Annual Report 2015

Annual report 2015

Contents “In 2015, we set a clear course for our passionate and This is Aker BioMarine 3 capable organization: We 2015 in numbers 4 will be an integral part of our CEO's letter 6 customers’ success, we will Management 10 Growth 12 continue to drive scientific Production 16 discovery and innovation, and Innovation 20

we will further strengthen Sustainability 24 our product quality and cost Corporate governance 28 leadership.” Board of Directors 32 Matts Johansen, CEO, Aker BioMarine Directors' report 34 Financial statements 38 Directors’ responsibility statement 39 Group accounts 40 Parent company accounts 60 Auditor's report 68 Contact 70

Aker BioMarine is a leading supplier of krill-derived products to the consumer health and wellness and animal nutrition markets. Aker BioMarine is dedicated to the sustainable harvest of krill and development of krill-derived products. The company supplies biomarine ingredients through a 100 percent traceable supply chain. Aker BioMarine was the first krill company to be awarded Marine Stewardship Council (MSC) certification.

Contents

4 6 10 12 16 20 24 KEY FIGURES: CEO'S LETTER: MANAGEMENT: GROWTH: PRODUCTION: INNOVATION: SUSTAINABILITY: 2015 in numbers A historic year, Meet the What drives From catch Doing the Sustainable yet our journey new team our growth? to product impossible by default has just begun

PROFIT & LOSS ITEMS

USD million 2015 2012 2013 2014 2015 Total revenues 140 and other income 120 100 in numbers 80 60 81.1 117.2 112.3 105.1 40 2% 13% 5% 24 % EBITDA

and EBITDA-margin 1.6 15.5 6.0 25.7

MILLION MILLION MILLION MILLION

Historical Facts Profit 2015 : Matts Johansen took over the position as Aker for the year (31.8) (19.3) (17.3) 0.8 BioMarine’s CEO. He appointed a new executive MILLION MILLION MILLION MILLION management team to set the company’s course for the future. The Houston manufacturing facility became fully operational, allowing the launch of a new and CASH FLOW improved krill oil extraction technology, Flexitech™. This patent-protected technology enables Aker BioMarine USD million to continually expand its product line and bring further 20 innovation to the krill oil market. Cash flow 10 from operating activities (8.2) (17.9) (11.1) 18.3 2014: A ker BioPharma merged with Aker BioMarine. An 0 important strategic change with coordinating and strengthening science and innovation. -10 2013: A ker BioMarine ASA was de-listed from the Oslo Stock -20 Exchange. Aker BioPharma AS established to explore and develop krill based pharmaceutical products. BALANCE SHEET 2011: A ker BioMarine acquired the krill harvesting vessel Thorshøvdi, subsequently renamed Antarctic Sea. Interest bearing debt 2009: C ommercial breakthrough for Superba™ krill oil in US 119.4 148.4 157.0 158.3 MILLION MILLION MILLION MILLION market; received Novel Food approval in the EU. 2006: A ker BioMarine AS established, merged with Natural ASA and listed on the Oslo Stock Exchange in 2007. Equity ratio 38% 33% 29% 29% 2003: Aker ASA initiated a project for harvesting and processing Antarctic krill leveraging its extensive fishing experience.

REVENUES – GEOGRAPHIC INFORMATION REVENUES – BY SOURCE

USD million USD million 80

60 54.9 44.9 Nutraceuticals 40 (Superba™) Aquaculture 20 (Qrill™ Aqua) 5.4 Pet and other 0 2015 Norway and EU 80 77.7 United States 69.2 Australia 60 53.4 39.2 Asia 40 33.2 22.0 Other regions 20 5.7 6.2 4.0 0 2012 2013 2014

39.2 35.0 13.9 6.5 10.4 2015 OFFSHORE OPERATIONS 2014 44.2 43.1 5.6 9.4 9.5 Krill catch Krill meal produced — Metric Tons 2013 41.6 49.9 10.6 7.5 7.5 146 261 150 000 144 765 2012 20.4 35.5 13.8 5.9 5.6 117 444 120 000 0 25 50 75 100 125

90 000 82 675

60 000

23 815 25 217 30 000 17 185 215 22 16% 12 125 EMPLOYEES DIFFERENT NATIONALITIES OF EMPLOYEES ARE WOMEN 0 2012 2013 2014 2015

CEO'S LETTER: A historic year, yet our journey has just begun By Matts Johansen, CEO

Krill is one of our planet’s largest biomasses. This tiny crustacean, present in all oceans, holds a vital, albeit low position on the marine food chain. Through millions of years of evolution, krill’s bioactive components and molecules have sustained Nature’s diverse species.

We are doing things no other company has done 2015 K EY FIGURES before — and have uniquely overcome previously unsolved industry challenges. Because Aker REVENUE: $105.1 million BioMarine is the leader in the krill category, the EBITDA: million responsibility falls on our shoulders to take our $25.7 industry forward on several levels. Meeting this OPERATING CASH FLOW: $2.8 million challenge influences how we build our organization, our culture, and our strategy. And it requires extraordinary performance. Aker BioMarine’s mission is to discover, develop, and commercialize Antarctic Krill’s valuable Success starts with our employees bioactive constituents. We strive to directly When we seek inspiration from comparable improve the health of people and animals, as well companies and industries, we generally find it as help feed the world’s growing population via at Silicon Valley technology firms. They make more efficient production of farmed seafood, in products and find solutions that are unique. particular. We are accomplishing our objectives They do things no one has done before, and by building a fully traceable, transparent, and they deliver products that meaningfully impact sustainable supply chain that reaches from our businesses and people. All these companies have Antarctic fishing vessels to the consumer. one thing in common: They place employees at In June 2015 Matts Johansen was appointed CEO of Aker BioMarine.

“In 2015, we started the journey to walk the talk by driving change in our culture, simplifying business processes, and aligning our organization towards one common goal and strategy.”

the heart of everything they do. Their employees Today’s product lifecycles are getting shorter — What we need to do now is to drive R&D innovation show determination and make bold decisions. and rapid time-to-market is ever more critical for — from further discovery of bioactive components About Aker BioMarine They are proud and passionate about their jobs. success. With our passion for and focus on krill, and mechanisms through development of manu- They are diverse — and are strengthened by that we believe we are in the best position to combine facturing processes and commercialization. We ■ ■ Aker BioMarine is a leading supplier of diversity. Determined, Proud, Diverse, along with comprehensive product knowledge with market are doing this by collaboratively engaging both krill-derived products to the consumer Sustainable, are Aker BioMarine’s values. Easy insight. Accordingly, in 2015, we decided to build talented PhD-level scientists possessing decades health and wellness and animal to say, difficult to live up to. In 2015, we started a new marketing and communication approach, of experience and analytical business development nutrition markets the journey to walk the talk by driving change in delivering insight-based concepts and ideas for our professionals. Furthermore, we have launched an ■■ Aker BioMarine is dedicated to the our culture, simplifying business processes, and customers. Even if this is a new way of working for Open Innovation Program that enables external sustainable harvest of Antarctic aligning our organization towards one common Aker BioMarine and for many of our customers, we companies and institutions to innovate and Krill and development of krill-derived goal and strategy. believe that in the long term, this is the only way conduct research on Aker Bio Marine’s products products for an ingredient company to succeed. in tandem with our own in-house research projects And continues with our customers staff. We provide cost-free materials, support, and ■ ■ The company supplies biomarine Aker BioMarine is successful only if our customers Moving the industry forward by sharing access to all our documentation, with no strings ingredients through a 100 percent are successful. Genuine, active partnerships with knowledge attached and free of discouraging agreements that traceable supply chain our customers create incredible results. Success Aker BioMarine is a ten-year-young biotech- must be signed. We believe sharing our knowledge ■■ Aker BioMarine was the first krill requires the ability to merge profound knowledge nology company. Our sophisticated products and will significantly advance our industry. company to be awarded Marine about our products, features, and benefits, with processes have only scratched the surface as to the Stewardship Council (MSC) certification consumer and market insights, retail know-how, future health and nutrition benefits that Antarctic Economies of scale and branding expertise. Krill’s bioactive components and molecules are Aker BioMarine intends to operate with the capable of providing. industry’s most cost-effective supply chain, and

Superba™ Krill

• Superba™ Krill is a more natural and efficient form of omega-3 — providing health benefits for the human body, including boosting heart, brain, and joint health • Harvested from pristine Antarctic waters, free of pollutants and heavy metals • Total product traceability, back to where the raw materials were harvested • Sustainably harvested with virtually no by-catch.

Qrill™ Pet Krill harvesters Antarctic Sea and Saga Sea and support vessel La Manche. • Qrill™ Pet is a valuable ingredient for pet nutrition with documented health benefits for deliver the best quality products available. We BioMarine. We generated USD 105 million in domestic animals are able to deliver on this promise due to the scale revenue that yielded an EBITDA of USD 25.7 million. • Qrill™ Pet is a great source of omega-3 fatty of our production volume and infrastructure. In Many of our customers experienced great growth acids and protein 2015, our two Antarctic factory trawlers harvested and commercial success with their krill products. • Animals find Qrill™ Pet products palatable. more than 60 percent of the total catch of the Yet, we have just begun the journey to explore Antarctic Krill fishery. Ten other vessels shared and realize the full potential of the bioactive the remaining 40 percent of the catch. Our scale components found in Antarctic Krill. When we of harvesting generates significantly lower unit embarked on this journey we made a commitment Qrill™ Aqua costs than any other krill company. Furthermore, to sustainability. This year we renewed it by scaling our new krill oil processing plant in Houston, Texas, up our partnership with WWF to include sustain- • Qrill™ Aqua is a valuable feed additive for that went online in 2015 has significantly increased ability in our annual reporting, and by establishing shrimp, marine fish, and salmonids production capacity. This scale-based differential the Antarctic Wildlife Research Fund to facilitate • Research shows that fish and shrimp fed with — at sea and on land — provides us with enough and promote more research on the Antarctic Qrill™ eat more and grow faster margin to invest in technology to continually raise ecosystem. In 2015, we set a clear course for our • Qrill™ acts as an efficiency driver in diets with product quality. Our economies of scale also allow passionate and capable organization: We will be a high content of vegetable proteins, providing us to continue funding the majority of all research an integral part of our customers’ success, we equal performance at lower feed costs for fish conducted on krill products and investments in will continue to drive scientific discovery and farmers marketing resources essential to driving growth. innovation, and we will further strengthen our • Salmon fed on diets containing Qrill™ have product quality and cost leadership. better fillet quality, fat distribution, and yield. A historic year for Aker BioMarine 2015 was the best year in the history of Aker

“Our sophisticated products and processes have only scratched the surface as to the future health and nutrition benefits that Antarctic Krill’s bioactive components and molecules are capable of providing.”

MANAGEMENT: Meet the new team

On June 9, 2015, Matts Johansen took over the position as Aker BioMarine’s CEO. Here is the new executive management team he appointed to set the company’s course for the future.

Matts Johansen Fredrik Dokk Nygaard Webjørn Eikrem Chief Executive Officer Chief Financial Officer EVP Harvesting, Production and Supply Chain

Before being named CEO in 2015, Matts Fredrik has been with Aker BioMarine Webjørn joined Aker BioMarine in was Aker BioMarine’s COO. As the since 2009. He is responsible for the 2007. He oversees Aker BioMarine’s CEO of Aker BioMarine, Matts takes company’s Finance and Accounting entire supply chain, from harvest to on a mission to discover, develop and function, overseeing treasury, tax, production, including the company’s commercialize krill products. Prior to legal, accounting and business intelli- Antarctic vessels, the krill oil factory joining Aker BioMarine in 2009, he was gence matters. During his years at Aker in Houston, product quality, and the CMO of Telefonica O2. Matts brings BioMarine, Fredrik has led refinancing global logistics. Webjørn has been to the company extensive interna- projects, mergers and acquisitions, and instrumental in establishing Aker tional experience following studies at listings and de-listings. Prior to joining BioMarine’s offshore operations, and Oslo University College and Columbia Aker BioMarine, he worked with the has provided leadership in what is University. parent company Aker ASA. He received regarded as one of the world’s most his Master’s degree from the Norwegian sustainable and effective fisheries. School of Management. Formerly a Captain and Fleet Captain for American Seafoods, his Navigational education was at the Maritime Academy in Ålesund, Norway.

Torbjørn Furuseth Kristine Hartmann Sigve Nordrum Todd Norton Trond Atle Smedsrud EVP Innovation EVP Transformation EVP Qrill™ Sales EVP Superba™ Sales EVP Marketing and Communication

Torbjørn has been with Aker BioMarine Kristine joined Aker BioMarine in 2011. Sigve has been with Aker BioMarine Todd has been with Aker BioMarine Trond Atle joined Aker BioMarine in since 2014. He oversees the company’s She is responsible for increasing Aker since 2007. He is responsible for the since 2010. He is responsible for global 2015 to run the global marketing and Innovation department including BioMarine’s transparency, aligning sales, marketing, and R&D of krill Superba™ sales. Prior to joining Aker communications department. He plays product innovation, science and day-to-day operations with the products, including global animal and BioMarine, Todd was the President and a central role in building understanding IP-portfolio. Before he joined Aker company’s strategy, and transforming aquaculture markets. Prior to joining COO at Sabinsa. He also has more than of end-users of the company’s products BioMarine, Torbjørn held senior the business to meet rising expecta- the company, Sigve worked at BioMar 35 years’ experience working in the and developing insight-driven concepts. positions at Trygg Pharma and was a tions from customers, employees, and the Norwegian Ministry of Fisheries. nutraceutical industry. Todd has a B.A. Prior to joining Aker BioMarine, Trond consultant at McKinsey & Co. Torbjørn and other stakeholders. Prior to Sigve has a Master’s degree from the degree in Business Management. Atle worked in senior positions at received his doctor of medicine (MD) joining Aker BioMarine, Kristine held Norwegian School of Life Sciences and Coca-Cola and PwC. Trond Atle has a degree from the Norwegian University several senior consulting positions a PhD from the Norwegian Veterinary Master’s degree from BI Norwegian of Science and Technology with three at PwC and Accenture. Kristine has a College. School of Management. years of clinical practice. Master’s degree from the Norwegian University of Science and Technology and University of New Orleans.

