plant and equipment
Biological assets incl fair value
Inventories
Trade receivables and other receivables
Cash and cash equivalents
Assets directly related with the disposal group
Non-current liabilities
Current liabilities
Liabilities directly associated with the disposal group
Net assets directly associated with the disposal group
The classes of assets and liabilities as per 31 December 2020 attributed to the Shetland assets, as Ocean Quality was sold 31 December 2020.
AMOUNTS INCLUDED IN ACCUMULATED OCI ASSOCIATED WITH THE DISPOSAL GROUP (NOK 1 000)
Currency effect on investment in subsidiaries
Currency effects on loans to subsidiaries
Other gains and losses
Cash flow hedges
Tax effects
Accumulated other comprehensive income
All accumulated OCI at year-end 2020 is related to Shetland.
OTHER COMPREHENSIVE INCOME RELATED TO THE SHETLAND DISPOSAL GROUP FOR THE YEAR (NOK 1 000)
Currency effect on investment in subsidiaries
Currency effects on loans to subsidiaries
Cash flow hedges
Tax effects
Sum
28 471
145 228
-43 632
2 041 801
-121 537
-1 366
-145 836
-120 161
-16 526
2 041 193
-238 193
-43
-842
-568
-16 569
2 040 350
-238 762
PA G E 12 1
2020
3 505
TOTAL
31.12.2020
81 681
556 577
719 626
449 867
24 448
139 627
899
1 972 725
212 686
280 143
492 829
1 479 897
31.12.2020
7 377
88 624
-636
—
-19 497
75 868
2020
20 535
1 539
—
—
22 074
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 12 2
NO T E 6 BU SI NE S S C OMBIN AT IONS
NO T E 6 BU SINE S S C OMBI N AT IONS
BUSINESS COMBINATIONS IN 2021
There were no business combinations in 2021.
BUSINESS COMBINATIONS IN 2020
On 15 April 2020, Grieg Seafood ASA (GSF) completed the acquisition of Grieg Newfoundland AS (GNL). At the acquisition date, 99% of
the shares were transferred, while the remaining 1% is subject to a put/call option accounted for as contingent consideration. GNL owns
a fish farming business under development in Newfoundland, Canada. The text below summarizes the disclosures in the Newfoundland
transaction provided in the 2020 Annual Report. Since the text below is a summary, please see the 2020 Annual Report for all information
disclosed concerning the transaction and the purchase price allocation of the transaction consideration.
TRANSACTION
Grieg Newfoundland was a project initiated by the Grieg Group and Per Grieg Jr. in collaboration with their Canadian partner. Per Grieg Jr. is
Chair of GSF’s Board of Directors and an owner of the Grieg Group. The transaction has been approved by the General Meeting in line with
the section 3-8 of the Public Limited Liability Companies Act. The consideration is split into three parts - a net cash payment, completion
shares and contingent consideration. The negotiated subscription price for completion shares was set at NOK 140.05, corresponding to a
total contribution of NOK 250 million. As the market price per share was NOK 108.20 at closing, the value of the completion shares was
NOK 193.1 million.
CONTINGENT CONSIDERATION
A continent consideration of NOK 702 million has been recognized. If certain production volumes are reached within the next ten years,
additional payments are triggered. The additional amount becomes unconditional when GNL has reached a planned annual harvest volume
of 15 000 tonnes, and the amount increases with volume until an annual harvest volume of 33 000 tonnes. The amount due is NOK 43 per
kg for volumes between 15 000 and 20 000 tonnes, and NOK 55 per kg for volumes between 20 000 and 33 000 tonnes, with a 4% per annum
inflation adjustment in the period 2023-2029. The contingent consideration is classified as equity. It is in GSF’s sole discretion to decide
whether the expansion investments are carried out in line with the production plan. If further expansion of the post-smolt facilities are not
constructed within ten years, the additional milestone payments will not be triggered.
VALUATION OF LICENSES AND EXCLUSIVITY CONTRACT
Aquaculture licenses are valued assuming an indefinite useful life. At the time of the transaction, GNL had been granted a long-term
exclusive right to operate in Placentia Bay and received approval for 11 site holds in the area. For site holds with a fish farming license
granted at the transaction date, valuation is based on expected volumes using reasonable income and cost assumptions to the amount of
NOK 213.5 million value added per license. For three additional site holds, the seller has granted a warranty as to the value of the license.
The compensation is capped at NOK 122.5 million. GNL has received a grant to operate in the production area in Placentia Bay, and an
exclusivity agreement for 12 years plus an option of eight years. This means no one else can operate in this geographical area in this period,
which is similar to a non-compete advantage.
GOODWILL
Intangible assets that do not meet the conditions for separate recognition are subsumed into goodwill. This includes the going concern-
value of the performed construction activities up until the transaction, synergies between various components of the facilities as we have
long-term exclusive rights to be the sole farmer in the Placentia Bay area. In addition, goodwill covers the licenses pending approval, as well
as the expected synergies with current operations in British Columbia. Lastly, a portion of the goodwill reflects the difference between the
fair value and nominal value of deferred tax liabilities, in particular for the licenses that are deemed to have indefinite useful life.
TAX
For valuation purposes and calculation of deferred tax liabilities, the tax rate is set to 30% which is the current tax rate in eastern Canada
for private companies controlled by non-Canadians.
SUMMARY OF BOOK VALUE, IDENTIFIED EXCESS VALUES AND THE FAIR VALUE AT THE
TRANSACTION DATE OF 15 APRIL 2020
15.04.2020
NOK 1 000
Goodwill
Licences (incl. warranty licenses)
Property, plant and equipment
Indemnification assets
Other assets
Deferred tax liabilities
Other liabilities
Equity
Book value
Excess value
Fair value
—
14 154
623 933
—
382 236
—
735 344
284 979
677 255
748 017
-493 230
40 000
—
88 436
—
883 605
677 255
762 171
130 702
40 000
382 236
88 436
735 344
1 168 584
NO T E 7 INV E S T MEN T IN A S S O CI AT E S
NO T E 7 INV E S T MEN T IN A S S O CI AT E S
Associates that are closely related to the Group's operations and included in the Group´s value chain are classified on a separate line in
EBIT when the relevant associates operate in the same position in the value chain as the Group. For 2021 and 2020, no investments were
classified on a separate line after EBIT.
In 2019, the Group, through Grieg Seafood Finnmark AS, invested NOK 1.2 million in Nordnorsk Smolt AS to acquire 50% of the company's
shares. The remaining shareholdings are held by Norway Royal Salmon ASA (50%). Nordnorsk Smolt AS is located in Troms and Finnmark
county, Norway. Production is approximately 900 tonnes of smolt per year. In December 2021, a capital increase was carried out, where
both owners invested NOK 12.5 mill each. At 31 December 2021, Grieg Seafood Finnmark provided a long-term loan to Nordnorsk Smolt
AS, amounting to NOK 2.1 million (NOK 1.9 million at December 2020), which is included in other non-current receivables. The interest is
recognized under current receivables.
In 2018, the Group, through Grieg Seafood Rogaland AS, invested NOK 30 million in Tytlandsvik Aqua AS to acquire 33.33% of the company's
shares. The remaining shareholdings are held by Bremnes Seashore AS (33.33%) and Vest Havbruk AS (33.33%). Tytlandsvik Aqua AS is
located in Ryfylke in Rogaland, Norway. Through Tytlandsvik Aqua AS, the partners secure increased and improved access to post-smolt
fish, with an annual production capacity of 3 400 tonnes, of which Grieg Seafood's share of the volume is 50%.
On 15 January 2021, Grieg Seafood Rogaland invested NOK 2.5 million for an ownership interest of 37.04% in Årdal Aqua AS. The other
shareholders are Vest Havbruk AS and Omfar AS. A share issue was carried out when Omfar became a co-owner of the company, and the
other two shareholders were diluted from 50% to 37.04% ownership. The diluted effect related to the capital issue from Omfar AS is not
recognized as a gain, but set aside as a liability until certain milestones have been reached, at which point a potential gain will be booked as
the project depends on milestones. Hence a potential gain of NOK 6.7 million is deferred until all millstones are approved. At the same time,
Grieg Seafood Rogaland entered into a post-smolt agreement with Årdal Aqua. Årdal Aqua is currently in the design development phase of
a land-based farming facility in Rogaland, and the decision to start constructing will be taken in 2022.
The investments in Tytlandsvik Aqua AS, Nordnorsk Smolt AS and Årdal Aqua AS are classified together on a separate line in the statement
of financial position, and the share of profit is included in EBIT. Total recognized share of profit/loss from associates in 2021 was NOK -1.5
million and the total book value as at 31 December 2021 was NOK 105 million.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 12 3
ASSOCIATES CLASSIFIED AS
OPERATIONS
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
Total associates classified as operations
EQUITY INTEREST
AT 31.12.2021
BOOK VALUE AT
01.01.2021
NOK 1 000
PROFIT/LOSS 2021
NOK 1 000
50.00 %
33.33%
37.04%
41 264
43 158
—
84 421
-6 053
4 929
-363
-1 486
CHANGES IN THE
PERIOD, INCL.
REPAID CAPITAL
NOK 1 000
BOOK VALUE AT
31.12.2021
NOK 1 000
12 500
—
9 241
21 741
47 710
48 087
8 878
104 676
AT 31.12.2021
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
Total ownership
TIME OF
INVESTMENT
01.07.2019
01.06.2017
15.01.2020
EQUITY INTEREST
50.00%
33.33%
37.04%
EXCESS VALUE
HATCHERY
NOK 1 000
DEPRECIATION OF
EXCESS VALUE
NOK 1 000
BOOK VALUE OF
EXCESS VALUE
NOK 1 000
17 022
14 600
2 188
33 811
4 256
3 214
—
7 470
12 767
11 387
2 188
26 342
The share issue and shareholder agreement for Nordnorsk Smolt were signed on 30 June 2019. Excess value relating to the investment has
NO T E 8 SEGMEN T INF OR M AT ION
NO T E 8 SEGMEN T INF OR M AT ION
Segment information is provided for the Group’s continuing operations. Information regarding the Group’s discontinued operations is
disclosed in Note 5.
The operating segments are identified on the basis of the reports which Group Management uses to assess performance and profitability
at a strategic level. Group Management assesses business activities from a geographical perspective, based on the location of assets. The
Group has one production segment: production of farmed salmon. Earnings from the Group’s sales companies is reported per producer.
Geographically, management assesses the results of production in Rogaland – Norway, Finnmark – Norway and British Columbia – Canada.
As from Q1 2021, production in Newfoundland - Canada is also included. In Q4 2020, Grieg Seafood defined the reporting segment Shetland
– UK as part of the Shetland disposal group , which was classified as held for sale (see Note 5). The Shetland disposal group was sold to
Scottish Sea Farms Ltd on 15 December 2021.
Group Management evaluates the results from the segments based on EBIT before production fee and fair value adjustment of biological
assets. The operating segments are divided geographically by country or region, based on the reporting applied by Group Management when
assessing performance and profitability at a strategic level.
been allocated to hatcheries under construction, based on provisional accounting figures from Nordnorsk Smolt AS on the acquisition date.
The method of measurement excludes the effect of non-recurring costs, such as restructuring costs, legal costs on acquisition and
The value added is amortized from the date of acquisition.
amortization of goodwill and intangible assets when amortization is attributable to an isolated event which is not expected to recur. The
measurement method also excludes the effect of share-based payments, as well as unrealized gains and losses on financial instruments,
The share issue and shareholder agreement with Tytlandsvik Aqua AS were signed on 1 June 2017. Excess value relating to the investment
and ownership costs. These gains/losses and costs are reported in the "Elim/Other" column in Grieg Seafood’s segment information.
has been allocated to hatcheries under construction, based on provisional accounting figures from Tytlandsvik Aqua as at 31 December
2018. The fair value adjustment is amortized from the time the facility was completed and commissioned.
Elim/Other items comprise, in addition to intercompany eliminations, the profit/loss from activities conducted by the parent company or
Tytlandsvik Aqua AS, Nordnorsk Smolt and Årdal Aqua AS have the same financial year as the Group. The following table displays provisional
financial information as at 31 December 2021 (100%).
other Group companies not related to production.
In the segment reporting, sales revenue at the regional level includes revenue from the sale of Atlantic salmon. At the regional level,
other income includes the sale of by-products (such as ensilage), as well as income from the sale of smolt, fry and roe, and income from
AT 31.12.2021 NOK 1 000
TOTAL ASSETS
TOTAL LIABILITIES
TOTAL EQUITY
OPERATING INCOME
PRE-TAX PROFIT/LOSS
overcapacity of operational assets. At the Group level, such income is reclassified to sales revenue in the Elim/Other column in the Group's
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
106 902
442 539
25 972
53 313
351 596
7 624
53 589
90 943
18 348
72 624
171 548
50
1 438
19 464
-979
ASSOCIATES CLASSIFIED AS
OPERATIONS
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Total associates classified as operations
EQUITY INTEREST
AT 31.12.2020
BOOK VALUE AT
01.01.2020
NOK 1 000
PROFIT/LOSS 2020
NOK 1 000
CHANGES IN THE
PERIOD, REPAID
CAPITAL NOK 1 000
BOOK VALUE AT
31.12.2020
NOK 1 000
50.00%
33.33%
42 433
38 638
81 071
-1 169
4 520
3 350
—
—
—
41 264
43 158
84 421
AT 31.12.2020
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Total ownership
TIME OF
INVESTMENT
01.07.2019
01.06.2017
EQUITY INTEREST
50.00%
33.33%
EXCESS VALUE
HATCHERY
NOK 1 000
DEPRECIATION OF
EXCESS VALUE
NOK 1 000
BOOK VALUE OF
EXCESS VALUE
NOK 1 000
17 022
14 600
31 623
2 553
1 754
4 307
14 469
12 847
27 316
AT 31.12.2020 NOK 1 000
TOTAL ASSETS
TOTAL LIABILITIES
TOTAL EQUITY
OPERATING INCOME
PRE-TAX PROFIT/LOSS
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
106 902
442 539
53 313
351 596
53 589
90 943
72 624
171 548
1 438
19 464
segment information. Other gains/losses in the segment information are included in the line "other income". This includes gains/losses
from the sale of fixed assets and other equipment.
Sales revenue/kg reported in the segment information is equal to the sum of the region’s sales revenue divided by the related harvest
volume.
Farming cost/kg reported in the segment information encompasses all costs directly related to the production and harvesting of salmon,
divided by the related harvest volume. Thus, at the regional level, farming costs equal operational costs. Other income is included in the
farming cost metric, where it is deemed to constitute cost reduction activities. Group farming cost is calculated on the basis of the Group’s
farming operations, excluding ownership costs and costs from Group companies not related to production.
Other costs, including ownership and headquarters costs/kg, reported in the segment information include all costs and revenue not directly
related to the production and harvesting of salmon. This includes costs deriving from activities conducted by the parent company and other
Group companies not related to production, divided by the Group's harvest volume. In addition, until the first harvest in Newfoundland is
carried out, costs attributable to the Newfoundland region are included as other costs/kg.
EBIT/kg reported in the segment information is equal to the EBIT before production fee and fair value adjustment of biological assets divided
by the related harvest volume.
The Group's revenues mainly comprise revenues from the sale of whole and processed fish and some ensilage. Sales revenues are
recognized at the point in time when control of the fish has been transferred to the customer. This will normally be upon delivery. In 2021,
the sale of whole fish (fresh and frozen) accounted for 95% (2020: 88%) of the Group's sales revenues (excluding other products), while
processed fish accounted for 4 % (2020: 10 %).
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 12 4
2020
GEOGRAPHICAL SEGMENTS
NOK 1 000
Sales revenues1
Other income2
Other gains/losses3
Share of profit from associates
FARMING EUROPE
FARMING NORTH AMERICA
ELIM/
OTHER4
GRIEG SEAFOOD
GROUP
ROGALAND
NORWAY
FINNMARK
NORWAY
BC
CANADA
1 263 088
1 313 549
1 178 931
78 439
136
4 520
76 028
-2 241
-1 169
16 770
-2 636
—
628 788
-142 549
-45
—
4 384 357
28 688
-4 786
3 350
Operating costs before depreciation and amortization
-952 879
-1 113 980
-1 094 740
-648 079
-3 809 678
EBITDA before fair value adjustment of biological
assets
393 304
272 187
98 324
4 384 357
100%
Depreciation, amortization and reversals
-101 005
-144 763
-105 749
-7 425
21 181
55.7
56.0
—
-0.4
EBIT before fair value adjustment of biological assets
292 299
127 424
Harvest volume (tonnes GWT)
23 043
26 919
Sales revenue/kg (NOK)
Farming cost/kg (NOK)
Other costs incl. ownership and headquarters costs/
kg (NOK)
EBIT/kg (NOK)
Assets
54.8
42.1
—
12.7
48.8
44.1
—
4.7
2 023 442
2 996 414
1 455 341
Assets classified as held for sale
—
—
—
Total assets
Liabilities
Liabilities directly associated with the assets held for
sale
Total liabilities
1, 2, 3, 4See the footnotes under the 2021 table.
2 023 442
2 996 414
1 455 341
995 977
1 555 995
698 702
—
—
—
995 977
1 555 995
698 702
GROUP EBIT NOK 1 000
EBIT before fair value adjustment of biological assets
Production fee (Note 26)
Fair value adjustment of biological assets (Note 9)
EBIT after fair value adjustment of biological assets
Net financial items (Note 24)
Profit before tax
Income tax expense
Profit for the year
-161 884
-17 357
-179 242
—
—
—
—
—
2 201 605
1 972 725
4 174 330
2 535 106
492 829
3 027 935
2021
442 370
-24 463
523 036
940 944
-87 266
853 678
-249 301
604 377
601 932
-368 874
233 057
71 142
52.8
47.0
2.5
3.3
8 676 801
1 972 725
10 649 527
5 785 781
492 829
6 278 609
2020
233 057
—
-289 705
-56 648
-247 792
-304 440
-11 557
-315 997
Fresh whole fish
Frozen whole fish
Fresh processed fish
Frozen processed fish
Other products
Total
2021
GEOGRAPHICAL SEGMENTS
NOK 1 000
Sales revenues1
Other income2
Other gains/losses3
Share of profit from associates
SALES REVENUES FROM
CONTRACTS WITH CUSTOMERS, BY
GEOGRAPHICAL MARKET
NOK 1 000
Continental Europe
UK
USA
Canada
Russia
Asia
Other markets
Total
Europe
North America
Total
2021
2020
2021
2020
2021
2021%
2020
2020%
2 968 604
1 964 336
114 887
401 378
—
—
—
—
85 953
22 778
—
23 227
831 003
871 033
4 193
284 238
376 388
—
—
—
277 836
605 842
7 274
85 459
6 011
52 501
—
—
2 968 604
114 887
916 957
307 016
—
285 111
6 011
3 476 069
3 051 476
1 122 516
1 332 881
4 598 585
65%
2%
20%
7%
—
6%
—%
100%
1 964 336
401 378
894 260
380 581
—
691 301
52 501
45%
9%
20%
9%
—%
16%
1%
SALES REVENUES FROM CONTRACTS WITH CUSTOMERS, BY DISTRIBUTED
PRODUCTS
NOK 1 000
Europe
North America
Total
2021
2020
2021
2020
2021
2020
3 429 432
2 740 344
955 179
1 107 890
4 384 611
3 848 234
—
287
—
46 351
3 287
—
19
—
3 306
173 250
166 380
220 947
166 666
394 197
24 412
110 182
508
449
167
3 858
508
46 800
24 579
114 040
3 476 069
3 051 476
1 122 516
1 332 881
4 598 585
4 384 357
FARMING EUROPE
FARMING NORTH AMERICA
ROGALAND
NORWAY
FINNMARK
NORWAY
BC
CANADA
NL
CANADA
ELIM/
OTHER4
GRIEG SEAFOOD
GROUP
1 430 949
1 756 292
1 023 474
76 640
140
4 567
48 868
-52
-6 053
9 114
-6 839
—
—
569
—
—
387 870
-64 445
—
—
4 598 585
70 745
-6 752
-1 486
-3 843 048
818 044
-375 674
442 370
75 601
55.7
47.2
2.7
5.9
-70 970
-12 590
-83 561
—
—
—
—
—
—
—
—
—
—
Operating costs before depreciation and amortization
-1 167 414
-1 405 878
-781 973
-93 388
-394 395
EBITDA before fair value adjustment of biological
assets
344 882
393 176
Depreciation, amortization and reversals
-102 865
-142 640
243 776
-93 541
-92 819
-24 039
EBIT before fair value adjustment of biological assets
242 017
250 537
150 235
-116 858
Harvest volume (tonnes GWT)
26 670
34 484
14 448
Sales revenue/kg (NOK)
Farming cost/kg (NOK)
Other costs incl. ownership and headquarters costs/
kg (NOK)
EBIT/kg (NOK)
Assets
Total assets
Liabilities
Total liabilities
53.7
44.6
—
9.1
50.9
43.7
—
7.3
70.8
60.4
—
10.4
2 181 546
3 076 166
2 057 524
2 487 713
911 299
10 714 248
2 181 546
3 076 166
2 057 524
2 487 713
911 299
1 088 328
1 502 171
1 018 999
1 948 082
-406 634
1 088 328
1 502 171
1 018 999
1 948 082
-406 634
10 714 248
5 150 946
5 150 946
1Sales revenues equal the Group's revenue from contracts with customers.
2Other income mainly relates to the settlement of insurance and other services not directly related to production.
3Other gains/losses includes items such as foreign currency and the sale of fixed assets and other equipment.
4Elim/Other includes bonus and share of profit from sales entities to Grieg Seafood farming entities/producers. Other items comprise the profit/loss from activities conducted by the
parent company or other Group companies not related to production. Internal transactions between group companies are eliminated and included in the Elim/Other column. Sales revenue
deriving from the sale of fish not produced by the Group is also included in Elim/Other.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 12 5
NO T E 9 BIOL OGIC AL A S S E T S AND O T HER INV EN T OR IE S
Biological assets at 01.01.
Biological assets classified as held for sale*
Currency translation differences
Increase due to production
Decrease due to abnormal mortality/loss
Decrease due to sales
Fair value adjustment at 01.01.
Fair value adjustment in connection with business acquisition
Fair value adjustment at 31.12.
Biological assets at 31.12.
TONNES
NOK 1 000
2021
52 619
N/A
N/A
99 590
-5 534
-87 553
N/A
N/A
N/A
2020
67 614
-11 480
N/A
80 748
-4 844
2021
2020
2 545 903
N/A
22 840
3 428 102
-117 450
3 437 947
-641 389
1 442
3 407 539
-177 225
-79 419
-3 053 236
-3 121 283
N/A
N/A
N/A
-347 227
N/A
970 480
-708 355
N/A
347 227
59 121
52 619
3 449 412
2 545 903
*This note has been prepared for the Group’s continued operation. In 2020, we classified our Shetland assets as held for sale and treated them as discontinued operations. The Shetland
assets were sold on 15 December 2021. The impact of the held for sale classification is presented as a reconciliation item reconciling 1.1.2020 with 31.12.2020 in the table above. For more
information, see Note 5.
RECOGNIZED FAIR VALUE ADJUSTMENT
Change in fair value adjustment of biological assets1
Currency adjustment of fair value adjustment of biological assets
Change in physical detivery contracts relating to fair value adjustment of biological assets2 (Note 26)
Change in fair value of financial derivatives from salmon (Fish Pool contracts)3
Total recognition of fair value adjustment of biological assets
Recognized value adjustments of biological assets include:
1 Fair value adjustments of biological assets
2 Fair value (liability) change in loss-making contracts
3 Change in unrealized gains/losses from financial purchases/sales contracts (derivatives) from fish at Nasdaq Fish Pool
2021
623 253
-3 814
—
-96 403
523 036
2020
-361 130
-16 508
—
87 933
-289 705
The biological assets are, in accordance with IAS 41, measured at fair value, unless the fair value cannot be measured reliably. Broodstock
and smolt are measured at cost less impairment losses. Fair value of biological assets is calculated on a discounted cash flow based present
value model, which does not rely on historical cost.
Provisions allocated to future physical delivery contracts that require fair value adjustments are recognized as other current liabilities in
the balance sheet. The contracts are calculated on the basis of the same forward prices used for fair value calculation of biological assets.
Value adjustment of financial derivatives from salmon are recognized in the balance sheet as derivatives and other financial instruments.
Financial derivatives are calculated at market value. See Note 3 for further information.
For further information on accounting policies for biological assets, please refer to Note 2 and Note 4.
BASIS FOR VALUES
Weighted price per kg GWT
Source
NORWAY
NOK 64.91
BC
CAD 10.28
Nasdaq Fish Pool
Nasdaq Fish Pool
Forward prices from Nasdaq Fish Pool as stated above are adjusted for expected quality reductions and stated before logistics expenses.
The standard deduction for quality reduction is applied. Forward prices are weighted in relation to the intended harvesting period. The price
for BC is based on the forward price in Norway adjusted for historical differences in price levels between Norway and Canada. Estimated
harvesting and logistics expenses are deducted. Forward exchange rates are used to translate prices into CAD in relation to the harvesting
period.
The estimated future cash flow is discounted by a monthly rate, which is assessed individually for each region. The discount factor reflects
a combination of the cost of capital for the biomass, risk discounting and a synthetic license rent.The discount factor is differentiated at
the regional level due to the different prerequisites for biological production. This is also the reason for differentiation of the recognized
synthetic license rent. See the table below and the Note 4 for more information.
DISCOUNT RATE PER REGION
Rogaland
Finnmark
BC
2021
5.0%
5.0%
3.5%
2020
5.0%
5.0%
3.5%
STATUS OF BIOLOGICAL ASSETS
2021 ex. Shetland
Biological assets on land *
Immature fish in sea, round weight < 4.60 kg
<
Mature fish in sea, round weight > 4.60 kg
>
Total
2020 ex. Shetland
Biological assets on land *
Immature fish in sea, round weight < 4.60 kg
<
Mature fish in sea, round weight > 4.60 kg
>
Total
* Smolt production
NUMBER OF
FISH 1 000
BIOLOGICAL
ASSETS
TONNES
ACCRUED COST
OF PRODUCTION
NOK 1 000
FAIR VALUE
ADJUSTMENT
NOK 1 000
BOOK VALUE
NOK 1 000
28 522
28 266
1 292
58 080
19 617
26 933
1 498
48 048
539
51 944
6 638
59 121
699
43 419
8 500
52 619
164 959
2 080 957
233 018
2 478 934
139 360
1 795 414
263 902
2 198 676
—
873 626
96 854
970 480
—
321 444
25 782
347 227
164 959
2 954 583
329 872
3 449 412
139 360
2 116 858
289 684
2 545 903
Abnormal mortality - write-down
Cost related to abnormal mortality will be immediately recognized in profit and loss, and presented as a "decrease due to abnormal mortality/
loss" in the table above. Normal mortality is classified as part of the production cost. The classification of mortality only affects the note
presentation, and hence not the fair-value calculation. See the survival rate tables in the regional chapters for details of causes of mortality.
ABNORMAL MORTALITY - WRITE-DOWN
2021
Biological assets on land
Immature fish in sea, round weight < 4.60 kg
<
Mature fish in sea, round weight > 4.60 kg
>
Total
2020 ex. Shetland
Biological assets on land
Immature fish in sea, round weight < 4.60 kg
<
Mature fish in sea, round weight > 4.60 kg
>
Total
NUMBER OF
FISH 1 000
BIOLOGICAL
ASSETS
TONNES
AVERAGE
SIZE KG
ACCRUED COST
OF PRODUCTION
NOK 1 000
1 176
957
515
2 648
1 714
1 104
227
3 045
186
2 678
2 670
5 534
1 184
2 610
1 050
4 844
0.16
2.80
5.18
2.09
0.69
2.36
4.63
1.59
18 565
44 098
54 787
117 450
40 066
97 392
39 766
177 224
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
OTHER INVENTORIES NOK 1 000
Raw materials (feed) at cost price
Roe
Other (goods in transit, frozen fish, supplementary products)
Total inventories
Impairment of inventories recognized at year-end
COST OF RAW MATERIALS AND CONSUMABLES PURCHASED NOK 1 000
Inventories at 01.01. (inverted number)
Raw materials and consumables purchased
Inventories at 31.12.
Total
2021
67 355
3 000
57 944
128 299
20 020
2021
-78 001
-1 788 565
128 299
-1 738 267
2020
65 857
4 176
7 968
78 001
5 518
2020
-177 841
-1 617 439
78 001
-1 717 279
The item raw materials and consumables mainly comprises feed, roe, recognition of extraordinary mortality and external purchases of fish
by our sales company.
NO T E 1 0 IN TA NGIBLE A S S E T S
2021 NOK 1 000
Book value at 01.01.
Currency translation differences
Additions
Disposals
Amortization
Reclassifications
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization
Accumulated impairments
Book value at 31.12.
FISH FARMING
LICENSES –
INDEFINITE
LIVES
1 493 419
28 767
41
—
—
—
GOODWILL
638 019
22 053
—
—
—
—
660 071
1 522 227
749 674
1 522 227
—
-89 603
660 071
—
—
1 522 227
FISH FARMING
LICENSES –
FINITE LIVES
OTHER
INTANGIBLE
ASSETS
15 034
524
—
—
-1 466
—
14 092
44 397
-30 305
—
14 092
38 015
747
3 792
—
-5 726
—
36 828
78 506
-41 678
—
36 828
TOTAL
2 184 486
52 090
3 833
—
-7 192
—
2 233 218
2 394 804
-71 983
-89 603
2 233 218
FISH FARMING
LICENSES –
INDEFINITE
LIVES
FISH FARMING
LICENSES –
FINITE LIVES
OTHER
INTANGIBLE
ASSETS*
GOODWILL
109 526
-78 781
677 255
-69 981
—
—
—
—
1 112 136
-477 867
762 171
-79 511
159 066
—
—
17 425
638 019
1 493 419
727 622
1 493 419
—
-89 603
638 019
—
—
1 493 419
21 495
—
—
-86
—
—
-1 491
-4 885
15 034
43 094
-28 061
—
15 034
16 205
-26
38 720
-5 116
7 980
—
-7 206
-12 542
38 015
73 917
-35 902
—
38 015
PA G E 12 6
TOTAL
1 259 360
-556 675
1 478 146
-154 694
167 046
—
-8 696
—
2 184 486
2 338 052
-63 963
-89 603
2 184 486
2020 NOK 1 000
Book value at 01.01.
Assets classified as held for sale1
Acquisition of business
Currency translation differences
Additions
Disposals
Amortization
Reclassifications
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization
Accumulated impairments
Book value at 31.12.
See Note 2 for information on the useful economic life of assets, and Note 12 for information on assets pledged as security for financial liabilities.
1This Note has been prepared for the Group’s continued operations. In 2020, we classified our Shetland assets as held for sale and treated them as discontinued operations. The Shetland
assets were sold on 15 December 2021. In addition, we sold all our shares in Ocean Quality AS in 2020, which also was treated as a discontinued operation. The impact of the held for sale
classification is presented as a reconciliation item reconciling 01.01.2020 with 31.12.2020 in the table above. For more information, see Note 5.
LICENSES
The tables below provide an overview of the Group’s licenses. See Note 2 for further information on licenses.
Canada - BC
All owners of industrial open-net pens must be approved by the the Department of Fisheries and Oceans Canada (DFO), which has regulated
the industry since 2009. From 2022, farming companies need to obtain support from local First Nations in the area where the company
has its licenses, together with the DFO. Each local First Nation establishes its own protocol and procedures for engaging with companies
operating in its territory. Grieg Seafood BC is working with all the local First Nations in their areas of operations and has engaged positively
with all of them. The new regulation will contribute to a more sustainable future for local communities and workers. See Note 4 for further
information.
NORWAY LICENSE
CATEGORY*
Seawater licences
Green licences
R&D permit
Broodstock
Smolt
Harvesting pens
Education
Total
TOTAL NUMBER CAPACITY TONNES
CANADA - BC
West Coast
East Coast
Total capacity
Tonnes
38 500
20 500
59 000
The capacity in BC is merely theoretical capacity, as all locations cannot be utilized
simultaneously. BC also has a license for broodstock and smolt
35
8
3
3
3
2
2
56
30 853
7 743
2 340
2 340
4 045
1 106
1 560
49 987
See Note 2 for information on the useful economic life of assets, and Note 12 for information on assets pledged as security for financial liabilities.
* Finnmark and Rogaland lease education licenses from the Troms and Finnmark and
Rogaland County Councils, respectively.
Newfoundland currently holds eight licenses, with the aim to develop additional licenses as the project progresses. The regulations for
salmon farming in Placentia Bay are based on the number of fish in the sea at any one site. Per license, there is a maximum of one million
fish in the sea in the first generation, and a maximum of two million fish in the second generation. In addition, there are regulations related
to fallowing and adherence to certain environmental indicators. See Note 4 for more information.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 12 7
IMPAIRMENT TESTING OF GOODWILL AND LICENSES
No impairments of goodwill or licenses were recognized in 2021 or 2020. Goodwill and licenses with indefinite economic lives are subject
Other comments/explanations on assumptions applied in impairment testing are presented below.
1. Budgeted EBITDA margin. The margin remains more stable for the Norwegian regions, and is assumed to increase for our overseas
to an annual impairment test. Tests are performed more frequently where indications of impairment exist. Licenses with finite useful lives
regions during the budget period. Increase in harvest volume is assumed in all regions towards 2024.
are tested for impairment only if there are indications of a decline in value. The estimated value in use (VIU) is used as a basis for calculating
2. The growth rate for the harvest volume in the budget period (nominal growth rate) is measured against the 2021 volume. A corresponding
the recoverable amount, except for Grieg Newfoundland where the fair value less cost of disposal (FVLCD) has been used as the basis for
increase in output is assumed over time.
the recoverable amount. Grieg Newfoundland was a new segment in 2020. As of year-end 2021, we have fish at our freshwater facility, which
3. Weighted required return on capital employed before and after tax. Cash flow forecasts are thus estimated after tax. In the calculation,
will be transferred to the sea during the spring/summer of 2022.
the return on capital employed is also after tax.
CASH-GENERATING UNIT NOK 1 000
Rogaland
Finnmark
British Columbia (BC)
Newfoundland
Total value
LOCATION
Norway
Norway
Canada
Canada
BOOK VALUE OF
RELATED
GOODWILL
BOOK VALUE
OF LICENSES
20 463
—
10 337
629 271
660 071
253 636
397 218
161 635
723 830
1 536 319
TOTAL
274 099
397 218
171 972
1 353 101
2 196 390
Goodwill arises on the acquisition of the subsidiaries and is measured on the basis of a group of cash-generating units that are expected to
benefit from the synergy effects in the overall segment. Annual impairment tests are carried out on goodwill and licenses. The recoverable
amount is calculated on the basis of value-in-use, except for Grieg Newfoundland where the calculation is based on fair value less cost of
disposal (FVLCD). These calculations use after tax cash flow projections based on financial budgets from the respective cash-generating
units over a three-year period. Cash flows beyond the three-year period are extrapolated using the estimated growth rates stated below.
The estimated growth rate corresponds to expected inflation. For Newfoundland, the period is 14 years based on the first harvest expected
in 2023. During the first few years, the cash flow will be negative due to both low production and harvest volume as well as the building of
biomass and growth investments.
ASSUMPTIONS USED FOR ESTIMATING RECOVERABLE AMOUNT
Rogaland
Finnmark
BC
Newfoundland
Budget period
Increase in revenues in budget period
EBITDA margin 1)
EBITDA margin in terminal period
Harvest growth – tonnes 2)
Required rate of return before tax 3)
Required rate of return after tax 3)
Growth rate 4)
3 years
42%
3 years
45%
3 years
58%
14 years
NA
27% -37%
30% - 39%
19% - 27%
0% - 38%
35%
23%
9%
7.0%
1%
39%
17%
9%
7.0%
1%
34%
62%
10%
7.1%
1%
38%
NA
13.5%
9.5%
1%
As stated above, the budget period/explicit period is three years for Rogaland, Finnmark and BC. Impairment tests are initially based on the
Group’s rolling four-year projections, which are also used in connection with the Group's liquidity planning. Future price levels are estimated
by using Fish Pool forward prices as a basis, adjusted for other considerations such as quality reductions and shipping costs.To test the
Newfoundland operation for impairment, we estimated the FVLCD using a period of 14 years to reflect production at full capacity in the
terminal year. Although production will increase at a slow pace in the first few years, it will pick up speed once the facilities are completed
and more smolt are transferred to the sea. We target a harvest volume of 15 000 tonnes in 2025, which we aim to increase to 45 000 tonnes
in 2035.
4. Weighted average growth rate used to extrapolate cash flows beyond the budget period. In the years after 2024, the annual reinvestment
is assumed to be equal to annual depreciation.
EBITDA MARGIN IN THE BUDGET AND TERMINAL PERIOD
The budgeted EBITDA margin is based on past performance, expected cost of production and expected market developments. An increase
in gutted weight output is assumed towards 2024 (2035 for Grieg Newfoundland). The increased harvest volume assumes an increase in
utilization of existing production capacity and licenses, reflecting the Group's post-smolt strategy and operational improvements. We expect
further growth to come from better utilization of our seawater licenses by moving more growth to land through our post-smolt program. We
are piloting post-smolt in Rogaland, and will increase post-smolt capacity also in Finnmark and BC. The expansion of the smolt facility in
BC will be completed in 2022. Better utilization of our seawater licenses by improving biosecurity, fish health, welfare and survival rates, is
also expected to secure on-growth and harvest volumes. Flexibility is a requirement to achieve better utilization of our capacity, and we are
continuously looking for opportunities to secure access to new locations.
The assumptions in the terminal year are based on the budget, adjusted for inflation. The applied discount rates are after tax and reflect
specific risks relating to the relevant operating segments.
SENSITIVITY ANALYSIS
The assessment of fair value less cost of disposal and value-in-use is sensitive to changes in the assumptions made, the most important
of which are the discount rate and EBIT/kg. A sensitivity analysis has been carried out based on these assumptions for all groups of cost-
generating units. An isolated increase in the discount rate by two percentage points would result in an estimated impairment for the
Newfoundland operation of NOK 253 million, while a reduction of NOK 5 in EBIT/kg would entail an estimated impairment for Newfoundland
of NOK 108 million. The other cost-generating units are not sensitive to equivalent changes in the same assumptions.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 12 8
NO T E 1 1 P R OP E R T Y, P L AN T AND EQUIP MEN T INCL. R IGH T- OF -U SE-
A S SE T S
2021 NOK 1 000
Book value at 01.01.
Currency translation differences
Reclassification1
Grants received and other deductions to historic
cost2
Additions3
Disposals
Depreciation
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated depreciation
Accumulated impairments
Book value at 31.12.
Of which book value of non-depreciable property
RIGHT-OF-USE ASSETS
Book value at 31.12 of right-of-use assets (see
separate specification in Note 13)
BUILDINGS/
PROPERTY
PROD. PLANTS AND
BARGES
NETS, CAGES AND
MOORINGS OTHER EQUIPMENT
TOTAL
1 182 595
25 126
-132 195
-88 910
220 066
40
-37 436
1 169 285
1 436 555
-267 270
—
1 169 285
107 839
893 039
-16 908
112 098
—
187 024
-8 812
-101 422
1 065 018
1 826 839
-721 930
-39 891
1 065 018
510 212
34 232
2 798
—
89 446
-6 613
-100 574
529 502
1 281 384
-751 882
—
529 502
447 308
3 033 154
4 830
17 299
—
303 638
-5 201
-129 050
638 824
47 280
—
-88 910
800 175
-20 587
-368 482
3 402 629
1 153 100
5 697 878
-514 276
-2 255 358
—
-39 891
638 824
3 402 629
67 927
242 934
87 743
437 294
835 898
See Note 2 for information on useful economic lifetime of assets, and Note 12 for information on assets pledged as security for financial liabilities.
See Note 13 for specification of the Group's right-of-use assets and further information on its leases.
1Reclassification primarily concern Newfoundland and asset categorization subsequent to the finalization of the first feed- and smolt facilities in Marystown, Newfoundland (Canada).
2Grants received and other deductions to historic cost. See Note 22 concerning investment tax credits.
3The Group leases vessels which are capitalized on the balance sheet as right-of-use assets. Some of these vessels are utilized in the development of the Newfoundland region. Some of
the depreciation of right-of-use assets has been capitalized as pens, nets and moorings, and is not included in the income statement.
2020 NOK 1 000
Book value at 01.01.
Assets classified as held for sale1
Acquisition of business2
Currency translation differences
Reclassification
Additions
Disposals
Reversals
Depreciation
Book value at 31.12
ACCUMULATED VALUES
Acquisition cost
Accumulated depreciation
Accumulated impairments
Book value at 31.12.
Of which book value of non-depreciable property
RIGHT-OF-USE ASSETS
Book value at 31.12 of right-of-use assets (see
separate specification in Note 13)
BUILDINGS/
PROPERTY
PROD. PLANTS AND
BARGES
NETS, CAGES AND
MOORINGS OTHER EQUIPMENT
TOTAL
663 171
-119 513
127 009
-39 811
26 770
566 316
-8 234
-33 114
1 182 595
1 418 736
-236 141
—
1 182 595
105 018
1 069 051
-173 687
1 849
1 422
-516
91 004
-1 435
-94 649
893 039
1 566 619
-633 689
-39 891
893 039
586 218
-116 490
695
4 846
80
135 355
-3 381
-97 111
510 212
1 165 973
-655 761
—
510 212
639 502
-212 615
1 148
-2 234
-26 333
227 188
-44 043
-135 304
447 309
2 957 943
-622 305
130 702
-35 778
—
1 019 864
-57 093
—
-360 178
3 033 154
832 100
4 983 429
-384 961
-1 910 552
168
-39 723
447 308
3 033 154
77 659
260 832
105 232
297 732
741 454
See Note 2 for information on useful economic lifetime of assets, and Note 12 for information on assets pledged as security for financial liabilities.
See Note 13 for specification of the Group's right-of-use assets and further information on its leases.
1This Note is prepared for the Group’s continued operation. In 2020, we have classified our Shetland assets as held for sale and treated as discontinued operations. The Shetland assets
was sold 15 December 2021. In addition, we sold all our shares in Ocean Quality AS in 2020, which also was treated as discontinued operations. The impact of the held for sale classification
is presented as a reconciliation item reconciling 1.1.2020 with 31.12.2020 in the table above. See more information in Note 5.
2Assets acquired in business combinations relate the the property, plant and equipment of Grieg Newfoundland. See more information in Note 6.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
NO T E 1 2 B OR R O W ING S
NON-CURRENT LIABILITIES AND FINANCE LEASE OBLIGATIONS (INTEREST-BEARING) NOK 1 000
Grieg Seafood ASA has a syndicated loan provided 50/50 by DNB and Nordea. The financing agreement includes two term loans of NOK 600
million and EUR 60 million, a revolving credit facility of NOK 1 225 million (2020: NOK 1 500 million), alongside overdraft facilities of NOK
100 million. Repayment profile of the NOK and EUR term-loans are semi-annual installments of NOK 25 million and EUR 2.5 million until
balloon on maturity 28 February 2023. The drawdown rate of the EUR loan is 9.6691. In 2021, the NOK term loan of the financing agreement
has been settled in full. In 2020, Grieg Seafood issued a green bond, through two tap issues, in the amount of NOK 1 500 million. The green
bond (GSF01 G, listed at Euronext) matures on 25 June 2025.
After the reporting date of 31 December 2021, Grieg Seafood has refinanced its syndicated loans. For more information, see below.
Grieg Seafood was in compliance with its financial covenants as at 31 December 2021.
Green bond
Non-current syndicated loan
Non-current credit facility
Non-current lease liabilities (prior IAS 17 finance leases)
Non-current lease liabilities (prior IAS 17 operational leases)
Other non-current liabilities
Total
NON-CURRENT LIABILITIES (NON-INTEREST BEARING)
Subordinate loans
Total
Amortization effect of loans
Total non-current liabilities
The financial covenant of the syndicated loan agreements (as at 31 December 2021) is a minimum equity ratio of 35%, measured on Grieg
CURRENT LIABILITIES (INTEREST-BEARING) NOK 1 000
Seafood’s consolidated book value. The equity ratio is calculated without the effect of IFRS 16. As at 31 December 2021, the Group had an
Current portion of borrowings
equity ratio (according to IFRS) of 52% (2020: 41%), while the equity ratio of the Grieg Seafood Group according to financial covenants was
54% (2020: 43%). In addition, there is a rolling 12-month NIBD/EBITDA leverage ratio requirement. Net interest-bearing debt (NIBD) is
calculated in accordance with covenant requirements in the financing agreement. According to the agreement, factoring liabilities and IFRS
16 effects are not included in NIBD. The leverage ratio metric of NIBD/EBITDA is linked to our equity ratio requirement: if equity ratio is more
than 40%, the maximum leverage ratio is 5.0, and if the equity ratio is equal to or less then 40%, the maximum leverage ratio is 4.5. NIBD/
EBITDA was not reported as a financial covenant from Q4 2020 through Q3 2021, pursuant to a temporary amendment to the syndicated loan
agreement. NIBD/EBITDA was measured to 2.6 as at 31 December 2021, but will not be reported as a financial covenant in the refinanced
agreement. See below for more information.
In June 2020, we issued our first green bond issue, with a proceed of NOK 1 000 million. In November 2020, Grieg Seafood ASA issued the
second tap of the senior unsecured green bond with an additional drawdown of NOK 500 million, bringing the total principal of the green
bond issue to NOK 1 500 million. The bond matures on 25 June 2025 and is listed on Euronext (Oslo Stock Exchange) with ticker "GSF01 G".
The green bond's financial covenant is an equity ratio requirement of at least 30%, measured consistently with the equity ratio covenants
as defined in the Group’s syndicated loan agreement with secured lenders. The green bond framework is the basis for the use of proceeds,
the evaluation and selection process for green projects, the management of green bond proceeds and for reporting connected to the green
bond. The framework is aligned with the ICMA Green Bond Principles. Grieg Seafood will annually publish a green bond report, including
an allocation and impact report, as long as there are green bond proceeds outstanding. The green bond report is to be verified with limited
assurance by an external auditor.
In addition to bank and bond loans, the Group's financing consists of lease agreements with credit institutions, in addition to the effect of
IFRS 16 by capitalizing leases in the balance sheet (operational leases according to the IFRS in force prior to 1 January 2019).
The Group had total unutilized credit facilities of NOK 885 million as at 31 December 2021 (2020: NOK 1 203 million).
EVENT AFTER THE BALANCE SHEET DATE:
In Q1 2022, Grieg Seafood finalized a refinancing of the Group's syndicated financial liabilities, with an aggregate of NOK 3 200 million in
Current portion lease liabilities (prior IAS 17 finance leases)
Current portion lease liabilities (prior IAS 17 operational leases)
Total current liabilities (interest-bearing)
NET INTEREST-BEARING LIABILITIES NOK 1 000
Total non-current interest-bearing liabilities (see above)*
Total current interest-bearing liabilities (see above)
Gross interest-bearing liabilities
Cash and cash equivalents
Loans to associates
Net interest-bearing liabilities
Lease liabilities (prior IAS 17 operational leases)**
Non-current debt to the Province of Newfoundland and Labrador, Canada
Net interest-bearing liabilities according to covenants
*Green bond and non-current borrowings including syndicated term loan and revolving facility as presented above, are presented excluding amortized effect of loans.
**Leasing liabilities that would, according to the IFRS in force prior to 1 January 2019, be classified as operational leases, are excluded from the net interest-bearing liabilities according
to the covenant calculation.
PAYMENT PROFILE NON-CURRENT LIABILITIES 31.12.2021
NOK 1 000
2022
2023
2024
2025
2026
LATER
TOTAL
Green bond
Non-current loan
Non-current revolving credit facility
Lease liabilities (prior IAS 17 finance leases)
Lease liabilities (prior IAS 17 operational leases)
—
—
— 1 500 000
49 944
374 580
—
440 000
72 918
104 772
4 873
67 410
81 209
11 773
—
—
57 199
80 980
12 310
—
—
43 909
51 033
9 200
—
—
—
39 525
37 084
8 114
— 1 500 000
—
—
79 535
40 255
54 353
424 524
440 000
360 496
395 332
100 622
five-year senior secured sustainability-linked loans and credit facilities. This represents the completion of the funding process. The new
Other non-current liabilities
debt structure comprises a NOK 750 million term loan, an EUR 75 million term loan, a NOK 1 500 million revolving credit facility and a NOK
200 million overdraft facility. The NOK and EUR term loans carry installments equal to a 12-year repayment profile until balloon payment
at five years. The revolving credit facility matures at five years, while the overdraft facility is subject to annual renewal. The interest rate is
three months NIBOR plus margin. The loan is linked to sustainability-linked KPIs, of which the scoring impact the interest rate margin paid
on the facilities. The sole financial covenant for the new facilities is a minimum recognized equity ratio of 31%, excluding the effect of IFRS
16 compared to the IFRS in force prior to 1 January 2019.
Total
232 507
974 972
150 489
1 604 141
84 723
174 142
3 220 974
PA G E 12 9
2020
1 500 000
869 988
996 646
355 417
176 226
52 312
2021
1 500 000
374 580
440 000
287 578
290 219
96 091
2 988 468
3 950 589
—
—
-29 671
2 958 797
2021
54 475
72 918
105 114
232 507
2021
2 988 468
232 507
3 220 974
928 342
2 111
2 290 520
-395 332
-26 487
1 868 701
—
—
-42 768
3 907 822
2020
104 435
77 769
75 426
257 630
2020
3 950 589
257 630
4 208 219
275 427
1 910
3 930 882
-251 653
—
3 679 230
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 13 0
PAYMENT PROFILE NON-CURRENT LIABILITIES 31.12.2020
NOK 1 000
2021
2022
2023
2024
2025
LATER
TOTAL
BOOK VALUE OF GROUP BORROWINGS BY
CURRENCY NOK 1 000
31.12.2021
NOK
GBP
Green bond
Non-current loan
Non-current revolving credit facility
Lease liabilities (prior IAS 17 finance leases)
Lease liabilities (prior IAS 17 operational leases)
Other non-current liabilities
Total
—
—
—
— 1 500 000
— 1 500 000
Green bond
102 352
102 352
767 636
—
77 769
75 426
2 083
—
996 646
71 587
66 526
2 820
64 930
38 955
7 281
—
—
55 337
29 109
5 867
—
—
—
—
43 932
119 632
7 354
6 160
34 284
30 186
972 339
996 646
433 186
251 653
54 396
Non-current syndicated loan
Syndicated loan - credit facility
Lease liability (prior IAS 17 finance leases)
Lease liability (prior IAS 17 operational leases)
Other non-current and current liabilities
257 630
243 283
1 875 447
90 312
1 557 446
184 102
4 208 219
Amortization effect of loans
1 500 000
1 500 000
424 524
440 000
360 496
395 332
100 622
-29 671
—
440 000
357 942
170 846
—
-29 671
—
—
—
—
—
—
—
EUR
—
424 524
—
—
—
—
—
Total
3 191 303
2 439 117
—
424 524
USD
CAD
Other
—
—
—
—
—
—
—
—
—
—
—
2 554
224 487
100 622
—
327 662
—
—
—
—
—
—
—
—
USD
CAD
Other
—
—
—
3 319
48 753
54 394
—
106 466
—
—
—
—
—
—
—
—
2021
3.76%
3.50%
—
—
—
—
—
—
—
—
2020
2.81%
1.59%
BOOK VALUE OF GROUP BORROWINGS BY
CURRENCY NOK 1 000
31.12.2020
NOK
GBP
1 500 000
1 500 000
972 339
996 646
433 187
251 653
54 394
-42 768
475 000
960 000
429 868
202 899
—
-42 768
—
—
—
—
—
—
—
EUR
—
497 339
36 646
—
—
—
—
4 165 452
3 525 000
—
533 985
Green bond
Non-current syndicated loan
Syndicated loan - credit facility
Lease liability (prior IAS 17 finance leases)
Lease liability (prior IAS 17 operational leases)
Other non-current and current liabilities
Amortization effect of loans
Total
AVERAGE INTEREST RATE ON BANK- AND BOND LOAN
Average interest rate (NOK)
Average interest rate (EUR)
The effect of interest rate swaps is not taken into account in calculating the average interest rate on borrowings and credit facilities.
BOOK VALUE AND FAIR VALUE OF BORROWINGS NOK 1 000
Green bond
Borrowings (non-current syndicated loan and credit facility, incl.
current part of the non-current liability)
Total
BOOK VALUE
FAIR VALUE
2021
1 500 000
864 524
2 364 524
2020
1 500 000
1 968 985
3 468 985
2021
1 500 000
864 524
2 364 524
2020
1 456 875
1 968 985
3 425 860
Book values in the table above are excluding the amortization effect of loan cost.
The book value of borrowings (excluding the green bond) closely approximates to the fair value.
Our green bond is listed on Oslo Børs (Euronext). Market price of the bond was 100% of par value at year-end 2021 (2020: 97.125%).
NOK 1 000
Liabilities secured by mortgages/charges on assets*
ASSETS PLEDGED AS SECURITY NOK 1 000
Licenses
Property, plant and equipment *
Trade receivables
Inventories and biological assets excl. fair value of biological assets
Assets classified as held for sale **
Total assets pledged as security
2021
1 248 889
2021
1 536 319
3 017 023
151 793
2 607 231
—
7 312 366
2020
2 407 926
2020
809 947
2 240 700
179 384
2 267 501
1 107 076
6 604 607
*Book value of liabilities secured by mortgage/charges on assets, and the property, plant and equipment does not include the book value of the effect of IFRS 16 (compared to the IFRS in
force prior to 1 January 2019) on right-of-use and lease liability.
**Part of the Shetland assets pledged as security. As for *, the book value of assets is exclusive of the effect of IFRS 16.
Pledges also include shares in subsidiaries. The book value of these shares in the consolidated financial statements is NOK 0.
DESCRIPTION OF
LIABILITIES*
Grieg Seafood ASA
Green bond
loan
facility
FIXED OR
FLOATING
INTEREST RATE**
EFFECTIVE
INTEREST
RATE***
FINAL
MATURITY
(MTH/YEAR)
CURRENT
PORTION
NOK 1 000
CURRENCY
NON-
CURRENT
PORTION
NOK 1 000
CURRENT
PORTION
NOK 1 000
NON-
CURRENT
PORTION
NOK 1 000
2021
2020
NOK
Floating
Price grid
06/2025
—
1 500 000
—
1 500 000
NOK/EUR
NOK/EUR
Floating
Price grid
02/2023
Floating
Price grid
02/2023
49 944
—
374 580
440 000
102 352
—
869 988
996 646
Grieg Seafood Group
Lease liability (prior IAS 17
finance leases)
Lease liability (prior IAS 17
operational leases)
Multiple
Multiple
Other non-current and current
liabilities****
CAD
Floating
Floating
Fixed
72 918
287 578
77 769
355 417
104 772
290 560
75 426
176 226
4 873
95 749
2 083
52 312
Total
232 507
2 988 467
257 630
3 950 589
* Excluding amortization effect of loans.
** See Note 3 concerning IBOR reform.
*** Bank loans have been refinanced in Q1 2022. Interest rates are, in both the loan agreements as per 31 December 2021 (disclosed in this table), and in the refinanced loan agreements,
based on 3M NIBOR plus margin, according to a margin ratchet/price grid. The green bond is based on 3M NIBOR plus a fixed margin of 3.4 percentage points.
**** NOK 98.6 million of the NOK 100.6 million in other non-current and current liabilities is attributable to various loans provided by government agencies in Canada concerning the
development of the Newfoundland region. These loans are recognized at present value, with a calculated interest charged to the income statement until maturity.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 13 1
LIABILITIES ARISING FROM FINANCING ACTIVITIES
NO T E 13 LE A SE S
CHANGE IN LIABILITIES ARISING FROM FINANCING ACTIVITIES NOK 1 000
LEASE LIABILITY
BORROWINGS
At 01.01.2020
Cash movements:
Draw-down green bond
Draw-down non-current syndicated NOK term loan incl. credit facility
Draw-down other non-current loan
Repayment non-current syndicated term loan (NOK and EUR)
Repayment lease liability (prior IAS 17 finance leases)
Repayment lease liability (prior IAS 17 operational leases)
Loan cost
Total cash movements
Non-cash movements:
Liabilities directly associated with the assets classified as held for sale
Acquisition of business
Draw-down lease liability (prior IAS 17 finance leases)
Draw-down lease liability (prior IAS 17 operational leases)
Non-cash movements (ex. foreign currency adjustments)
Foreign currency adjustments
Loan costs and net difference to nominal amount raised on green bond loan
Total non-cash movements
At 31.12.2020
At 01.01.2021
Cash movements:
Revolving credit facility (net draw-down/repayment)
Draw-down other non-current loan
Repayment non-current syndicated term loan (NOK and EUR)
Repayment other non-current loan
Repayment lease liability (prior IAS 17 finance leases)
Repayment lease liability (prior IAS 17 operational leases)
Loan costs
Total cash movements
Non-cash movements:
Draw-down lease liability (prior IAS 17 finance leases)
Draw-down lease liability (prior IAS 17 operational leases)
Non-cash movements (ex. foreign currency adjustments)
Foreign currency adjustments
Loan costs
Total non-cash movements
At 31.12.2021
831 993
1 761 508
—
—
—
—
-77 857
-100 074
—
-177 931
-184 618
4 734
58 850
196 124
-39 084
-5 228
—
30 777
1 500 000
364 135
23 464
-102 267
—
—
-36 743
1 748 589
-98 890
32 758
—
—
2 862
29 788
3 998
-29 484
TOTAL
2 593 501
1 500 000
364 135
23 464
-102 267
-77 857
-100 074
-36 743
1 570 658
-283 508
37 492
58 850
196 124
-36 222
24 561
3 998
1 294
THE GROUP AS A LESSEE
This note has been prepared for the Group’s continued operations. For more information, see Note 5.
The Group has several lease arrangements encompassing various offices, equipment and vehicles. Contracts are engaged with credit
institutions for leases that would have been classified as finance leases according to the IFRS in force prior to 1 January 2019, as well as
capitalized leases due to the effect of IFRS 16. Well-boats and workboats on time charters with a duration of more than one year contribute
significantly to the effect of IFRS 16.
Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-
lease components based on their relative stand-alone prices.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not
impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as
security for borrowing purposes. The leases are recognized in the respective Group companies in local currencies, and translated to the
Group’s presentation currency at the balance sheet date.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally
the case for the Group’s leases, the lessee’s incremental borrowing rate is used. This is the rate that the individual lessee would have to pay
to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar
terms, security and conditions. The Group reassesses the incremental borrowing rates applicable to new lease agreements on an annual
basis. The applied rates for new leases as from 2021 ranged from 3.9% to 4.2% for buildings and properties, and 3.6% to 3.7% for other
684 839
3 480 613
4 165 453
assets. The applied rates for new leases as from 2020 ranged from 2.4% to 3.5% for buildings and properties, and 2.4% to 3.5% for other
assets.
684 839
3 480 613
4 165 453
—
—
—
—
-77 662
-107 263
-556 222
39 147
-526 602
-1 050
—
—
—
-3 895
-556 222
39 147
-526 602
-1 050
-77 662
-107 263
-3 895
The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease
liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed
and adjusted against the right-of-use asset.
Right-of-use assets are generally depreciated on a straight-line basis over the shorter of the asset's useful life and the lease term. If the
Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.