GROWTH: What drives our growth ? By Kristine Hartmann, EVP Transformation

Aker BioMarine is the global leader in krill harvesting, sustainability practices, krill oil product manufacturing, and krill science and innovation. Being the leader in this emerging category places major responsibilities on Aker BioMarine’s shoulders to drive the category forward in a well-respected, responsible manner. As a category leader, our success is not solely measured by staying one step ahead of the competition, it also must demonstrate our ability to foster growth in the category.

will facilitate success and growth for their krill GROWTH-DRIVERS: products. To utilize all the opportunities krill products can bring, the potential of what our ■■ We aim to be an integral part of our products can do has to be merged with the ever- customers’ success shifting focus and needs of end users. No enterprise ■■ We drive science and innovation is better positioned than Aker BioMarine to accomplish this complex goal. We have invested ■■ We have cost leadership in the Antarctic Krill in increasing our ability to understand end users supply chain and developing insight-driven concepts based ■■ People are at the heart of what we do on comprehensive knowledge of our products’ features and advantages. Our success depends on our customers’ success.

To foster such growth, Aker BioMarine maintains a We drive science and innovation strong focus on the following strategic areas: We make significant investments in research and development of krill’s bioactive components. We aim to be an integrated part of our These efforts are supported by a team of scientists customers’ success committed to documenting our products’ We believe active partnerships with our customers benefits. Our science and innovation team, Kristine Hartmann, EVP Transformation

What we do:

■■ We invest in building capabilities, understanding end-users, and developing insight-driven concepts based on comprehensive knowledge of our products’ features and advantages ■■ We make significant investments in research and development on the bioactive components of krill ■■ We are the only supplier controlling the entire Antarctic Krill supply chain ■■ Years of experience and a keen ability to think outside the box allow us to do things no one has ever done before “As a category leader, our success is holding 10 PhDs among them, has published 25 not solely measured by staying one papers on krill. Yet there is an ongoing need for more well documented science to advance the step ahead of the competition, it status of our relatively young krill category. The market demands constant innovation around also must demonstrate our ability the basic product offering to stay relevant. With manufacturing platforms onboard our vessels to foster growth in the category.” deployed in Antarctic waters and our state-of- the-art krill oil manufacturing plant in Houston, we have the infrastructure in place to drive innovation across existing products. We believe there is significant potential for krill-based products in Supply chain cost leadership have harvested more than 50 percent of the in Houston, we are well positioned to enter a new segments where we currently have no product A sustainable and cost-effective supply chain is total Antarctic Krill catch. In 2015, the vessels growth phase for the krill oil market, introducing offering. An important task for the company’s essential to ensure a margin adequate for making harvested more than 60 percent of the total new and differentiated krill oil products while science and innovation team is to identify and investments in science, innovation, and marketing. catch. The remaining 40 percent was caught by further enhancing our Quality Assurance standards. develop these opportunities. To be successful, we Maintaining supply-chain cost leadership is vital the other 10 krill harvesting vessels operating in need to continue to cooperate with customers and to stay competitive towards both existing and Antarctic waters. Compared to its competitors, Aker BioMarine is the only supplier controlling the academia to carry out R&D projects through our emerging players. Aker BioMarine’s key advantage Aker BioMarine has significantly lower per-unit cost. entire Antarctic Krill supply chain, which makes Open Innovation Program. is scale. In recent years, Aker BioMarine’s two us a predictable and cost-effective partner for our harvesting vessels, Saga Sea and Antarctic Sea, With the completion of our new production facility customers.

Aker BioMarine ECO-HARVESTING® Step by step

where do we sustainably Is there enough krill to go around? How much have we spent? fish for krill? area 48 is the location in the Southern Ocean where Aker BioMarine and others are licensed to fish for krill. 2 vessels Aker BioMarine owns two krill fishing vessels

Area 48 is almost 1½ times 1½ x the size of the U.S.

1. How do we sustainably fish for krill? 4. The fishing net stays Krill are immediately submerged during 2. processed on board the entire operation, the vessel to maintain The design of the netting system ensuring a gentle nutritional integrity. catch process. and hose connection, as well as fishing at significant depth are crucial for preventing bycatch of other animals and fish.

3. A continuous stream of water flows through a hose, bringing krill live and fresh directly into the vessel. Who helps us make sure we remain sustainable? ONE Aker BioMarine The Commission for the Aker BioMarine is certified In late 2015, Aker BioMarine Aker BioMarine is the only krill In 2015, Aker BioMarine Conservation of Antarctic Marine sustainable and 100% traceable formed a new partnership with supplier that is Non-GMO Project co-founded The Antarctic Wildlife ‘A’ FOR EFFORT: Living Resources (CCAMLR) is the by the Marine Stewardship WWF-Australia, bringing us one Verified. Non-GMO Verification Research Fund (AWR) together with authority that regulates krill Council (MSC), one of the most step closer to WWF’s Antarctica enhances the traceability of our the NGO and scientific community. The rating Aker BioMarine’s krill fishery recently received fishing and catch limits in the rigorous sustainability and Southern Ocean Initiative. krill ingredients. The AWR facilitates and promotes from the Sustainable Fisheries Partnership Southern Ocean. standards in the world. third party research on the The three pillars Antarctic ecosystem.

https://www.ccamlr.org/en/fisheries/krill-fisheries-and-sustainability; www.livescience.com/36470-human-population-weight.html – weight of human population 316 million tons; www.forbes.com/sites/afontevecchia/2013/05/21/boeing-bleeding-cash-as-787-dreamliners-cost-200m-but-sell-for-116m-but-productivity-is-improving/ – 2 ½ Boeing Dreamliners; www.nbcnewyork.com/news/national-international/What-You-Can-Buy-with-Tonights-Powerball-Winnings--291547861.html – 7 trips to the International Space Station CCAMLR figures for catch numbers Aker BioMarine’s own data – investments and market share Aker BioMarine is a global and innovative of our community are: company with strong employee engagement. To work dynamically and collaboratively, clear ■■ Set ONE direction We do things no company has done before. and frequent internal communications are a top People are the heart of what we do — by defining a clear purpose Having the best people is key to everything Development of our Eco-Harvesting® technology priority. Measures include the CEO’s newsletters, and common goals we do. Establishing a culture in which talent is and construction of our harvesting vessels and monthly knowledge-transfer meetings, science developed and everyone’s full potential is realized, onshore production facility are the results of and innovation meet-ups, company webinars ■■ Become ONE team is fundamental to our success. years of experience, combined with a keen ability presenting the latest information, project success — through unambiguous, to think outside the box. Our newest technological celebrations and launch of new tools intensifying frequent communications advances, Flexitech™ and Superba™ 2 products, cross-company teamwork. Our employees ■■ Be ONE Aker BioMarine came to life through teamwork and bold decisions worldwide actively use FOKO, a photo-sharing — through greater involvement, ■■ 215 employees from all parts of our organization. These milestones app, to build a sense of oneness by spreading trust and empowerment of our in the history of Aker BioMarine were only achieved latest news and good humor. We emphasize these ■■ 22 different nationalities employees thanks to the extraordinary ideas and efforts of our measures to live up to our commitment to be a ■■ 16% of employees are women employees, the heart of Aker BioMarine. passionate, unified, and capable organization.

“Having the best people is key to everything we do.”

PRODUCTION: From catch to product By Webjørn Eikrem, EVP Production and supply chain

Aker BioMarine is the only krill supplier controlling the entire harvesting and production process. Our supply chain stretches from krill harvesting operations in Antarctic waters through the logistics hub in Montevideo to our krill oil manufacturing facility in Houston. Full control of the value chain allows us to adapt quickly and efficiently to changing market conditions and customer needs.

Houston state-of-the-art krill oil plant fully KEY 2015 EVENTS: operational In previous years, we partnered with a third-party ■■ The Houston krill oil facility became fully manufacturer in Spain for our krill oil production. operational During 2015, we transferred all production to our ■■ We launched a new and improved krill oil new krill oil extraction facility in Houston, Texas. extraction technology, Flexitech™ The facility is now fully operational. ■■ We delivered Superba™2 krill oil, which features improved smell, taste, and visual With more than triple the production capacity of appearance the second-largest krill oil supplier, our 180 000 square foot facility in Houston allows us to expand our product offering. The new krill oil Increase in krill harvest extraction technology — Flexitech™ — helps us We harvest krill in the Antarctic waters with Saga bring innovation to the market. The first product Sea and Antarctic Sea. In 2015, Saga Sea and based on this technology is Superba™ 2, a krill oil Antarctic Sea together harvested 146 000 metric with noticeably improved smell, taste, and visual tons (MT) of krill, compared with 145 000 MT in 2014. appearance. Like all Superba™ products, Superba™ Overall, we increased our total production of krill 2 is certified 100 percent sustainable and traceable. meal from 23 845 MT in 2014 to 25 217 MT in 2015. With the Houston production facility online, we The total catch of the Antarctic Krill fishery in 2015 now have complete in-house control over our was 225 465, down from 294 145 in 2014. supply chain—from sea to shelf. Webjørn Eikrem, EVP Production and supply chain

“Aker BioMarine is the only krill supplier that controls the entire harvesting and production process. Our supply chain stretches from krill harvesting operations in Antarctica through the logistics hub in Montevideo to our krill oil manufacturing facility in Houston.”

100 percent traceability our logistics hub in Montevideo, products are According to the Marine Stewardship Council (MSC), ■■ Saga Sea and Antarctic Sea harvested Our custom-built vessels produce krill meal transported to Houston for further processing it is critical for globally traded commodities to a total of 146 000 MT in 2015, compared immediately after the krill has been brought or sold directly to customers around the world. state the source of each product. Currently, many with 145 000 MT in 2014. onboard. This method ensures the highest possible Because we control the entire supply chain, we consumer-packaged goods companies ask their ■■ The total catch of the Antarctic product quality. Our wholly owned supply and can trace each end-product back to the precise suppliers to verify traceability back to sustainable krill fishery in 2015 was 225 465 MT, transport vessel La Manche delivers fresh krill harvesting location, as recorded by the GPS system sources. Further, consumers and regulators are compared with 294 145 MT in 2014 products to Montevideo, Uruguay, with limited onboard each vessel. increasingly demanding more information about interruption of harvesting operations. From where a product was sourced and its manufac-

Our fleet

Antarctic Sea krill harvester Featuring Eco-Harvesting® Size: 132.23 m 19.87 m Built: 1999, Converted in 2009 DNV certified: 2014 Production capacity: 75 000 t catch p.a. Hold storage: 3 000 MT

Saga Sea krill harvester Featuring Eco-Harvesting® Size: 92.10 m 16.50 m Built: 1975/1999, Converted in 2005 DNV certified: 2005 Production capacity: 75 000 t catch Hold storage: 1 200 MT

turing conditions. This is what makes traceability cation by the MSC. This certification was renewed in essential to our business. 2015. It is vital that we, and all other krill harvesters, act in accordance with strict environmental Taking responsibility further standards and guidelines set by independent Harvesting Antarctic krill is very closely managed, authorities. Aker BioMarine has invested in new La Manche support vessel monitored, and regulated. In fact, Aker BioMarine ocean-friendly harvesting methods to maintain the Size: 171 m 23 m has independent observers stationed onboard quality of the marine resources we harvest. These Built: 1983 our krill harvesting vessels in Antarctic waters. measures are crucial not only because krill is such Hold storage: 4 500 MT The observers provide transparent and precise an important part of the Antarctic ecosystem, but reporting of catch volumes and vessel positions also because these techniques greatly minimize to the relevant authorities. any adverse environmental impact.

In 2010, Aker BioMarine’s krill harvesting operations in Antarctic waters received environmental certifi-

Manufacturing Superba™ manufacturing plant in Houston, Texas Capacity: 1 200 MT per year Employees: 63 Logistics: Easy access to US and global markets Laboratory: Fully equipped QA laboratory

INNOVATION: Doing the impossible By Torbjørn Furuseth, EVP Innovation

In order to drive innovation in the omega-3 market, we constantly need to explore new ways of doing things; some of which we thought were impossible just a few years ago. A hallmark of Aker BioMarine’s innovation in 2015 was the launch of our new Flexitech™ technology. This patent-protected technology enables us to continually expand our product line and bring further innovation to the krill oil market.

Flexitech™ is a technology that allows us to INNOVATION efficiently purify and concentrate krill oil’s various 2015 beneficial components, such as phospholipids and ■■ We launched Flexitech™, a new technology omega-3s and remove salts from krill oil. Flexitech™ that enables us to expand our product line also significantly improves the purified oil’s smell and bring ongoing innovation to the krill oil and taste, an upgrade that has been well received market by our customers. ■■ We launched Superba™ 2, which features improved taste, smell, and visual appearance Superba™ 2 is Aker BioMarine’s first Flexitech™- based product. It offers greatly improved smell, ■■ We further strengthened the documentation taste, and visual appearance and — like all demonstrating the benefits provided by Qrill™ Superba™ products — it is 100 percent sustainable Aqua and Qrill™ Pet and traceable. Superba™ 2 is produced through ■■ We were granted important U.S. patents a supply chain that is 100 percent owned and controlled by Aker BioMarine. ■■ We established the Open Innovation Program to involve diverse professionals and organiza- Qrill™ Aqua and Qrill™ Pet are increasingly tions in the development of innovative krill important Aker BioMarine products. In 2015, we products further strengthened the documentation demonstrating the benefits provided by these krill products. Throughout the year, we documented Torbjørn Furuseth, EVP Innovation

“At Aker BioMarine, we have a saying, ‘you are only as good as your last innovation’.”

exciting, valuable Qrill™ Aqua benefits that improve Patent protection now these important patents have been issued. salmon quality parameters, such as reduction 2015 marked another milestone achievement by of melanin spots, improved filet texture, and Aker BioMarine, as we were granted important The company has invested significant resources in improved slaughter yields. We also continued to patents by the United States Patent and Trademark sustainable krill harvesting and product R&D over build the scientific documentation supporting our Office. Combined, the patents cover not only the the past several years. Our patents provide crucial new krill pet product; results during 2015 include method for producing Superba™ krill oil, but also value for customers who appreciate the added Generally Recognized As Safe (GRAS) status in the its composition. These are our inventions, for support provided by patent-protected processes United States. which we filed patent applications in 2007, and and products.

“As a leader in the krill oil market, we must continuously move forward by pushing boundaries and stepping outside of the box.”

Include to innovate to investigate krill’s components and create promote krill innovation, and enhance the quality partners complement our science team to offer At Aker BioMarine, we have a saying, “you are only new, innovative solutions, such as combination and efficiency of future investigations. Aker BioMarine customers advanced solutions. as good as your last innovation.” To introduce products and new formulations. even more scientific research and product As a leader in the krill oil market, we must continu- development advances into our processes, we Our in-house science team welcomes Open ously move forward by pushing boundaries and have established an Open Innovation Program. The Innovation partners to complement our research stepping outside of the box. Our new technology, program leverages diversity by involving academic and expand krill products know-how. Such part- Flexitech™, allows us to be more flexible in what institutions and qualified companies that want nerships boost Aker BioMarine’s capabilities, we bring to the market. And our Open Innovation

“In order to drive innovation in the omega-3 market, we constantly need to explore new ways of doing things; some of which we thought were impossible just a few years ago.”

SUSTAINABILITY: Sustainable by default By Cilia Holmes Indahl, Director Sustainability

From day one, sustainability has been at the core of how Aker BioMarine conducts business. We are thoroughly committed to responsible management of the Antarctic Krill biomass — for the wellbeing of our oceans and planet and to ensure the future of our business.

New industry association during 50 percent of their krill harvesting time. Such In pursuit of our sustainability commitment, monitoring was strongly encouraged by relevant we initiated establishment of an industry-wide policy makers. Aker BioMarine decided to go a Association of Responsible Krill Harvesting step further, by allowing independent observers Companies (ARK). The organization’s goal is to to monitor 100 percent of its krill trawling. make sure that accountability is shared among all participants operating in Antarctic waters. Sustainability achievements This initiative to promote sustainability and best In 2015, Aker BioMarine was recognized several practices was an outcome of feedback provided times for its sustainability achievements. by scientists, governments, and environmental Our company was featured in a report by the non-governmental organizations (NGOs). Sustainable Fisheries Partnership (SFP) that called the krill fishery in Antarctic waters one of By listening to diverse stakeholders, we are able to identify the most important ecosystem challenges and focus on overcoming them. In the early days, “With a growing world a key challenge was eliminating harvesting by-catches, which we accomplished by developing population, responsible our Eco-Harvesting® technology. This invention has reduced our vessels’ by-catches to near zero. management of marine

Independent onboard observers resources is more Our next mission was to allow onboard, independent observers to monitor our vessels important than ever.” Cilia Holmes Indahl, Director Sustainability

Our approach to sustainability

■■ Diverse listening — We listen attentively to important stakeholders (scientists, governments, environmental NGOs) to ensure that we recognize the key issues we must address. Our core values require this approach: To always seek out a diversity of recommendations from in-house and external experts, and to have the best knowledge at hand when making decisions. ■■ Directed efforts — We dare to do the right thing, and focus our determination and efforts on resolving the challenges faced by our industry. Our commitment and thinking are long-term. ■■ Default decisions — We have succeeded in building sustainability into our organizational behavior year upon year. At Aker BioMarine, we are proud that sustainability is deeply rooted in our culture.

the most sustainably managed reduction fisheries tons, whereas the recognized precautionary level Promoting Antarctic ecosystem research partnered with the Antarctic and Southern Ocean worldwide. for other fisheries is 10 percent of total biomass. In recent years, a major concern has been Coalition (ASOC) and WWF-Norway in 2015 to The actual Antarctic krill catch is less than 300 000 obtaining additional research data on the Antarctic establish a new research fund. The purpose of The stringent, precautionary catch limits for krill tons per year, or 0.5 percent of total biomass. ecosystem, and especially its krill biomass. To the Antarctic Wildlife Research Fund (AWR) is to are carefully regulated by the Commission for the Today’s rate of krill harvesting is not a threat to the this end, Aker BioMarine continually evaluates facilitate and promote Antarctic marine ecosystem Conservation of Antarctic Marine Living Resources Antarctic ecosystem. However, there is widespread new ways to secure healthy krill biomass levels by research. Such research findings are essential (CCAMLR). Harvesting is restricted to a specific concern that unlike Aker BioMarine, some krill- undertaking new research. to our business, our customers, the scientific region of the Southern Ocean, Area 48. The annual harvesting companies entering the industry community, and environmental-protection quota for Antarctic Krill is set at 1 percent of the disregard the region’s environmental restrictions. Ongoing research is essential for effective Antarctic organizations. This initiative also provides a total biomass, which amounts to 620 000 metric Krill fishery management. Thus, Aker BioMarine platform for dialogue among key stakeholders

Sustainability awards in 2015

■■ Marine Stewardship Council (MSC) renewed our sustainable krill harvesting certification for another five-year period (2015-2020) ■■ The Sustainable Fisheries Partnership (SFP) gave us an "A" rating in the 2015 Reduction Fisheries Sustainability Overview ■■ Nutrition Business Journal’s January 2015 edition announced that Aker BioMarine won the Journal’s Business Achievement Award for Sustainability in 2014. This is Aker BioMarine’s second NBJ award and the first time an omega-3 company has received the journal’s Sustainability award. ■■ Superba™ Krill oil receives Non-GMO Project Verification.

and facilitates engagement with partners and play an important role in meeting global needs— products yields significant productivity gains. end-consumers. We work closely with the but only if we utilize its bounty in a manner that We are proving that we can provide better health community of environmental NGOs who support supports both a healthy planet and healthy people. outcomes without compromising marine resources Aker BioMarine’s sustainability. Together we are by employing more environment-friendly and moving the entire industry in the desired direction. At Aker BioMarine, we see ourselves as working effective harvesting processes. at the junction where improving human and Healthier planet, healthier people ecosystem health coincide. Research shows With a growing world population, responsible that the omega-3s in krill oil promote health. Its management of marine resources is more bioactive components are easily absorbed by important than ever. Going forward, the sea will the human body; as a fish-feed ingredient, krill

“At Aker BioMarine, we see ourselves as working at the junction where improving human and ecosystem health coincide.”

Corporate governance

Corporate governance defines the framework of rules, procedures, and organizational 1. I mplementation and reporting on structure for Aker BioMarine’s business. Continuous improvement of corporate governance is important for developing and maintaining a high level of confidence in our company corporate governance 28 2. Business 29 among investors, employees, and other stakeholders. Good corporate governance also promotes value creation over time. Aker BioMarine’s governance principles are stated in 3. E quity and dividends 29 our key governing documents, which include our Corporate Governance Policy and Code of 4. Equal treatment of shareholders and transactions with close Conduct. Everyone conducting business on behalf of Aker BioMarine must act according to the company’s Code of Conduct. associates 29 5. F reely negotiable shares 29 6. A nnual general meeting 30 Aker BioMarine AS’ corporate governance Aker BioMarine Antarctic AS and all its subsidiaries. 7. Nomination committee 30 guidelines were updated on 20 January 2015. 8. B oard composition and Aker BioMarine AS and its business entities are independence 30 Aker BioMarine AS’ corporate governance collectively referred to as Aker BioMarine. 9. T he work of the Board of Directors 30 principles comply with the Norwegian Public 10. R isk management and internal Limited Liability Companies Act and are based Aker BioMarine’s compliance with the recom- control 30 on the Norwegian Code of Practice for Corporate mendations of the Norwegian Code of Practice 11. Re muneration of the Board of Governance (“Code”), published 30 October 2014. for Corporate Governance is presented below. The Directors 30 presentation follows the same order of topics as 12. Re muneration of executive Aker BioMarine AS (named Superba ASA upon the 15 items in the Code. Where deviations from personnel 31 formation) was established in July 2014 with the Code recommendations occur, they are discussed 13. Information and communications 31 purpose of becoming the new holding company for under the item in question, along with the justifica- 14. Take-overs 31 Aker ASA’s krill operations, which were predomi- tion and alternative procedure. 15. Auditor 31 nantly owned by Aker BioMarine AS. The restruc- turing of the krill business to Aker BioMarine AS was 1. Implementation and reporting on completed by way of demerger of the krill business corporate governance to the current Aker BioMarine AS in December 2014; Aker BioMarine’s key corporate governance the holding company changed its name to the principles are determined by the Board of Directors more familiar Aker BioMarine AS in the fall of 2015. and are set forth in the company’s governing The Aker BioMarine Group now consists of all krill documents. operations previously owned by the former Aker BioMarine AS including the principal legal entities Aker BioMarine's governing documents constitute

the framework of the governing bodies on Stewardship Council (MSC). By making deliberate, the Board or management’s ability to carry out dividend payments on our ordinary shares. The how business shall be conducted in and by responsible choices, we will achieve profitability strategic and financially viable decisions within ability of our subsidiaries to make dividends, Aker BioMarine. The purpose of the governing over time while taking care of the environment the defined purpose. distributions, or other transfers to us will depend guidelines is to set out the allocation of roles and society. Responsible conduct will not be on their operating results, cash requirements, and responsibilities between Aker BioMarine’s undermined by prospects of short-term gain. 3. E quity and dividends financial condition, contractual restrictions, and shareholders, governing bodies, and executive The Group’s equity as of 31 December 2015 other relevant factors. management and to define the basic require- Aker BioMarine’s vision is to create a healthier amounted to USD 76.2 million, which corresponds ments for Aker BioMarine’s operations and lifestyle through responsible and sustainable to an equity ratio of 29 percent. Aker BioMarine Board authorizations reporting. Aker BioMarine’s corporate governance decisions. considers the capital structure to be appropriate In the event that a Board authorization is proposed principles cover fundamental processes such as and adapted to its objectives, strategy, and risk for a capital increase, acquisition of own (treasury) strategy, risk management, financial reporting, 2. Business profile. shares, or the like, or to mandate multiple and other matters: communication, internal Aker BioMarine owns and operates integrated purposes, each purpose should be treated as a control, development and implementation of value chains, independently or via strategic part- Dividends policy separate issue. Board authorizations are valid until governing documents, governing bodies’ work nerships. Our focus is to ensure efficient business The Board of Directors may propose the payment the next annual shareholders’ meeting. and interaction, the auditor’s work, as well as processes and to deliver value-adding solutions of future dividends on Aker BioMarine’s ordinary requirements in a possible take-over situation. to our customers. shares, and will determine the dividend amount, 4. Equal treatment of shareholders and An appropriate division of roles and satisfactory if any, in light of: transactions with close associates control contribute to the greatest possible value Aker BioMarine’s business purpose clause, as it • Requirements contained in the Norwegian Aker BioMarine AS only has one class of shares and creation over time, to the benefit of owners and appears in the company’s articles of association Public Limited Liability Companies Act all shares carry the same rights in the company. other stakeholders. is as follows: • Any applicable contractual restrictions limiting Aker BioMarine AS is 99 percent owned by Aker ASA. our ability to pay dividends Corporate social responsibility: vision, values, “The objectives of the Company comprise owning • Our earnings and cash flows In the event of material transactions between and ethical guidelines and operating industry and other associated • Our capital requirements the company and its shareholders, Directors, Aker BioMarine is a leading biotechnology company business activities, the management of capital • Our financial condition, and members of executive management, or parties focusing on krill-derived omega-3 products for and other functions, and also participating in or • Other factors our Board of Directors deems closely related to any of the aforementioned, the human and animal nutrition. The company is acquiring other businesses.” relevant. Board shall ensure that independent valuations are committed to operating in Antarctic waters in available. This practice applies to all transactions a sustainable manner. In 2010, Aker BioMarine The function of Aker BioMarine’s business purpose Under the Norwegian Public Limited Liability between Aker BioMarine and Aker ASA and other became the first krill harvesting company clause is to ensure that shareholders have control Companies Act, the distribution of dividends on our Aker companies. Aker BioMarine AS has prepared whose operations were certified by the Marine of the business and its risk profile, without limiting ordinary shares must be approved by a majority of guidelines designed to ensure that members of the ordinary shares present at a General Meeting of the Board of Directors and executive management our shareholders based on a proposal presented notify the Board of any material direct or indirect by our Board of Directors. Dividends may only be stake they may have in agreements entered into Aker BioMarine’s values: distributed to the extent that, following such distri- by the Group. butions, Aker BioMarine has sustainable equity and ■ ■ Proud — We are proud of who we are, what we do, and how we act liquidity. Additional information on transactions with close ■■ Determined — We have the willpower and dare to seek out new solutions and opportunities associates appears in note 22 to the 2015 consoli- Because we are a holding company without our dated accounts. ■ ■ Diverse — We seek knowledge wherever it may be found and across cultural barriers own business operations, we are dependent upon ■■ Sustainable — We operate sustainably, limiting our business’ impact on the environment. cash dividends, distributions, or other transfers 5. Freely negotiable shares we receive from our subsidiaries in order to make Aker BioMarine AS’s shares are freely negotiable.