The Group leases smaller office equipment, such as coffee machines with contract terms of 1-3 years. The Group has elected to apply
the practical expedient of low-value assets for some of these leases. Leases that have a present value as new of less than USD 5 000, are
considered low-value leases. The Group has also applied the practical expedient of short-term leases. Short term is defined as a lease term
of 12 months or less at the commencement date. For low-value leases and short-term leases, the Group does not recognize lease liabilities
-184 925
-1 048 623
-1 233 548
or right-of-use assets. These leases are recognized as operating expenses over the life of the contract.
4 804
249 437
-4 057
5 730
—
255 916
—
—
—
-13 508
16 992
3 484
4 804
249 437
-4 058
-7 778
16 992
259 398
755 828
2 435 474
3 191 303
Some of the Group's agreements have extension options which may by exercised during the last period of the lease term. The Group
assesses at commencement whether it is reasonably certain to exercise the right of renewal. The Group's potential future lease payments
not included in the lease liabilities related to extension options amounted to NOK 134 million (NOK 137 million at 31 December 2020).
This note has been prepared for the Group’s continued operations. In 2020, we classified our Shetland assets as held for sale and treated them as discontinued operations. The Shetland
assets were sold on 15 December 2021. In addition, we sold all our shares in Ocean Quality AS in 2020, which was also treated as a discontinued operation. The impact of the held for sale
classifications in 2020, reconciling 1.1.2020 with 31.12.2020, is included as a non-cash movement. For more information, see Note 5.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
THE EFFECT OF IFRS 16
The effect of IFRS 16 is attributable to the difference in accounting for the current IFRS compared to the IFRS in force prior to 1 January 2019.
LEASE LIABILITY
SUMMARY OF THE LEASE LIABILITIES NOK 1 000
The following two tables illustrate the effect IFRS 16 has had on the Group in 2021, with comparable figures for 2020.
THE EFFECT OF IFRS 16 - STATEMENT OF FINANCIAL POSITION NOK 1 000
31.12.2021
31.12.2020
Right of use assets included in property, plant and equipment inclusive right-of-use assets
Lease liabilities included in non-current lease liabilities
Lease liabilities included in current lease liabilities
THE EFFECT OF IFRS 16 - INCOME STATEMENT NOK 1 000
Other operating expenses
EBITDA before fair value adjustment
Depreciation and amortization
EBIT before fair value adjustment of biological assets
Fair value adjustment of biological assets
EBIT after fair value adjustment of biological assets
Net financial items
Profit before tax
385 606
290 219
105 114
2021
104 824
104 824
-97 374
7 450
—
7 450
-10 029
-2 579
244 692
176 226
75 426
2020
108 313
108 313
-103 343
4 970
—
4 970
-8 881
-3 911
SPECIFICATION OF RIGHT-OF-USE ASSETS
The Group's right-of-use assets are included in the financial statement line item "Property, plant and equipment incl. right-of-use-assets"
in the statement of financial position. These leased assets include both assets that would be treated as financial leases according to the
IFRS in force prior to 1 January 2019, as well as operational leases ("the effect of IFRS 16"). The effect of applying IFRS 16 is disclosed above.
RIGHT-OF-USE ASSETS 2021
NOK 1 000
Book value at 01.01.
Currency translation differences
Additions
Cancellation of lease and other changes
Depreciation
Book value at 31.12.
BUILDINGS/
PROPERTY
PROD. PLANTS
AND BARGES
NETS, CAGES
AND MOORINGS
OTHER
EQUIPMENT
77 659
260 832
105 232
69
1 219
-17
-11 003
67 927
52
1 095
-2 014
-17 032
242 934
38
3 709
-4 592
-16 644
87 743
297 732
8 299
247 959
-20 308
-96 388
437 294
RIGHT-OF-USE ASSETS 2020
NOK 1 000
Book value at 01.01.
Assets classified as held for sale, opening balance*
Currency translation differences
Additions
Cancellation of lease and other changes
Depreciation
Book value at 31.12.
BUILDINGS/
PROPERTY
PROD. PLANTS
AND BARGES
NETS, CAGES
AND MOORINGS
OTHER
EQUIPMENT
70 016
-27 966
-288
53 102
-8 234
-8 971
77 659
282 764
95 503
—
42
-1 854
-956
-19 164
260 832
—
8
31 595
-6 064
-15 810
105 232
417 224
-159 809
2 027
186 286
-43 629
-104 367
297 732
TOTAL
741 454
8 458
253 983
-26 931
-141 067
835 898
TOTAL
865 507
-187 775
1 789
269 128
-58 883
-148 311
741 454
*This note has been prepared for the Group’s continued operation. In 2020, we classified our Shetland assets as held for sale and treated them as discontinued operations. The Shetland
assets were sold on 15 December 2021. The impact of the held for sale classification is presented as a reconciliation item, reconciling 1.1.2020 with 31.12.2020 in the table above. See
more information in Note 5.
PA G E 13 2
2020
831 993
-184 618
4 734
254 973
-177 931
-5 228
-39 084
684 839
2021
684 839
—
—
254 242
-184 925
5 730
-4 057
755 828
Lease liabilities at 01.01.
Assets classified as held for sale*
Acquisition of business
New leases recognized during the year
Cash payments for the principal portion of the lease liability
Currency exchange differences
Cancellation of lease and other changes
Total lease liabilities at 31.12.
*Relates to the classification of the Group's Shetland assets as held for sale and discontinued operations, as well as the discontinued operations of Ocean Quality. For more information,
see the footnote under this note’s 2020 right-of-use assets movement table, in addition to Note 5.
MATURITY ANALYSIS - LEASE LIABILITIES NOK 1 000
Less than one year
One to two years
Two to three years
Three to four years
Four to five years
More than five years
Total undiscounted liabilities at 31.12
Lease liabilities included in the statement of financial position at 31.12
Current portion
Non-current portion
MATURITY ANALYSIS - LEASE LIABILITIES NOK 1 000
Less than one year
One to two years
Two to three years
Three to four years
Four to five years
More than five years
Total undiscounted liabilities at 31.12
Lease liabilities included in the statement of financial position at 31.12
Current portion
Non-current portion
2021
FORMER IAS 17
FINANCIAL LEASE
FORMER IAS 17
OPERATIONAL LEASE
TOTAL LEASE
LIABILITY
82 272
74 830
62 951
48 266
42 703
83 131
394 153
360 496
72 918
287 578
117 435
90 507
87 010
54 654
39 168
44 382
433 155
395 332
105 114
290 219
199 706
165 337
149 961
102 920
81 871
127 513
827 309
755 828
178 031
577 796
2020
FORMER IAS 17
FINANCIAL LEASE
FORMER IAS 17
OPERATIONAL LEASE
TOTAL LEASE
LIABILITY
88 866
80 930
72 218
61 044
48 280
126 404
477 742
433 186
77 769
355 417
82 712
70 077
42 684
31 895
8 352
40 115
275 835
251 653
75 426
176 226
171 578
151 007
114 902
92 939
56 632
166 519
753 577
684 839
153 195
531 644
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 13 3
AMOUNTS RECOGNIZED IN PROFIT OR LOSS NOK 1 000
Interest on lease liabilities
Foreign currency effect
Depreciation right-of-use assets
Expenses relating to short-term leases
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets
Total
NOK 1 000
Total cash outflow for leases
2021
-22 709
-5 112
-141 067
-5 446
-8
-174 343
2021
-207 634
2020
-22 717
1 035
-148 311
-17 898
-8
-187 901
2020
-200 648
NO T E 1 4 CL A S SI FIC AT ION S OF FIN ANCI AL INS T RUMEN T S
FINANCIAL INSTRUMENTS AT 31.12.2021 NOK 1 000
FVPL 1)
AMORTIZED COST
FVOCI 2)
TOTAL
FINANCIAL ASSETS
Other non-current receivables3
Trade receivables
Other current receivables
Derivatives4
Cash and cash equivalents
Total financial assets
FINANCIAL LIABILITIES
Borrowings
Lease liability (prior IAS 17 finance leases)
Lease liability (prior IAS 17 operational leases)
Share based payments5
Derivatives4
Trade payables
Other current liabilities
Total financial liabilities
—
—
—
37 592
—
37 592
—
—
—
9 792
22 350
—
—
2 111
151 793
12 592
—
928 342
1 094 837
2 435 475
360 496
395 332
—
—
523 196
36 603
32 142
3 751 102
271
—
—
—
—
271
—
—
—
—
—
—
—
—
2 382
151 793
12 592
37 592
928 342
1 132 700
2 435 475
360 496
395 332
9 792
22 350
523 196
36 603
3 783 244
1 FVPL: Fair value through profit or loss.
2 FVOCI: Fair value through other comprehensive income.
3 Investments in non-listed shares (equity instruments). Measured at level 3.
4 Forward currency contracts, interest rate swap and financial salmon price contracts. Measured at level 2. See Note 3 for specification.
5 Synthetic option scheme. Measured at level 3. See Note 17 for more information.
The purpose of the derivatives is to reduce the Group´s exposure to changes in floating interest rates and exchange rates. See Notes 2 and 3 for further details.
FINANCIAL INSTRUMENTS AT 31.12.2020 NOK 1 000
FVPL 1)
AMORTIZED COST
FVOCI 2)
TOTAL
FINANCIAL ASSETS
Other non-current receivables3
Trade receivables
Other current receivables
Derivatives4
Cash and cash equivalents
Total financial assets
FINANCIAL LIABILITIES
Borrowings
Lease liability (prior IAS 17 finance leases)
Lease liability (prior IAS 17 operational leases)
Share based payments5
Derivatives6
Trade payables
Total financial liabilities
—
—
—
84 189
—
84 189
—
—
—
2 842
14 346
—
17 188
2 484
179 384
38 160
—
275 427
495 454
3 480 613
433 186
251 653
—
—
562 848
4 728 300
295
—
—
—
—
295
—
—
—
—
—
—
—
2 778
179 384
38 160
84 189
275 427
579 937
3 480 613
433 186
251 653
2 842
14 346
562 848
4 745 487
1 FVPL: Fair value through profit or loss.
2 FVOCI: Fair value through other comprehensive income.
3 Investments in non-listed shares (equity instruments). Measured at level 3.
4 Forward currency contracts, interest rate swap and financial salmon price contracts. Measured at level 2. See Note 3 for specification.
5 Synthetic option scheme. Measured at level 3. See Note 17 for more information.
The purpose of the derivatives is to reduce the Group´s exposure to changes in floating interest rates and exchange rates. See Notes 2 and 3 for further details.
FAIR VALUE HIERARCHY
The following of the Group’s financial instruments are not measured at fair value: cash and cash equivalents, accounts receivables, other
current receivables and payables, bank loans, bond loans and leasing liabilities. See Note 3 for information on valuation techniques.
The Group uses the following hierarchy of valuation techniques to determine and disclose the fair value of financial instruments:
• Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities
• Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or
indirectly
• Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market
data.
For recurring level 3 measurements, transfers between the levels in the fair value hierarchy are evaluated when reassessing the categories
of the financial instruments at the end of the period. During the 2021 reporting period, there were no changes in the fair value measurement
which caused transfers between level 1 and level 2, and no transfers to or from level 3.
CREDITWORTHINESS OF FINANCIAL ASSETS
Credit risk attaching to financial instruments that have not matured or have not been written down is shown in accordance with the internal
classification of historical information on breaches of credit covenants. Further information about credit risk is provided in Note 3.
TRADE RECEIVABLES NOK 1 000
COUNTERPARTIES WITH NO EXTERNAL CREDIT RATING
Group 1
Group 2
Group 3
Total trade receivables
2021
2020
12 996
100 854
37 943
151 793
81 717
64 319
33 348
179 384
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
BANK DEPOSITS NOK 1 000
AAA
AA
A
Total bank deposits
Group 1 - new customers/related parties (less than 6 months).
Group 2 - existing customers/related parties (more than 6 months) with no history of credit covenant breaches.
2021
—
928 342
—
928 342
2020
—
275 427
—
275 427
Change in book value of deferred tax NOK 1 000
Balance sheet value at 01.01.
Effect of discontinued operations*
Currency conversion
Effect of business combinations**
Tax effect of OCI transactions (see Note 3)
Other effects
Change in deferred tax recognized in income in period
Group 3 - existing customers/related parties (more than 6 months) with a history of one or more credit covenant breaches. All amounts due
Changes to income in the period
Net deferred tax liability at balance sheet date
*See Note 5.
**See Note 6.
PA G E 13 4
2020
874 664
-66 839
-14 710
83 110
-5 380
4 455
—
4 365
879 665
2021
879 665
—
17 592
—
7 089
—
-17 043
182 440
1 069 743
have been paid in full following the breaches.
NO T E 1 5 TA XE S
INCOME TAXES FOR THE YEAR IN THE INCOME STATEMENT
Norway
Aboard
Tax on profits
Norway
Aboard
Changes in deferred tax
Total income taxes related to profit for the year
Tax reconciliation between nominal and effective tax rates NOK 1 000
Profit before tax
Taxes calculated at nominal tax rate
Withholding tax
Non-taxable income/loss from associated companies
Effect of adjustment of income tax from previous years
Effect of recognition of previously non-recognized tax assets
Effect of non-recognition of losses and tax assets
Other permanent differences
Other effect not listed
Total income tax expense
Weighted average tax rate
Tax payable book in financiale statement current liabilities NOK 1 000
Tax payable in Norway
Tax payable aboard
Total tax payable in the statement of financial position
The nominal tax rate in Norway is 22%. The nominal tax rate for 2021 in Canada was 27% in BC and 30 % in Newfoundland. The nominal tax
rate in Shetland, which relates to the Group’s assets classified as held for sale (Note 5), was 19%.
The significant tax effect is attributable to a change in the tax rate and other permanent differences.
TOTAL DEFERRED TAX ASSETS/LIABILITIES IN THE STATEMENT OF FINANCIAL POSITION NOK 1 000
Deferred tax assets
Deferred tax liabilities
Net deferred tax
2021
59
-1 069 802
-1 069 743
2020
29 293
-908 958
-879 665
The following tables provide a breakdown of deferred tax. The tax effects of taxable and deductible temporary differences are shown
separately. The Norwegian, Canadian and UK parts of the Group each have a net deferred tax position. Deferred tax liabilities and deferred
tax assets within Norway, BC, Canada, and the UK can be offset.
SPECIFICATION OF DEFERRED TAX AND BASIS FOR DEFERRED TAX/ TAX ASSETS NOK 1 000
Opening balance Non-current assets
Current assets
Debt (lease, other liabilities)
Other effect (government grant/ investment tax credit)
Tax losses carried forward
Total temporary differences
*See Note 5.
**See Note 6.
Tax loss carried forward are divided among the following jurisdictions:
Tax losses carried forward in Norway
Tax losses carried forward in Canada
Tax losses carried forward in USA
Total
2021
539 668
609 378
-15 790
-4 350
-59 162
1 069 743
2021
—
-59 162
—
-59 162
2020
245 590
687 327
-13 816
6 600
-46 035
879 666
2020
-22 136
-14 657
-3 816
-40 609
2021
99 682
-15 777
83 905
57 973
107 424
165 397
249 301
2021
853 678
226 472
7 049
327
-18 428
696
11 026
4 741
17 418
249 301
29.2%
2021
87 739
903
88 642
2020
-7 321
14 513
7 192
-1 228
5 593
4 365
11 557
2020
-304 440
-39 945
3 033
—
—
56 962
-8 916
423
—
11 557
-3.8%
2020
279
14 513
14 792
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
NO T E 1 6 S A L A R IE S AND P ER S ONNEL E XP ENSE S
SALARIES AND PERSONNEL EXPENSES NOK 1 000
Salaries
Social security costs
Share options granted to directors and key employees, incl. social security costs (Note 17)
Pension costs
Other personnel costs
Total
Average number of employees
2021
451 530
25 616
8 826
26 146
65 316
577 434
747
2020
393 390
24 838
-4 996
24 151
62 163
499 546
697
Share savings program
Grieg Seafood established a share savings program for its employees in 2018, which was continued throughout 2021. Employees may invest
up to NOK 25 000 per year. There is a three-year lock-up period. The saved amount is deducted from the monthly net salary and used to
purchase Grieg Seafood shares on behalf of the employees. The purchase will be made via the transfer of Grieg Seafood's treasury shares
or bought in the market. The purchase price and the number of shares acquired by the Company will be reported in accordance with the
applicable regulations. As at 31 December 2021, loans to employees related to the share savings program total NOK 2.7 million (2020: NOK
2.6 million). The total number of shares sold to employees was 38 513 in 2021 (2020: 42 193).
Management remuneration
In December 2019, the Norwegian Parliament adopted new rules on the wage policy of listed public companies, which came into force in
January 2021. New wage policy and reporting guidelines were approved by the Annual General Meeting of Grieg Seafood ASA on 2 June
2021. The guidelines for management remuneration are available on Grieg Seafood ASA’s website. The remuneration report for Grieg
Seafood ASA will be published at the time notice of the 2022 Annual General Meeting is issued. The Annual General Meeting is scheduled
for 9 June 2022.
REMUNERATION PAID TO GROUP
MANAGEMENT IN 2021 NOK 1 000
SALARY
BONUS
RETAINED
BONUS , NOT
YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
REMUNERATION
CEO
CFO
CTO
CHRO
COO Farming Europe
COO Farming North America
CCO
GCM
3 165
2 280
2 063
1 604
2 116
1 772
1 996
1 190
Total remuneration paid to Group Management
16 185
—
—
—
—
75
—
161
—
236
540
313
241
216
203
244
350
119
2 226
—
—
—
—
—
—
—
—
—
250
115
116
117
113
—
115
121
947
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 17.
TOTAL
3 956
2 707
2 420
1 937
2 507
2 016
2 621
1 430
19 593
REMUNERATION PAID TO BOARD MEMBERS IN 2021 NOK 1 000
Per Grieg Jr.*
Tore Holand**
Sirine M. Fodstad(until 13 of August 2021)
Marianne Ribe
Katrine Trovik
Nicolai Hafeld Grieg (from 4 of November 2021)
Total remuneration including social security costs
PA G E 13 5
TOTAL
479
371
205
308
342
—
1 706
*Payment of NOK 22 820 for service on the Remuneration Committee is included in the remuneration paid to Per Grieg Jr. and Marianne Ribe, while Sirine Fodstad received NOK 15 213
for the same.
**Payment of NOK 57 050 for service on the Audit Committee is included in the remuneration paid to Tore Holand and Katrine Trovik.
The amounts include social security costs.
REMUNERATION PAID TO GROUP
MANAGEMENT IN 2020 NOK 1 000
SALARY
BONUS
RETAINED
BONUS, NOT YET
PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
REMUNERATION
CEO
CFO
CTO
CHRO
COO Farming Europe
COO Farming North America
CCO
GCM
2 841
2 173
1 996
1 574
1 996
1 825
525
1 035
Total remuneration paid to Group Management
13 965
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2 709
2 070
1 868
1 431
1 615
1 571
—
—
11 264
118
101
101
106
78
78
81
96
759
TOTAL
5 668
4 344
3 965
3 111
3 689
3 474
606
1 131
25 987
In May 2020, Grieg Seafood announced changes to the Group Management structure, with the inclusion of COOs for farming in Europe and North America. In June, the Chief Commercial
Officer was added to Grieg Seafood’s Group Management team.
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 17.
The table has been amended compared to the annual report 2020.
REMUNERATION PAID TO BOARD MEMBERS IN 2020 NOK 1 000
Per Grieg Jr.*
Tore Holand**
Sirine M. Fodstad*
Marianne Ribe (from 14 May 2020)*
Katrine Trovik (from 14 May 2020)**
Asbjørn Reinkind (until 14 May 2020)
Karin Bing Orgland (until 14 May 2020)**
Solveig M.R. Nygaard (until 14 May 2020)
Total remuneration including social security costs
TOTAL
479
348
308
178
195
140
143
119
1 909
* Payment of NOK 22 820 for service on the Remuneration Committee is included in the remuneration paid to Per Grieg Jr. and Sirine Fodstad, while Marianne Ribe received NOK 11 410
for the same .
**Payment for service on the Audit Committee is included in the remuneration paid to Tore Holand, Katrine Trovik and Karin Bing Orgland, in the amount of NOK 57 050, 28 525 and 23
770, respectively.
The amounts include social security costs.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 13 6
Cash-based options available for settlement
Weighted average exercise price on outstanding options (NOK per option)
2021
2 690 000
80.16
2020
2 790 000
80.26
NOK/OPTION
AMOUNTS IN NOK 1 000
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL
VALUE
OF ALL
OPTIONS AT
1.1.2021
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION
2021
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2021
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2021
—
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
83.00
83.00
83.00
83.00
83.00
—
4.35
6.34
5.82
7.20
6.04
5.87
5.87
6.13
7.04
2.26
2.79
2.79
2.38
2.35
—
1 480
1 078
989
720
604
999
999
1 042
3 519
906
557
557
475
—
56
41
37
27
23
38
38
39
132
467
316
296
247
—
1 352
868
803
573
488
810
810
842
2 788
-460
-313
-293
-243
1 880
15 805
1 085
2 842
-1 074
6 951
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
1 408
909
840
600
511
847
847
881
2 921
7
4
4
4
11
9 794
2021
Former employees
with expired options
OPTION
CATEGORY
Equity
option
CEO
CFO
CTO
CHRO
GCM
COO Farming
Europe
COO Farming North
America
CCO
Other options
allocated in 2020
CEO
CFO
COO
CHRO
Other options
allocated in 2017
Total
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
* Amounts exclude social security costs.
NO T E 1 7 SH AR E B A S ED PAYMEN T S
The Group has issued options to the Group Management team and regional directors. The options’ strike price is the stock market price
on the date of issue, rising by 0.5% per month until the exercise date. Since 2009, an option scheme with settlement in cash has been
established for Group Management and regional directors. The most recent allocation was in 2020, totaling 1 890 000 options. The final
exercise date is 31 May 2024. The options have a term of two years, where 50% is vested each year. Employees joining the Group after the
initial allocation of options, are allocated options on taking up employment.
The Black & Scholes option pricing model is used to calculate the market value. A brokerage firm is used to perform the calculations
and the measurement is according to level 3 of the fair value hierarchy (see Note 3 and Note 14). The table below shows the movement in
outstanding options in 2020 and 2021.
OVERVIEW 2021
(TOTAL OPTIONS)
OPTION
CATEGORY
OUTSTANDING
OPTIONS AT
31.12.2020
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
OPTIONS AT
31.12.2021
OF WHICH CASH-
SETTLED
CEO
CFO
CTO
CHRO
GCM
COO Farming
Europa
COO Farming North
America
CCO
Others
Total
Cash settlement
Cash settlement
Cash settlement
Cash settlement
Cash settlement
540 000
270 000
270 000
200 000
100 000
Cash settlement
270 000
Cash settlement
Cash settlement
Cash settlement
270 000
170 000
700 000
2 790 000
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
OVERVIEW 2020
(TOTAL OPTIONS)
OPTION
CATEGORY
OUTSTANDING
OPTIONS AT
31.12.2019
GRANTED
OPTIONS
EXERCISED
OPTIONS
CEO
CFO
COO
CHRO
Others
Total
Cash settlement
Cash settlement
Cash settlement
Cash settlement
Cash settlement
400 000
200 000
200 000
132 712
677 492
340 000
170 000
170 000
100 000
1 110 000
1 610 204
1 890 000
48 271
36 881
33 287
25 509
108 763
252 711
—
—
—
—
—
—
—
—
100 000
100 000
EXPIRED
OPTIONS
151 729
63 119
66 713
7 203
168 730
457 494
ALLOCATION:
YEAR - MONTH
EXPIRY DATE: YEAR -
MONTH
STRIKE PRICE NOK PER
SHARE AT 31.12.2021
STRIKE PRICE NOK PER
SHARE AT 31.12.2020
2017 - 11
2020 - 12
2020 - 12
Total
2021 - 05
2023 - 05
2024 - 05
106.28
83.82
83.82
100.07
78.96
78.96
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
600 000
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
600 000
2 690 000
2 690 000
OUTSTANDING
OPTIONS AT
31.12.2020
OF WHICH CASH-
SETTLED
540 000
270 000
270 000
200 000
1 510 000
2 790 000
OPTIONS
2021
800 000
945 000
945 000
540 000
270 000
270 000
200 000
1 510 000
2 790 000
2020
900 000
945 000
945 000
2 690 000
2 790 000
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 13 7
NOK/OPTION
AMOUNTS IN NOK 1 000
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL
VALUE
OF ALL
OPTIONS AT
01.01.2020
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION
2020
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2020
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2020
2020
Former employees
with expired options
OPTION
CATEGORY
Equity
option
CEO
CFO
CTO
CHRO
GCM
COO Farming
Europe
COO Farming North
America
CCO
CEO
CFO
COO
CHRO
Other options
allocated in 2020
Other options
allocated in 2017
Total
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
—
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
83.00
83.00
83.00
83.00
78.96
83.00
—
4.35
6.34
5.82
7.20
6.04
5.87
5.87
6.13
2.26
2.79
2.79
2.38
7.04
2.35
* Amounts exclude social security costs.
ACCRUED COSTS RELATED TO CASH OPTIONS NOK 1 000
Change in provisions
Exercised options during the year
Total costs excl. social security costs
Social security costs
Total costs incl. social security costs
—
1 480
1 078
989
720
604
999
999
1 042
906
557
557
475
—
—
—
—
—
—
—
—
—
—
56
41
37
27
23
38
38
39
—
—
—
—
—
—
—
—
—
4 007
2 505
2 688
1 891
-3 540
-2 188
-2 392
-1 645
2 709
2 070
1 868
1 431
3 519
—
132
—
1 880
15 805
8 557
19 648
-7 472
-16 806
6 103
14 181
6 887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
56
41
37
27
23
38
38
39
467
316
296
247
132
1 085
2 842
2021
6 951
—
6 951
973
7 924
2020
CLASSIFICATION IN FINANCIAL STATEMENTS
-16 807
Other provisions for liabilities
14 181
Salaries and personnel expense / cash
-2 626
-2 370
Public taxes payable
-4 996
Salaries and personnel expense
NO T E 18 S H AR E C AP I TAL A ND S H AR EHOL DE R I NF OR M AT ION
As at 31 December 2021, the Company had 113 447 042 shares with a nominal value of NOK 4 per share. All shares issued by the Company
are fully paid-up. There is one class of shares and all shares confer the same rights.
SHARE CAPITAL AND NUMBER OF SHARES
31.12.2021
NOMINAL VALUE
PER SHARE (NOK)
TOTAL SHARE CAPITAL NOK 1 000
NO. OF ORDINARY SHARES
Total
Holdings of treasury shares
Sale of treasury shares 2018-2020
Sale of treasury shares 2021
Total excl treasury shares
4.00
4.00
4.00
4.00
453 788
-5 000
314
154
449 256
113 447 042
-1 250 000
78 506
38 513
112 314 061
Treasury shares
In June 2011, the Company purchased 1 250 000 treasury shares at NOK 14.40 per share. On 21 November 2018, the Company sold 21 576
shares to employees for use in the share savings program. The sales price was NOK 121.56 per share, which provided a gain of NOK 107.16
per share. Another 14 737 shares were sold to employees in November 2019 at a sales price of NOK 136.05 per share, providing a gain of
NOK 121.65 per share. In 2020, Grieg Seafood ASA sold 42 193 shares at a sales price of NOK 77.16 per share, providing a gain of NOK 62.76
per share. In 2021, Grieg Seafood ASA sold 38 513 shares at a sales price of NOK 93.73 per share, providing a gain of NOK 79.33 per share.
After the transactions the Company has 1 132 981 treasury shares.
CHANGES IN SHARE CAPITAL
Share capital 01.01.2020
Contribution in kind 20.04.2020
Share capital 31.12.2020
Share capital 01.01.2021
No transaction in 2021
1 January 2020
20 April 2020
n/a
1 January 2021
n/a
Share capital per 31.12.2021
31 December 2021
NOMINAL VALUE
PER SHARE (NOK)
TOTAL SHARE CAPITAL
NOK 1 000
NO. OF ORDINARY SHARES
4.00
4.00
4.00
4.00
—
4.00
446 648
7 140
453 788
453 788
—
453 788
111 662 000
1 785 042
113 447 042
113 447 042
—
113 447 042
Cost relating to cash-based remuneration in 2021 totaled NOK 7 924 thousands. This is recognized in the income statement as a personnel
cost. Social security contributions are provided for on an ongoing basis based on the fair value of the options.
Acquisition of Grieg Newfoundland
On 20 April 2020, Grieg Seafood ASA's share capital was increased by 1 785 042 shares (nominal value of NOK 4 per share), from 111 662 000
shares to 113 447 042 shares. The share capital was thus increased by NOK 7 140 168, from NOK 446 648 000 to NOK 453 788 168. The share
As at 31 December 2021, outstanding options with the right to cash settlement were stated at NOK 9 794 thousands excl. social security
issue in the Company to shareholders Grieg Aqua AS, Kvasshøgdi AS, Knut Skeidsvoll and Ocean Choice International Ltd was related to the
costs, of which NOK 29 thousands were classified as current liabilities. The book value of long term liabilities including social security cost
Company’s acquisition of Grieg Newfoundland AS, which was completed on 15 April 2020. For more information, see Note 6.
was NOK 11 115 thousands.
ESTIMATES USED TO CALCULATE ALLOCATION OF OPTIONS
31.12.2021
31.12.2020
Anticipated volatility (%)
Risk-free rate of interest (%)
Estimated qualification period (years)
36.44%
1.13%
1.39
44.19%
0.34%
2.11
The estimated qualification period for the options is based on historical data, and does not necessarily represent future developments.