6. Annual general meeting the board be independent of the company’s main to have an audit committee. Nevertheless, the internal requirements. Aker BioMarine’s overall Aker BioMarine AS is majority owned by Aker ASA shareholder. No company executives are Directors. Board decided to establish an audit committee risk management approach includes continuously and hence the company’s practices deviate from in 2012, but following the merger in 2013 the assessing and managing risks related to our value the recommendation in section 6 of the Code. The current composition of the Board is presented work and responsibilities of the audit committee chain in order to support the achievement of our on page 32 of this annual report. Directors’ were transferred back to the Board of Directors. corporate objectives. Holding the annual general meeting as soon as expertise and capabilities are also presented. Hence, the Board of Directors is to review financial possible after the close of the accounting year is Directors represent a combination of know-how, information to be reported to investors, regulatory The risk management process is established a priority. capabilities, and experience from finance, industry, bodies and other stakeholders and oversee the to ensure that Aker BioMarine maximizes value and non-governmental organizations. work of the external auditors and review their creation through risk awareness and management. Pursuant to Aker BioMarine AS’ articles of qualifications and independence. The Board of Based on the results from the risk assessment, the association, the Chairman of the Board or a person Given Aker BioMarine’s current ownership Directors shall ensure that the company has in Board, in cooperation with corporate management appointed by the Chairman of the Board, chairs structure, the members of the Board are not place policies and procedures which provide good agrees on action plans to ensure that the identified shareholders’ meetings. To the extent possible, encouraged to own shares in the company. corporate governance, effective internal controls risks are handled in an optimal and transparent Directors and the auditor attend shareholders’ and risk management. The Board of Directors shall manner. The status of such action plans is meetings. 9. The work of the Board of Directors also ensure that management has implemented discussed in Board meetings. The Board of Directors annually adopts a plan procedures to handle complaints and concerns 7. Nomination committee for its work, emphasizing goals, strategies, and reported by employees and other stakeholders Financial reporting As Aker BioMarine AS is majority owned by Aker implementation. Further, the Board has adopted (whistleblowers) regarding possible breaches The Board's control and supervision of the ASA after the January 2013 merger, the former board instructions that regulate areas of respon- of the company’s ethical guidelines, governing company's operating and financial activities is nomination committee was dissolved in 2013. sibility, tasks, and division of roles of the Board, policies, laws and regulations. based on the monthly, quarterly, and annual the Chairman of the Board, and the company’s reports provided by the administration. In addition 8. Board composition and independence President and CEO. The Board instructions also 10. R isk management and internal control to financial reporting, the reports include a review Aker BioMarine does not have a corporate feature rules governing Board schedules, notice The Board of Aker BioMarine AS considers good of the key operational figures throughout Aker assembly, in accordance with section 6-35.1 of the and chairing of Board meetings, decision-making, corporate governance as an inevitable and BioMarine’s value chain. The administration's Norwegian Public Limited Liability Companies Act. the President and CEO’s duty and right to disclose necessary condition for internal and external reporting to the Board is based on a thorough information to the Board, professional secrecy, credibility and trust, as well as a foundation for management review of all business areas. Pursuant to the company’s articles of association, impartiality, and other issues. creating value through the Group's value chain. the Board comprises between three and nine The Board is to ensure that the company maintains 11. R emuneration of the Board of Directors members. The Board elects its own Deputy Board In cases where matters of a material character effective internal control practices and appropriate Board remuneration is only provided to external Chairman. Directors are elected for a term of two in which the Board Chairman is, or has been, risk management systems tailored to the company’s Directors. The remuneration reflects the Board’s years. personally involved, the Board's consideration of business activities. Aker BioMarine’s corporate responsibility, expertise, time spent, and the such matters should be chaired by a Director other values and ethical guidelines, and key governing complexity of the business. Remuneration does not The majority of the members of the Board of than the Board Chairman. documents are also subject to such evaluation. depend on Aker BioMarine’s financial performance. Directors are considered independent of the Directors and companies with whom they are company’s executive management and material The Board has not performed an evaluation of Risk Management associated do not take on any special tasks for business contacts under Norwegian law. In 2015, its own performance and expertise in 2015. A The Board conducts an annual review of the the company beyond their Board appointments. the Board consisted of two Aker ASA employees, new Board will be elected in 2016. The Board of company's risk exposure and internal controls. one external representative, and two employee Directors held 8 meetings during 2015. Strategic and business, operational, and financial Additional information on remuneration paid to representatives. This represents a deviation risks are considered. The purpose of the risk Directors for 2015 is presented in note 23 to the from section 8 of the Code of Practice, which Pursuant to Norway’s Public Limited Liability assessment is to make sure that our operations consolidated accounts. recommends that at least two of the members of Companies Act, Aker BioMarine is not required are safe and in compliance with external and

12. Remuneration of executive personnel discussed any material changes in the company’s The Board has adopted guidelines for remunera- accounting principles and assessments of material tion of executive management in accordance with accounting estimates with the Board. The auditor section 6-16a of the Norwegian Public Limited has also discussed with the company’s Board of Liability Companies Act. Directors all material issues in which disagreement has arisen between the auditor and management. Aker BioMarine AS does not have stock option The auditor has had one meeting with the Board plans or other such share award programs for without the presence of representatives of Aker employees. Further information on remuneration BioMarine’s executive management during 2015. for 2015 for members of the company’s executive management is presented in note 23 to the consoli- No guidelines have been prepared for executive dated accounts. management’s access to use the auditor for services other than auditing. However, the auditor 13. Information and communications provides an annual overview of services other than The company’s reporting of financial and other auditing rendered by the auditor to the company. information is based on transparency in its reporting to the financial community and other Remuneration for auditors, presented in note 3 to interested parties. Aker BioMarine AS is majority- the Aker BioMarine AS consolidated accounts, is owned by Aker ASA; hence the company’s practice stated for the two categories of auditing and other deviates from the recommendations found in services. Such details are presented to the annual section 13 of the Code. shareholders’ meeting.

14. Take-overs In light of the current ownership structure, the Board has not deemed it necessary to prepare specific guidelines as to how the company would respond in the event it becomes subject to a takeover bid. Pursuant to Aker BioMarine’s articles of association, any transfer of company shares is subject to Board approval.

15. Auditor The auditor makes an annual presentation of the auditing plan to the Board. Further, the auditor provides the Board with written confirmation that the requirement of independence has been met.

The auditor participates in the Board meeting that deals with the annual accounts. The auditor has reviewed the company’s internal control with the Board. In addition, the auditor has reviewed and

Board of Directors

The new Board of Directors was elected on 19 February 2016.

Ola Snøve Øyvind Eriksen Chairman Director

Ola Snøve (born 1977) is Investment Director of Aker Øyvind Eriksen (born 1964) joined Aker ASA in ASA. Mr. Snøve was previously President & CEO of January 2009. Mr. Eriksen holds a law degree from Epax – a joint venture between Aker and Lindsay the University of Oslo. He joined Norwegian law Goldberg that was divested to FMC Corp. Prior to firm BA-HR in 1990, where he became a partner in joining Epax, Mr. Snøve had been with Aker since 1996 and a director/chairman in 2003. At BA-HR, January 2008. He is currently Chairman of Aker Mr. Eriksen worked closely with Aker and Aker’s BioMarine. Mr. Snøve holds M.Sc. and Ph.D. degrees main shareholder, Kjell Inge Røkke. Mr. Eriksen is from the Norwegian University of Science and chairman of the board in Aker Solutions ASA, Det Technology, as well as an MBA (Dist.) from INSEAD. norske oljeselskap ASA and Aker Kværner Holding As of 31. December 2015, Mr. Snøve holds 109 837 AS, and a director of several companies, including shares in Aker ASA (the majority stock holder), The Resource Group TRG AS, TRG Holding AS through his wholly owned company Storbrea AS, and Reitangruppen AS. As at 31. December 2015, and has no stock options. Mr. Snøve is a Norwegian Mr. Eriksen holds 144 911 shares in Aker ASA, and citizen. has no stock options. Mr. Eriksen holds, through a privately owned company, 0.20 percent of the B-shares in TRG Holding AS. Mr. Eriksen is a Norwegian citizen.

Frank Grebstad Torill Nielsen Frank O. Reite Kjell Inge Røkke Director, elected by the employees Director, elected by the employees Director Director

Frank Grebstad (born 1968) is Captain of the "FV Torill Nielsen (born 1968) is Crew Manager in Aker Frank O. Reite (born 1970) first joined Aker in 1995, Kjell Inge Røkke (born 1958), Aker ASA’s main owner, Antarctic Sea", one of our two krill harvesting BioMarine Antarctic AS. Ms. Nielsen has been with and became CFO in Aker ASA in August 2015. He has been a driving force in the development of Aker vessels in Aker BioMarine Antarctic AS. Mr. Grebstad Aker BioMarine since December 2007. Initially, she holds a B.A. in business administration from since the 1990s. Mr. Røkke launched his business has been with Aker BioMarine since 2008. Prior to was part of the financial team, but later joined the Handelshøyskolen BI in Oslo. Mr. Reite came career with the purchase of a 69-foot trawler in the joining Aker BioMarine he was with a joint venture operational department as Crew Manager. Ms. from the position of President & CEO of Akastor, United States in 1982, and gradually built a leading between Aker Seafoods and JFK of Faeroe Island. Nielsen is a Norwegian citizen. and has previously held a variety of executive worldwide fisheries business. In 1996, the Røkke Between 1995 and 2003, Mr. Grebstad worked for positions in the Aker group, including overseeing controlled company, RGI, purchased enough Aker several joint ventures between American Seafoods and developing Aker's investments in Converto shares to become Aker’s largest shareholder, and and different Russian Companies. Mr. Grebstad has Capital Fund AS, Havfisk ASA, Norway Seafoods AS later merged RGI with Aker. Mr. Røkke is currently a Master Mariner education and is a Norwegian and Aker Yards ASA. Mr. Reite also has experience director of Aker Solutions, Det norske, Kvaerner citizen. from banking and served as Operating Director at and Ocean Yield. As at 31. December 2015, Mr. Paine & Partners, a New York-based private equity Røkke holds 50 673 577 (68.2 per cent) in Aker ASA firm. Mr. Reite is chairman of Havfisk ASA, Ocean through his investment company TRG AS and its Yield and of Akastor ASA. As at 31. December 2015, subsidiaries, which he co-owns with his wife, Anne Mr. Reite holds 5 435 shares in Aker ASA, and has Grete Eidsvig, and has no stock options. Mr. Røkke no stock options. Mr. Reite is a Norwegian citizen. is a Norwegian citizen. He has been elected for the period 2014–2016.

Aker BioMarine 1 (“The Company”) develops, promotes and sells krill based ingredients and Our business and location 34 products in a sustainable manner. These marine ingredients are used in health-promoting dietary supplements for humans and growth and health-promoting feed additives for farmed Key 2015 events 35 fish and animal feed. Strategic objectives 35 Markets 35 The parent company Aker BioMarine AS (former in an ecological manner. In 2010, the Company Market competition 35 Superba ASA) was established in July 2014 with the became the first krill harvesting company certified Financial information 35 purpose of becoming the new holding company by the Marine Stewardship Council (MSC) for its Going concern assumption 36 for Aker ASA’s krill operations. The krill operations sustainable operations. were prior to July 2014 owned by Aker BioMarine Financial risk and risk management 36 Events after the balance sheet date 36 ASA, who had run it since 2006. Revenues and other income totaled USD 105.1 million in 2015 compared to USD 112.3 million in Aker BioMarine AS 36 Aker BioMarine has main two product lines. Qrill™, 2014. EBITDA (operating profit before depreciation Health, safety and environment 36 a high value feed ingredient, is sold to customers in and special operating items) amounted to USD 25.7 Organization 37 the aquaculture and pet food industries. Superba™ million in 2015, compared with USD 6.0 million in Research and development 37 Krill, the omega-3 dietary supplement, is sold to 2014. At year-end 2015, Aker BioMarine’s equity ratio Corporate governance 37 customers in the health and nutrition industry. was 29 percent, on par with 31 December 2014. Cash Outlook for 2016 37 The Company experienced strong demand and and cash equivalents amounted to USD 2.8 million, increased sales for Qrill™ Aqua also in 2015 and compared with USD 2.4 million at year-end 2014. received regulatory approvals to commence sales of Qrill™ Pet in the U.S. The omega-3 industry in Our business and location general continued to be soft in 2015, which affected Headquatred at Fornebu, Aker BioMarine sales of Superba™ Krill negatively. However, the is a biotechnology group focusing on krill- Company was able to increase its market share derived omega-3 products for human and because of its leading value proposition. animal nutrition. Today, Aker BioMarine is the leading supplier of krill-derived products to Aker BioMarine unites deep-sea harvesting the consumer health and wellness and animal experience with marine biotechnology science. The nutrition markets. The Company’s supply chain Company is commited to operate in the Antarctic stretches from krill harvesting operations in the Antarctica through the logistic hub in 1 ‘Aker BioMarine’ include the parent company Aker Montevideo, and krill oil manufacturing facility BioMarine AS and its subsidiaries. in Houston. The integrated value chain allows for

efficient adaption to changing market demands Antarctic waters, compared to 145 000 MT in 2014. of krill with its expertise in research, product and the strictest environmental standards and sustain- and high product quality with full traceability. 25 217 MT of krill based products were produced on patent development, sales and marketing. The ability practices. Aker BioMarine’s Eco-Harvesting™ the vessels in 2015, compared to 23 845 MT in 2014. Company focuses extensively on research and krill-harvesting technology effectively reduces The dietary supplement Superba™ Krill oil contains development on marine omega-3 and protein to by-catches of fish, birds, and marine mammals. omega-3 phospholipids which are not found in The krill oil production was previously outsourced develop high-value nutraceutical products. Aker fish oil. Phospholipids exhibit better uptake and to a third party manufacturer in Spain, but the BioMarine’s operational objective is to generate Financial information utilization of the omega-3 fatty acids in the human Company has now transferred its production to and maintain competitive advantages as: Profit and loss account body. In addition, Superba™ Krill contains the the Company’s production facility in US. During • We aim to be an integral part of our customers’ Total revenues and other income amounted to natural and effective antioxidant astaxanthin. the year, 549 MT of Superba™ Krill was produced success USD 105.1 million, compared with USD 112.3 million compared to 247 MT in 2014. Due to delayed start • We drive science and innovation in 2014. Total revenue includes USD 54.9 million Aker BioMarine’s core business activities up of production in the US, the Company still • We have cost leadership in the Antarctic Krill from sale of Superba™ Krill, USD 45.5 million from comprise of Aker BioMarine AS and the wholly produced most of its Superba™ Krill oil in Spain in supply chain QrillTM products sales and USD 1.8 million in royalty owned subsidiary Aker BioMarine Antarctic AS. 2015. The production facility in US was previously • People are at the heart of what we do income from CLA/Tonalin®. The corresponding Aker BioMarine AS includes management and owned 50/50 together with Naturex, the long term 2014 revenue figures were USD 69.2 million from the finance department, both well integrated third party manufacturing partner of the company, Markets Superba™ Krill, USD 39.9 million from Qrill™ and in the daily operations and decision-making. but Aker BioMarine acquired Naturex’ share of the The omega-3 industry in general continued to USD 2.4 million in royalties. Management, together with the Board of Directors facility in February 2016, see events after balance be soft in 2015, which affected sales of Superba™ in Aker BioMarine AS, is the forum for strategic sheet date. Krill. However, the Company was able to increase Earnings before Interest, Tax, Depreciation, Amor- analysis and decisions. Aker BioMarine AS also its market share because of its leading value tization and special operating items (“EBITDA”) was owns the intellectual property rights for CLA Key 2015 events proposition. The Company’s estimated market USD 25.7 million in 2015, compared with USD 6.0 Tonalin®, which it licenses out and receives royalty • Continued strong demand and increasing share is 60 percent. million in 2014. income. prices for the high value feed ingredient Qrill™ Aqua The markets for the high-value feed ingredient Depreciation and amortization totaled USD 15.9 Aker BioMarine, through its subsidiary Aker • The customized pet feed product Qrill™ Pet Qrill™ Aqua for the aquaculture industry developed million in 2015 compared with USD 17.9 million in BioMarine Antarctic AS, owns and operates the was launched commercially in the EU and positively. There is growing demand for marine 2014. The decrease is attributable to retirement of krill-harvesting vessels Saga Sea and Antarctic Sea obtained regulatory approval in US protein and Qrill™ Aqua has now established certain assets while the vessels were in shipyard in the Antarctic waters. Both vessels have onboard • Despite challenging omega-3 market its position as a sustainable, high value feed in the fourth quarter of 2014. production of krill meal. Aker BioMarine also owns conditions, Superba™ Krill continued to take ingredient with documented effects. the freighter vessel La Manche which refuels and market share Other expenses in 2015 comprise in total USD offloads the krill harvesting vessels at sea as well • The Company’s manufacturing facility in the Market competition 1.0 million, all related to the patent dispute with as performing crew change. US became fully operational. Aker BioMarine competes in a global market. Our Neptune Technologies and Bioresources Inc. The • Developed and implemented the new krill competitiveness relies on our ability to position corresponding amount in 2014 was USD 1.1 million. MSC certified Aker BioMarine’s harvesting oil extraction technology, FlexiTech™, for ourselves correctly in key markets. External operations for the first time in 2010. The certi- improved product quality and enabling future framework conditions, such as regulations Financial income amounted to USD 9.2 million in fication was renewed in 2015 reconfirming that krill product applications. governing krill harvesting, also affect our 2015, mainly comprising of foreign exchange gains, the harvesting operations are conducted in an • In the fall of 2015, the Company relocated its competitiveness. compared with USD 7.1 million in 2014. Financial ecologically sustainable way. Aker BioMarine headquarter to Fornebu. expenses in 2015 of USD 12.3 million include interest applies modern technology to obtain the highest The Company holds two krill harvesting licenses cost, guarantee fees, other financial expenses. In value from harvested resources with minimal envi- Strategic objectives issued by the Norwegian Government. Ever since addition, share of profit from equity accounted ronmental impact. In 2015, Saga Sea and Antarctic Aker BioMarine’s strategy is to combine its leading its establishment, Aker BioMarine has emphasized investees was minus 4.0 million in 2015 reflecting Sea harvested 146 000 metric tons (MT) of krill in position in sustainable harvesting and processing building competitive advantages by adhering to the start up costs at the krill oil facility in Houston.

The net profit in 2015 amounted to USD 0.8 million 155.6 million as of 31 December 2015, up from USD Aker BioMarine AS Aker BioMarine’s objective is zero personnel compared with a loss of USD 17.3 million in 2014. 154.6 million as of 31 December 2014. The profit and loss account for Aker BioMarine injuries, environmental harm, or vessel damage. AS shows a USD 6.6 million loss for the 2015 Systematic safety drills are conducted that prepare Cash flow As of year end 2015, net working capital (non- accounting year. Aker BioMarine AS had in 2015 crews for handling demanding scenarios that might Aker BioMarine reported a cash flow from interest-bearing assets less non-interest-bearing external operating revenues of USD 1.8 million. occur on board. Crew safety is Aker BioMarine’s top operations of USD 18.3 million in 2015 compared current debt) exclusive of bank deposits, amounted Payroll and other operating expenses amounted priority, and efforts to further improve safety is a to minus USD 11.1 million in 2014. to USD 36.3 million, compared with USD 33.5 to USD 7.5 million in 2015. Net loss from financial continued project. million as of 31 December 2014. items amounted to USD 4.6 million in 2015. The Net cash flow from investments amounted book value of the company’s fixed assets totaled There have been five injury incidents on the to minus USD 21.9 million in 2015, compared Going concern assumption USD 343.6 million as of 31 December 2015. Current vessels, but overall sick leave is very low. Aker with minus USD 14.4 million in 2014. In 2015, the Pursuant to section 3-3a of the Norwegian Accounting assets amounted to USD 3.1 million as of 31 BioMarine takes a serious view of accidents and company made payments of USD 2.9 million in Act, the Board of Directors hereby confirms that the December 2015. Long-term debt amounted to USD hazardous conditions; procedures are reviewed vessel upgrades and USD 14.6 million in onshore annual accounts for 2015 have been prepared on the 110.9 million at year-end 2015. and measures implemented to avoid reoccur- production technology. Furthermore, Aker assumption that both Aker BioMarine and the parent rences Aker BioMarine takes a serious view of BioMarine increased its investment in the US joint company, Aker BioMarine AS, are going concerns. The Board will recommend to the company’s accidents and hazardous conditions; procedures venture Aker BioMarine Manufacturing by USD 4.6 annual general meeting on February 19, 2016 that are reviewed and measures implemented to avoid million for the financing of the Houston factory. Financial risk and risk management no dividend be paid for the 2015 accounting year. reoccurrences. To reduce sick leave and maintain Aker BioMarine is a biotechnology group, which a healthy working environment, Aker BioMarine Net cash flow from financing activities amounted is still in a development and commercialization Based on the above recommendation, the Board offers employees participation in weekly exercise to USD 4.0 million in 2015 compared to USD 21.1 phase. As such, the Company remains exposed of Directors proposes the following allocation of sessions. million in 2014. to several risks and uncertainties relating to the loss for the year: harvesting and offshore processing technologies, Allocation for dividends - Harvesting of Antarctic krill is managed and Balance sheet and liquidity fluctuations in annual krill harvesting, onshore Loss for the year USD 6.6 million regulated by the Commission for the Conservation As of 31 December 2015, the equity ratio was 29 production processes and product quality, Transferred to earned equity USD 6.6 million of Antarctic Marine Living Resources (CCAMLR). percent, same as at year-end 2014. Cash and cash ability to develop new products and general Founded in 1981, the organization sets permissible equivalents as of 31 December 2015 amounted to market demand and growth and competition. Health, safety and environment limits for krill harvesting. Superba has independent USD 2.8 million, compared with USD 2.4 million as Aker BioMarine is dependent on two customers The krill-harvesting vessels Saga Sea and Antarctic inspectors on its krill harvesting vessel in the of year-end 2014. Total assets amounted to USD representing about 43 percent of the revenues in Sea as well as the freighter La Manche operate in Southern Ocean who provides precise, ongoing 258.4 million as of 31 December 2015, and total 2015. rough Antarctic waters. Crew health and working reporting of catch volumes and vessel positions equity was USD 76.2 million. Corresponding 2014 environment are important concerns. Despite the to the relevant authorities. Aker BioMarine figures were USD 255.2 million in total assets and Aker BioMarine has adopted a risk management demanding conditions, illness and accident rates recommends that all participants in Antarctic krill USD 75.3 million in total equity. policy to identify measure and mitigate risks. For onboard are generally low. fisheries be subject to such reporting. a more detailed discussion on market risk, credit Interest-bearing debt amounted to USD 158.3 risks, and liquidity risk, see note 20 (Financial risk) To keep illness and accident rates low, work tasks In 2010, Superba’s krill harvesting operations in million as of 31 December 2015 of which USD 147.2 to the consolidated financial statement. and working environments are carefully examined Antarctic waters received environmental certifi- million is long term and USD 11.1 million is short and improved when necessary. Systems are in cation by the independent organization Marine term interest bearing debt. As per year end 2014, Events after the balance sheet date place to ensure that crew members have access Stewardship Council (MSC). Aker BioMarine total interest bearing debt was USD 157.0 million. No material events have occurred after the to medical attention in the event of injury or illness harvests in accordance with stricter environmental year-end 2015 balance sheet date, except for the when vessels are operating far from shore. The standards and guidelines than CCAMLR requires. Net interest-bearing debt (interest-bearing loans acquisition of Naturex’ share of the onshore krill onboard working environment is deemed good, MSC certification is one of the means by which Aker less cash and cash equivalents) amounted to USD oil facility in Houston, US. a view supported by the high workforce stability. BioMarine seeks to establish high environmental

standards among krill harvesters. The MSC certifi- for all employees, regardless of ethnicity, gender, employees are woman. Group management had owned by Aker ASA and the executive management cation was renewed for both vessels in 2015. religion, or age. Aker BioMarine’s human resources one female member as of 2015. One of the three of the company. policy includes measures aimed at preventing shareholder-elected Directors is a woman and one Aker BioMarine strives to develop new environment- gender discrimination in terms of pay, promotion, of the two employee representatives. Outlook for 2016 friendly harvesting methods, reduce by-catches, recruitment, or other workplace-related issues. Future growth depends on Aker BioMarine’s ability and maintain optimal quality of the marine Aker BioMarine recruits employees from profes- Research and development to recapture success in sales of high-quality dietary resources we harvest. Aker BioMarine is committed sional environments that include both men and Aker BioMarine is a biotechnology group where supplements. To achieve this, the Company works to implementing solutions that curtail energy women. Aker BioMarine believes it has, and aims research and development is an integral part to expand its geographic reach by entering into consumption, waste, and polluting emissions. to maintain, a balanced workforce. Aker BioMarine of our strategy. For further details on our R&D new markets. It is important that ongoing research do not tolerate discrimination or harassment of expenses see note 11 for further details on this documents product efficacy, highlighting preven- Aker BioMarine’s corporate social responsibility any kind. years expenses. tative and health-promoting benefits for both the report for 2015 is included in the corporate social animal feed and human nutrition products. responsibility report of Aker ASA, which is available As of 31 December 2015, Aker BioMarine had 215 Corporate governance at www.akerasa.com . employees (2014: 222), of whom 50 worked in Aker BioMarine’s corporate governance policy Following the completion of the new krill oil Norway, 8 in the United States, 5 in Uruguay, 1 in is intended to ensure an appropriate division of production technology in Houston, Aker BioMarine Organization Australia, 3 in China and 148 onboard the two krill roles and responsibilities among shareholders, the is fully invested to capture the foreseeable market Aker BioMarine aims to be an attractive workplace. harvesting vessels, and the freighter La Manche. Board of Directors, and executive management. growth potential. Fundamental to the Aker BioMarine’s human Aker BioMarine has employees from approximately resources policy is ensuring equal opportunities 22 different nationalities and 16 percent of the As of December 31, 2015, Aker BioMarine is wholly

Oslo, February 18, 2016 The Board of Directors and CEO of Aker BioMarine AS

Ola Snøve Bjørn Flatgård Gabriella Bastiani Frank Grebstad Torill Nielsen Matts Johansen Chairman Deputy Chair Director Director, Director, CEO elected by the employees elected by the employees

Financial statements

Directors’ responsibility statement 39 Group accounts 40 Statement of profit or loss 40 Statement of comprehensive income 40 Balance sheet as of December 31 41 Statement of cash flow 42 Changes in equity 43 Notes to the consolidated financial statements 44 Parent company accounts 60 Profit and loss account 60 Balance sheet as of December 31 61 Statement of cash flow 62 Notes to the parent company accounts 63 Auditor's report 68

The Board of Directors and CEO have reviewed and approved the Act and good accounting practice in Norway as of December 31, • that the information in the accounts provides a true and fair view Board of Directors’ report and annual accounts for Aker BioMarine 2015. The Board of Directors’ report for the Group and the parent of the Group’s and parent company’s assets, liabilities, financial AS, the Group and parent company for the calendar year 2015 and as company complies with the requirements of the Accounting Act and position and result as a whole as of December 31, 2015; and of December 31, 2015 (annual report 2015). Norwegian accounting standard 16 (Norsk Regnskapsstandard 16), • that the Board of Directors’ report for the Group and parent as of December 31, 2015. company provides a true overview of The consolidated accounts have been prepared in accordance with •• development, result and position for the Group and parent the EU approved IFRS regulations and related interpretations, and We are of the opinion: company; and other information requirements pursuant to the Accounting Act and • that the annual accounts for 2015 for the Group and parent •• the most central factors regarding risk and uncertainty faced applicable as of December 31, 2015. The annual accounts for the parent company have been prepared in accordance with prevailing by the Group and the parent company. company have been prepared in accordance with the Accounting accounting standards;

Oslo, February 18, 2016 The Board of Directors and CEO of Aker BioMarine AS

Ola Snøve Bjørn Flatgård Gabriella Bastiani Frank Grebstad Torill Nielsen Matts Johansen Chairman Deputy Chair Director Director, Director, CEO elected by the employees elected by the employees

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

AKER BIOMARINE GROUP: AKER BIOMARINE GROUP : Statement of profit or loss Statement of comprehensive income for the year ended December 31 for the year ended December 31

Amounts in thousands of U.S. Dollars Note 2015 2014 Amounts in thousands of U.S. Dollars Note 2015 2014

Revenues from sale of products 2 103 180 109 314 Net loss 805 (17 258) Other income 2 1 941 2 985 Other comprehensive income (loss) Total revenues and other income 105 121 112 299 Defined benefit plan income gains (losses) 1 128 (320) Net change in inventories 7 202 1 626 Total items that will not be reclassified to profit and loss 128 (320) Production and misc. operating expenses 3 (63 953) (81 889) Other comprehensive income (loss) 128 (320) Salaries and payroll expenses 4 (22 649) (25 677) Other expenses 5 (991) (1 096) Total comprehensive income (loss) 933 (17 578) Total operating expenses before depreciation, amortization and 1 impairment (80 391) (107 036) The Defined benefit plan income gains (losses) have no income tax impact as it is part of the unrecognized deferred tax asset, see note 9. Depreciation and amortization 10, 11 (15 911) (17 925) Impairment charges 10 (905) (389) Operating profit (loss) 7 913 (13 051)

Net financial expenses 6 (3 016) (2 621) Share of loss from equity accounted investees 7 (4 010) (1 486) Net profit (loss) before tax expense 887 (17 157)

Tax expense 9 (82) (101) Net profit (loss) after tax expense 805 (17 258)

Earnings per share to equityholders of Aker BioMarine AS Basic 0.01 (0.25) Diluted 0.01 (0.25)

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

AKER BIOMARINE GROUP: Balance sheet as of December 31

Amounts in thousands of U.S. Dollars Note 2015 2014 Amounts in thousands of U.S. Dollars Note 2015 2014

ASSETS LIABILITIES AND OWNERS' EQUITY Cash and cash equivalents 14, 20 2 752 2 408 Accounts payable and other payables 17 17 912 17 501 Current interest-bearing receivables 8 10 410 4 750 Interest-bearing current liabilities 15, 20 11 109 27 588 Accounts receivable and prepaid expenses 13, 20 19 387 23 884 Total current liabilities 29 021 45 091 Inventories 12 35 889 28 686 Other non-interest-bearing non-current liabilities 16 6 046 5 395 Assets held for sale 10 - 1 052 Interest-bearing debt 15, 20 147 197 129 416 Total current assets 68 438 60 779 Total non-current liabilities 153 243 134 811 Investments in equity-accounted investee 7 395 4 404 Total liabilities 182 264 179 901 Non-current interest-bearing receivables 8 4 833 5 917 Share capital 18 63 684 63 684 Other non-interest bearing non-current receivables 20 1 585 1 668 Other paid-in equity 18 156 486 156 486 Intangible assets 11 69 886 71 449 Total paid-in equity 220 170 220 170 Property, plant and equipment 10 113 286 110 942 Translation differences and other reserves 18 154 26 Total non-current assets 189 984 194 380 Retained earnings 18 (144 166) (144 939) Total assets 258 422 255 159 Total equity 76 158 75 257