In order to estimate volatility, management has applied historical volatility for comparable listed companies.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 13 8
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
Folketrygdfondet
OM Holding AS
Ystholmen Felles AS
State Street Bank and Trust Comp (nominee)
Clearstream Banking S.A. (nominee)
BNP Paribas Securities Services (nominee)
Ferd AS
Six Sis AG (nominee)
CACEIS Bank Spain SA (nominee)
Banque Degroof Petercam Lux. SA (nominee)
Grieg Seafood ASA
JPMorgan Chase Bank, N.A., London (nominee)
Kvasshøgdi AS
Verdipapirfondet Pareto Investment
State Street Bank and Trust Comp (nominee)
State Street Bank and Trust Comp (nominee)
Ronja Capital II AS
Pictet & Cie (Europe) S.A. (nominee)
Danske Invest Norge Vekst
Total 20 largest shareholders
Total others
Total number of shares
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
Folketrygdfondet
OM Holding AS
Ystholmen Felles AS
Clearstream Banking S.A. (nominee)
State Street Bank and Trust Comp (nominee)
Ronja Capital II AS
Grieg Seafood ASA
Six Sis AG (nominee)
UBS Switzerland AG (nominee)
JPMorgan Chase Bank, N.A., London (nominee)
Banque Degroof Petercam Lux. SA (nominee)
Verdipapirfondet Pareto Investment
State Street Bank and Trust Comp (nominee)
State Street Bank and Trust Comp (nominee)
Ferd AS
Svenska Handelsbanken AB (nominee)
J.P. Morgan Bank Luxembourg S.A. (nominee)
State Street Bank and Trust Comp (nominee)
Danske Invest Norge Vekst
Total 20 largest shareholders
Other shareholders
Total shares
SHARES CONTROLLED BY BOARD MEMBERS AND GROUP
MANAGEMENT
BOARD OF DIRECTORS
Per Grieg Jr. *
Tore Holand (Skippergata 24 AS, and privately)
Sirine Fodstad (resigned 13 August 2021)
Marianne Ribe
Katrine Trovik
Nicolai Hafeld Grieg (board member from 4 November 2021)
GROUP MANAGEMENT
CEO
CFO
CTO
COO Farming Europe
COO Farming North America
CHRO
GCM
CCO
NO. OF SHARES
SHAREHOLDING
NO. OF SHARES
SHAREHOLDING
31.12.2021
31.12.2021
31.12.2020
31.12.2020
60 356 985
2 000
—
—
—
—
39 809
24 852
24 151
22 809
24 209
12 380
644
644
53.20%
0.00%
—%
—%
—%
—%
0.04%
0.02%
0.02%
0.02%
0.02%
0.01%
0.00%
0%
60 356 985
53.20%
2 000
—
—
—
—
39 489
24 532
23 831
22 489
19 889
12 060
324
324
0%
—%
—%
—%
—%
0.03%
0.02%
0.02%
0.02%
0.02%
0.01%
0%
0%
* THE SHARES OWNED BY THE FOLLOWING COMPANIES ARE CONTROLLED BY PER GRIEG JR. AND FAMILY
Grieg Aqua AS
Ystholmen Felles AS
Kvasshøgdi AS
Per Grieg jr. privately
Thomas Willumsen Grieg
Total shares
56 914 355
2 428 197
996 772
15 000
2 661
60 356 985
50.17%
56 914 355
50.17%
2.14%
0.88%
0.01%
0%
53.20%
2 928 197
496 772
15 000
2 661
60 356 985
2.58%
0%
0.01%
0%
53.20%
On 30 December 2020, the board of Ystholmen Felles AS submitted a proposal to the company's general meeting to demerge the company,
whereby 500 000 shares in Grieg Seafood ASA would be transferred from Ystholmen Felles AS to Kvasshøgdi AS, org.no. 921 020 961. The
general meeting of Ystholmen Felles AS accepted the board's proposal. Per Grieg Jr. is the sole shareholder in Kvasshøgdi AS.
Following the completion of the demerger, Per Grieg Jr. and the other shareholders own 2 428 197 shares in Grieg Seafood ASA through
their ownership of Ystholmen Felles AS. In addition, Per Grieg Jr. owns 996 772 shares in Grieg Seafood ASA through his ownership of
Kvasshøgdi AS. The demerger was effective from 4 March 2021.
Nicolai Hafeld Grieg owns, indirectly, 1.87% of Grieg Seafood ASA through his ownership in Grieg Maturitas AS, the parent company of Grieg
Aqua AS.
NO. OF SHARES
SHAREHOLDING
31.12.2021
56 914 355
31.12.2021
50.17%
5 312 207
4 917 957
2 428 197
1 867 464
1 711 386
1 634 500
1 456 453
1 380 743
1 212 652
1 164 795
1 132 981
1 035 915
996 772
916 000
883 362
862 797
755 004
646 320
561 000
4.68%
4.34%
2.14%
1.65%
1.51%
1.44%
1.28%
1.22%
1.07%
1.03%
1.00%
0.91%
0.88%
0.81%
0.78%
0.76%
0.67%
0.57%
0.49%
87 790 860
25 656 182
113 447 042
77.38%
22.62%
100.00%
NO. OF SHARES
SHAREHOLDING
31.12.2020
56 914 355
4 281 530
4 235 656
2 928 197
1 937 653
1 616 926
1 200 000
1 171 494
1 038 659
945 209
915 596
822 051
764 000
737 722
697 771
688 453
593 415
592 624
524 061
521 000
31.12.2020
50.17%
3.77%
3.73%
2.58%
1.71%
1.43%
1.06%
1.03%
0.92%
0.83%
0.81%
0.72%
0.67%
0.65%
0.62%
0.61%
0.52%
0.52%
0.46%
0.46%
83 126 372
30 320 670
113 447 042
73.27%
26.73%
100.00%
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 13 9
NO T E 1 9 E A R NING S P ER SH AR E AND DI V IDEND P ER SH AR E
NO T E 20 C A SH A ND C A SH EQUI VALEN T S
CASH AND CASH EQUIVALENTS NOK 1 000
Restricted deposits incl. employee tax deductions
Other cash and bank deposits
Total
2021
25 067
903 274
928 342
2020
27 219
248 208
275 427
The Group's currency and interest rate exposure is described in Note 3.
See Note 3 and Note 12 for information on the Group’s available credit facilities.
CALCULATION OF EARNINGS PER SHARE
Profit / loss after tax continued operations (majority share)
Profit / loss discontinued operations (majority share)
Profit / loss after tax (majority share)
Number of shares at 01.01
Effect of treasury shares (Note 18)
Increase of share capital through contribution in kind (acquisition of Grieg Newfoundland)
Sale of treasury shares to employees
Number of outstanding shares at 31.12.
Effect of the contribution in kind
Effect of share options to employees
Weighted average number of outstanding shares at 31.12.
Diluted number of outstanding shares at 31.12.
Earnings per share (NOK)
Continued operations
Discontinued operations
Earnings per share - Total
Diluted earnings per share (NOK)
Continued operations
Discontinued operations
Earnings per share - Total
Proposed dividend per share (NOK)
2021
604 377
600 291
1 204 668
113 447 042
-1 171 494
—
38 513
2020
-315 997
-225 057
-541 054
111 662 000
-1 213 687
1 785 042
42 193
112 314 061
112 275 548
—
33 870
112 280 191
112 280 191
537 958
37 569
111 700 021
111 700 021
5.4
5.3
10.7
5.4
5.3
10.7
3.00
-2.8
-2.0
-4.8
-2.8
-2.0
-4.8
0.00
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 14 0
NO T E 2 1 T R ADE R ECEI VA BLE S
TRADE RECEIVABLES NOK 1 000
Gross amount of trade receivables*
Trade receivables deducted**
Loss allowance
Trade receivables at 31.12.
*At year-end 2020, none of the NOK 193 million in gross trade receivables were financed through a factoring agreement.
**Trade receivables bought by the factoring company. The Group re-established a factoring arrangement in 2021.
RECOGNIZED LOSSES NOK 1 000
Change in loss allowance
Confirmed losses in the year
Confirmed losses and change in loss allowance from operations classified as held for sale
Amounts received for previously written off trade receivables
Total recognized losses on receivables
2021
479 228
-312 469
-14 965
151 793
2021
1 427
—
—
—
1 427
2020
192 921
—
-13 538
179 384
2020
9 915
508
4 063
—
14 486
Losses on receivables are classified as other operating expenses in the income statement.
In the Group's expected credit loss (ECL) calculation model, customers are categorized as high or low risk, depending on their country of
origin, and as credit insured or unsecured. The group of unsecured receivables also consists of some receivables that have other types of
security. The risk of loss is therefore considered low and no loss allowance is calculated for these receivables. The risk evaluation
is based on our own experience and input from credit insurance companies. A loss allowance is calculated as a percentage of the aging
distribution (days past due). The Group also makes manual accruals if significant information implies that there is a higher risk of losses.
Around 5% credit risk also remains for the factored trade receivables. The aging analysis given below is therefore based on the total
receivables rather than total receivables less the factored receivables. For more information about credit risk, refer to Note 3.
NOK 1 000
GROSS
AMOUNT
EXPOSED
AMOUNT
NOT YET
DUE
OVERDUE
0-30 days
OVERDUE
31-60
days
OVERDUE
61-90
days
OVERDUE
> 90 days
>
OVERDUE
> 1 year
>
Total
AGING PROFILE OF TRADE RECEIVABLES (TR) 31.12.2021
TR Credit
insured
Regular/normal
risk countries
TR
Unsecured
TR Credit
insured
TR Unsecured
High risk
countries
Total
LOSS ALLOWANCE 31.12.2021
TR Credit
insured
Regular/normal
risk countries
TR
Unsecured
TR Credit
insured
TR Unsecured
High risk
countries
Total
NOK 1 000
425 546
52
289 555
126 792
4 344
5 238
(382)
—
425 546
50 334
50 334
17 596
16 599
302
(1 131)
1 018
15 951
50 334
3 291
56
—
56
1 431
—
1 872
—
—
4
—
—
479 228
50 443
308 582
145 264
4 650
4 106
(12)
52
676
—
—
3 291
56
15 951
479 228
—
—
—
—
—
52
50 334
—
56
50 443
—
—
—
—
—
11
304
—
—
316
4
93
—
—
98
11
31
—
57
1 029
1 100
12 333
14 859
—
—
48
—
—
—
49
—
1 040
1 179
12 333
14 965
GROSS
AMOUNT
EXPOSED
AMOUNT
NOT YET
DUE
OVERDUE
0-30 days
OVERDUE
31-60
days
OVERDUE
61-90
days
OVERDUE
> 90 days
>
OVERDUE
> 1 year
>
Total
AGING PROFILE OF TRADE RECEIVABLES (TR) 31.12.2020
TR Credit
insured
Regular/normal
risk countries
TR
Unsecured
TR Credit
insured
TR Unsecured
High risk
countries
Total
LOSS ALLOWANCE 31.12.2020
TR Credit
insured
Regular/normal
risk countries
TR
Unsecured
TR Credit
insured
TR Unsecured
High risk
countries
Total
54 797
8 219
29 038
23 553
756
—
1 451
—
54 797
138 124
138 128
57 937
21 794
44 520
358
11 744
1 770
138 124
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
192 921
146 347
86 975
45 347
45 275
358
13 195
1 770
192 921
—
—
—
—
—
8 219
138 128
—
—
146 347
—
—
—
—
—
7
—
—
—
7
—
6
—
—
6
—
29
—
—
29
1 574
—
1 581
614
11 309
11 958
—
—
—
—
—
—
2 188
11 309
13 538
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 141
ACQUISITION OF GRIEG NEWFOUNDLAND AS IN 2020
The acquisition of Grieg Newfoundland AS (99%) was completed on 15 April 2020. Grieg Newfoundland AS was 39% owned by Grieg Kapital
AS/Grieg Aqua AS (the owner of the majority of the shares in Grieg Seafood ASA), and 39% by Kvasshøgdi AS (owned by Per Grieg Jr., Chair
of Grieg Seafood ASA’s Board of Directors). The remaining shares were owned by the local partner Ocean Choice International Ltd (19.5%)
and Knut Skeidsvoll (2.5%). For more information, see Note 6.
OTHER TRANSACTIONS WITH RELATED PARTIES
The Group carries out transactions with companies controlled by Grieg Maturitas II AS, which is the parent company of Grieg Aqua AS, the
majority owner of Grieg Seafood ASA. The ultimate parent company of Grieg Seafood ASA is Grieg Maturitas AS, the parent company of
Grieg Maturitas II AS.
The services provided include:
•
ICT-related services and other functions such as catering, reception, etc., are provided by Grieg Group Resources AS on an arm’s length
basis.
• Grieg Seafood ASA rents its offices from Grieg Gaarden AS on an arm’s length basis. The office rental agreement runs for a period of
ten years.
• The regions purchased cleaner fish from Rensefiskgruppen AS including subsidiaries, a company owned by Grieg Kapital AS.
• Fuel is purchased from Eidsvaag AS, a company related to a board member of Grieg Seafood.
• Algae monitoring services are purchased from Blue Planet AS, a company related to the regional director for Europe.
The parent company provides a range of services to its subsidiaries. The services include administrative services and services relating to the
provision of parent company non-current loans and current credit facilities to subsidiaries. Interest is charged on an arm's length basis. In
addition, Grieg Seafood ASA engages in hedge contracts on behalf of subsidiaries. The arrangement is intended to reduce these companies'
exposure to salmon prices. Agreements with the subsidiaries are priced on the basis of a "back-to-back" arrangement.
The Group also purchases services relating to operations from other related parties and associates. The Board and Group Management are
related parties. See Note 17 on share-based options and Note 18 on shares controlled by members of the Board and Group Management.
All transactions, including both the sale and purchase of goods and services, are made on an arm’s length basis.
NO T E 2 2 O T H ER NON- CU R R EN T R ECEI VA BLE S AND O T HER CUR R EN T
R EC EI VA BLE S
OTHER NON-CURRENT RECEIVABLES NOK 1 000
Investment tax credit*
Loan to associated company
Investments in shares
Other non-current receivables
Total
Note
11
7
14
2021
81 575
2 111
271
6 940
90 897
2020
—
1 910
295
7 271
9 476
*Investment tax credit related to the freshwater facility in Newfoundland. The investment tax credit is recognized in line with a government grant. Investment tax credits are recognized
when the qualifying property, plant and equipment are available for productive use, and are recorded as a direct decrease in property, plant and equipment. Investment tax credits are
deferred and offset against future tax liability.
OTHER CURRENT RECEIVABLES NOK 1 000
VAT receivable
Prepaid expenses
Realized gain on price contracts
Other current receivables
Total
Note
3, 26
2021
57 594
43 490
—
46 247
147 332
2020
38 851
37 259
27 411
29 547
133 069
NO T E 23 R E L AT E D PAR T IE S
2021 NOK 1 000
Total related parties as shareholders
Total related parties as associates
Total
2020 NOK 1 000
Total related parties as shareholders
Total related parties as associates
Total
This note contains information for the Group’s continued operations.
OPERATING
INCOME
OPERATING
EXPENSES
NON-CURRENT
BALANCES
CURRENT
BALANCES
—
9 698
9 698
37 389
153 086
190 475
—
2 111
2 111
-15 915
-23 615
-39 530
OPERATING
INCOME
OPERATING
EXPENSES
NON-CURRENT
BALANCES
CURRENT
BALANCES
—
11 556
11 556
44 553
132 216
176 769
-7
1 910
1 903
-11 028
—
-11 028
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 14 2
NO T E 24 FIN A NCI AL INC OME AND FIN ANCI AL E XP ENSE S
NO T E 25 O T HER OP ER AT ING E X P ENS E S
FINANCIAL ITEMS NOK 1 000
FINANCIAL INCOME
Net change in fair value of derivatives
Net currency gains
Other financial income
Total
FINANCIAL EXPENSE
Interest expense on external borrowings and leases*
Amortized establishment cost
Other interest expenses
Net change in fair value of derivatives
Net currency losses
Other financial expenses
Total
Net financial items
2021
2020
OTHER OPERATING EXPENSES NOK 1 000
Transportation costs
Maintenance costs
Electricity and fuel
Lease expenses 1)
Outsourced services and audit fees
Insurance
IT expenses
Marketing costs
Other operating expenses 2)
Other production-related costs 1, 3)
Total other operating expenses
28 370
96 709
154
125 233
189 390
16 476
1 769
—
—
4 864
212 499
-87 266
—
—
103
103
97 383
21 498
2 206
24 518
98 714
3 577
247 895
-247 792
*Interest expenses on bank borrowings and leases includes recognized gains/losses from realized interest rate swaps of NOK 7 million in 2021 (2020: NOK 2 million).
2021
265 639
295 270
113 778
24 555
94 100
54 223
59 437
2 942
64 397
553 005
1 527 347
2020
355 994
256 442
92 157
14 938
101 686
47 920
53 079
5 517
101 148
563 971
1 592 852
1) Includes lease expenses and lease-related expenses, including the effect of IFRS 16.
2) Includes equipment, telephony/postage, office supplies, fees, travel costs and the like.
3) Production-related costs comprise harvesting costs including expenses for well-boat services, packaging material, diving services, vaccination, delousing, oxygen, and analyses and
the like.
BREAKDOWN OF TOTAL AUDITOR'S FEES NOK 1 000
AUDITOR'S FEES
Group auditor
Other auditors
OTHER CERTIFICATION SERVICES
Group auditor
Other auditors
TAX ADVICE
Group auditor
Other auditors
OTHER SERVICES
Group auditor
Other auditors
Total Group auditor
Total other auditors
Total auditor's fees
2021
4 132
500
752
—
883
—
86
206
5 852
706
6 558
2020
2 646
560
362
—
668
473
296
342
3 971
1 374
5 346
Total audit fees disclosed in the table above are for the Group’s continued operations.
The audit fee specification for 2021 includes fees paid to Advokatfirmaet PricewaterhouseCoopers AS (tax-related assistance) of NOK 38 000 (2020: NOK 338 000).
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 14 3
NO T E 2 6 O T HE R CUR R EN T LI A BILI T IE S
OTHER CURRENT LIABILITIES NOK 1 000
Accrued expenses *
Production fee (Norway)**
Realized gain/loss on fixed-price contracts***
Other current liabilities
Other current liabilities
2021
133 385
24 463
12 530
42 044
212 422
2020
83 559
—
—
11 057
94 616
* Accrued expenses relate to other operating expenses, including accrued purchases, transportation costs, bonuses/discounts for buyers, accrued salaries, and insurance.
** As from 1 January 2021, a fixed rate of NOK 0.40/kg (gutted weight) is charged on fish harvested in Norway. The production fee is presented on a separate line item "Production fee"
in the income statement, and included in “EBIT after production fee and fair value adjustment on biological assets”. The production fee in 2021 totaled NOK 10.7 million for Rogaland and
NOK 13.8 million for Finnmark, in total NOK 24.5 million. The Norwegian production fee is accrued throughout the current year, and payable in 2022.
*** See Note 3 and Note 22.
NO T E 2 7 NE W A C C OU N T ING S TAND AR DS
Lessees must apply the practical amendment retrospectively, recognizing the cumulative effect of initially applying the amendment as
an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of the annual
reporting period in which the amendment is first applied.
The extension of the amendment is effective for annual periods beginning on or after 30 June 2021, but earlier application is permitted. The
Group has chosen to adopt this amendment early.
The amendment has had no impact on the Grieg Seafood consolidated financial statement for 2021.
B) NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS - NOT YET ADOPTED
Standards, amendments and interpretations that are issued up to the date of issuance of the consolidated financial statement, but not
yet effective, are disclosed below. This list is not complete, and merely indicate standards, amendments and interpretation that could be
relevant for Grieg Seafood. The Group’s intention is to adopt the relevant new and amended standards and interpretations when they become
effective, subject to EU approval before the consolidated financial statements are issued.
Amendments to IAS 1 - Classification of Liabilities as Current or Non-Current
The narrow-scope amendments to IAS 1 Presentation of Financial Statements clarify that liabilities are classified as either current or non-
current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or
events after the reporting date (e.g. the receipt of a waver or a breach of covenant). The amendments also clarify what IAS 1 means when
it refers to the ‘settlement’ of a liability. The amendments must be applied retrospectively and are effective for annual periods beginning
on or after 1 January 2023. The Group does not intend to adopt the amendments early. As at 31 December 2021, the Group does not expect
significant impacts from applying the amendment with effect from 1 January 2023.
CHANGES IN ACCOUNTING POLICIES AND DISCLOSURE OF NEW STANDARDS
A) NEW AND AMENDED STANDARDS, AND INTERPRETATIONS - ADOPTED IN 2021
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 - Interest Rate Benchmark Reform - Phase 2
In August 2020, the IASB issued Phase 2 of its project which amends IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition
Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies
The IASB amended IAS 1 to require entities to disclose their material rather than their significant accounting policies. The amendments
define what is ‘material accounting policy information’ and explain how to identify when accounting policy information is material. They
further clarify that immaterial accounting policy information does not need to be disclosed. If it is disclosed, it should not obscure material
and Measurement, IFRS 7 Financial Instruments: Disclosures, IFRS 4 Insurance Contracts and IFRS 16 Leases. Phase 2 finalizes IFRS’s
accounting information. The amendments are effective for annual periods beginning on or after 1 January 2023, but earlier application is
response to the ongoing reform of interbank offer rates (IBOR) and other interest rate benchmarks.
permitted as long as this fact is disclosed. The Group does not intend to adopt the amendments early. It is not expected that the amendments
The amendments complement Phase 1, issued in 2019, and focus on the effects on financial statements when a company replaces the old
interest rate benchmark with an alternative benchmark rate as a result of the reform.
The Phase 2 amendments mainly consist of the following:
a. Practical expedient for particular changes to contractual cash flows
2. Relief from specific hedge accounting requirements
3. Disclosure requirements
Grieg Seafood does not apply hedge accounting, and our exposure to the IBOR reform is through the NIBOR rates on our bank loans, bond
loan, and the interest-rate swaps made on NIBOR (sell floating/buy fixed interest rate). The amendments have had no impact on the Grieg
Seafood consolidated financial statement for 2021 as NIBOR rates have not been replaced as at 31 December 2021.
will significantly impact the disclosure of accounting policies by Grieg Seafood.
Amendments to IAS 8 - Definition of Accounting Estimates
The amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors clarifies how companies should distinguish
changes in accounting policies from changes in accounting estimates. The distinction is important, because changes in accounting
estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied
retrospectively to past transactions and other past events as well as the current period.
Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction
The amendments to IAS 12 Income Taxes require companies to recognize deferred tax on transactions that, on initial recognition, give rise
to equal amounts of taxable and deductible temporary differences. They will typically apply to transactions such as leases (on the part of the
leesee) and decommissioning obligations, and will require the recognition of additional deferred tax assets and liabilities.
Amendment to IFRS 16 - Covid-19-Related Rent Concessions
In March 2021, the IASB issued Covid-19-Related Rent Concessions beyond 30 June 2021 to extend the relief period by another year. IFRS
The amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In
addition, entities should recognize deferred tax assets (to the extent that it is probable that they can be utilized) and deferred tax liabilities
16 Leases was amended to provide relief to lessees from applying the IFRS 16 guidance on lease modifications to rent concessions arising
at the beginning of the earliest comparative period for all deductible and taxable temporary differences associated with:
as a direct consequence of the Covid-19 pandemic. The amendment does not affect lessors.
a. right-of-use assets and lease liabilities, and
The amendment exempts lessees from having to consider individual lease contracts to determine whether rent concessions occurring as
a direct consequence of the Covid-19 pandemic are lease modifications, and allows lessees to account for such rent concessions as if they
were not lease modifications. It applies to Covid-19-related rent concessions that reduce lease payments due on or before 30 June 2022.
2. decommissioning, restoration and similar liabilities, and the
corresponding amounts recognized as part of the cost of the related assets. The cumulative effect of recognizing these adjustments is
recognized in retained earnings, or another component of equity, as appropriate.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D G R O U P A C C O U N T S
PA G E 14 4
The amendments are effective for annual periods beginning on or after 1 January 2023. Decommissioning, restoration and similar liabilities
are not relevant for Grieg Seafood. The Group is, however, a lessee in many lease arrangements, both through leases capitalized in the
balance sheet through the effect of IFRS 16, and leases which would be classified as finance leases, according to the IFRS in force prior to
1 January 2019. Grieg Seafood does not expect that the amendment will impact the Group significantly. An assessment of the impact, if any,
will be finalized by year-end 2022.
OTHER STANDARDS, AMENDMENTS AND INTERPRETATIONS
No other new standards, amendments and interpretations, not yet adopted at 31 December 2021, are expected to have a material impact on
the Group’s consolidated financial statement.
NO T E 29 P O S T-B AL ANCE SHEE T E V EN T S
In Q1 2022, Grieg Seafood finalized a refinancing of the Group's syndicated financial liabilities, with an aggregate of NOK 3 200 million in
five-year senior secured sustainability-linked loans and credit facilities. This represents the completion of the funding process. The new
debt structure comprises a NOK 750 million term loan, an EUR 75 million term loan, a NOK 1 500 million revolving credit facility and a NOK
200 million overdraft facility. The NOK and EUR term loans carry installments equal to a 12-year repayment profile until balloon payment
at five years. The revolving credit facility matures at five years, while the overdraft facility is subject to annual renewal. The interest rate is
three months NIBOR plus margin. The loan is linked to sustainability-linked KPIs, of which the scoring impact the interest rate margin paid
on the facilities. The sole financial covenant for the new facilities is a minimum recognized equity ratio of 31%, excluding the effect of IFRS
16 compared to the IFRS in force prior to 1 January 2019.
NO T E 2 8 C ON T I NGE N T LI A BILI T IE S
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. Based on the EU investigation, US competition authorities
launched their own investigation into the matter in November 2019. Two class-actions have been filed by direct and indirect customers in
the USA and three class actions have been filed in Canada (none has yet been certified as a class action). Grieg Seafood is not aware of any
anti-competitive behavior within the Group, neither in Norway, nor the EU, the USA or Canada. We are fully collaborating with European and
American authorities in this matter and follow up the lawsuits in the USA and Canada accordingly.
There is no new information regarding the EU investigation, and Grieg Seafood considers it to be probable that the investigation will find in
its favor, which also is supported by legal advice. Furthermore, the amount of the contingent liability related to a negative outcome of this
matter cannot be reasonably estimated, due to a lack of information. Consequently, no provision has been recognized in relation to either
the EU and the US investigation, nor to any of the civil lawsuits.
Approximately NOK 22 million (2020: NOK 27 million) was spent on legal fees related to the European Commission’s investigation in 2021.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 14 5
GRIEG SEAFOOD
ASA ACCOUNTS
A S A A C C OUN T S
146
147
148
148
Income statement
Statement of financial position
Statement of changes in equity
Cash flow statement
NO T E S
149
150
150
151
153
153
153
154
154
155
155
156
158
158
159
159
160
NOT E 1
NOT E 2
NOT E 3
NOT E 4
NOT E 5
NOT E 6
NOT E 7
NOT E 8
NOT E 9
Accounting policies
Operating income
Salaries, personnel and other operating expenses
Share based payments
Financial income and financial expenses
Other current receivables/other current liabilities
Bank deposits
Short-term investments and financial instruments
Investments in subsidiaries
NOT E 10
Intangible assets
NOT E 11
NOT E 12
NOT E 13
NOT E 14
NOT E 15
NOT E 16
NOT E 17
Property, plant and equipment
Share capital and shareholder information
Taxes
Guarantees
Related parties
Net interest-bearing liabilities and pledges
Post-balance sheet events
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 14 6
INC OM E S TAT E MEN T
GRIEG SEAFOOD ASA NOK 1 000
Other operating income
Total operating income
Salaries and personnel expenses
Depreciation and amortization
Other operating expenses
Total operating expenses
Operating profit (loss)
Financial income
Financial expenses
Net financial items
Profit before tax
Income tax expense
Net profit for the year
APPROPRIATION OF PROFIT FOR THE YEAR
Proposed dividend
Additional dividend paid-out, not accrued previous year
Transferred to other equity
Total appropriations
NOTE
2/15
3/4
10/11
3/15
5/15
5/15
13
2021
98 328
98 328
-71 533
-6 773
-97 123
-175 429
-77 101
752 632
-186 932
565 700
488 599
-81 257
407 342
336
942
—
70 400
407 342
2020
75 456
75 456
-48 276
-6 220
-93 985
-148 481
-73 024
252 069
-183 255
68 814
-4 210
15 826
11 615
—
—
11 615
11 615
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 147
S TAT EM EN T OF FI N ANCI AL P O SI T ION
GRIEG SEAFOOD ASA NOK 1 000
ASSETS
Software
Property, plant and equipment
Investments in subsidiaries
Loan to Group companies
Other non-current receivables
Investment in shares
Total non-current assets
Trade receivables from Group companies
Other receivables from Group companies
Other current receivables
Short-term investments and financial instruments
Bank deposits
Total current assets
Total assets
NOTE
31.12.2021
31.12.2020
GRIEG SEAFOOD ASA NOK 1 000
NOTE
31.12.2021
31.12.2020
10
11/16
9/16
15/16
15/16
15/16
6/15
8
7
10 737
2 571
1 903 409
787 096
—
169
14 504
2 131
2 362 159
1 216 143
—
169
2 703 982
3 595 106
178
2 149 163
9 134
21 744
792 875
2 973 094
4 307
2 370 621
48 216
7 328
183 710
2 614 181
5 677 076
6 209 287
12
12
9
13
4
16
16
16
4
15
15
15/16
13
8
6/8/15
453 788
-4 532
226 468
701 535
1 366 671
2 743 930
10 151
11 115
21 267
1 476 376
808 533
2 284 909
49 944
51
336 942
24 709
—
102 111
76 686
4 628
751
31 148
626 970
2 933 146
5 677 076
453 788
-4 686
226 067
701 535
1 293 215
2 669 919
11 862
491
12 353
1 468 462
1 855 404
3 323 866
102 352
2 411
—
6 226
45 938
2 993
279
3 910
15 616
23 423
203 148
3 539 368
6 209 287
EQUITY AND LIABILITIES
Share capital
Treasury shares
Other paid-in equity
Contingent consideration (acquisition of Grieg Newfoundland AS)
Other retained earnings
Total equity
Deferred tax
Share based payments
Total provisions
Green bond loan
Non-current loan
Total non-current liabilities
Current portion of non-current loan
Share based payments
Proposed dividend
Trade payables
Trade payables to Group companies
Current liabilities to Group companies
Tax payable
Public duties payable
Financial instruments
Other current liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
BERGEN, 30 March 2022
GRIEG SEAFOOD ASA
PER GRIEG JR.