Total equity and liabilities 258 422 255 159

Oslo, February 18, 2016 The Board of Directors and CEO of Aker BioMarine AS

Ola Snøve Bjørn Flatgård Gabriella Bastiani Frank Grebstad Torill Nielsen Matts Johansen Chairman Deputy Chair Director Director, Director, CEO elected by the employees elected by the employees

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

AKER BIOMARINE GROUP: Statement of cash flow for the year ended December 31

Amounts in thousands of U.S. Dollars Note 2015 2014

Net income (loss) before tax 805 (17 157) Taxes expense 82 (92) Net interest and guarantee expenses 6 7 051 9 135 Interest and guarantee premiums paid (6 057) (6 470) Interest received 99 100 Impairment charges 905 389 Depreciation and amortization 10, 11 15 911 17 925 Share of gain (loss) from equity accounted investees 7 4 010 1 486 Foreign exchange loss (gain) (5 802) (6 528) Change in accounts receivable, other current receivables, inventories, accounts payable and other 1 266 (9 922) Net cash flow from operating activities 18 269 (11 134)

Payments for property, plant and equipment (17 422) (12 042) Proceeds from sale of property, plant and equipment 149 565 Payments for intangibles (96) (131) Instalment to joint ventures (receivable) (4 576) (2 752) Net cash flow from investing activities (21 945) (14 360)

Proceeds from issue of debt and change in overdraft facility 15, 20 (2 953) 15 918 Repayment of debt 15, 20 (2 022) (2 072) Proceeds from owners 8 995 7 251 Net cash flow from financing activities 4 020 21 097

Net change in cash and cash equivalents 345 (4 397) Effect of changes in foreign exchange rates on cash and cash equivalents - - Cash and cash equivalents as of January 1 14 2 408 6 805 Cash and cash equivalents as of December 31 14 2 752 2 408

The accompanying notes are an integral part of the financial statements

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

AKER BIOMARINE GROUP: Changes in equity for the year ended December 31

Other Other Retained Amounts in thousands of U.S. Dollars Share capital Share premium paid-in capital reserves earnings Total

Balance as of December 31, 2013 60 727 192 106 (39 774) 346 (127 719) 85 688 Net loss - - - - (17 258) (17 258) Other comprehensive income (loss) - - - (320) - (320) Total comprehensive income (loss) - - - (320) (17 258) (17 578) Transactions with owners, recognized directly in equity: Contributions from owner 135 - 7 116 - - 7 251 Contributions to owner (135) - - - - (135) Demerger effects 2 957 (4) (2 958) - (89) (94) Other items charged directly to equity - - - - 127 127 Total transactions with owners, recognized directly in equity 2 957 (4) 4 158 - 38 7 149 Balance as of December 31, 2014 63 684 192 102 (35 616) 26 (144 939) 75 257 Net profit for the year - - - - 805 805 Other comprehensive income - - - 128 - 128 Total comprehensive income (loss) - - - 128 805 933 Total transactions with owners, recognized directly in equity Other items charged directly to equity - - - - (33) (33) Balance as of December 31, 2015 63 684 192 102 (35 616) 154 (144 166) 76 158

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Notes to the consolidated financial statements Note 1: Basis for preparation Note 1: Basis for preparation 44 Note 2: Revenue 45 These financial statements consolidate the profit statements: each subsidiary are made in its functional currency, or loss statements and balance sheets for Aker • Revenue recognition from the sale of Superba™ Krill i.e. the currency which best reflects the primary Note 3: Production and misc. operating expenses 46 BioMarine AS (the “Company”) and its subsidiaries oil and Qrill™ branded ingredients (note 2) economic environment in which the entity operates. (together, the “Group”). The Company is a limited • Measurement of our krill based products held as The financial statements are presented in U.S. Dollars Note 4: Salaries and payroll expenses 47 liability company domiciled in Norway with its Inventories at year end (note 12) (“USD”), which is the Group’s presentation currency Note 5: Other expenses 47 registered office at Oksenøyveien 10, 1327 Lysaker, • Recognition and measurement of expenditure on as the Group’s cash flow and economic returns are Note 6: Financial income and expenses 47 Norway. vessels and machinery included in Property, plant principally denominated in USD, and is the functional and equipment Note 7: Investments in joint ventures 47 (note 10) currency of each subsidiary. Note 8: Interest-bearing receivables 48 The financial statements have been prepared • Impairment of intangible assets (note 11) in accordance with IFRS and IFRS Interpretation Foreign currency transactions are translated Note 9: Income tax 48 Committee (IFRS IC) interpretation as adopted by Critical accounting estimates and judgments into the functional currency using the exchange Note 10: Property, plant and equipment 49 the EU. The preparation of consolidated financial statements rates prevailing at the date of each transaction. Note 11: Intangible assets 50 in conformity with IFRS requires management to Receivables, liabilities and other monetary items in Note 12: Inventories 51 The financial statements have been prepared on make estimates and assumptions that affect the foreign currencies are translated into the functional Note 13: Accounts receivable and prepaid a going concern basis under the historical cost reported amounts of revenue, expenses, assets and currency at the exchange rates on the balance sheet expenses 52 convention, except as otherwise described in the liabilities. The estimates and judgments are based date. Foreign currency exchange gains or losses sections below. on historical experience and other factors, including resulting from such transactions are recognized in Note 14: Cash and cash equivalents 52 Note 15: Interest bearing debt 52 expectations of future events that are believed to the statement of profit or loss. Significant changes in the current reporting be reasonable, and constitute management’s best Note 16: Other non-current liabilities 53 period judgment at the date of the financial statements. In Inter-company balances and transactions, and any Note 17: Accounts payable and other payables 54 The financial position and performance of the Group the future, actual experience could differ from those unrealized revenues and expenses arising from inter- Note 18: Earnings per share 54 was particularly affected by the following events and estimates. company transactions, are eliminated in the financial Note 19: Foreign exchange rates 54 transactions during the reporting period: statements. • Investment in the new production technology The principal estimates and judgments that could Note 20: Financial risk 54 Note 21: Contingencies and legal claims 57 Flexitech that will improve the quality of Superba™ have a significant effect upon the Group’s financial Consolidation Krill oil (note 10) results relate to: Subsidiary undertakings are entities over which the Note 22: Related parties 57 • Extension of the USD 105 million revolving credit • Expenses included in indirect production cost Group has the power to govern the financial and Note 23: Salaries and other remuneration to facility with DNB (note 15) recognized to inventories (note 12) operating policies. Subsidiary undertakings are the Board of Directors and executive • Letter of intent to acquire Aker BioMarine Manu- • Technical assessment of the useful life of the fully consolidated from the date on which control is management 57 facturing LLC and Aker BioMarine Financing LLC Group’s vessels and machinery (note 10) transferred to the Group. They are de-consolidated Note 24: Group companies 59 (note 25) • Calculating the fair value of tangible and intangible from the date that control ceases. Note 25: Events after the balance sheet date 59 assets allocated to the Krill cash generating unit Summary of significant accounting policies (note 11) The acquisition method of accounting is used to Accounting policies that relate to the financial account for business combinations by the Group. statements as a whole are set out below, while Where appropriate, present values are calculated The consideration transferred for the acquisition of a those that relate to specific areas of the financial using discount rates reflecting the currency and subsidiary undertaking is the fair values of the assets statements are shown in the corresponding note. All maturity of the items being valued. Further details transferred and the liabilities incurred by the Group, accounting policies have been consistently applied of estimates and judgments are set out in the related including those from any contingent consideration to all the years presented. notes to the financial statements. arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities Management regards the following as the most Foreign currencies and contingent liabilities assumed in a business significant accounting policies for these financial Transactions recorded in the financial statements of combination are measured initially at their fair values

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts at the acquisition date. The excess of the considera- classification, measurement and derecognition Note 2: Revenue tion transferred, the amount of any non-controlling of financial assets and financial liabilities and interest in the acquiree and the acquisition date fair introduces new rules for hedge accounting. The Revenue represents amounts recoverable primarily from the sale of Superba™ Krill oil and Qrill™ branded value of any previous equity interest in the acquiree standard will be applied 1 January 2018. It is not ingredients during the year. Revenue is measured at the fair value of consideration received or receivable on over the fair value of the Group’s share of the identifi- expected to have a material impact on the Group’s sale, including rebates, fair value adjustments and excluding VAT. Revenue is recognized when the amount can able net assets acquired is recorded as goodwill. results. be reliably measured and it is probable that future economic benefits will flow to the Company. • IFRS 15 Revenue from Contracts with Customers is Inter-company transactions, balances and unrealized based on the principle that revenue is recognized Revenue recognition occurs in the period when the product is delivered and the main risks and benefits of gains and losses on transactions between Group when control of a good or service transfers to a ownership are transferred to the customer. The revenue recognition conditions are reviewed for each individual companies are eliminated. Accounting policies of customer – so the notion of control replaces the sale based on the individual contracts and other actual circumstances such as Incoterms on delivery. Revenues subsidiary undertakings have been changed where existing notion of risks and rewards. The group is are deferred until all the criteria are met. necessary to ensure consistency with the policies currently assessing the impact the new standard Revenues from sale of products Other income adopted by the Group. will have, and it will be applied 1 January 2017. Geographic information based on customer location based on customer location New standards adopted in the year Disclosure materiality Year ended December, 31 Year ended December, 31 Amounts in thousands of U.S. Dollars 2014 2014 During the year, the Group adopted Annual Improve- Management provides specific disclosures required 2015 2015 ments to IFRSs – 2010-2012 Cycle and 2011 – 2013 Cycle, by IFRS unless the information is considered Norway 22 174 12 531 - 468 and the amendment to IAS 19. These changes have immaterial to the economic decision making of the EU 15 676 29 215 1 395 1 989 had no significant impact on the financial statements. users of these financial statements or not applicable. United States 34 485 42 632 546 431 New standards and interpretations not yet In these consolidated financial statements amounts Australia 13 916 5 624 - - adopted have been rounded to the nearest thousand, unless Asia 6 481 9 947 - - The following IFRS standards and amendments and otherwise stated. As a result of rounding differences, Other regions 10 449 9 367 - 97 IFRS IC interpretations issued by the IASB, have not amounts may not add up to the total. Total 103 180 109 314 1 941 2 985 been early adopted: • IFRS 9 Financial instruments addresses the In 2015, the two largest customers comprised 17 percent and 27 percent of the Group’s total revenues from sale of products (2014: 32 percent and 17 percent).

In addition to revenue from the sale of krill derived products, the Group receives royalty income from certain trademarks and licenses. Royalty income is recognized in accordance with the relevant agreement.

Other income by category Year ended December 31, Amounts in thousands of U.S. Dollars 2015 2014

Royalty 1 840 2 415 Other 101 569 Total 1 941 2 985

The Group’s operations occur in one reportable segment, the production and sale of krill products. As such, the production and sale of krill based products is managed as an integrated business.

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

The Executive Management Team (EMT), assesses the performance based on Underlying EBITDA. This Note 3: Production and misc. operating expenses measurement basis is defined as operating profit before depreciation, amortization, write-downs and impairments, and special operating items. The following information has been provided to the EMT at December Operating expenses are presented based on nature of the expenses in the statements of profit or loss. 31, 2015 and 2014. Production and operating expenses are recognized in the same period as the corresponding revenue from sale of product is recognized, while salaries and payroll expenses, production and other operating expenses, Year ended December 31, and other expenses are recognized when they occur or when the Group has a liability for future expenses. Amounts in thousands of U.S. Dollars 2015 2014 Year ended December 31, Nutraceuticals (Superba™) 54 902 69 155 Amounts in thousands of U.S. Dollars 2015 2014 Aquaculture (Qrill™ Aqua) 44 851 39 152 Pet and other 3 427 1 007 Fuel (16 687) (20 433) Other income 1 941 2 985 Maintenance and services (7 533) (21 442) Total revenue and other income 105 121 112 299 Sales, marketing, freight and other selling costs (7 896) (6 197) Total operating expenses before depreciation, amortization and impairment (80 391) (107 036) Extraction, capsulation and other production costs (17 726) (15 915) Special operating items 964 692 Other operating expenses (14 112) (17 902) Underlying EBITDA 25 693 5 955 Total production and misc. operating expenses (63 953) (81 889)

Other financial information: Government grants Depreciation and amortization (15 911) (17 925) During 2015 the Group received grants of USD 1.1 million (2014: USD 0.1 million) primarily from The Research Impairment charges (905) (389) Council of Norway. The grants are included in the ‘Production and misc. operating expenses’ line item to match the costs that the grants are intended to compensate. There are no unfulfilled conditions or other contingencies Total assets 258 422 255 159 on these grants. The Group did not benefit directly from any other forms of government assistance. Investments in property, plant and equipment and intangibles 17 518 11 653 Remuneration to the Group auditors (excluding VAT): The following table reconciles Underlying EBITDA to Net income (loss) in the statements of profit or loss. Year ended December 31, Year ended December 31, Amounts in thousands of U.S. Dollars 2015 2014 Amounts in thousands of U.S. Dollars 2015 2014 Audit fees (172) (208) Net income (loss) 805 (17 257) Other audit and attestation services (47) (979) Tax expense 82 101 Fees for tax services 1 - - Share of loss from equity accounted investees 4 010 1 486 Total (219) (1 187) Net financial items 3 016 2 621 Depreciation and amortization 16 816 17 908 1 Fees for tax services consist of fees for tax filing services and other tax assistance. Special operating items 964 1 096 Underlying EBITDA 25 693 5 955

Special operating items mainly include legal and settlement fees as specified in note 5. These costs are not included in management’s assessment of Underlying EBITDA.