Chair
TORE HOLAND
Vice Chair
KATRINE TROVIK
Board Member
MARIANNE RIBE
Board Member
NICOLAI HAFELD GRIEG
ANDREAS KVAME
Board Member
CEO
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
S TAT E MEN T OF CH ANGE S I N EQUI T Y
C A S H FL O W S TAT EMEN T
GRIEG SEAFOOD ASA NOK 1 000
Equity at 01.01.2020
Profit for the year 2020
Contingent consideration (Acquisition of Grieg
Newfoundland)**
Sale of treasury shares to employees
Contribution in kind
Other gains and losses recognized in equity
Equity at 31.12.2020
Equity at Equity at 01.01.2021
Profit for the year 2021
Proposed dividend 2021 *
Sale of treasury shares to employees
Equity at 31.12.2021
SHARE
CAPITAL
446 648
—
—
—
7 140
—
453 788
TREASURY
SHARES
OTHER PAID-
IN EQUITY
CONTINGENT
CONS.*
OTHER
EQUITY
TOTAL
EQUITY
-4 855
—
—
169
—
—
39 627
—
—
439
186 001
—
—
—
1 279 035
1 760 455
11 615
11 615
701 535
—
—
—
2 647
—
-83
701 535
3 255
193 142
-83
-4 686
226 067
701 535
1 293 215
2 669 919
GRIEG SEAFOOD ASA NOK 1 000
Profit before tax
Recognized, not paid Group contributions
Taxes paid
Gain/loss sale of subsidiary
Depreciation and amortization
Change in trade receivables
Change in trade payables
Change in other accruals
453 788
-4 686
226 067
701 535
1 293 215
2 669 919
Items classified as investing or financing activities
—
—
—
—
—
154
—
—
401
—
—
—
407 342
407 342
-336 942
-336 942
3 055
3 610
453 788
-4 532
226 468
701 535
1 366 671
2 743 930
*Proposed dividend for 2021 is estimated at NOK 3.0 per share.
**Contingent consideration related to the acquisition of Grieg Newfoundland AS. Grieg Seafood ASA acquired 99% of the shares in Grieg Newfoundland AS on the 20 April 2020. The book
value of the investment in Grieg Seafood Newfoundland AS recognized by Grieg Seafood ASA equals the consideration in addition to capitalized transaction costs. The consideration is
split into three parts - the net cash payment, the completion shares in Grieg Seafood ASA and contingent consideration. The negotiated subscription price for the completion shares was
set at NOK 140.05, corresponding to a total contribution of NOK 250 million. As the market price per share was NOK 108.20 at closing, the value of the completion shares was NOK 193.1
million. See more information in Note 6 in the Group's financial statement for 2021.
Currency translation differences
Net cash flow from operating activities
Dividend income
Dividend income from Group companies - no cash effect
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of shares (Grieg Newfoundland AS)
Proceeds sale of subsidiary
Payments/proceeds, loans to/from Group companies
Paid-in capital establishment of new subsidiary
Group contribution from subsidiaries
Payments/proceeds on other loans
Net cash flow from investing activities
Change in overdraft facility (net draw-down/repayment)
Revolving credit facility (net draw-down/repayment)
Proceeds of long-term interest bearing debt
Repayment of long-term interest-bearing debt
Change in loans to/from Group companies
Interest paid
Sale of treasury shares to employees
Net cash flow from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at 01.01.
Cash and cash equivalents at 31.12.
CASH AND CASH EQUIVALENTS AT 31.12. CONSISTS OF:
Restricted deposits
Other bank deposits
UNUTILIZED CREDIT FACILITIES AT 31.12.:
Unutilized credit facilities at the year-end
PA G E 14 8
2020
-4 210
-99 710
-180 954
-59 978
6 220
16 910
39 124
-81 038
57 759
28 534
-277 343
17 362
-17 342
-294
-3 944
-620 464
16 337
-1 485 134
-1 000
862 390
—
-1 232 090
—
364 135
1 500 000
-102 267
—
-75 120
—
1 686 748
177 315
6 395
183 710
2 163
181 546
NOTE
13
5
10/11
5
11
10
9
5
9
16
16
16
7
2021
488 599
-307 845
-6 560
-142 683
6 773
4 129
-27 455
65 451
142 168
-75 221
147 357
10
—
-1 555
-1 892
—
601 433
913 306
—
99 710
—
1 611 012
—
-557 126
—
-523 346
99 117
-171 459
3 610
-1 149 203
609 165
183 710
792 875
2 564
790 312
885 000
1 203 000
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 14 9
NO T E 1 A C C OUN T I NG P OLI CIE S
The annual financial statements have been prepared in accordance
000. Maintenance costs are recognized in the income statement
with the Norwegian Accounting Act and generally accepted
as operating expenses as they arise, while improvements and
accounting principles in Norway.
additions are added to the acquisition cost of the asset and
depreciated at the same rate as the asset. The distinction between
All amounts are stated in NOK thousand, unless otherwise
maintenance and improvements is made based on the asset’s
indicated.
relative condition on the original purchase date.
USE OF ESTIMATES
Management has used estimates and assumptions that have
SUBSIDIARIES
Subsidiaries are valued at cost in the financial statement of
affected assets, liabilities, revenues, expenses and information
Grieg Seafood ASA (parent). Investments are recognized as the
on potential liabilities in accordance with generally accepted
cost of the shares adjusted for any minor impairments where
accounting principles in Norway.
REVENUE RECOGNITION
necessary. Group contributions paid to subsidiaries, net of tax,
are recognized as an increase in the cost of the shares. Dividends
and group contributions are recognized in the same year as they
Revenue from the sale of goods is recognized at the time of
are proposed in the subsidiary’s financial statements. If dividends/
PENSIONS
The company’s pension schemes meet the requirements of
TAXES
The tax expense in the income statement consists of both tax
the Norwegian Mandatory Occupational Pensions Act. The
payable for the accounting period and changes in deferred tax.
Company operates a defined contribution pensions scheme for
Deferred tax is calculated at the relevant rate on temporary
its employees. The premium is paid through operations and is
differences between the value of assets and liabilities for tax
expensed on an ongoing basis. Social security costs are charged
purposes and any allowable loss to be carried forward at year-
based on the pension premium paid.
GROUP ACCOUNT SCHEME – DEPOSITS
AND LOANS
Grieg Seafood ASA operates as an internal bank for its subsidiaries.
Grieg Seafood ASA borrows funds from financial institutions and
then lends these funds to its subsidiaries. The Company has set
up a group account (cash pool) multi-currency account scheme
in which Grieg Seafood ASA is the legal account holder. Deposits
and loans are recognized as intercompany transactions. All
subsidiaries that are part of the scheme (not all subsidiaries of the
Group are part of the cash pool scheme) are jointly and severally
liable to the financial institutions for the entire amount of the
end in the financial statements. Temporary differences, both
positive and negative, are offset within the same period. Deferred
tax assets are recognized in the statement of financial position
when it is more likely than not that the tax assets will be utilized.
Deferred tax assets and deferred tax liabilities are presented
net in the statement of financial position. Tax on paid group
contributions is recognized as an increase in the purchase price of
shares in other companies. Taxes payable and deferred taxes are
recognized directly in equity to the extent that they relate to equity
transactions (offset against tax payable if the group contribution
affects tax payable and offset against deferred taxes if the group
contribution affects deferred taxes).
CASH FLOW STATEMENT
The cash flow statement has been prepared according to the
indirect method. Cash and cash equivalents include cash, bank
deposits and other short-term highly liquid investments which
entail no appreciable exchange rate risk, and which mature within
three months of the purchase date.
delivery. Revenue from the sale of services is recognized when
group contributions materially exceed retained earnings after
commitment under the scheme.
the services are performed. The share of sales revenue associated
acquisition, the excess amount is regarded as a reimbursement
with future service is recognized in the statement of financial
of invested capital and is deducted from the recognized cost in the
position as accrued sales revenues and is transferred to income
balance sheet. Dividends and group contributions received are
at the time of execution.
recognized as other financial income.
CLASSIFICATION AND VALUATION OF
BALANCE SHEET ITEMS
Assets intended for long-term ownership or use are classified as
Contingent consideration is included in costs on the acquisition
date of a subsidiary. The likelihood of payment and time value
of money are considered when estimating the fair value of the
non-current assets. Assets related to the normal operating cycle
contingent consideration on the acquisition date.
are classified as current assets. Receivables are classified as
current assets if they are expected to be repaid within 12 months
of the transaction date. Similar criteria are applied to liabilities.
IMPAIRMENT OF NON-CURRENT ASSETS
Impairment tests are performed upon indication that the carrying
FOREIGN CURRENCY
The Company’s functional and presentational currency is the
Norwegian Krone (NOK). Monetary items in a foreign currency
are translated into NOK using the exchange rate applicable on the
balance sheet date. Non-monetary items that are measured at
their historical price expressed in a foreign currency are translated
into NOK using the exchange rate applicable on the transaction
date. Non-monetary items that are measured at their fair value
expressed in a foreign currency are translated at the exchange
rate applicable on the balance sheet date. Changes to exchange
rates are recognized in the income statement as they occur during
Current assets are valued at the lower of cost and fair value.
amount of a non-current asset exceeds its estimated fair value.
the accounting period.
Current liabilities are recognized in the balance sheet at nominal
The test is performed at the lowest level of non-current assets
value. Non-current assets are valued at historical cost. Property,
at which independent cash flows can be identified. If the carrying
plant and equipment whose value will deteriorate is depreciated
amount is higher than both the fair value less costs to sell and the
on a straight-line basis over the asset’s estimated useful life.
recoverable amount (net present value of future use/ownership),
Non-current assets are written down to fair value where this is
the asset is written down to the higher of fair value less costs to
required by accounting rules. Nominal amounts are discounted if
sell and the recoverable amount. Previous impairment charges
the interest rate element is material.
are reversed in a later period if the prerequisites for impairment
CASH-BASED REMUNERATION
The Company operates a share-based remuneration scheme with
settlement in cash. Each employee is obliged to purchase shares
relative to their annual salary. The company’s estimated liability
is recognized as a current or non-current liability based on the
estimated settlement date. The cost for the year is recognized in
are no longer present (except for impairment of goodwill).
the income statement.
INTANGIBLE ASSETS
Expenditure on intangible assets is recognized in the statement of
financial position to the extent that a future economic benefit can
TRADE AND OTHER RECEIVABLES
Trade and other receivables are recognized in the statement of
be identified as deriving from the development of an identifiable
financial position at nominal value after a provision for bad debts.
intangible asset and cost can be measured reliably. Otherwise, the
The provision for bad debts is estimated based on an individual
cost is expensed as it arises. Capitalized development costs are
assessment of each material receivable.
amortized over their useful life.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is recognized in the statement of
CURRENT INVESTMENTS
(shares and
Current
investments
investments which are
considered current assets) are carried at the lower of average
financial position and depreciated on a straight-line basis over its
acquisition cost and fair value at the balance sheet date. Dividends
estimated useful life, providing the asset has an expected useful
and other distributions received are recognized as other financial
life of more than 3 years and a cost price of more than NOK 15
income.
DERIVATIVES
FORWARD CURRENCY CONTRACTS
Realized gains (losses) on forward currency contracts are
recognized in the income statement as a financial income (financial
cost). The fair value of a forward currency contract is measured in
its contracted currency and translated to NOK using the foreign
exchange currency rate at the balance sheet date.
INTEREST RATE SWAPS
Interest rate swap contracts are measured according to the lowest
of its acquisition cost and fair value at the balance sheet date.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 15 0
NO T E 2 OP ER AT ING INC OME
OPERATING INCOME NOK 1 000
Administrative services – Group companies (Note 15)
Administrative services - external*
Other operating income
Total operating income
2021
82 430
15 898
—
98 328
2020
75 413
43
75 456
* Administrative services to Grieg Seafood Shetland UK Ltd is presented as external income as the shares in the company was sold on 15
of December 2021.
NO T E 3 S AL A R I E S, P ER S ONNEL AND O T H E R OP E R AT ING E XP ENS E S
SALARIES AND PERSONNEL EXPENSES NOK 1 000
Wages and salaries
Social security costs
Share options for directors and key personnel (Note 4)
Pension costs – defined contribution scheme
Other personnel costs
Total
Average number of employees
2021
51 087
6 779
7 924
2 221
3 523
71 533
36
2020
38 678
6 692
-4 996
1 657
6 243
48 276
29
Pension scheme
The Company has a pension scheme covering all employees at 31 December 2021. The pension scheme is funded and managed through an
insurance company.
Share savings plan
Grieg Seafood established a share savings program for its employees in 2018, which was continued throughout 2021. See the consolidated
financial statements Note 16 for further information.
Management remuneration
In December 2019, the Norwegian Parliament adopted new rules on the wage policy of listed public companies, which came into force in
January 2021. New wage policy and reporting guidelines were approved by the Annual General Meeting of Grieg Seafood ASA on 2 June
2021. The guidelines for management remuneration are available on Grieg Seafood ASA’s website. The remuneration report for Grieg
Seafood ASA will be published at the time notice of the 2022 Annual General Meeting is issued. The Annual General Meeting is scheduled
for 9 June 2022.
REMUNERATION PAID TO GROUP
MANAGEMENT IN 2021 NOK 1 000
SALARY
BONUS
RETAINED
BONUS,
NOT YET PAID
OPTIONS EXERCISED
DURING THE YEAR
OTHER
BENEFITS
CEO
CFO
CTO
CHRO
COO Farming Europe
COO Farming North America
CCO
GCM
3 165
2 280
2 063
1 604
2 116
1 772
1 996
1 190
Total remuneration incl. social security costs
16 185
—
—
—
—
75
—
161
—
236
540
313
241
216
203
244
350
119
2 226
—
—
—
—
—
—
—
—
—
250
115
116
117
113
—
115
121
947
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 4.
REMUNERATION PAID TO BOARD MEMBERS IN 2021 NOK 1 000
Per Grieg Jr.*
Tore Holand**
Sirine M. Fodstad (until 13 of August 2021)*
Marianne Ribe*
Katrine Trovik**
Nicolai Hafeld Grieg (from 4 of November 2021)
Total remuneration including social security costs
TOTAL
3 956
2 707
2 420
1 937
2 507
2 016
2 621
1 430
19 593
TOTAL
479
371
205
308
342
—
1 706
*Payment for work performed on the Remuneration Committee of NOK 22 820 is included in the remuneration paid to Per Grieg Jr. and Marianne Ribe, and NOK 15 213 for Sirine Fodstad,
**Payment for work performed on the Audit Committee is included in the remuneration paid to Tore Holand and Katrine Trovik amounting to NOK 57 050.
The amounts include social security costs.
REMUNERATION PAID TO GROUP
MANAGEMENT IN 2020 NOK 1 000
SALARY
BONUS
RETAINED
BONUS,
NOT YET PAID
OPTIONS EXERCISED
DURING THE YEAR
OTHER
BENEFITS
CEO
CFO
COO
CHRO
COO Farming Europa
COO Farming North America
CCO
GCM
2 841
2 173
1 996
1 574
1 996
1 825
525
1 035
Total remuneration incl. social security costs
13 965
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2 709
2 070
1 868
1 431
1 615
1 571
—
—
11 264
118
101
101
106
78
78
81
96
759
TOTAL
5 668
4 344
3 964
3 111
3 689
3 474
606
1 131
25 987
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 4. The table has been amended compared to the
annual report 2020.
In May 2020, Grieg Seafood announced changes to the Group management structure, with inclusion of COOs for farming in Europe and North America. In June 2020, the Chief Commercial
Officer was added to the Group management team of Grieg Seafood.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 15 1
REMUNERATION PAID TO BOARD MEMBERS IN 2020 NOK 1 000
Per Grieg jr. 1)
Tore Holand 2)
Sirine M. Fodstad 1)
Marianne Ribe (from 14 May 2020), 1)
Katrine Trovik (from 14 May 2020), 2)
Asbjørn Reinkind (until 14 May 2020)
Karin Bing Orgland (until 14 May 2020), 2)
Solveig M.R. Nygaard (until 14 May 2020)
Total remuneration including social security costs
TOTAL
479
348
308
178
195
140
143
119
1 909
NO T E 4 SH AR E B A SED PAYMEN T S
The Group has issued options to the Group Management team and regional directors. The options’ strike price is the stock market price
on the date of issue, rising by 0.5% per month until the exercise date. Since 2009, an option scheme with settlement in cash has been
established for Group Management and regional directors. The most recent allocation was in 2020, totaling 1 890 000 options. The final
exercise date is 31 May 2024. The options have a term of two years, where 50% is vested each year. Employees joining the Group after the
initial allocation of options, are allocated options on taking up employment.
The Black & Scholes option pricing model is used to calculate the market value. A brokerage firm is used to perform the calculations. The
table below shows the movement in outstanding options in 2020 and 2021.
*Payment for work performed on the Remuneration Committee of NOK 22 820 is included in the remuneration paid to Per Grieg Jr. , Sirine M. Fodstad and NOK 11 410 for Marianne Ribe.
**Payment for work performed on the Audit Committee is included in the remuneration paid to Karin Bing Orgland and Tore Holand, amounting to NOK 25 673, 54 198 and 28 525,
respectively.
OVERVIEW 2021
(TOTAL OPTIONS)
OPTION
CATEGORY
OUTSTANDING
OPTIONS AT
31.12.2020
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED
OPTIONS
OUTSTANDING
OPTIONS AT
31.12.2021
OF WHICH
CASH-
SETTLED
BREAKDOWN OF AUDITOR'S FEES NOK 1 000
Statutory audit
Other certification services
Tax advisory fee
Other services
Total
2021
1 991
730
38
41
2 800
2020
852
362
347
101
1 663
CEO
CFO
CTO
CHRO
GCM
COO Farming Europa
Cash settlement
Cash settlement
Cash settlement
Cash settlement
Cash settlement
Cash settlement
COO Farming North America
Cash settlement
The audit fee specification for 2021 include fees from Advokatfirmaet PricewaterhouseCoopers AS (tax-related assistance) of NOK 38
thousands.
Other operating expenses
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. Based on the EU investigation, US competition authorities
launched their own investigation into the matter in November 2019. Two class-actions have been filed by direct and indirect customers in
the USA and three class actions have been filed in Canada (none has yet been certified as a class action). Grieg Seafood is not aware of any
anti-competitive behavior within the Group, neither in Norway, nor the EU, the USA or Canada. We are fully collaborating with European and
American authorities in this matter and follow up the lawsuits in the USA and Canada accordingly.
There is no new information regarding the EU investigation, and Grieg Seafood considers it to be probable that the investigation will be in
its favor, which also is supported by legal advice. Furthermore, the amount of the contingent liability related to a negative outcome of this
matter cannot be reasonable estimated, due to the lack of information. Consequently, no provision has been recognized in relation to both
the EU and the US investigation, nor to any of the civil lawsuits.
Approximately NOK 22 million (2020: NOK 27 million) was spent on lawyer fees related to the EU commission investigation in 2021.
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
700 000
2 790 000
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Cash settlement
Cash settlement
OPTION
CATEGORY
OUTSTANDING
OPTIONS AT
31.12.2019
GRANTED
OPTIONS
EXERCISED
OPTIONS
Cash settlement
Cash settlement
Cash settlement
Cash settlement
400 000
200 000
200 000
132 712
340 000
170 000
170 000
100 000
Cash settlement
677 492
1 110 000
1 610 204
1 890 000
48 271
36 881
33 287
25 509
108 763
252 711
CCO
Others
Total
OVERVIEW 2020
(TOTAL OPTIONS)
CEO
CFO
COO
CHRO
Others
Total
ALLOCATION:
YEAR - MONTH
EXPIRY DATE:
YEAR - MONTH
STRIKE PRICE NOK
PER SHARE AT 31.12.2021
STRIKE PRICE NOK
PER SHARE AT 31.12.2020
2017 - 11
2020 - 12
2020 - 12
Total
2021 - 05
2023 - 05
2024 - 05
106.28
83.82
83.82
100.07
78.96
78.96
Cash-based options available for settlement
Weighted average exercise price on outstanding options (NOK per option)
—
—
—
—
—
—
—
—
100 000
100 000
EXPIRED
OPTIONS
151 729
63 119
66 713
7 203
168 730
457 494
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
600 000
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
600 000
2 690 000
2 690 000
OUTSTANDING
OPTIONS AT
31.12.2020
OF WHICH
CASH-
SETTLED
540 000
270 000
270 000
200 000
1 510 000
2 790 000
OPTIONS
2021
800 000
945 000
945 000
540 000
270 000
270 000
200 000
1 510 000
2 790 000
2020
900 000
945 000
945 000
2 690 000
2 790 000
2021
2 690 000
80.16
2020
2 790 000
80.26
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 15 2
NOK/OPTION
AMOUNTS IN NOK 1 000
ACCRUED COST RELATED TO CASH OPTIONS NOK 1
000
Change in provisions
Exercised options during the year
Total cost excl. social security costs
Social security costs
Total cost incl. social security costs
2021
6 951
—
6 951
973
7 924
2020 CLASSIFICATION IN FINANCIAL STATEMENTS
-16 807 Other provisions for liabilities
14 181 Salaries and personnel expense / cash
-2 626
-2 370 Public taxes payable
-4 996 Salaries and personnel expense
Cost relating to cash-based remuneration in 2021 totaled NOK 7 924 thousands. This is recognized in the income statement as a personnel
cost. Social security contributions are provided for on an ongoing basis based on the fair value of the options.
As at 31 December 2021, outstanding options with the right to cash settlement were stated at NOK 9 794 thousands excl. social security
costs, of which NOK 29 thousands were classified as current liabilities. Issued options are cancelled on termination of employment. The
book value of long term liabilities incl. social security cost is NOK 11 115 thousands.
ESTIMATES USED TO CALCULATE ALLOCATION OF OPTIONS
31.12.2021
31.12.2020
Anticipated volatility (%)
Risk-free rate of interest (%)
Estimated qualification period (years)
36.44%
1.13%
1.39
44.19%
0.34%
2.11
The estimated qualification period for the options is based on historical data, and does not necessarily represent future developments. In order to estimate volatility, management has
applied historical volatility for comparable listed companies.
OPTION
CATEGORY
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL VALUE
OF ALL
OPTIONS AT
01.01.2021
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION 2021
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2021
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2021
Equity
option
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
—
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
83.00
83.00
83.00
83.00
83.00
—
4.35
6.34
5.82
7.20
6.04
5.87
5.87
6.13
7.04
2.26
2.79
2.79
2.38
2.35
—
1 480
1 078
989
720
604
999
999
1 042
3 519
906
557
557
475
—
56
41
37
27
23
38
38
39
132
467
316
296
247
—
1 352
868
803
573
488
810
810
842
2 788
-460
-313
-293
-243
1 880
15 805
1 085
2 842
-1 074
6 951
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
1 408
909
840
600
511
847
847
881
2 921
7
4
4
4
11
9 794
2021
Former
employees with
expired options
CEO
CFO
CTO
CHRO
GCM
COO Farming
Europe
COO Farming
North America
CCO
Other options
allocated in 2020
CEO
CFO
COO
CHRO
Other options
allocated in 2017
Total
*Amounts exclude social security costs.
NOK/OPTION
AMOUNTS IN NOK 1 000
OPTION
CATEGORY
LISTED
PRICEON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL VALUE
OF ALL
OPTIONS AT
01.01.2020
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION 2020
ACC. COST
RECOGNIZED
IN EQUITY AT
31.3.2021
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.3.2021
Equity
option
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
Cash
—
79
79
79
79
79
79
79
79
79
83
83
83
83
83
—
4
6
6
7
6
6
6
6
7
2
3
3
2
2
—
1 480
1 078
989
720
604
999
999
1 042
3 519
906
557
557
475
—
—
—
—
—
—
—
—
—
—
4 007
2 505
2 688
1 891
—
56
41
37
27
23
38
38
39
132
-3 540
-2 188
-2 392
-1 645
1 880
15 805
8 557
-7 472
19 648
-16 806
—
—
—
—
—
—
—
—
—
—
2 709
2 070
1 868
1 431
6 103
14 181
6 887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
56
41
37
27
23
38
38
39
132
467
316
296
247
1 085
2 842
2020
Former
employees with
expired options
CEO
CFO
CTO
CHRO
GCM
COO Farming
Europe
COO Farming
North America
CCO
Other options
allocated in 2020
CEO
CFO
COO
CHRO
Other options
allocated in 2017
Total
*Amounts exclude social security costs.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 15 3
NO T E 5 F IN ANCI A L I NC OME AND FIN ANCI AL E XP ENSE S
NO T E 6 O T HER CUR R EN T R EC EI VA BLE S/O T HER C UR R EN T LI A B IL I T I E S
2021
2020
OTHER CURRENT RECEIVABLES NOK 1 000
FINANCIAL ITEMS NOK 1 000
FINANCIAL INCOME
Interest income from Group companies
Gain/loss sale of subsidiary *
Other interest income
Group contributions from subsidiaries
Dividend
Unrealized value changes, derivatives (Note 8)
Unrealized currency change, non-current EUR term loan
Unrealized currency change, non-current loans from Group companies
Net realized currency gains
Net unrealized currency gains
Total
FINANCIAL EXPENSE
Financial expense
Loan interest expenses
Interest expense to Group companies
Other interest expenses
Unrealized value changes, derivatives, (Note 8)
Realized value changes, derivatives
Unrealized currency change, non-current loans from Group companies
Unrealized currency change, non-current EUR term loan
Other financial expenses
Net realized currency losses
Net unrealized currency losses
Total
Net financial items
*GAIN/ LOSS SALE OF SUBSIDIARY:
SALE OF GRIEG SEAFOOD SHETLAND LTD IN 2021
On 29 June 2021, Grieg Seafood ASA entered into an agreement with Scottish Sea Farms Ltd for the disposal of all shares in Grieg Seafood
Hjaltland UK Ltd, the holding company of Grieg Seafood ASA's Shetland business. The transaction was subject to certain customary closing
conditions, such as merger clearance. The Competition and Markets Authority (CMA) in the UK approved the transaction on 8 December
2021. The transaction was closed on 15 December 2021. The total gain for Grieg Seafood ASA is recognized at NOK 143 million. For more
information, see also Note 5 to the Group’s consolidated financial statement for 2021.
SALE OF OCEAN QUALITY AS (SJÓR AS) IN 2020
Grieg Seafood ASA sold its 60% stake in Ocean Quality AS (now named Sjór AS) to Bremnes Fryseri AS on 31 December 2020. Bremnes
Fryseri AS held the non-controlling interest of 40% in Ocean Quality AS up until the transaction. The book value of Grieg Seafood ASA’s
investment in Ocean Quality AS was NOK 6 million at the transaction date. The sale/purchase price was settled in cash and through a change
of debtor on a liability Grieg Seafood ASA had from Ocean Quality AS. The gain from the transaction was NOK 60 million.
171 650
142 683
10 606
307 845
10
29 281
23 990
22 284
735
43 548
752 632
172 015
45
2 291
—
7 494
—
—
3 048
2 039
—
186 932
565 700
67 914
59 978
254
99 710
17 362
6 761
—
89
—
—
252 069
94 247
1 090
3 460
21 493
2 022
—
28 623
3 601
15 677
13 042
183 255
68 814
Prepaid expenses
VAT
Other current receivables to Sjór AS (before Ocean Quality AS)
Realised gain on price contracts, receivable on counterpart
Other current receivables
Tax refund as a part of Corona tax measures
Total other current receivables
OTHER CURRENT LIABILITIES NOK 1 000
Accrued interest
Other accrued expenses
Other current liabilities
Total other current liabilities
NO T E 7 B ANK DEP O S I T S
BANK DEPOSITS NOK 1 000
Restricted deposits relating to employees' tax deductions
Other bank deposits
Total
2021
7 489
1 616
—
—
—
28
9 134
2021
4 312
26 813
23
31 148
2020
4 162
1 740
16 940
18 316
458
6 600
48 216
2020
10 451
11 938
1 034
23 423
2021
2 564
790 312
792 875
2020
2 163
181 547
183 710
The Company has an overdraft facility of NOK 100 million. Available credit on the overdraft facility was NOK 100 million at year-end 2021
(2020: NOK 100 million). In addition, the Company has a revolving credit facility of which NOK 785 million was undrawn at year-end 2021
(2020: NOK 1 103 million).
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 15 4
NO T E 8 SHOR T-T E R M I NV E S T MEN T S AND FIN ANCI AL INS T RUMEN T S
NO T E 9 INV E S T MEN T S IN SUB S IDI AR IE S
SHORT-TERM INVESTMENTS AND FINANCIAL INSTRUMENTS NOK 1 000
Financial instruments current assets
DNB Global Allokering Norway (number of shares 3 038, ownership 0.00%)
Total
2021
21 178
566
21 744
2020
6 761
566
7 327
*Registered office: Oslo, Norway. Ownership percentage 0.00%. Numbers of shares: 3 038. Acquisition cost of NOK 630 000..
2021
2020
FINANCIAL INSTRUMENTS
Fair value
Book value
Fair value
Book value
Interest rate options bought floor NOK 250 000 3 NIBOR Maturity 25.06.2020 - 25.06.2025
233
—
Cross currency interest rate swap (NOK/EUR), maturity in 2025, NOK 250 million / EUR 23
million (2020: maturity 10.03 - 31.12.2021) *
21 178
Financial instruments classified as current assets
Interest rate swap contracts (five contracts for NOK 260 million, NOK 200 million,
NOK 200 million, NOK 200 million and NOK 200 million maturing in 2021, 2023,
2024, 2024 and 2024, respectively **)
Financial instruments classified as current liabilities
13 552
21 178
21 178
-751
-751
423
6 761
—
6 761
6 761
-15 008
-15 616
-15 616
* Financial instruments booked at fair value in according to accounting act § 5-8. Other financial instrument are booked at the lowest of historic cost and fair value.
** Amounts exclude accrued interest totalling NOK -161,5 thousand (2020: NOK -1 270 thousand)
CHANGES IN FINANCIAL INSTRUMENTS RECOGNIZED AS FINANCIAL ITEMS NOK 1 000
Unrealized gain/loss on interest rate swaps
Unrealized gain/loss on foreign currency contracts
Unrealized changes on interest rate swaps
Net unrealized gain/(loss) on financial instruments
2021
14 887
14 394
—
29 281
2020
-19 823
6 761
-1 670
-14 732
The Company is exposed to a number of financial risks; market risk (including foreign exchange risk, interest rate risk and price risk), credit
risk and liquidity risk. The Company’s overall risk management program focuses on the volatility of the financial markets and seeks to
minimize potential adverse effects on the Company’s financial performance. The Company uses financial derivatives to reduce certain risks.
The Board has established written principles for the management of foreign exchange risk, interest rate risk and use of the Company´s
financial instruments.
SUBSIDIARY
Grieg Seafood Rogaland AS
Grieg Seafood Canada AS
Grieg Seafood Finnmark AS
Grieg Seafood Norway AS
Grieg Seafood Shetland Ltd *
Grieg Newfoundland AS
Total
REGISTERED
OFFICE
COUNTRY
REGISTERED
OFFICE
LOCATION
OWNERSHIP/
VOTING
SHARE
Norway
Norway
Norway
Bergen
Bergen
Alta
Norway
Bergen
UK
Shetland
Norway
Bergen
100 %
100 %
100 %
100 %
—%
99 %
EQUITY AT
31.12.2021
NOK 1 000
852 945
227 353
1 082 217
1 271
—
PROFIT/
LOSS 2021
NOK 1 000
BOOK VALUE
NOK 1 000
147 413
-13
142 979
13 850
—
223 497
297 112
400 481
1 000
—
104 858
-9 849
981 319
2 268 644
294 380
1 903 409
Equity and profit/loss are based on provisional financial statements, which have been prepared in accordance with local accounting
standards.
*GRIEG SEAFOOD SHETLAND LTD
On 29 June 2021, Grieg Seafood ASA entered into an agreement with Scottish Sea Farms Ltd for the disposal of all shares in Grieg Seafood
Hjaltland UK Ltd, the holding company of Grieg Seafood ASA's Shetland business. The transaction was subject to certain customary closing
conditions such as merger clearance. The Competition and Markets Authority (CMA) in UK approved the transaction on 8 December 2021,
and the transaction was finalized at the 15 December 2021. See more information in Note 5 of the group accounts.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 15 5
NO T E 10 IN TANGIBLE A S SE T S
NO T E 11 P R OP ER T Y, P L AN T A ND EQUIP M EN T
2021 NOK 1 000
Book value at 01.01.
Additions
Amortization
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization
Book value at 31.12.
Economic life/amortization schedule
2020 NOK 1 000
Book value at 01.01.
Additions
Amortization
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization
Book value at 31.12.
Economic life/amortization schedule
SOFTWARE
14 504
1 892
-5 659
10 737
52 298
-41 561
10 737
3 - 10 years
SOFTWARE
15 238
3 944
-4 678
14 504
50 381
-35 877
14 504
3 - 10 years
2021 NOK 1 000
Book value at 01.01.
Additions
Depreciation
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated depreciation
Book value at 31.12.
Economic life/depreciation schedule
2020 NOK 1 000
Book value at 01.01.
Additions
Depreciation
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated depreciation
Book value at 31.12.
Economic life/depreciation schedule
The company has operating lease agreements, which are not recognized in the balance sheet:
2021
ASSETS
Buildings
Other equipment
Total lease amount charged
There have been no changes in the lease agreements from 2020.
PLANT, EQUIPMENT AND
OTHER FIXTURES ETC.
2 131
1 555
-1 114
2 570
19 514
-16 942
2 571
3–5 years
PLANT, EQUIPMENT AND
OTHER FIXTURES ETC.
3 379
294
-1 542
2 131
17 959
-15 828
2 131
3–5 years
DURATION
Until 2028
3-5 years
OPERATING LEASE
EXPENSE
4 201
725
4 926
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 15 6
NO T E 1 2 SH AR E C AP I TAL AN D SH AR EHOLDER INF OR M AT ION
As at 31 December 2021, the Company had 113 447 042 shares with a nominal value of NOK 4 per share. All shares issued by the Company
are fully paid-up. There is one class of shares and all shares confer the same rights.
SHARE CAPITAL AND NUMBER OF SHARES
31.12.2021
NOMINAL VALUE
PER SHARE (NOK)
TOTAL SHARE CAPITAL NOK 1 000
NO. OF ORDINARY SHARES
Total
Holdings of treasury shares
Sale of treasury shares 2018-2020
Sale of treasury shares 2021
Total excl treasury shares
4.00
4.00
4.00
4.00
453 788
-5 000
314
154
449 256
113 447 042
-1 250 000
78 506
38 513
112 314 061
Treasury shares
In June 2011, the Company purchased 1 250 000 treasury shares at NOK 14.40 per share. On 21 November 2018, the Company sold 21 576
shares to employees for use in the share savings program. The sales price was NOK 121.56 per share, which provided a gain of NOK 107.16
per share. Another 14 737 shares were sold to employees in November 2019 at a sales price of NOK 136.05 per share, providing a gain of
NOK 121.65 per share. In 2020, Grieg Seafood ASA sold 42 193 at a sales price of NOK 77.16 a share, providing a gain of NOK 62.76 a share.
In 2021, Grieg Seafood ASA sold 38 513 shares at a sales price of NOK 93.73, providing a gain of NOK 79.33 a share. After the transactions
the Company has 1 132 981 treasury shares.
CHANGES IN SHARE CAPITAL
Share capital 01.01.2020
Contribution in kind 20.04.2020
Share capital 31.12.2020
Share capital 01.01.2021
No transaction in 2021
1 January 2020
20 April 2020
n/a
1 January 2021
n/a
Share capital per 31.12.2021
31 December 2021
NOMINAL VALUE
PER SHARE (NOK)
TOTAL SHARE CAPITAL
NOK 1 000
NO. OF ORDINARY SHARES
4.00
4.00
4.00
4.00
—
4.00
446 648
7 140
453 788
453 788
—
453 788
111 662 000
1 785 042
113 447 042
113 447 042
—
113 447 042
Acquisition of Grieg Newfoundland
On 20 April 2020, Grieg Seafood ASA' share capital was increased by 1 785 042 shares (nominal value of NOK 4 per share), from 111 662
000 shares to 113 447 042 shares. The share capital was thus increased by NOK 7 140 168, from NOK 446 648 000 to NOK 453 788 168. The
share issue in the Company to shareholders Grieg Aqua AS, Kvasshøgdi AS, Knut Skeidsvoll and Ocean Choice International Ltd was related
to the Company’s acquisition of Grieg Newfoundland AS, which was completed on 15 April 2020. For more information, see Note 6 of the
Group Accounts.
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
Folketrygdfondet
OM Holding AS
Ystholmen Felles AS
State Street Bank and Trust Comp (nominee)
Clearstream Banking S.A. (nominee)
BNP Paribas Securities Services (nominee)
Ferd AS
Six Sis AG (nominee)
CACEIS Bank Spain SA (nominee)
Banque Degroof Petercam Lux. SA (nominee)
Grieg Seafood ASA
JPMorgan Chase Bank, N.A., London (nominee)
Kvasshøgdi AS
Verdipapirfondet Pareto Investment
State Street Bank and Trust Comp (nominee)
State Street Bank and Trust Comp (nominee)
Ronja Capital II AS
Pictet & Cie (Europe) S.A. (nominee)
Danske Invest Norge Vekst
Total 20 largest shareholders
Total others
Total number of shares
NO. OF SHARES
SHAREHOLDING
31.12.2021
56 914 355
31.12.2021
50.17%
5 312 207
4 917 957
2 428 197
1 867 464
1 711 386
1 634 500
1 456 453
1 380 743
1 212 652
1 164 795
1 132 981
1 035 915
996 772
916 000
883 362
862 797
755 004
646 320
561 000
4.68%
4.34%
2.14%
1.65%
1.51%
1.44%
1.28%
1.22%
1.07%
1.03%
1.00%
0.91%
0.88%
0.81%
0.78%
0.76%
0.67%
0.57%
0.49%
87 790 860
25 656 182
113 447 042
77.38%
22.62%
100.00%
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 15 7
NO. OF SHARES
SHAREHOLDING
NO. OF SHARES
SHAREHOLDING
NO. OF SHARES
SHAREHOLDING
31.12.2020
50.17%
SHARES CONTROLLED BY BOARD MEMBERS AND GROUP
MANAGEMENT
31.12.2021
31.12.2021
31.12.2020
31.12.2020
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
Folketrygdfondet
OM Holding AS
Ystholmen Felles AS
Clearstream Banking S.A. (nominee)
State Street Bank and Trust Comp (nominee)
Ronja Capital II AS
Grieg Seafood ASA
Six Sis AG (nominee)
UBS Switzerland AG (nominee)
JPMorgan Chase Bank, N.A., London (nominee)
Banque Degroof Petercam Lux. SA (nominee)
Verdipapirfondet Pareto Investment
State Street Bank and Trust Comp (nominee)
State Street Bank and Trust Comp (nominee)
Ferd AS
Svenska Handelsbanken AB (nominee)
J.P. Morgan Bank Luxembourg S.A. (nominee)
State Street Bank and Trust Comp (nominee)
Danske Invest Norge Vekst
Total 20 largest shareholders
Other shareholders
Total shares
31.12.2020
56 914 355
4 281 530
4 235 656
2 928 197
1 937 653
1 616 926
1 200 000
1 171 494
1 038 659
945 209
915 596
822 051
764 000
737 722
697 771
688 453
593 415
592 624
524 061
521 000
3.77%
3.73%
2.58%
1.71%
1.43%
1.06%
1.03%
0.92%
0.83%
0.81%
0.72%
0.67%
0.65%
0.62%
0.61%
0.52%
0.52%
0.46%
0.46%
83 126 372
30 320 670
113 447 042
73.27%
26.73%
100.00%
BOARD OF DIRECTORS
Per Grieg Jr. *
Tore Holand (Skippergata 24 AS, and privately)
Sirine Fodstad (resigned 13 August 2021)
Marianne Ribe
Katrine Trovik
Nicolai Hafeld Grieg (board member from 4 November 2021)
GROUP MANAGEMENT
CEO
CFO
CTO
COO Farming Europe
COO Farming North America
CHRO
GCM
CCO
60 356 985
2 000
—
—
—
—
39 809
24 852
24 151
22 809
24 209
12 380
644
644
53.20%
0.00%
—%
—%
—%
—%
0.04%
0.02%
0.02%
0.02%
0.02%
0.01%
0.00%
0.00%
60 356 985
53.20%
2 000
—
—
—
—
39 489
24 532
23 831
22 489
19 889
12 060
324
324
—%
—%
—%
—%
—%
0.03%
0.02%
0.02%
0.02%
0.02%
0.01%
0.00%
0.00%
* THE SHARES OWNED BY THE FOLLOWING COMPANIES ARE CONTROLLED BY PER GRIEG JR. AND FAMILY
Grieg Aqua AS
Ystholmen Felles AS
Kvasshøgdi AS
Per Grieg jr. privately
Thomas Willumsen Grieg
Total shares
56 914 355
2 428 197
996 772
15 000
2 661
60 356 985
50.17%
56 914 355
50.17%
2.14%
0.88%
0.01%
0.00%
53.20%
2 928 197
496 772
15 000
2 661
60 356 985
2.58%
0.44%
0.01%
0.00%
53.20%
On 30 December 2020, the board of Ystholmen Felles AS submitted a proposal to the company's general meeting to demerge the company,
whereby 500 000 shares in Grieg Seafood ASA would be transferred from Ystholmen Felles AS to Kvasshøgdi AS, org.no. 921 020 961. The
general meeting of Ystholmen Felles AS accepted the board's proposal. Per Grieg Jr. is the sole shareholder in Kvasshøgdi AS.
Following the completion of the demerger, Per Grieg Jr. and the other shareholders own 2 428 197 shares in Grieg Seafood ASA through
their ownership of Ystholmen Felles AS. In addition, Per Grieg Jr. owns 996 772 shares in Grieg Seafood ASA through his ownership of
Kvasshøgdi AS. The demerger was effective from 4 March 2021.
Nicolai Hafeld Grieg owns, indirectly, 1.87% of Grieg Seafood ASA through his ownership in Grieg Maturitas AS, the parent company of Grieg
Aqua AS.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 15 8
NO T E 1 3 TA X E S
BASIS FOR TAX PAYABLE NOK 1 000
Profit before tax
Dividends recognized in profit or loss
3% dividend tax
Net other permanent differences
Other permanent differences from gain of sales of share
Unrealized value adjustments of share
Change in financial derivatives
Change in temporary differences
Change in temporary differences from 2019
Group contribution received/provided
Taxable income/loss
Group contribution received
Loss carry forward from 2020
Basis for tax expense for the year
22% (22%) tax payable
Underprovision for tax previous year
22% (22%) tax payable
2021
488 599
-10
—
-5 109
-142 680
—
-29 281
76 489
—
-307 845
80 163
307 845
-39 433
348 575
76 686
—
76 686
2020
-4 210
-17 362
521
1 459
-54 486
-165
14 732
-3 163
-1 267
-99 710
-163 651
99 710
—
-63 941
—
279
279
BREAKDOWN OF DEFERRED TAX BASIS NO 1 000
CHANGE
-2 711
-127
-7 924
-13 097
-56 469
3 839
-76 489
29 281
69 433
-30 000
-7 775
-1 711
-1 711
TEMPORARY DIFFERENCES
Non-current assets
Profit and loss account
Cash-based options
Non-current debt/amortized cost
Revaluation account non-current liabilities
Discount bond loan
Net temporary differences
Financial instruments
Loss carryforward
Profit from 2019 carryforward to cover loss in 2020 (Covid-19 refund)
Basis for deferred tax in balance sheet
22% deferred tax
Deferred tax assets/deferred tax liabilities in the balance sheet
BREAKDOWN OF TAX CHARGE
Tax payable
Change in deferred tax, 22% (22%)
Tax refund as a part of Covid-19 tax measures
Tax effect of foreign tax not credited Norwegian tax
Tax expense in income statement
RECONCILIATION OF TAX EXPENSE
Profit before tax
Estimated tax 22% (22%)
Tax expense in income statement
Difference
THE DIFFERENCE CONSISTS OF THE FOLLOWING:
22% of permanent differences
Tax effect of foreign tax not credited Norwegian tax
Change in tax/deferred tax due to change of tax rate
Total reconciled difference
NO T E 14 GU A R AN T EE S
2021
-332
508
-11 166
29 671
20 413
-13 377
25 717
20 426
—
—
46 143
10 151
10 151
76 686
-1 711
39
6 242
81 257
488 599
-107 492
81 257
-26 235
-32 516
6 242
39
-26 235
2020
2 379
635
-3 242
42 768
76 882
-17 216
102 207
-8 855
-69 433
30 000
53 919
11 862
11 862
279
-11 221
-6 600
1 716
-15 826
-4 210
926
-15 826
-14 900
-16 616
1 716
—
-14 900
Grieg Seafood ASA acted as a guarantor for Grieg Seafood Sales UK (formerly know as Ocean Quality UK Limited) and Grieg Seafood Sales
North America Inc. (formerly known as Ocean Quality North America Inc.) in connection with sales contracts with customers. The total
guaranteed amounts are EUR 250 000 and USD 3 000 000.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 15 9
NO T E 1 5 R EL AT ED PAR T I E S
2021
NOK 1 000
OPERATING
INCOME
OPERATING
EXPENSES
FINANCIAL
INCOME
FINANCIAL
EXPENSES
NON-
CURRENT
RECEIVABLES
TRADE
RECEIVABLES
CURRENT
RECEIVABLES
TRADE
PAYABLES
OTHER
CURRENT
LIABILITIES
On 20 April 2020, a private placement was conducted, through which 1 785 042 new shares were issued to Grieg Aqua AS and Kvasshøgdi AS,
in addition to the other owners, in part consideration for the shares in Grieg Newfoundland AS. The subscription price for each new share
was set at NOK 140.05, corresponding to a total contribution-in-kind of NOK 250 million. For more information, see Note 6 and Note 23 to
the Grieg Seafood consolidated financial statement for 2020.
Total related
parties – Group
companies
Total related
parties –
Shareholders
Total related
parties – Group
companies
Total related
parties –
Shareholders
Total
98 328
-411
501 779
-45
787 096
178
2 149 163
—
-102 111
Total
98 328
-13 658
501 779
—
-13 247
—
—
-45
—
787 096
—
178
—
2 149 163
-127
-127
—
-102 111
NO T E 16 NE T IN T ER E S T-BE AR ING LI A BI LI T IE S A ND P L ED GE S
2020
NOK 1 000
OPERATING
INCOME
OPERATING
EXPENSES
FINANCIAL
INCOME
FINANCIAL
EXPENSES
NON
CURRENT
RECEIVABLES
TRADE
RECEIVABLES
CURRENT
RECEIVABLES
TRADE
PAYABLES
OTHER
CURRENT
LIABILITIES
Grieg Seafood ASA has a syndicated loan provided 50/50 by DNB and Nordea. The financing agreement includes two term loans of NOK 600
million and EUR 60 million, a revolving credit facility of NOK 1 225 million (2020: NOK 1 500 million), alongside overdraft facilities of NOK
100 million. Repayment profile of the NOK and EUR term-loans are semi-annual installments of NOK 25 million and EUR 2.5 million until
balloon on maturity 28 February 2023. The drawdown rate of the EUR loan is 9.6691. In 2021, the NOK term loan of the financing agreement
has been settled in full. In 2020, Grieg Seafood issued a green bond, through two tap issues, in the amount of NOK 1 500 million. The green
75 413
-3 474
184 966
1 090
1 216 143
4 307
2 370 621
-45 750
-2 993
bond (GSF01 G, listed at Euronext) matures on 25 June 2025.
—
-13 452
—
—
—
—
—
-188
—
75 413
-16 926
184 966
1 090
1 216 143
4 307
2 370 621
-45 938
-2 993
The financial covenants in the loan agreement are based on consolidated figures for the Grieg Seafood Group. The equity ratio is calculated
without the effect of IFRS 16. As at 31 December 2021, the Group had an equity ratio (according to IFRS) of 52% (2020: 41%), while the
equity ratio of the Grieg Seafood Group according to financial covenants was 54 % (2020: 43%). In addition, there is a rolling 12-month
NIBD/EBITDA leverage ratio requirement. Net interest-bearing debt (NIBD) is calculated in accordance with covenant requirements in
The Company carries out transactions with companies controlled by Grieg Maturitas II AS, which is the parent company of Grieg Aqua
the financing agreement. According to the agreement, factoring liabilities and IFRS 16 effects are not included in NIBD. The leverage ratio
AS, majority owner of Grieg Seafood ASA. Grieg Maturitas II AS is headquartered in C. Sundts gate 17/19, Bergen, Norway. Consolidated
metric of NIBD/EBITDA is linked to our equity ratio requirement: if equity ratio is more than 40%, the maximum leverage ratio is 5.0, and
financial statements, in which Grieg Seafood ASA is included may be obtained from the parent company.
if the equity ratio is equal to or less then 40%, the maximum leverage ratio is 4.5. NIBD/EBITDA was not reported as a financial covenant
from Q4 2020 through Q3 2021, pursuant to a temporary amendment to the syndicated loan agreement. NIBD/EBITDA was measured as at
The services provided by these companies include:
31 December 2021.
•
ICT-related and other services, such as catering, reception, etc., are delivered by Grieg Group Resources AS. The services are provided
on an arm's length basis.
• Grieg Seafood ASA rents its offices from Grieg Garden AS on an arm’s length basis.
In June 2020, we issued our first green bond issue, with a proceed of NOK 1 000 million. In November 2020, Grieg Seafood ASA issued the
second tap of the senior unsecured green bond with an additional drawdown of NOK 500 million, bringing the total principal of the green
The parent company provides a range of services to the subsidiaries. The services include administrative services and services relating to
bond issue to NOK 1 500 million. The bond matures on 25 June 2025 and is listed on Euronext (Oslo Stock Exchange) with ticker "GSF01 G".
the provision of parent company non-current loans and current credit facilities to subsidiaries. Interest is charged on an arm's length basis.
The green bond's financial covenant is an equity ratio requirement of at least 30%, measured consistently with the equity ratio covenants
Grieg Seafood ASA sold all the shares in Grieg Seafood Hjaltland Ltd Group (including the Grieg Seafood Shetland Ltd) at 15 of December
the evaluation and selection process for green projects, the management of green bond proceeds and for reporting connected to the green
2021. Transactions with Grieg Seafood Hjaltland Group for the year 2021 were all related-party transactions. At the year end Grieg Seafood
bond. The framework is aligned with the ICMA Green Bond Principles. Grieg Seafood will annually publish a green bond report, including
Hjaltland Group is not a part of Grieg Seafood Group.
an allocation and impact report, as long as there are green bond proceeds outstanding. The green bond report is to be verified with limited
as defined in the Group’s syndicated loan agreement with secured lenders. The green bond framework is the basis for the use of proceeds,
Grieg Seafood ASA had sold all its shares in Sjór AS (previously known as Ocean Quality AS) as at 31 December 2020. Transactions with
Ocean Quality AS for the year 2020 were all related-party transactions. However, Sjór AS was not part of the Grieg Seafood Group at year-
end 2020. In 2020, Grieg Seafood recognized revenues of NOK 5 million in respect of administrative services provided to Sjór AS up until its
exit from the Group. A dividend of NOK 17 million is included in financial income for 2020.
assurance by an external auditor.
EVENT AFTER THE BALANCE SHEET DATE:
In Q1 2022, Grieg Seafood finalized a refinancing of the Group's syndicated financial liabilities, with an aggregate of NOK 3 200 million in
five-year senior secured sustainability-linked loans and credit facilities. This represents the completion of the funding process. The new
debt structure comprises a NOK 750 million term loan, an EUR 75 million term loan, a NOK 1 500 million revolving credit facility and a NOK
Grieg Seafood ASA enters into hedging contracts on behalf of Grieg Seafood Rogaland AS and Grieg Seafood Finnmark AS. The arrangement
200 million overdraft facility. The NOK and EUR term loans carry installments equal to a 12-year repayment profile until balloon payment
is intended to reduce these companies’ exposure to salmon prices. The agreements with the subsidiaries are priced on the basis of a “back-
at five years. The revolving credit facility matures at five years, while the overdraft facility is subject to annual renewal. The interest rate is
to-back” arrangement.
The acquisition of Grieg Newfoundland AS (99%) was completed on 15 April 2020. Grieg Newfoundland AS was 39% owned by Grieg Kapital
AS/Grieg Aqua AS (the owner of the majority of the shares in Grieg Seafood ASA), and 39% by Kvasshøgdi AS (owned by Per Grieg Jr, who
chairs the Board of Grieg Seafood ASA). The remaining shares were owned by the local partner Ocean Choice International Ltd (19.5%)
and Knut Skeidsvoll (2.5%). The up-front payment was based on an enterprise value of Grieg Newfoundland AS of NOK 539.1 million. NOK
250 million of the up-front payment was settled through issuance of new shares in the Company to the sellers of Grieg Newfoundland AS.
three months NIBOR plus margin. The loan is linked to sustainability-linked KPIs, of which the scoring impact the interest rate margin paid
on the facilities. The sole financial covenant for the new facilities is a minimum recognized equity ratio of 31%, excluding the effect of IFRS
16 compared to the IFRS in force prior to 1 January 2019.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
G R I E G S E A F O O D A S A A C C O U N T S
PA G E 16 0
NON-CURRENT LIABILITIES (INTEREST-BEARING) NOK 1 000
Green bond
Non-current syndicated loan
Non-current revolving credit facility *
Amortized cost
Total
CURRENT LIABILITIES (INTEREST-BEARING) NOK 1 000
Current overdraft facility *
Current portion of non-current borrowing
Current liquidity loan from subsidiaries
Total
NET INTEREST-BEARING LIABILITIES NOK 1 000
Gross interest-bearing liabilities
Unrestricted bank deposits
Loans to subsidiaries
Net interest-bearing liabilities
2021
1 500 000
374 580
440 000
-29 671
2020
1 500 000
869 988
996 646
-42 768
2 284 909
3 323 866
2021
—
49 944
—
49 944
2021
2 334 853
790 312
2 612 972
-1 068 431
2020
—
102 352
—
102 352
2020
3 426 218
181 547
3 474 445
-229 774
* At the end of 2021, the Company had a total revolving credit facility NOK 1 225 million and an overdraft facility NOK 100 million, which gives a total overdraft of NOK 1 325 million. As at
the reporting date, NOK 885 million (2020: NOK 1 203 million) was available for utilization.
MATURITY PROFILE - NON-CURRENT LIABILITIES NOK 1 000
2022
2023
2024
2025
2026
Later
Total
Green Bond
Non-current loan
Non-current revolving credit facility
Total
—
49 944
—
—
— 1 500 000
374 580
440 000
—
—
—
—
49 944
814 580
— 1 500 000
—
—
—
—
— 1 500 000
—
—
424 524
440 000
— 2 364 524
Figures included in the maturity profile table are nominal figures. Amortized cost is not included.
LIABILITIES SECURED BY MORTAGE NOK 1 000
BOOK VALUE OF LIABILITIES SECURED BY MORTAGE
Liabilities to credit institutions
Total liabilities
BOOK VALUE OF ASSETS PLEDGED AS SECURITY
Shares in subsidiaries
Property, plant and equipment
Trade receivables
Loans to subsidiaries*
Total assets pledged as security
2021
2020
864 524
864 524
1 968 985
1 968 985
922 090
2 571
178
1 137 778
2 062 617
1 379 840
2 131
4 307
2 563 196
3 949 474
*The subsidiaries and the parent company have a joint and several liability against the credit institutions. See the consolidated financial statements Note 12 for further information about
liabilities secured by mortgage.
TYPE OF LIABILITY NOK 1 000
CURRENCY
INTEREST
RATE
MATURITY
CURRENT
PART
Green bond
Syndicated non-current loan
Syndicated non-current loan
Syndicated loan revolving credit
Syndicated loan revolving credit
Overdraft facility
Total
NOK
NOK
EUR
NOK
EUR
Floating
Floating
Floating
Floating
Floating
Multiple
Floating
06/2025
02/2023
02/2023
02/2023
02/2023
—
—
49 944
—
—
—
2021
2020
NON-
CURRENT
PART
1 500 000
—
374 580
440 000
—
—
CURRENT
PART
NON-
CURRENT
PART
—
1 500 000
50 000
52 352
—
—
—
425 000
444 988
960 000
36 646
—
49 944
2 314 580
102 352
3 366 634
CURRENCY EXPOSURE ON LOANS TO CREDIT INSTITUTIONS
NOK 1 000
31.12.2021
NOK
GBP
EUR
USD
Other
Green bond
Syndicated non-current loan (NOK)
Syndicated non-current loan (EUR)
Syndicated loan revolving credit (non-current) (NOK)
Syndicated loan revolving credit (non-current) (EUR)
Overdraft facility
Total
AVERAGE INTEREST RATE ON BANK AND BOND LOAN
Average interest rate (NOK)
Average interest rate (EUR)
1 500 000
1 500 000
—
424 524
440 000
—
—
—
440 000
—
—
—
—
—
—
—
—
—
—
424 524
—
—
—
2 364 524
1 940 000
—
424 524
—
—
—
—
—
—
—
2021
3.76%
3.50%
—
—
—
—
—
—
—
2020
2.81%
1.59%
The effect of interest rate swaps is not taken into account in calculating the average interest rate on borrowings and credit facilities.
NO T E 17 P O S T-B AL ANCE SHEE T E V EN T S
In Q1 2022, Grieg Seafood finalized a refinancing of the Group's syndicated financial liabilities, with an aggregate of NOK 3 200 million in
five-year senior secured sustainability-linked loans and credit facilities. This represents the completion of the funding process. The new
debt structure comprises a NOK 750 million term loan, an EUR 75 million term loan, a NOK 1 500 million revolving credit facility and a NOK
200 million overdraft facility. The NOK and EUR term loans carry installments equal to a 12-year repayment profile until balloon payment
at five years. The revolving credit facility matures at five years, while the overdraft facility is subject to annual renewal. The interest rate is
three months NIBOR plus margin. The loan is linked to sustainability-linked KPIs, of which the scoring impact the interest rate margin paid
on the facilities. The sole financial covenant for the new facilities is a minimum recognized equity ratio of 31%, excluding the effect of IFRS
16 compared to the IFRS in force prior to 1 January 2019.