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Note 4: Salaries and payroll expenses Note 6: Financial income and expenses

Year ended December 31, Financial income comprises interest income on financial investments and net foreign exchange gains recognized Amounts in thousands of U.S. Dollars 2015 2014 in the statement of profit or loss. Financial expenses include interest expense and payable guarantee fees. Financial income and expenses are presented on a net basis in the statement of profit or loss. Salaries (9 799) (11 765) Crew salaries (10 563) (10 478) Year ended December 31, Employer's social security contribution (1 166) (1 412) Amounts in thousands of U.S. Dollars 2015 2014 Pension expenses (544) (1 214) Interest income, bank deposits 10 56 Other benefits (577) (809) Interest income loans and receivables (amortized cost) 163 107 Total (22 649) (25 677) Foreign exchange gains (realized and unrealized) 9 072 7 052 Other financial income 1 (76) Pension plans Total financial income 9 247 7 139 The Group has a combination of defined contribution and defined benefit plans that cover virtually all employees. These schemes comply with laws and regulations set forth in the different countries of operations. Interest expense on financial liabilities valued at amortized cost (7 224) (6 789) The Group’s defined benefit obligation cover three employees. At the end of the year the defined benefit Foreign exchange losses (realized and unrealized) (2 751) (2 509) obligation was USD 0.7 million and the assets were USD 0.5 million. The fair value of the net obligation has Other financial expenses (2 288) (461) been calculated using an appropriate discount rate. During the year the Group expensed USD 47 thousand, net Total financial expenses (12 262) (9 759) of settlements and curtailment, on the defined benefit plan (2014: 105 thousand), and USD 0.5 million for the defined contribution plan (2014: 1.1 million). In addition USD 128 thousand is expensed over other comprehensive Net financial expenses (3 016) (2 621) income due to changes in actuarial assumptions. Interest expense on financial liabilities valued at amortized cost includes guarantee fees payable to the parent company Aker ASA.

Note 5: Other expenses

Year ended December 31, Note 7: Investments in joint ventures Amounts in thousands of U.S. Dollars 2015 2014 The Group’s interest in jointly controlled entities is consolidated using the equity method of accounting. The Legal and settlement fees (991) (1 096) investment is initially recognized at cost and the carrying value is increased or decreased to recognize the Total (991) (1 096) Group’s share of the profit or loss of the joint venture after the date of acquisition. The Group’s share of profit or loss is recognized in the income statement with a corresponding adjustment to the carrying amount of the investment. Other expenses consists of legal and settlement fees related to a complaint filed by Neptune Technologies & Bioressources Inc. (“Neptune”) against several Group companies and other krill companies with the Interna- The Group has investments in two joint ventures as of December 31, 2015: Aker BioMarine Manufacturing LLC tional Trade Commission (“ITC”) in Washington D.C.. Neptune claim that the defendants’ export of krill oil to (50 percent) and Aker BioMarine Financing LLC (50 percent). The two joint ventures can be viewed as cohesive the United States should be stopped because it would infringe upon U.S. Patent No. 8 278 351 assigned to them. entities, as they together will constitute a krill oil manufacturing facility in Houston, Texas, U.S.A. and the related financing of the facility.

The Group and its partner Naturex SA have, as part of the joint venture agreement, an obligation to finance future investments if such investments are deemed necessary by the partners. As of December 31, 2015, there were no other investments planned than those already financed by the equity and debt contribution provided in 2015. On February 5, the Group signed a letter of intent to acquire Naturex’ share of the two joint ventures. For further information, see note 25 Events after the balance sheet date.

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

At December 31, the book value of the investment in the joint ventures reconcile as follows: Note 9: Income tax As of December 31, The Group is headquartered in the Norway and pays taxes according to the rates applicable in the countries Amounts in thousands of U.S. Dollars 2015 2014 and states in which it operates. Most taxes are recorded in the statement of profit or loss and relate to taxes As of January 1, 4 404 5 889 payable for the reporting period (current tax) but also deferred taxes. Deferred tax is calculated based on the differences between the accounting value and tax value of assets and liabilities at the balance sheet date Investments - - using the applicable tax rate. Share of loss from equity accounted investees (4 010) (1 486) As of December 31, 395 4 404 The major components of income tax expense for the years ended December 31, 2015 and 2014 are: Year ended December 31, Furthermore, the Group holds interest-bearing receivables towards the joint ventures totaling USD 15.2 million Amounts in thousands of U.S. Dollars 2015 2014 (2014; USD 10.7 million). Refer to note 8 for further information. Income tax expense for the period At the balance sheet date, the joint ventures had assets of USD 40.2 million (2014: USD 40.7 million) and liabilities Current income tax expense in respect of current year (89) (101) of USD 39.4 million (2014: USD 31.3 million). For the financial year to 31 December 2015, total revenue was USD Prior period adjustments - - 3.7 million (2014: USD 1.6 million) and net loss was USD 8.0 million (2014: USD 2.3 million). The Group’s share of Current income tax expense (89) (101) loss in the joint ventures is recognized as a financial item in the statements of profit or loss.

Reconciliation of nominal statutory tax to effective tax rate: Year ended December 31, Note 8: Interest-bearing receivables Amounts in thousands of U.S. Dollars 2015 2014

Current and non-current interest bearing receivables as December 31, 2015 and 2014 are entirely related to the Profit (loss) before tax 887 (17 158) financing of the Group’s joint ventures in Houston. See note 7 for additional information. Calculated income tax at statutory rate of 27% (240) 4 633 As of December 31, Change in tax regulations 3 532 - Amounts in thousands of U.S. Dollars 2015 2014 Unrecognized change in deferred tax assets (4 041) (8 415) Current interest-bearing receivables 10 410 4 750 Other 659 3 681 Total 10 410 4 750 Total tax expense (89) (101) Effective tax rate 10% 1% As of December 31, Amounts in thousands of U.S. Dollars 2015 2014

Non-current interest-bearing receivables 4 833 5 917 Total 4 833 5 917

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Deferred tax assets on a gross basis (not tax-effected) are comprised of: Movements in property, plant and equipment in 2015 and 2014 are shown below:

Year ended December 31, Vessels, transportation Assets under Amounts in thousands of U.S. Dollars 2014 2015 Amounts in thousands of U.S. Dollars equipment, etc Machinery construction Total PPE and intangible assets (616) (2 043) Acquisition cost as of January 1, 2015 108 398 55 106 1 521 165 025 Inventory - 243 Investments 387 2 314 14 721 17 422 Other (92) 172 Asset retirements (3 449) (2 255) (21) (5 725) Tax losses carried forward 57 319 63 444 Other reclassifications (131) 131 (612) (612) Interest rate deductability carry forward 2 432 1 818 Acquisition cost as of December 31, 2015 105 204 55 296 15 610 176 110 Deferred tax assets 59 042 63 634 Unrecognized deferred tax assets (59 042) (63 634) Acc. depreciation and impairment as of January 1, 2015 (30 917) (23 165) - (54 082) Recognized deferred tax assets - - Depreciation for the year (7 388) (6 837) - (14 226) Asset retirements 3 240 2 243 - 5 483 The movement in deferred tax assets from USD 63.6 million to USD 59.0 million is mainly due to changes in the Other reclassifications 25 (25) - - USD/NOK foreign exchange rate. Acc. depreciation and impairment as of December 31, 2015 (35 040) (27 785) - (62 825)

Based on the historical losses of the Group it was concluded that deferred tax assets could not be recognized Book value as of December 31, 2015 70 164 27 512 15 610 113 286 in the balance sheet as of December 31, 2015 or 2014. The Norwegian tax authorities have questioned USD 28.8 Depreciation period 10-20 years 3-20 years million of the tax loss carried forward from 2008. The Group believes that the deductions are in accordance Depreciation method Straight-line Straight-line with the tax laws. If the view of the Norwegian tax authorities prevails, the unrecognized deferred tax asset will be reduced by a corresponding amount. Vessels, transportation Assets under Note 10: P roperty, plant and equipment Amounts in thousands of U.S. Dollars equipment, etc Machinery construction Total Acquisition cost as of January 1, 2014 101 393 60 251 1 713 163 356 Property, plant and equipment are recorded at cost, less any accumulated depreciation and any accumulated Investments 4 588 6 308 626 11 522 impairment losses. Depreciation is recognized on a straight-line basis over the estimated useful lives of each major component of property, plant and equipment. Assets under construction are not depreciated until the Asset retirements (2 658) (4 463) - (7 121) items are available for use as intended by management. Asset sales - (252) (87) (339) Reclassifications from (to) assets held for sale - 311 (731) (420) Expenditures to replace a component of property, plant and equipment are included in its cost if it is probable Other reclassifications 5 075 (7 048) - (1 973) that future economic benefits associated with the asset will flow to the Group and the costs can be measured Acquisition cost as of December 31, 2014 108 398 55 106 1 521 165 025 reliably. Gains and losses are recognized upon asset de-recognition. The costs of consumables used and day-to-day maintenance of property, plant and equipment are expensed as incurred. Costs incurred for major Acc. depreciation and impairment as of January 1, 2014 (24 107) (22 622) - (46 729) inspections and overhauls or to improve a vessel’s operating efficiency, functionality or safety are capitalized. Depreciation for the year (6 824) (7 756) - (14 580) Asset retirements 1 469 3 490 - 4 959 Major inspections of vessels are done on a regular basis as required by the classification society, such as Det Assets sales - 135 - 135 Norske Veritas, and laws and regulations and the costs of such inspections are, including replacement spares Other reclassifications (1 454) 3 588 - 2 134 and labor costs, capitalized and amortized over the average expected life between major inspections. All other costs relating to maintenance of vessels is charged to the statement of profit or loss on consumption Acc. depreciation and impairment as of December 31, 2014 (30 917) (23 165) - (54 082) or as incurred. Book value as of December 31, 2014 77 481 31 941 1 521 110 942

Assets that will be disposed, which are classified as held-for-sale, are reported at the lower of their book value Depreciation period 10-20 years 3-20 years and their fair value less cost to sell. Depreciation of vessels is included in the cost of inventory conversion (see Depreciation method Straight-line Straight-line note 14).

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

During the year the Group invested USD 14.7 million in a new production technology, Flexitech. The Flexitech License agreements technology will improve Superba™ Krill oil quality by purifying and more importantly enable production of new License agreements acquired separately are measured at cost. Following initial recognition, the Groups license Superba™ Krill oil products including concentrate products, Superba™ Boost. It is expected that the Houston agreements are recorded less any accumulated amortization and impairment losses. The Group’s license facility with the Flexitech technology will be fully operational in second quarter 2016. When the technology agreements are amortized on a straight-line basis and tested for impairment if impairment indicators exist. works as intended by management, the assets will be reclassified from assets under construction to machinery. Movements in intangible assets for 2015 and 2014 are shown below: Assets that were previously held for sale has been fully written off in 2015 to reflect the fair value of the License equipment. The table below show the movements in 2015 and 2014. Amounts in thousands of U.S. Dollars Goodwill Development agreements Total Year ended December 31, Acquisition cost as of January 1, 2015 65 153 6 630 23 118 94 901 Amounts in thousands of U.S. Dollars 2015 2014 Additions - external cost - 96 - 96 Book value as of January 1, 1 052 1 115 Asset retirements - (785) - (785) Asset sales (199) (145) Reclassifications - - - - Reclassification from assets under construction - 781 Acquisition cost as of December 31, 2015 65 153 5 941 23 118 94 212 Reclassification to assets under construction - (311) Amortization and impairment losses as of January 1, 2015 - (5 331) (18 121) (23 452) Impairment (854) (389) Amortization for the year - (384) (1 276) (1 660) Book value as of December 31, - 1 052 Asset retirements - 786 - 786 Reclassifications - - - - As of December 31, 2015, the Group has no significant commitments for further investments in property, plant Amortization and impairment losses as of December 31, 2015 - (4 929) (19 397) (24 326) and equipment (2014: USD 2.8 million). Book value as of December 31, 2015 65 153 1 012 3 721 69 886 For details on mortgages and pledging of security, see note 15. Amortization period 5-10 years 10-12 years Amortization method Straight-line Straight-line

License Note 11: Intangible assets Amounts in thousands of U.S. Dollars Goodwill Development agreements Total

Goodwill Acquisition cost as of January 1, 2014 65 153 13 438 25 131 103 722 Goodwill resulting from business combinations is allocated to each of the cash generating units (“CGU”), which Additions - external cost - 131 - 131 are expected to benefit from synergies of the combination. Each unit to which goodwill is allocated represents Asset retirements - (149) (149) the lowest level within the Group at which goodwill is monitored for internal management purposes. Reclassifications - (6 790) (2 013) (8 803) Acquisition cost as of December 31, 2014 65 153 6 630 23 118 94 901 Goodwill is tested annually for impairment or more frequently if events or changes in circumstances indicate a potential impairment. Impairment is determined for goodwill by assessing the recoverable amount of each Amortization and impairment losses as of January 1, 2014 - (11 736) (18 849) (30 585) unit to which the goodwill relates. When the recoverable amount of the unit is less than its carrying amount, Amortization for the year - 93 (1 276) (1 183) an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. Asset retirements - 149 - 149 Development Reclassifications - 6 163 2 004 8 167 Expenditures for research activities performed to gain new scientific or technical or other knowledge are Amortization and impairment losses as of December 31, 2014 - (5 331) (18 121) (23 452) expensed when incurred. Development expenditures are capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable Book value as of December 31, 2014 65 153 1 299 4 997 71 449 and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Amortization period 5-10 years 10-12 years The amount capitalized includes the cost of materials and external expenses. Amortization method Straight-line Straight-line

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Impairment testing Note 12: Inventories The group tests whether goodwill has suffered any impairment on an annual basis. Goodwill is allocated to the Krill business which represents all business operations of the Group as of December 31, 2015 and 2014, with the Inventories are measured at the lower of actual production cost (including freight) and net realizable value. exception of the CLA/Tonalin licensing agreements which generate royalty income (see note 3) and is separate Acquisition cost is based on the actual cost of warehoused materials. The cost of finished goods and work in from the Krill business cash generating unit. progress comprises the costs of raw materials, direct labor and other direct costs, and related production overheads (based on normal operating capacity). Indirect costs allocated to inventories, includes salaries, The recoverable amount for the Krill business as a cash generating unit is estimated on the basis of its value depreciation and certain other operating expenses. in use. The estimated value in use is based on discounted future cash flows. The following assumptions were applied in 2015 and 2014: Net realizable value is the estimated sales price in the ordinary course of business, less the costs of completion • Projected cash flows are based on management’s best estimates of budget and the business plan for the and sales such as freight and commission. The impairment from actual production cost (including freight) to Krill business for the subsequent five year period. The budget is based on detailed budgets prepared by the net realizable value is recognized in production and other operating expenses. various departments in the Krill business. For subsequent periods, the model is based on estimated terminal growth of 2.0 percent, which is in line with long-term forecasts for growth in GDP. The production of both Superba™ Krill oil and Qrill™ branded ingredients is highly complex where the Group controls the entire value chain from harvesting of raw krill in the Antarctic, to the onboard krill meal processing, In the 2015 budget for the period 2016-2020, revenue projections for the first year are based on agreements and quality control. Furthermore, the process is very sensitive to harvesting conditions, such as length of entered into the first year of the budget period, along with a management evaluation and information from the fishing season and other external factors. These factors all influence the parameters for capitalization of external sources as to the potential for new agreements. The budgeted operating margin is in accordance indirect production costs in the Group and full cost of the products. with management`s forecast which is based on the scalability in the business model. As large proportion of the Group’s operating expenses are independent of production volumes means that increased sales levels Indirect production costs is measured using standard costing, which is reviewed regularly to ensure relevant will contribute to higher operating margins. measures of krill harvest, yield in meal production and production time on-shore, cost base and other relevant factors. When calculating total inventory, management make certain judgments about cost of production • The terminal value in the model used to calculate value in use in 2015 is based on a stable operating margin and idle capacity when estimating indirect production costs for capitalization. Changes in the parameters for which is on a par with the projected operating margin for 2019. Investment levels have also been set at the calculation of indirect production costs could have an impact on the gross margin and the overall valuation same level as projected depreciation to maintain sales and production capacity. of inventories.