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
A U D I T O R ’ S R E P O R T
PA G E 161
To the General Meeting of Grieg Seafood ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Grieg Seafood ASA, which comprise:
•
•
The financial statements of the parent company Grieg Seafood ASA (the Company), which
comprise the statement of financial position as at 31 December 2021, the income statement,
statement of changes in equity and cash flow statement for the year then ended, and notes to
the financial statements, including a summary of significant accounting policies, and
The consolidated financial statements of Grieg Seafood ASA and its subsidiaries (the Group),
which comprise the statement of financial position as at 31 December 2021, the income
statement, comprehensive income statement, statement of changes in equity and cash flow
statement for the year then ended, and notes to the financial statements, including a summary
of significant accounting policies.
In our opinion:
•
•
•
the financial statements comply with applicable statutory requirements,
the financial statements give a true and fair view of the financial position of the Company as at
31 December 2021, and its financial performance and its cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway, and
the financial statements give a true and fair view of the financial position of the Group as at 31
December 2021, and its financial performance and its cash flows for the year then ended in
accordance with International Financial Reporting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company and the
Group as required by laws and regulations and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International
Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in
PricewaterhouseCoopers AS, Sandviksbodene 2A, Postboks 3984 - Sandviken, NO-5835 Bergen
T: 02316, org. no.: 987 009 713 VAT, www.pwc.no
State authorised public accountants, members of The Norwegian Institute of Public Accountants, and
authorised accounting firm
Independent Auditor's Report - Grieg Seafood ASA
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 34 years from the election by the general meeting of the
shareholders on 4 January 1988 for the accounting year 1988.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters. The company’s business activities are largely
unchanged compared to last year. We have not identified regulatory changes, transactions or events
that qualified as new Key Audit Matters. Our areas of focus are therefore unchanged from 2020.
Key Audit Matter
How our audit addressed the Key Audit Matter
Measuring of the amount of
biological assets
Biological assets include inventories of
broodstock, smolt and live fish held for
harvesting purposes.
For audits of significant inventories, the
international audit standards require that the
auditor participates at inventory count,
provided it is practicable. The biological assets
are by nature difficult to count, observe and
measure due to lack of sufficiently accurate
measuring techniques that at the same time
does not affect fish health. As a result, there is
some uncertainty related to the number of fish
and biomass in the sea. Consequently, we have
performed alternative audit procedures to
obtain sufficient appropriate audit evidence
regarding the existence and condition of the
inventory. The group has established control
procedures for measurement of both number
of fish and biomass. However, a certain
inherent risk of deviations exists in the
measurement.
Therefore, we focused on measuring the
inventory of biological assets (biomass),
emphasizing live fish held for harvesting
purposes, which constitute the major part of
the Group’s biological assets. The amount of
biomass in the sea has direct influence on the
The Group’s biomass system shows the number of fish,
average weight and biomass per site. We directed our
effort at the movement in biological inventory (in
numbers) in the period. The movement is the total of
smolt stocked, loss of fish and harvested fish for the
period.
We reviewed the Group’s processes for controlling the
number of fish stocked. To assure accuracy of the number
of fish registered in the biomass system, we tested a
selection of smolt stocked, by tracing the number of fish
stocked back to underlying documentation. Underlying
documentation are e.g. vaccination documentation for
internally produced smolt and invoices for purchase of
external smolt.
The growth in the period is connected to the total feed
consumption and is closely associated with purchase of
feed. We reviewed the Group’s internal controls of
reconciliation of feed inventory and obtained external
confirmation from feed suppliers in order to verify
purchased volume. We also assessed recorded
accumulated feed conversion rate for live fish held for
harvesting purposes and obtained explanations from
management and further documentation for sites with
significantly either higher or lower feed conversion rate
than expected. Our procedures substantiated that the
growth for the year was reasonable.
(2)
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
A U D I T O R ’ S R E P O R T
PA G E 16 2
Independent Auditor's Report - Grieg Seafood ASA
Independent Auditor's Report - Grieg Seafood ASA
valuation; see more about this in the
paragraph «Valuation of biological assets at
fair value» below.
See note 2 (Accounting policies) and note 9
(Biological assets and other inventories) for
further information about measuring of
biological assets.
Valuation of biological assets at fair value
The Group measures biological assets at fair
value using the requirements in IAS 41. As per
31.12.2021, the book value of biological assets
is MNOK 3 449, of which
MNOK 2 479 is historical cost and
MNOK 970 is value adjustment. Biological
assets comprise about 32% of total assets.
The fluctuations in the fair value estimate that
occur due to, for instance, changes in the
market price, may have significant impact on
the period’s operating result. The Group
therefore shows the effect of fair value
adjustments for biological assets as a separate
line item before operating result (EBIT).
We focused on the valuation of biological
assets at fair value due to the size of the
amount, the complexity of the calculation,
because the estimate involves judgement and
due to its significance on the financial result
for the year.
See note 2 (Accounting policies) and note 9
(Biological assets and other inventories) for
further information about valuation of
biological assets at fair value.
In order to challenge the historical accuracy of
management’s biomass estimates we reviewed the harvest
deviation for the period. By harvest deviation, we refer to
the deviation between actual harvested biomass (in
numbers and kilos) and the estimated biological inventory
according to the group’s biomass system. We found the
accumulated deviations to be reasonable.
We satisfied ourselves that the disclosures in the notes
about measuring of biological assets were reasonable and
in accordance with the requirements in the accounting
standards.
We challenged management’s model for calculation of fair
value of biological assets by assessing the model against
the criteria in IAS 41 and IFRS 13. We found that the
model includes the elements that the accounting
standards require.
We examined whether the biomass that formed the basis
for the Group’s model corresponded with the Group’s
biomass system and controlled that the model made the
mathematical calculations as intended.
After having assured that these fundamental elements
were in place, we assessed whether the assumptions that
management used in the model were reasonable. We
assessed the price assumptions against observable forward
prices from FishPool. We challenged the assumption made
with regards to when the fish is considered to be ready for
harvest, the expected monthly mortality rate and the
discount rate applied. We found the management’s
assumptions to be reasonable and consistent with industry
norm.
Further, we assessed whether information about fish
health and harvest deviation after the balance sheet date is
reflected in the valuation. We found that the calculation
model adequately reflects available information.
We satisfied ourselves that the disclosures in notes 2 and 9
to the financial statements referring to valuation of
biological assets appropriately reflect the valuation
method and that the disclosures are according to
requirements in the accounting principles.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information
in the Board of Directors’ report and the other information accompanying the financial statements.
The other information comprises information in the annual report, but does not include the financial
statements and our auditor’s report thereon. Our opinion on the financial statements does not cover
the information in the Board of Directors’ report nor the other information accompanying the financial
statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of
Directors’ report and the other information accompanying the financial statements. The purpose is to
consider if there is material inconsistency between the Board of Directors’ report and the other
information accompanying the financial statements and the financial statements or our knowledge
obtained in the audit, or whether the Board of Directors’ report and the other information
accompanying the financial statements otherwise appears to be materially misstated. We are required
to report if there is a material misstatement in the Board of Directors’ report or the other information
accompanying the financial statements. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
•
•
is consistent with the financial statements and
contains the information required by applicable legal requirements.
Our opinion on the Board of Director’s report applies correspondingly to the statements on Corporate
Governance and Corporate Social Responsibility.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with the Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway, and for the preparation and true and fair view of the consolidated financial
statements of the Group in accordance with International Financial Reporting Standards as adopted
by the EU, and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern. The financial statements of the Company use the going concern basis of accounting insofar as
it is not likely that the enterprise will cease operations. The consolidated financial statements of the
Group use the going concern basis of accounting unless management either intends to liquidate the
Group or to cease operations, or has no realistic alternative but to do so.
(3)
(4)
PA R T 0 3 : O U R F I N A N C I A L R E S U LT S
A U D I T O R ’ S R E P O R T
PA G E 16 3
Independent Auditor's Report - Grieg Seafood ASA
Independent Auditor's Report - Grieg Seafood ASA
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
•
•
•
•
•
•
identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error. We design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's or the Group's internal control.
evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
conclude on the appropriateness of management’s use of the going concern basis of
accounting, and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company and the
Group's ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company and the Group to cease to
continue as a going concern.
evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves a true and fair view.
obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on compliance with Regulation on European Single Electronic Format
(ESEF)
Opinion
We have performed an assurance engagement to obtain reasonable assurance that the financial
statements with file name gsf-2021-12-31-en.zip have been prepared in accordance with Section 5-5 of
the Norwegian Securities Trading Act (Verdipapirhandelloven) and the accompanying Regulation on
European Single Electronic Format (ESEF).
In our opinion, the financial statements have been prepared, in all material respects, in accordance
with the requirements of ESEF.
Management’s Responsibilities
Management is responsible for preparing, tagging and publishing the financial statements in the single
electronic reporting format required in ESEF. This responsibility comprises an adequate process and
the internal control procedures which management determines is necessary for the preparation,
tagging and publication of the financial statements.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the
ESEF reporting, see: https://revisorforeningen.no/revisjonsberetninger
Bergen, 30 March 2022
PricewaterhouseCoopers AS
Sturle Døsen
State Authorised Public Accountant
(5)
(6)
TRANSPARENT
SUSTAINABILITY
REPORTING
PA R T 0 4
T R A N S PA R E N T R E P O R T I N G O N O U R P R O G R E S S
G R I I N D E X
S TA K E H O L D E R D I A L O U G E
A U D I T O R ’ S S U S TA I N A B I L I T Y R E P O R T
0 0
0 0
0 0
0 0
PA R T 0 4 : S U S TA I N A B I L I T Y R E P O R T I N G
T R A N S PA R E N T R E P O R T I N G
PA G E 16 5
TRANSPARENT REPORTING
ON OUR PROGRESS
This is an integrated report, and covers our progress with respect to all of our pillars.
We believe that measuring and integrating comparable, consistent and reliable
environmental, social, and governance parameters is fundamental to making more
informed decisions and to facilitating long-term sustainable growth.
INDEX /FRAMEWORK
CDP CLIMATE CHANGE
CDP FORESTS
FAIRR INDEX COLLER FAIRR
PROTEIN PRODUCER INDEX
SUSTAINALYTICS ESG RISK
RATING
DESCRIPTION
CDP's climate change program aims
to reduce companies' greenhouse gas
emissions and mitigate climate change
risk. CDP requests information on climate
risks and low carbon opportunities via its
online response system (ORS) once per
year. Companies that disclose to CDP are
scored using letter grades A to D-.
CDP also collects information about the
four agricultural commodities responsible
for most deforestation, timber products,
palm oil, cattle products and soy, where
only palm oil and soy are relevant to Grieg
Seafood. Data collection and rating work in
the same way as for CDP Climate change.
The Coller FAIRR Protein Producer
Index constitutes the world's only
comprehensive assessment of the
60 largest animal protein producers
on critical material ESG risks. The
methodology is based on an annual
consultative process. All data used in the
company analyses are publicly available.
The ESG Risk Ratings by Sustainalytics
measure a company's exposure to
industry-specific material ESG risks
and how well a company is managing
those risks. The ESG Risk Ratings are
categorized across five risk levels:
negligible (0-10), low (10-20), medium (20-
30), high (30-40) and severe (40+).
2nd
29.0 - medium risk
2021 RESULT
A
COMMENT
Grieg Seafood has engaged with
CDP Climate change since 2018.
Grieg Seafood has been on CDP’s
A List (Leadership) in all four years
of participation.
B (Palm Oil)
B (Soy)
Grieg Seafood has reported on CDP
Forests since 2020.
Grieg Seafood is engaging with
the index to better understand the
concerns of our stakeholders and
issues we should address in our
reporting. In 2021, Grieg Seafood
managed to improve it’s position
substantially.
We have been actively engaging
with Sustainalytics during 2021 and
managed to achieve a significant
improvement in our overall rating,
even though the industry’s general
risk exposure has seen an increase.
We will continue our dialogue with
Sustainalytics to better understand
the concerns and issues we should
address in our reporting and to
make sure our efforts are reflected
in the ESG Risk Rating.
Grieg Seafood started looking into
the ESG Ratings’ methodology and
criteria in 2020 and improved our
score during 2021 from A (average)
to AA (leader).
Grieg Seafood has been engaging
with The Governance Group since
2019. In 2021, Grieg Seafood
maintained an A score for
“excellent reporting in line with
best practice”.
This is our third annual report
prepared in accordance with the
GRI Standards. We will adopt the
revised Universal Standards in
2022 and the Sector Standard for
Agriculture, Aquaculture, and
Fishing as soon as it is launched.
MSCI ESG RATINGS
THE GOVERNANCE GROUP -
ESG 100 - THE OSLO STOCK
EXCHANGE
GRI GLOBAL REPORTING
INITIATIVE
AA
MSCI ESG Ratings are designed to
measure a company's resilience to long-
term industry material environmental,
social and governance (ESG) risks. MSCI
uses a rules-based methodology to identify
industry leaders and laggards according to
their exposure to ESG risks and how well
they manage those risks relative to peers.
The ESG Ratings range from leader (AAA,
AA), average (A, BBB, BB) to laggard (B,
CCC).
A-
The Governance Group publishes the “ESG
100 - The Oslo Stock Exchange” report,
assessing the 100 largest listed companies
on the Oslo Stock Exchange based on
commonly reported ESG topics and
reporting practices from A (best) to E (no
reporting or very incomplete reporting).
Audited
In 2016, GRI transitioned from providing
guidelines to setting the first global
standards for sustainability reporting – the
GRI Standards. The GRI Standards have
a modular structure and are the world’s
most widely used sustainability reporting
framework. The standards continue to be
updated and added to.
PA R T 0 4 : S U S TA I N A B I L I T Y R E P O R T I N G
T R A N S PA R E N T R E P O R T I N G
G R I R E P O R T
PA G E 16 6
INDEX /FRAMEWORK
GSI GLOBAL SALMON
INITIATIVE
NUES NORWEGIAN CODE OF
PRACTICE FOR CORPORATE
GOVERNANCE
OECD GUIDELINES
FOR MULTINATIONAL
ENTERPRISES
OSE OSLO STOCK
EXCHANGE (or Euronext)
TCFD TASK FORCE ON
CLIMATE-RELATED
FINANCIAL DISCLOSURES
TNFD TASKFORCE ON
NATURE-RELATED
FINANCIAL DISCLOSURES
EU SUSTAINABLE FINANCE
TAXONOMY
DESCRIPTION
The Global Salmon Initiative (GSI) is a
leadership effort established by global
farmed salmon CEOs committed to
helping feed the world in a healthier, more
sustainable way through advancements in
responsible salmon farming. Representing
40% of the global farmed salmon industry,
GSI members recognize their ability – and
responsibility – to drive positive change at
scale.
The Norwegian Corporate Governance
Board (“NCGB” or “NUES”) issues the
recommendation on corporate governance
for companies listed in Norway.
The OECD Guidelines for Multinational
Enterprises are recommendations
addressed by governments to
multinational enterprises operating in
or from adhering countries. They provide
non-binding principles and standards
for responsible business conduct in a
global context consistent with applicable
laws and internationally recognized
standards. The Guidelines are the only
multilaterally agreed and comprehensive
code of responsible business conduct
that governments have committed to
promoting.
The Euronext ESG Reporting Guidelines
have been created to help listed
companies in their interactions with
investors and the wider ESG community,
to help them understand how to address
ESG issues as a key component of investor
relations, as well as the main principles to
consider when preparing an ESG report.
The Financial Stability Board created the
Task Force on Climate-related Financial
Disclosures (TCFD) to improve and
increase reporting of climate-related
financial information.
The TNFD consists of various groups,
which together make up the TNFD
Alliance. At the centre sits the Taskforce,
a group of 34 Taskforce Members. TNFD’s
mission is to develop and deliver a risk
management and disclosure framework
for organizations to report and act on
evolving nature-related risks, with the
ultimate aim of supporting a shift in global
financial flows away from nature-negative
outcomes and toward nature-positive
outcomes.
From 2022, the EU taxonomy will
provide a classification system for which
economic activities can be considered
environmentally sustainable. It is expected
that the EU taxonomy will be implemented
in Norwegian law during 2022.
2021 RESULT
Audited
COMMENT
We have reported to the GSI for
several years. Please find more
information in the annually issued
GSI sustainability report.
In compliance
We adopted the Norwegian Code of
Practice for Corporate Governance
in 2007.
–
–
–
–
-
We adhere to principles and
standards for responsible business
conduct.
We follow the Euronext guidance on
ESG reporting.
Our third TCFD report has been
published in connection with this
annual report. Climate-related
scenario analysis is included in our
TCFD report.
Grieg Seafood has joined the TNFD
as a Taskforce Member, alongside
global financial institutions and
businesses. As sea farmers,
healthy oceans are at the heart of
our operations, and understanding
and addressing nature-related
risks is important for us. The
finalized framework is earmarked
for release in late 2023.
Grieg Seafood will be required
to report according to the EU
taxonomy. Aquaculture has not
yet been included in the list of
industries covered by the taxonomy,
and there are no screening criteria
available for any of our activities.
We are constantly monitoring
developments in this area.
TRANSPARENT SUSTAINABILITY REPORTING
GLOBAL REPORTING
INITIATIVE INDEX
This report has been prepared in accordance with the GRI Standards:
Core option. We follow the GRI Standards to report our economic,
environmental and social performance, allowing for greater transparency
and accountability. For more information on our approach to corporate
social responsibility and transparency, see our website.
REPORT QUALITY
The quantitative information provided in this report, is mainly data we have retrieved from our production, logistics and financial systems.
Where data has been measured or estimated, this is indicated in footnotes. If we use external data, the source is specified. Our data is
reported consistently, unless otherwise indicated. Any restatement of historical data is disclosed. All entities consolidated into the Grieg
Seafood Group’s financial statement are included in our sustainability data. As our Shetland operations was sold in December 2021, we
have not had access to complete data for 2021, and have excluded Shetland from all of our sustainability reporting (in line with our financial
reporting).
EXTERNAL VERIFICATION
To ensure the quality of our report and the information (both quantitative and qualitative) provided, it is reviewed and verified internally.
To ensure high data quality and to enhance the credibility of our sustainability reporting, it has been verified by our independent auditor,
PwC. The auditor´s opinion on sustainability reporting concludes that our Annual Report 2021 is presented according to the GRI Standards
Core Option. In addition to assessing the extent to which our report complies with the GRI Standards Core Option, PwC has also examined
selected metrics. These metrics include data reported to the Global Salmon Initiative and our greenhouse gas emissions. Reference is made
to the auditor´s statement on sustainability reporting.
MANAGEMENT APPROACH
With our vision of farming the ocean for a better future, we demonstrate our commitment to corporate responsibility by operating profitably
and sustainably in a manner that conforms with fundamental ethical norms and respect for the individual, the environment and society
as a whole. We apply the precautionary principle as our strategy for approaching issues of potential harm when scientific knowledge is
lacking. We aim to collaborate and take part in research to develop and test new solutions. In pursuit of our vision, we will face risks and
opportunities. Our risk management is clearly connected with a multitude of stakeholder expectations, and the topics we have identified as
material.
The Board exercises oversight of strategic, operational and financial matters, including the nature and extent of major risks. The Board and
the CEO have delegated responsibility to the various business areas and functions, ensuring that operational responsibility is an integral
part for all management teams and units and departments. We have implemented Group policies and targets aligned with our pillars and
2025 strategy. Our monthly key performance indicator (KPI) report, which is used both by operational management and the Board, is based
on these policies and targets. Deviations from targets are followed up monthly, and action plans are implemented. We have a whistleblower
channel, operated by EY, available for our employees and external parties to report any unwanted behavior and breaches of our Code of
Conduct.
PA R T 0 4 : S U S TA I N A B I L I T Y R E P O R T I N G
G R I R E P O R T
PA G E 167
PILLAR
MATERIAL TOPIC
TOPIC DEFINITION AND BOUNDARIES
MANAGEMENT APPROACH
FOUNDATION
Corporate
governance
HEALTHY OCEAN
Fish health &
welfare
Strong corporate governance is essential
in achieving our objectives and acting as
a responsible organization. We need to
ensure that all employees practice sound
ethics and care for the environment and
society as a whole. We expect nothing less
from our suppliers through our Supplier
Code of Conduct.
Ensuring fish health and welfare is an
ethical responsibility and important to
ensure good growth, quality and lower cost.
It includes the full lifecycle of the salmon
as well as our use of cleaner fish.
Protecting wild
salmon (escape &
sea lice control)
Avoiding fish escape incidents is important
to minimize our impact on wild salmon, as
well as to protect our assets.
Sea lice control is important to ensure
the health and welfare of our fish, as well
as to protect wild salmon, in particular in
Norway. In BC, wild salmon carry sea lice,
impacting our farms each autumn.
Protecting
biodiversity
& marine
ecosystems
(local emissions,
medicine
use, wildlife
interaction)
We aim to keep emissions of feed and feces
from all our open-net pens in line with
regulations to minimize local emissions
and avoid eutrophication.
We aim to avoid using medicines to combat
sea lice or diseases affecting our salmon,
as it can impact the local environment.
We aim to avoid impact on wild mammals
and birds at all our seawater facilities.
Low use of
antibiotics
We aim to avoid the use of antibiotics
throughout our operations, as resistance
to antibiotics is a growing global challenge.
The risk increases with extensive use of
antibiotics in animal protein production.
Our governance system consists of
our culture, management principles,
risk and internal control framework,
policies, procedures, etc. We adhere to
our Corporate Governance Principles,
and our Code of Conduct guides our
behavior. Training in our Code is performed
regularly. External assurance and
certifications are performed in several
areas of our operations.
We have policies and operational
procedures to ensure good fish health and
welfare. We adhere to regulations, and
report to authorities. KPIs to measure fish
health and welfare include survival rate
and causes for reduced survival.
In all our regions, we have procedures in
place, as well as high technical standards
on equipment to avoid escapes. Any
escape incident is an indicator that our
measures are not effective, and require an
investigation of our procedures.
Our main goal is to keep the sea lice level
below national limits. We have a policy
for sea lice management and several
approaches to keeping the sea lice level
below the national limits. We adhere to
local regulations, and report sea lice levels
regularly to the appropriate authorities.
We assess our sites and apply operating
procedures to ensure that local emissions
are below legal limits. Environmental
monitoring programs and testing is
the main approach to evaluate the
effectiveness of our measures.
We have policies and procedures in place
for the use of medicines and chemicals.
We also adhere to regulations. We track
the use of medicines and chemicals, and
measure our results in terms of survival
rates and fish quality.
We have procedures and equipment in
place to minimize the risk of injury to
wildlife. Any lethal incident is an indicator
that we need to reassess our measures.
We are committed to preventing bacterial
diseases by using available vaccines
and biosecurity measures. In Norway,
effective vaccines have reduced our use of
antibiotics to zero. We have a policy for the
use of antibiotics. Use of antibiotics must
be approved by headquarters, any use is
registered and followed up regularly.
CHOSEN
UN SDGS
16, 17
14
14
14
12, 14
3, 12, 14
12
3
PILLAR
MATERIAL TOPIC
TOPIC DEFINITION AND BOUNDARIES
MANAGEMENT APPROACH
SUSTAINABLE
FOOD
Safe & healthy
food
Carbon emissions
Plastics pollution
Sustainable feed
ingredients (zero
deforestation,
sustainable
marine
ingredients, ESG
assessment, novel
ingredients)
PROFIT &
INNOVATION
Profitable
operations
Grieg Seafood has full traceability in
our value chain (from roe to customer),
including records of feed given to the
salmon and treatments applied. We need
to ensure that our fish meet rigorous food
safety standards, in some cases even above
and beyond official regulations, to meet
customer expectations.
To ensure future competitiveness and do
our part in reaching the Paris Agreement,
we must reduce our greenhouse gas
emissions, while also working with
upstream suppliers and downstream
transportation to reduce our own and our
supply chain’s footprint.
We aim not to pollute the environment
where we farm our salmon, and to improve
the circular economy.
We do not produce our own fish feed.
Input factors in fish feed, both marine
ingredients and plant-based ingredients,
should come from sustainable sources.
Ingredients with high-risk (fish meal
and fish oil from fisheries, Brazilian soy
and palm oil) are certified by recognized
certification schemes. We are currently
risk assessing ingredients used according
to environmental, social and governmental
parameters.
We aim to create value for our
stakeholders, in particular our
shareholders, by focusing on sustainable
production and improve our operations.
Responsible
business conduct
Business integrity is essential for our
business strategy. We have zero tolerance
for all forms of fraud, corruption,
facilitation payments, kickbacks, bribery
or other misconduct in our own operations
and in our supply chain.
CHOSEN
UN SDGS
3
3, 12, 13
3, 12, 13,
14, 17
12, 13, 17
We have a policy for food health and
safety. We have procedures, including
traceability and strict quality control, in
place to ensure that our salmon is safe. We
operate according to standards and certify
our supply chain. Samples are taken by
external laboratories to ensure our salmon
is well below limits for environmental
contaminants.
We have a policy for climate action.
We have set a Science Based Target
for reduction, and have improved our
data collection for a more systematic
assessment of our emissions, for Scope 1,
2 and 3.
We have a policy for plastic in the ocean.
We work to reduce negative impacts of
plastic waste, including using recycled
materials and recycling our materials. We
work with suppliers to assess alternative
materials.
As we do not produce our own fish feed,
we set requirements for our feed suppliers
to develop more sustainable feed. We
comply with standards, and support and/
or participate to develop new and higher
standards for sustainable sourcing of
feed raw materials. We also have a
deforestation statement.
We have a 2025 strategy, with targets
for growth and farming cost. We have a
target for the return on capital employed,
and strategies in place to ensure focus
on particular areas. We communicate our
results on a quarterly basis.
Our Code of Conduct, Supplier Code of
Conduct, and anti-money laundering
and anti-corruption policies set out
our principles for responsible business
conduct.
5, 8
8, 16
PA R T 0 4 : S U S TA I N A B I L I T Y R E P O R T I N G
G R I R E P O R T
PA G E 16 8
MATERIAL TOPIC
TOPIC DEFINITION AND BOUNDARIES
MANAGEMENT APPROACH
GR I 102: GENER AL DI S C L O SUR E S 2016
RESPONSE
OMISSION
CHAPTER REFERENCE
PAGE
PILLAR
PEOPLE
Employee health &
safety
We aim to prevent accidents, and offer
workplace conditions and other support to
help ensure the health and safety of our
employees. We expect the same from our
supply chain.
Human rights,
including labor
rights
Respecting human rights is the basis for
society, and also for our business and our
supply chain.
We work systematically to safeguard our
employees, and have principles, systems,
programs and risk assessments in place.
CHOSEN
UN SDGS
3, 4, 17
We have a Human Rights policy and Code
of Conduct in place, and adhere to various
global principles and practices. We also
require our suppliers to follow our Supplier
Code of Conduct.
8, 16
LOCAL
COMMUNITIES
Indigenous rights
& partnerships
Respecting Indigenous people’s rights is
essential, as we need their permission to
farm salmon on their land. This applies
in particular to our farming operations in
Finnmark and BC.
We aim for good relations and dialogue,
and recognize the special rights of
Indigenous peoples. We support the
UNDRIP, which is under implementation
in BC.
8, 16, 17
Value creation in
rural areas
Respecting and supporting local
communities is essential for our license to
operate.
Our procurement policy states that we aim
to use local suppliers. We engage in, and
support, local projects.
2, 5, 8, 17
#
DISCLOSURE
DESCRIPTION
ORGANIZATIONAL PROFILE
Name of the
102-1
organization
102-2
102-3
102-4
102-5
Activities, brands,
products, and services
Location of the
organization’s
headquarters
Location of operations
Ownership and legal
form
102-6
Markets served
102-7
Scale of the organization
102-8
Information on
employees and other
workers
102-9
Supply chain
102-10
Significant changes to
the organization’s size,
structure, ownership, or
supply chain
No
No
No
No
No
No
No
No
No
Grieg Gaarden, C. Sundts gate 17/19,
5004 Bergen, Norway.
Our main customer segment is
HoReCa (hotels, restaurants and
catering).
The Grieg Seafood Group comprises
17 legal companies. We follow up our
operations according to our farming
regions, the headquarter and our sales
operations. See also Note 1 for more
information.
Feed was our main supply category in
2021, comprising 45% of our cost. Our
main feed suppliers are Skretting and
BioMar.
The divestment process for the
Shetland assets initiated in 2020 was
completed and the Shetland assets
were sold as of December 15th, 2021.
Therefore, Shetland has been scoped
out in both this Annual Report and
Global Reporting Initiative Index.
Front page
Part 1: Our value chain
Part 2: Profit & Innovation - Sales & Market
15
60-61
Part 1: Our organization
Part 3: Grieg Seafood Group accounts - Note
1
6
108
Part 2: Profit & Innovation - Sales & Market
60-61
Part 1: Our organization; Key figures; Our
value chain
8; 15
Part 2: People - Creating attractive jobs, Our
results
Part 1: Our value chain
73
15
10
No
Part 1: CEO letter
102-11
Precautionary Principle
or approach
We respect and adhere to the
precautionary principle.
102-12
External initiatives
102-13
Membership of
associations
STRATEGY
102-14
Statement from senior
decision-maker
Membership in political organizations:
Norwegian Seafood Federation,
Norwegian Seafood Council, The
Federation of European Aquaculture
Producers, BC Salmon Farmers
Association, Newfoundland
Aquaculture Industry Association,
and Canadian Aquaculture Industry
Alliance.
No
No
No
Part 4: Global Reporting Initiative Index -
Management approach
166
Part 4: Transparent reporting on our progress
165-166
No
Part 1: CEO letter
10
PA R T 0 4 : S U S TA I N A B I L I T Y R E P O R T I N G
G R I R E P O R T
PA G E 16 9
GR I 10 2 : GE NER A L DI S CL O SU R E S 2016
GR I 102: GENER AL DI S C L O SUR E S 2016
RESPONSE
OMISSION
CHAPTER REFERENCE
PAGE
RESPONSE
OMISSION
CHAPTER REFERENCE
PAGE
#
102-53
DISCLOSURE
DESCRIPTION
Contact point for
questions regarding the
report
Chief Sustainability Officer: Tor
Eirik Homme, tor.eirik.homme@
griegseafood.com. Group
Communication Manager: Kristina
Furnes, kristina.furnes@griegseafood.
com. Global Finance Officer: Renete
Kaarvik, renete.kaarvik@griegseafood.
com.
102-54
Claims of reporting in
accordance with the GRI
Standards
This report has been prepared in
accordance with the GRI Standards:
Core option.
102-55
GRI content index
102-56
External assurance
The Chief Sustainability Officer seeks
external verification of sustainability
reporting according to GRI Standards
Core Option and selected sustainability
KPIs. Our sustainability reporting
has been verified by our independent
auditor PwC. Reference is made to
the auditor's statement according to
ISAE 3000 at the end of the Annual
Report 2021.
No
No
No
No
Part 4: Global Reporting Initiative Index
166
Part 4: Global Reporting Initiative Index
168-173
Part 4: Global Reporting Initiative Index -
External verification
166
#
DISCLOSURE
DESCRIPTION
ETHICS AND INTEGRITY
102-16
Values, principles,
standards, and norms of
behavior
102-17
Mechanisms for advice
and concerns about
ethics
GOVERNANCE
102-18
Governance structure
Decision-making on economic,
environmental, and social topics lies
with the Group management team.
STAKEHOLDER ENGAGEMENT
List of stakeholder
102-40
groups
102-41
Collective bargaining
agreements
Unionized employees for Norway are
disclosed. Labour unions in Canada
are organized differently. Therefore, a
group average is not disclosed.
102-42
102-43
102-44
Identifying and selecting
stakeholders
Approach to stakeholder
engagement
Key topics and concerns
raised
REPORTING PRACTICES
102-45
Entities included in the
consolidated financial
statements
102-46
Defining report content
and topic Boundaries
102-47
List of material topics
102-48
Restatements of
information
102-49
Changes in reporting
In accordance with the GHG Protocol,
our sold Shetland operations have
been removed from our greenhouse
gas accounts for 2021 and all
previous years. Comsequently, our
base year emissions (2018) has been
recalculated, as well.
There have not been any significant
changes to the material topics in
relation to the Annual Report 2020.
Some of our topics have been renamed
or regrouped to correspond with the
topics featured in our five pillars.
102-50
Reporting period
January 1 - December 31, 2021
102-51
Date of most recent
report
102-52
Reporting cycle
The Annual Report 2020 is the previous
most recent report and was published
March 26, 2021.
We report annually according the
GRI Standards. Our quarterly reports
include some of our sustainability
metrics.
Part 1: Our organization
Part 2: Profit & Innovation - Responsible
business conduct; People - Human rights
Part 2: People - Human rights
6
68
68
Part 3: Board of Directors' report; Corporate
Governance
81-95;
97
Part 4: Stakeholder dialogue
Part 2: People - Human rights
Part 4: Stakeholder dialogue
Part 4: Stakeholder dialogue
174
69
174
174
Part 4: Global Reporting Initiative Index -
Management approach; Stakeholder dialogue
166; 174
Part 3: Grieg Seafood Group accounts - Note
1
Part 1: Materiality matrix
Part 4: Global Reporting Initiative Index -
Management approach
Part 1: Materiality matrix
Part 4: Global Reporting Initiative Index -
Report quality
108
16
166
16
166
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
PA R T 0 4 : S U S TA I N A B I L I T Y R E P O R T I N G
G R I R E P O R T
PA G E 17 0
T OP I C-SP ECIFIC DIS CL O S UR E S
#
DISCLOSURE
DESCRIPTION
CORPORATE GOVERNANCE
RESPONSE
OMISSION
CHAPTER REFERENCE
PAGE
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
103-3
Explanation of the
material topic and its
Boundary
The management
approach and its
components
Evaluation of the
management approach
GRI INDICATORS
206-1
307-1
419-1
Legal actions for anti-
competitive behavior,
anti-trust,
and monopoly practices
Non-compliance with
environmental laws and
regulations
Non-compliance with
laws and regulations in
the social and economic
area
HEALTHY OCEAN
FISH HEALTH & WELFARE
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
GRIEG SEAFOOD INDICATORS
Survival rate at sea
Grieg
Seafood
Indicator
001
This Grieg Seafood indicator
corresponds to the GSI indicator
"Fish Mortality" which is defined
as "12 months rolling mortality =
(total # of mortalities in sea last
12 months / (closing # of fish in
sea + total # of mortalities in last
12 months + total # of harvested fish in
last 12 months + total # of culled fish
in sea) x 100".
No
No
No
No
No
No
No
No
No
No
Part 3: Corporate governance
Part 4: Global Reporting Initiative Index -
Management approach
Part 3: Corporate governance
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Profit & Innovation - Responsible
business conduct, Results
Part 3: Corporate governance
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Profit & Innovation - Responsible
business conduct, Results
Part 2: Profit & Innovation - Responsible
business conduct, Results
Part 2: Profit & Innovation - Responsible
business conduct, Results
Part 2: Healthy Ocean - Fish health and
welfare
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Healthy Ocean - Fish health and
welfare
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Healthy Ocean - Fish health and
welfare, Regional results
Part 4: Global Reporting Initiative Index -
Management approach
96-102
166-168
96-102
166-168
64
96-102
166-168
64
64
64
23-24
166-168
23-24
166-168
23
166-168
Part 2: Healthy Ocean - Fish health and
welfare, Regional results
24
T OP IC-SP ECIFI C DIS CL O SUR E S
#
DISCLOSURE
DESCRIPTION
RESPONSE
OMISSION
CHAPTER REFERENCE
Grieg
Seafood
Indicator
002
Main causes for reduced
survival in seawater
List of the main causes of reduced
survival, with loss stated in number
and tonnes of fish.
PROTECTING WILD SALMON (ESCAPE & SEA LICE CONTROL)
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
GRIEG SEAFOOD INDICATOR
Number of escape
incidents and fish
escaped
Sea lice levels
Grieg
Seafood
Indicator
003
Grieg
Seafood
Indicator
004
This Grieg Seafood indicator
corresponds to the GSI indicator "Fish
escapes" which is defined as "number
of fish escape incidents and number of
fish escaped (after net recapturing)".
This Grieg Seafood indicator
corresponds to the GSI indicator "Sea
lice counts" which is defined as "sea
lice according to local action levels set
by the authorities".
No
No
No
No
No
No
Part 2: Healthy Ocean - Fish health and
welfare, Regional results
Part 2: Healthy Ocean - Protecting wild
salmon - Sea lice control; Protecting wild
salmon - Escape control
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Healthy Ocean - Protecting wild
salmon - Sea lice control; Protecting wild
salmon - Escape control
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Healthy Ocean - Protecting wild
salmon - Sea lice control, Regional results;
Protecting wild salmon - Escape control,
Regional results
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Healthy Ocean - Protecting wild
salmon - Escape control, Regional results
Part 2: Healthy Ocean - Protecting wild
salmon - Sea lice control, Regional results
PROTECTING BIODIVERSITY & MARINE ECOSYSTEMS (LOCAL EMISSIONS, MEDICINE USE, WILDLIFE INTERACTION)
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
GRI 304 BIODIVERISTY 2016 & GRIEG SEAFOOD INDICATORS
304-1
Operational sites
owned, leased,
managed in, or adjacent
to, protected areas
and areas of high
biodiversity value
outside protected areas
No
No
No
No
Part 2: Healthy Ocean - Protecting
biodiversity & marine ecosystems
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Healthy Ocean - Protecting
biodiversity & marine ecosystems
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Healthy Ocean - Protecting
biodiversity & marine ecosystems -
Protecting marine ecosystems, Our results
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Healthy Ocean - Protecting
biodiversity & marine ecosystems -
Protecting marine ecosystems, Our results
Part 4: Global Reporting Initiative Index -
Management approach
PAGE
24
25-27
166-168
25-27
166-168
26-27
166-168
26
26
28-32
166-168
28-32
166-168
29
166-168
29
166-168
PA R T 0 4 : S U S TA I N A B I L I T Y R E P O R T I N G
G R I R E P O R T
PA G E 17 1
T OP I C-SP ECIFIC DIS CL O S UR E S
#
DISCLOSURE
DESCRIPTION
RESPONSE
OMISSION
CHAPTER REFERENCE
Environmental status of
our sites
Result of benthic monitoring according
to local regulations.
No
Part 2: Healthy Ocean - Protecting
biodiversity & marine ecosystems - Organic
emissions, Our results
T OP IC-SP ECIFI C DIS CL O SUR E S
PAGE
32
#
DISCLOSURE
DESCRIPTION
SUSTAINABLE FOOD
SAFE & HEALTHY FOOD
RESPONSE
OMISSION
CHAPTER REFERENCE
PAGE
Grieg
Seafood
Indicator
005
Grieg
Seafood
Indicator
006
Grieg
Seafood
Indicator
007
Grieg
Seafood
Indicator
008
Hydrogen peroxide
treatments
Active substances used
for treatments
Number of dead birds
and marine mammals
This Grieg Seafood indicator equals
the GSI indicator "Use of hydrogen
peroxide", which is defined as "the
amount of active pharmaceutical
ingredients (API) used (in kg) per tonne
of fish produced (LWE)".
This Grieg Seafood indicator
corresponds to the GSI indicator "Sea
lice treatments" which is defined as
"the amount of active pharmaceutical
ingredients (API) used (in gr) per tonne
of fish produced (LWE)".
This Grieg Seafood indicator is
based on the GSI indicator "Wildlife
interactions" which is defined as "total
number of lethal incidents by species
divided by total number of sites" except
that we report the total number of
lethal incidents per region.
LOW USE OF ANTIBIOTICS
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
GRIEG SEAFOOD INDICATOR
Use of antibiotics
Grieg
Seafood
Indicator
009
This Grieg Seafood indicator
corresponds to the GSI indicator
"Antibiotic Use" which is defined as
"the amount of active pharmaceutical
ingredients (API) used (in g) per tonne
of fish produced (LWE)".
No
No
No
No
No
No
No
Part 2: Healthy Ocean - Protecting wild salom
- Sea lice control, Regional results
26
Part 2: Healthy Ocean - Protecting wild
salmon - Sea lice control, Regional results
26
Part 2: Healthy Ocean - Protecting
biodiversity & marine ecosystems -
Interaction with wild life, Regional results
30
Part 2: Healthy Ocean, Fish health and
welfare
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Healthy Ocean, Fish health and
welfare
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Healthy Ocean, Fish health and
welfare, Regional results
Part 4: Global Reporting Initiative Index -
Management approach
24
166-168
24
166-168
24
166-168
Part 2: Healthy Ocean - Fish health and
welfare, Regional results
24
166-168
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
GRI 416 CUSTOMER HEALTH AND SAFETY 2016 & GRIEG SEAFOOD INDICATOR
Incidents of non-
compliance concerning
the health and safety
impacts of products and
services
Level of environmental
contaminants
416-2
Grieg
Seafood
Indicator
010
There have been no incidents of non-
compliance concerning the health and
safety impact of our salmon in 2021.
The level of the environmental
contaminants PCB, PCB-like dioxins
and heavy metals, based on samples of
our salmon.
CARBON EMISSIONS
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
GRI 305 EMISSIONS 2016
305-1
305-2
Direct (Scope 1) GHG
emissions
Biogenic CO2 emissions (tCO2e) is not
relevant for our operations.
Energy indirect (Scope
2) GHG emissions
The group's market-based
Scope 2 GHG emissions amount to
10 616 tCO2e.
305-4
GHG emissions intensity
No
No
No
No
No
No
No
No
No
No
No
Part 2: Sustainable food - Safe and healthy
food
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Sustainable food - Safe and healthy
food
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Sustainable food - Safe and healthy
food, Our results
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Profit & Innovation - Responsible
business conduct, Our results
Part 2: Sustainable food - Safe and healthy
food, Our results
Part 2: Sustainable food - Reducing carbon
emissions
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Sustainable food - Reducing carbon
emissions
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Sustainable food - Reducing carbon
emissions, Our results
Part 4: Global Reporting Initiative Index -
Management approach
34
166-168
34
166-168
35
166-168
64
35
39
166-168
39
166-168
39-41
166-168
Part 2: Sustainable food - Reducing carbon
emissions, Our results
Part 2: Sustainable food - Reducing carbon
emissions, Our results
39-41
39-41
Part 2: Sustainable food - Reducing carbon
emissions, Our results
39-41
PA R T 0 4 : S U S TA I N A B I L I T Y R E P O R T I N G
G R I R E P O R T
PA G E 17 2
T OP I C-SP ECIFIC DIS CL O S UR E S
RESPONSE
OMISSION
CHAPTER REFERENCE
T OP IC-SP ECIFI C DIS CL O SUR E S
#
DISCLOSURE
DESCRIPTION
RESPONSE
OMISSION
CHAPTER REFERENCE
#
305-5
DISCLOSURE
DESCRIPTION
Reduction of GHG
emissions
PLASTICS POLLUTION
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
No
No
No
No
Part 2: Sustainable food - Reducing carbon
emissions, Our results
Part 2: Sustainable food - Waste
management
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Sustainable food - Waste
management
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Sustainable food - Waste
management
Part 4: Global Reporting Initiative Index -
Management approach
PAGE
39-41
42-43
166-168
42-43
166-168
42-43
166-168
GRIEG SEAFOOD INDICATOR
Grieg
Seafood
Indicator
011
Measures taken to
reduce the use of plastic
in the production
We will work to develop and measure
relevant KPI(s) regarding waste
management going forward.
Yes
Part 2: Sustainable food - Waste
management
42-43
SUSTAINABLE FEED INGREDIENTS (ZERO DEFORESTATION, SUSTAINABLE MARINE INGREDIENTS, ESG ASSESSMENT, NOVEL INGREDIENTS)
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
GRIEG SEAFOOD INDICATOR
Forage fish dependancy
ration (FFDR)
Grieg
Seafood
Indicator
012
This Grieg Seafood indicator
corresponds to the GSI indicator "Use
of marine ingredients in feed", which
is defined as "forage fish dependency
ratio, calculated per calendar year".
PROFIT & INNOVATION
PROFITABLE OPERATIONS
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
No
No
No
No
No
No
No
Part 2: Sustainable food - Sustainable feed
ingredients
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Sustainable food - Sustainable feed
ingredients
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Sustainable food - Sustainable feed
ingredients, Our results
Part 4: Global Reporting Initiative Index -
Management approach
36
166-168
36
166-168
36
166-168
Part 2: Sustainable food - Sustainable feed
ingredients, Our results
37-38
Part 2: Profit & Innovation - Profitable
operations
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Profit & Innovation - Profitable
operations
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Profit & Innovation - Profitable
operations, Our results
Part 4: Global Reporting Initiative Index -
Management approach
46
166-168
46
166-168
46-47
166-168
GRI 201 ECONOMIC PERFORMANCE 2016
201-1
Direct economic
value generated and
distributed
RESPONSIBLE BUSINESS CONDUCT
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
GRI 205 ANTI-CORRUPTION 2016
205-1
205-3
Operations assessed
for risks related to
corruption
Confirmed incidents of
corruption and actions
taken
PEOPLE
EMPLOYEE HEALTH & SAFETY
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
103-3
Explanation of the
material topic and its
Boundary
The management
approach and its
components
Evaluation of the
management approach
No
No
No
No
No
No
No
No
No
PAGE
46-47
64
166-168
64
166-168
64
166-168
Part 2: Profit & Innovation - Profitable
operations, Our results
Part 2: People - Responsible business
conduct
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: People - Responsible business
conduct
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: People - Responsible business
conduct, Our results
Part 4: Global Reporting Initiative Index -
Management approach
Part 3: Corporate governance
96-102
Part 2: People - Responsible business
conduct, Our results
64
Part 2: People - Keeping our employees safe
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: People - Keeping our employees safe
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: People - Keeping our employees safe,
Our results
Part 4: Global Reporting Initiative Index -
Management approach
74
166-168
74
166-168
75
166-168
GRI 403 OCCUPATIONAL HEALTH AND SAFETY 2018
403-1
Occupational health
and safety management
system
Workers covered by this standard
(workers who are not employees
but whose work and/or workplace is
controlled by the organization) are
not a material part of Grieg Seafood's
operations. Therefore, this part of the
standard is not relevant.
403-2
403-3
403-4
Hazard identification,
risk assessment, and
incident investigation
Occupational health
services
Worker participation,
consultation, and
communication on
occupational health and
safety
No
Part 2: People - Keeping our employees safe
74
No
No
No
Part 2: People - Keeping our employees safe
74
Part 2: People - Keeping our employees safe
74
Part 2: People - Keeping our employees safe
74
PA R T 0 4 : S U S TA I N A B I L I T Y R E P O R T I N G
G R I R E P O R T
PA G E 17 3
T OP I C-SP ECIFIC DIS CL O S UR E S
T OP IC-SP ECIFI C DIS CL O SUR E S
RESPONSE
OMISSION
CHAPTER REFERENCE
PAGE
#
DISCLOSURE
DESCRIPTION
RESPONSE
OMISSION
CHAPTER REFERENCE
PAGE
#
403-5
403-6
403-7
DISCLOSURE
DESCRIPTION
Worker training on
occupational health and
safety
Promotion of worker
health
Prevention and
mitigation of
occupational health and
safety impacts directly
linked by business
relationships
403-9
Work-related injuries
Workers covered by this standard
(workers who are not employees
but whose work and/or workplace is
controlled by the organization) are
not a material part of Grieg Seafood's
operations. Therefore, this part of the
standard is not relevant.
HUMAN RIGHTS, INCLUDING LABOR RIGHTS
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
103-3
Explanation of the
material topic and its
Boundary
The management
approach and its
components
Evaluation of the
management approach
GRI 412 HUMAN RIGHTS ASSESSMENT 2016
412-1
412-2
Operations that have
been subject to human
rights reviews or impact
assessments
In 2021, we have performed human
rights due diligence in all of our own
operations and for parts of our supply
chain.
Employee training on
human rights policies or
procedures
LOCAL COMMUNITIES
INDIGENOUS RIGHTS & PARTNERSHIPS
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
No
No
No
No
No
No
No
No
Yes
No
No
No
Part 2: People - Keeping our employees safe
74
GRI 411 RIGHTS OF INDIGENOUS PEOPLES 2016
411-1
Incidents of violations
involving rights of
indigenous peoples
In 2021, we did not have any incidents
of violations involving rights of
indigenous peoples.
No
VALUE CREATION IN RURAL AREAS
GRI 103 MANAGEMENT APPROACH 2016
103-1
103-2
Explanation of the
material topic and its
Boundary
The management
approach and its
components
103-3
Evaluation of the
management approach
No
No
No
Part 2: Local communities - Relationships
with local communities
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Local communities - Relationships
with local communities
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Local communities - Community
support
Part 4: Global Reporting Initiative Index -
Management approach
GRI 203 INDIRECT ECONOMIC IMPACTS 2016 & GRI 204 PROCUREMENT PRACTICES 2016
203-1
204-1
Infrastructure
investments and
services supported
We supported infrastructure projects
in Finnmark (pro bono) and British
Columbia (commerical) in 2021.
Proportion of spending
on local suppliers
No
No
Part 2: Local communities - Community
support
Part 2: Local communities - Community
support
77
166-168
77
166-168
78
166-168
78
78
Part 2: People - Keeping our employees safe
74
Part 2: People - Keeping our employees safe
74
Part 2: People - Keeping our employees safe,
Our results
75
Part 2: People - Human rights
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: People - Human rights
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: People - Human rights, Our results
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: People - Human rights, Our results
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: People - Human rights, Our results
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Local communities - Relationships
with local communities
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Local communities - Relationships
with local communities
Part 4: Global Reporting Initiative Index -
Management approach
Part 2: Local communities - Relationships
with local communities
Part 4: Global Reporting Initiative Index -
Management approach
68
166-168
68
166-168
69
166-168
69
166-168
69
166-168
77
166-168
77
166-168
77
166-168
PA R T 0 4 : S U S TA I N A B I L I T Y R E P O R T I N G
S TA K E H O L D E R D I A L O G U E
PA G E 174
STAKEHOLDER DIALOGUE
Our value ‘Open’ guides our stakeholder dialogue. We aim to be
open and honest about our performance and challenges, make it easy
for our stakeholders to hold us accountable, and share how we work
to improve.
Engaging and collaborating with our stakeholders helps us understand and address our most material sustainability
issues. Our stakeholders span our five pillars and gaining their trust is integral for our license to operate.
Stakeholders are chosen according to the impact they have on our business, and the economic, environmental
and social impact we have on the stakeholders. Stakeholder dialogue is also key to be able to grasp emerging
opportunities for our business, and to understand and mitigate risk.
We engage actively and continuously with our stakeholders, and always maintain an open door for stakeholder
feedback. Stakeholders frequently contact us to discuss issues. We also engage stakeholders proactively on
matters where we believe we can have significant impact, such as with feed suppliers. The continuous dialogue
with our stakeholders provides the basis for the materiality matrix. Ultimately, our stakeholders help us deliver
healthy food and make positive impacts throughout our value chain.
STAKEHOLDER
NATIONAL
AUTHORITIES /
REGULATORS
KEY TOPIC
• Sustainability
challenges
• Balanced regulation
and long-term local
value creation
HOW WE ENGAGE ACTIONS
Meetings, site visits,
and correspondence.
We have an open dialogue with
all official authorities where
we operate, and collaborate
on all aspects. We welcome
their efforts to enforce
regulations and engage in
constructive dialogue.
LOCAL
AUTHORITIES /
COMMUNITIES
• Local employment
and purchasing
• Contributions to
public life
• Sustainability
challenges
• Co-existence with
other local interests
Dialogue with
special interest
groups locally, open
meetings, site visits,
and dialogue through
mainstream media
and digital channels.
We recognize public concern
for the oceans, invite visitors
to our farms and participate
in the public debate about
salmon farming. We try to find
solutions to accommodate
other local interests. In areas
with Indigenous populations,
consent, dialogue and
relations with Indigenous
representatives are especially
important.
EXAMPLE
We are
committed to be a
constructive partner
for the Government
and Indigenous
communities in the
2025 transition process
in BC, and to find a path
forward that works for
all stakeholders.
Through our website,
and in particular the
regional websites,
we aim to improve
transparency and
dialogue with our local
communities.
STAKEHOLDER
STAKEHOLDER
ORGANIZATIONS/ NON-
GOVERNMENTAL
ORGANIZATIONS
KEY TOPIC
• Sustainability
challenges
SHAREHOLDERS,
INVESTORS, ASSET
MANAGERS AND
ANALYSTS
• Long-term
performance and
returns, both
on financial and
sustainability-
related parameters
• How we utilize
opportunities and
mitigate risk
HOW WE ENGAGE ACTIONS
Correspondence,
meetings, media and
social media.
We collaborate with and
seek advice from actors that
constructively seek to improve
the industry. That includes
several environmental
organizations and research
institutions.
Quarterly
presentations,
roadshows, meetings,
frequent dialogue,
capital market days,
and engagement with
relevant indexes.
We make every effort to
maintain a continuous, open,
and honest dialogue about our
strategy and results. We have
also started engaging with
relevant indexes where we are
rated, to make sure they give
Grieg Seafood an accurate
score.
CUSTOMERS
EMPLOYEES
SUPPLIERS
• Food safety
• Health attributes
• Quality
• Certifications
• Sustainability
challenges
• Health and safety
• A good working
environment
• Personal
development
• Fish welfare and
sustainability
challenges
• Our integrity
• That we are a fair
and predictable
partner
Customer surveys,
frequent dialogue,
audits, visits and
trade fairs.
Continuous dialogue
and meetings,
intranet, and
employee surveys.
Dialogue, meetings,
conferences and
correspondence.
We have frequent dialogues
with our customers. We
supply them with material
for dialogue with their own
stakeholders, and participate
in initiatives where our
customers are present.
Frequent dialogue on all levels
and initiatives for training,
education, and development.
We also engage in dialogue
with trade unions and
employee representatives.
Focus on developing a culture
in line with our values.
Ensuring that they comply
with our Code of Conduct,
and that we have a common
understanding of ethics,
sustainability and the delivery
of goods and services. This
particularly pertains to our
suppliers of fish feed and
staffing.
EXAMPLE
Together with WWF
US, we have initiated
a project to evaluate
environmental,
social
and governance risks in
salmon feed ingredients
in a holistic manner.
In 2021, we have
completed most of
our presentations and
investor meetings as
video conferences
due to the Covid-19
pandemic. We have
actively engaged with
ESG raters, such
as Sustainalytics
and Coller FAIRR,
to understand their
assessments and also
to provide feedback
on how we work with
various topics.
We have engaged in
Cerrado Manifesto
Signatories of Support,
which aims to halt
deforestation in the
Brazilian Cerrado.
Many of our customers
are also signatories to
the initiative.
We use Workplace on
a daily basis to inform
employees about
developments, build
culture, and cultivate
engagement.
We have quarterly
meetings with our
feed suppliers, where
we discuss issues and
developments.
PA R T 0 4 : S U S TA I N A B I L I T Y R E P O R T I N G
A U D I T O R ’ S S U S TA I N A B I L I T Y R E P O R T
PA G E 17 5
To the Board of Directors of Grieg Seafood ASAs
Our Responsibility
Independent Limited Assurance Report – Grieg Seafood ASA
Report on Grieg Seafood’s sustainability reporting
We have undertaken a limited assurance engagement to examine whether the Group’s sustainability
reporting is conducted in accordance with the Global Reporting Initiative (GRI) Standards Core
Option, and to examine whether the sustainability KPIs is calculated, estimated and reported in
accordance with the definitions and explanations provided in relation to each key performance
indicator
- Grieg Seafood’s GRI Index for 2021 is an overview of which principles, aspects and indicators
from the GRI guidelines that Grieg Seafood use to measure and report on sustainability;
together with a reference to where the material sustainability information is reported within
the integrated annual report for 2021. We have examined whether Grieg Seafood has
developed a GRI Index for 2021 and whether mandatory disclosures are presented in
accordance with the Standards published by The Global Reporting Initiative
(www.globalreporting.org/standards) (criteria).
- Key performance indicators for sustainability are reported in “Our Scoreboard” on page 9 in
the Annual Report for 2021. This table contains sustainability indicators that Grieg Seafood
measures and controls. Grieg Seafood has defined the key performance indicators in the
Scoreboard and the referenced pages therein, where they also explain how they are measured
(criteria). We have examined the basis for the KPIs reported in “Our Scoreboard” and
examined whether these are calculated, estimated and reported in accordance with the
criteria.
Management’s Responsibility
Management is responsible for Grieg Seafood’s Sustainability Reporting for 2021 and that the GRI
Index for 2021 is developed in accordance with the Standards published by the GRI. Management is
also responsible for key performance indicators for sustainability and that these are calculated,
estimated and reported in accordance with the definitions given in the referenced pages in “Our
Scoreboard”. Their responsibility includes to implement such internal control as management
determines is necessary to enable development and reporting of the GRI Index and to enable correct
calculation, estimation and reporting of the sustainability KPIs in the Annual Report for 2021.
Our independence and quality control
We have complied with the independence and ethical requirements of the Code of Ethics for
Professional Accountants issued by the International Ethics Standards Board for Accountants, which is
founded on fundamental principles of integrity, objectivity, professional competence and due care,
confidentiality and professional behavior.
Our firm applies International Standard on Quality Control 1 and accordingly maintains a
comprehensive system of quality control including documented policies and procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Our responsibility is to express a limited assurance conclusion on Grieg Seafood’s sustainability
reporting based on our procedures. We conducted our limited assurance engagement in accordance
with International Standard on Assurance Engagements 3000, Assurance engagements other than
audits or review of historical financial information ("ISAE 3000"), issued by the International
Auditing and Assurance Standards Board.
Our work involves performing procedures to obtain evidence that Grieg Seafood’s GRI Index for 2021
and key performance indicators for sustainability are developed in accordance with GRI Standards
Core Option and the criteria for reporting and measurement that are given in relation to “Our
Scoreboard” containing key performance indicators. The procedures selected depend on our judgment,
including assessments of the risks that the sustainability reporting as a whole are free from material
misstatement, whether due to fraud or error. In making those risk assessments, we consider internal
control relevant to the preparation of the GRI Index for 2021 and sustainability KPIs. Therefore, we
design procedures that are appropriate to the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of internal control. Our control also includes an assessment of whether
the applied criteria are appropriate and an assessment of the overall presentation of the GRI Index for
2021 and sustainability KPIs.
Our procedures included meetings and interviews with representatives from Grieg Seafood that are
responsible for the key areas covered by the sustainability reporting, evaluating internal controls and
procedures for reporting key performance indicators for sustainability, collecting and reviewing relevant
information that supports the calculation and estimation of key performance indicators, evaluating the
completeness of the reported key performance indicators and controlling whether the calculation and
estimation of the key performance indicators are accurate.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are
less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance
obtained in a limited assurance engagement is substantially lower than the assurance that would have
been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express
a reasonable assurance opinion about whether Grieg Seafood’s sustainability reporting is conducted, in
all material respects, in accordance with the specified criteria.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to
our attention that causes us to believe that Grieg Seafood’s GRI Index for 2021 and sustainability key
performance indicators presented in “Our Scoreboard” in the Annual Report for 2021 is not prepared,
in all material respects, in accordance with the Global Reporting Initiative Standards Core Option and
the definitions and explanations provided in relation to each KPI presented in “Our Scoreboard”.
Bergen, March 30 2022
PricewaterhouseCoopers AS
Hanne Sælemyr Johansen
State authorised public accountant
PricewaterhouseCoopers AS, Sandviksbodene 2A, Postboks 3984 - Sandviken, NO-5835 Bergen
T: 02316, org. no.: 987 009 713 VAT, www.pwc.no
State authorised public accountants, members of The Norwegian Institute of Public Accountants, and
authorised accounting firm
(2)
ANNUAL REPORT
2021