• A 12.9 percent discount rate before tax has been applied to calculate the recoverable amount (2014: 10.9 Inventory balances as of December 31, 2015 and 2014 are shown below: percent). The discount rate is estimated based on a weighted average of equity return requirements and As of December 31, expected costs of debt, assuming a projected debt-to-equity ratio of 50 percent (2014: 50 percent). The equity return requirement is estimated using the capital asset pricing model (CAPM) and accordingly adjusted Amounts in thousands of U.S. Dollars 2015 2014 from post- to pre-tax. The cost of debt is based on risk-free interest rates (10-year U.S. treasury government Raw materials 9 899 10 808 bonds), adjusted upwards to reflect long-term financing costs and the asset’s risk profile. Work in progress 3 386 24 The sensitivity of the value in use has been tested using simulations of various combinations of discount rates Finished goods 22 604 17 854 and terminal value growth. No reasonably possible combination of these factors results in a value in use being Total 35 889 28 686 lower than the value recognized in the balance sheet as of December 31, 2015 and 2014. Carrying value of inventories recognized at net realizable value - 11 146 Development Write-down of inventories recognized towards net change in inventories in the period 1 2 388 6 643 In 2015, the Group capitalized USD 96 000 in development costs related to development of production processes, production technology for krill oil and maintenance of patents and licenses (2014: USD 131 000). The Group Carrying value of inventories pledged as security 33 603 27 435 expensed USD 2.1 million in 2015 and USD 8.9 million 2014 relating to research and development costs. 1 Includes weight corrections, replacements to customers and obsolesence. Licensing agreements/production technology The net amount recognized in the financial statements for license agreements/production technology of USD All finished goods produced on board the krill harvesting vessels are recognized to inventories at the lower 3.7 million (2014: USD 5.0 million) relates to two existing license agreements which will expire in 2016 and 2018. of cost and net realizable value. Based on realized royalty revenue in 2015 and 2014, and projections received from the licensee partners, no impairments were identified in 2015 and 2014. The impairment of inventories is included in net changes in inventory in the statement of profit or loss.

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Note 13: Accounts receivable and prepaid expenses Note 15: Interest bearing debt

The Group recognizes interest bearing debt initially at fair value, net of transaction costs incurred. Subsequently As of December 31, the debt is carried at amortized cost. Any difference between the proceeds (net of transaction costs) and Amounts in thousands of U.S. Dollars 2015 2014 the redemption value is recognized in the statements of profit or loss over the period of the debt using the effective interest method. Accounts receivable 13 308 15 894 Prepaid expenses 6 079 7 990 As of December 31, Total 19 387 23 884 Amounts in thousands of U.S. Dollars 2015 2014

Non-current liabilities In 2015, the Group reduced its bad debt provision from USD 633 000 to USD 210 000 with a corresponding income Secured USD-denominated bank loan - Caterpillar Finance (“CAT”) 6 417 in profit or loss. See note 20 for credit and foreign exchange risk and fair values. 4 583 Secured USD-denominated bank loan - DNB Bank ASA (“DNB”) 104 802 104 694 Secured NOK-denominated loan from Innovation Norway - 1 4 637 5 513 Secured NOK-denominated loan from Innovation Norway - 2 9 398 11 173 Note 14: Cash and cash equivalents Secured NOK-denominated loan from Innovation Norway - 3 1 183 1 619 Non-current NOK-denominated loan from Antarctic Harvesting Holding AS 1 334 - Cash and cash equivalents in the balance sheet and the cash flow statement comprise cash at banks, including Non-current USD-denominated debt to Aker ASA 21 259 - restricted deposits, and on hand. Book value total interest-bearing non-current liabilities 147 196 129 415 As of December 31, Amounts in thousands of U.S. Dollars 2015 2014 Current liabilities Current portion of secured USD-denominated bank loan- Caterpillar Finance (“CAT”) 1 834 1 834 Cash and bank deposits 1 846 1 984 Current portion of NOK-denominated loan from Innovation Norway - 2 170 202 Restricted bank deposits 906 424 Overdraft facility, NOK 9 104 12 057 Cash and cash equivalents 2 752 2 408 Current NOK-denominated liquidity loan from Aker ASA - 13 495 Book value total interest-bearing current liabilities 11 109 27 588 Restricted bank deposits relate to employee tax withholdings which are used to settle tax remittances with the tax authorities on a periodic basis. As of December 31, 2015, the Group had drawn USD 9.1 million (2014: Book value total interest-bearing liabilities 158 305 157 003 USD 12.1 million) out of a total of USD 11.4 million available in an overdraft facility. On 28 May 2015, the Group refinanced the revolving credit facility in the amount of a USD 105 million from DNB For a discussion of interest risk and sensitivity analysis associated with financial assets and liabilities, see Bank ASA. The new termination date is set to 26 April 2017. note 20. Nominal Year of interest rate maturity Installments

Non-current liabilities and repaid liabilities Secured USD-denominated bank loan - CAT LIBOR + 1.89% 2017 Semi-annual Secured USD-denominated bank loan - DNB LIBOR + 3.4% 2017 Bullet Secured NOK-denominated loan from Innovation Norway - 1 5.2% (fixed) 2026 Semi-annual from 2017 Secured NOK-denominated loan from Innovation Norway - 2 5.2% (fixed) 2026 Semi-annual from 2017 Secured NOK-denominated loan from Innovation Norway - 3 5.25% (floating) 2023 Semi-annual Overdraft facility with DNB NIBOR + 2.5% n/a n/a

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Loan terms and conditions Operating lease commitments All financial covenants presented below are the ones currently applied to the Group. The covenants compliance Leases in which a significant proportion of the risks and benefits of ownership are retained by the lessor are tests referred to below are all based on historical figures for the Group. classified as operating leases. Payments made under operating leases, net of any incentives received from the lessor, are charged to the statement of profit or loss on a straight-line basis over the period of the lease. Secured USD-denominated bank loan (Caterpillar Finance) covenants The Caterpillar Finance loan agreement features covenants on equity and debt to equity ratio and minimum The lease agreements summarized below are for several office and storage locations the Group rents around net worth and insurance requirements. The Group complied with all covenants in 2015 and 2014. the world. Minimum lease payment Secured USD-denominated bank loan (DNB) covenants Amounts in thousands of U.S. Dollars 2015 2014 The DNB loan agreement features covenants on EBITDA (“Earnings Before Interest, Tax, Depreciation and Amortization”), defined as “EBITDA as classified and defined in the consolidated accounts pursuant to the Within one year 1 354 1 523 Accounting Principles applied in consistence with past practice as described in the consolidated accounts. For In 1-5 years 5 224 4 386 purposes of the DNB loan agreement, EBITDA is operating profit before depreciation, amortization, writedowns Five years or more 3 073 4 499 and impairments, and Special Operating Items.” The loan covenants also have leverage ratio requirements. Total 9 651 10 408 Pursuant to the loan agreement, Aker ASA provided the group with a short term loan of USD 4.0 million on 17 February 2015 and USD 5.0 on 29 May 2015. Following the short term loans, the Group is compliant with all loan covenants. Lease expense recognized in 2015 amounted to USD 1.5 million (2014: USD 1.1 million).

Loans from Innovation Norway The loans from Innovation Norway do not feature any restrictive covenants associated with key financial performance figures. Note 16: O ther non-current liabilities

Callable NOK-denominated bonds As of December 31, The callable bonds do not feature any restrictive financial covenants. Amounts in thousands of U.S .Dollars 2015 2014

Overdraft facility Guarantee premium payable to Aker ASA 4 629 3 445 Total amount drawn on the overdraft facility from DNB shall not exceed the sum of: Pension liabilities 197 506 1. 75 percent of external accounts receivable; and Other 1 220 1 444 2. 60 percent of total inventory. Total 6 046 5 395 The Group’s borrowings did not exceed the borrowing base in 2015. Aker has issued a guarantee for the secured bank loan with DNB. The Group pays a guarantee fee to Aker of The following table display debt secured by mortgaged assets: 5 percent of USD 34.7 million (guarantee amount). The fee accrues up to the maturity date of the DNB loan in April 2017, and become payable at the same time. As of December 31, Amounts in thousands of U.S. Dollars 2015 2014

Secured non-current loans - CAT 4 583 6 417 Current portion of non-current secured loan (CAT, Innovation Norway -2) 2 005 2 036 Secured non-current loans (DNB) 104 802 104 694 Loans from Innovation Norway 15 219 18 304 Overdraft facility 9 104 12 057 Total 135 713 143 509

Book value of assets pledged as security Operating assets 149 174 148 354

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Note 17: Accounts payable and other payables Note 19: Fo reign exchange rates

Accounts payable and other payment liabilities comprise the following items: In preparing the Group’s financial statements, the following exchange rates have been applied:

As of December 31, Average exchange Exchange rate as Average exchange Exchange rate as Amounts in thousands of U.S. Dollars 2015 2014 Denomi- rate year ended of December 31, rate year ended of December 31, Country nation December 31, 2015 2015 December 31, 2014 2014 Accounts payable 4 729 6 266 Accrued expenses 8 491 7 036 Norway NOK 1 0.124 0.114 0.159 0.135 Other current liabilities 4 692 4 199 European Union (EU) EUR 1 1.109 1.092 1.326 1.215 Total 17 912 17 501 The monthly average exchange rates and the exchange rates as of December 31 have been used in translating profit or loss and balance sheet items, respectively. If the monthly average fails to provide a reasonable approxi- Foreign exchange and liquidity risks are described in note 20. mation of the exchange rate to apply to the nominal transaction price, then the exchange rate on the date of the transaction will be applied. Accrued expenses consist of accrued interest, incurred holiday pay, public dues, accrued bonuses and other accrued expenses. Note 20: Financial risk

The Group has exposure to the following financial risks from its ordinary operations; market risk (including Note 18: E arnings per share foreign exchange rate risk, interest rate risk and bunker risk), credit risk and liquidity risk. To manage these risks, risk management is carried out in order to create predictability and stability for operating cash flows The Group presents basic and diluted EPS for its ordinary shares. Basic EPS is calculated by dividing the profit or and values. Management can use financial derivatives to hedge against risk relating to operations, financing, loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares and investment activities if the financial derivative has been approved by the board of directors. In 2015 and outstanding during the year. The diluted EPS is calculated by adjusting share capital in issue for additional 2014, the Group did not engage in any hedge accounting. weighted average number of ordinary shares that are likely to be issued as of the balance sheet date. As of December 31, 2015 and 2014, the Group had no dilutive shares or dilutive effects on shares. Credit risk The Group’s main credit risk relates to receivables from customers. Exposure to that risk is monitored on Amounts in thousands of U.S. Dollars 2015 2014 a routine basis and credit evaluations are performed on customers as appropriate. When entering into significant sales contracts, the sales department seeks to reduce credit risk through more stringent payment Continued operations: terms including requirement of up-front payments. The Group has had low losses on receivables as the sales Net profit from continued operations 805 (17 258) department is maintaining close contact with each customer and by routine billing and cash collection. Majority interests' share of profit 805 (17 258) The book value of financial assets represents the maximum credit exposure. Total, majority interests' share of operations 805 (17 258) Gross accounts Bad debt Gross accounts Bad debt receivable as of provision as of receivable as of provision as of Ordinary shares as of January 1, 69 053 544 69 053 544 December 31, December 31, December 31, December 31, Amounts in thousands of U.S. Dollars 2014 2014 Ordinary shares as of December 31, 69 053 544 69 053 544 2015 2015 Weighted average no. of shares as of December 31, 69 053 544 69 053 544 Not at maturity 10 501 11 693 Due within 0-30 days 1 527 2 070 Earnings per share: Due within 31-120 days 809 1 126 Basic 0.01 (0.25) Due within 121 - 365 days 643 1 639 Diluted 0.01 (0.25) More than one year 38 - Aker ASA own 99 percent of the shares in the parent company, Aker BioMarine AS. Remaining shares are owned by Total accounts receivable 13 518 16 527 the Group’s executive management through their fully owned companies. As of December 31, 2015 the number of Bad debt provision 210 633 shares issued was 69 053 544 with a par value of NOK 5.50 per share. All shares carry equal rights and obligations. The Group`s two most significant customers account for USD 6.3 million of the receivables carrying amount at December 31, 2015 (2014: USD 8.3 million).

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Transferred receivables: Market risk The carrying amounts of the trade receivables include receivables which are subject to a factoring arrangement. Under this i) Foreign exchange risk arrangement, the Group has transferred the relevant receivables to the factor in exchange for cash and is prevented from selling or The Group operates in a global market and is exposed to currency fluctuations, primarily pledging the receivables. through fluctuations in the USD, NOK and EUR exchange rates. In addition the Group has operations with exposure to local currencies in Uruguay, Australia and China, but these Liquidity risk exposures are regarded minimal. The Group has USD as its presentation and functional Liquidity risk is the risk that the Group will be unable to meet its financial liabilities as they mature. In the past the Group has been currency in the main group companies. The Group has NOK denominated financial dependent on obtaining subordinated debt and equity from the parent company Aker ASA to meet its financial obligations. The Group instruments, thus the balance sheet is exposed to changes in NOK/USD exchange rate. does not hedge against exposure to interest-rate fluctuations on debt and is therefore exposed to fluctuations on the variable-rate amount of interest-bearing liabilities, which was USD 140 million as of December 31, 2015 (2014: USD 144 million). The Group seeks to ensure that revenues and expenses are in the same currency. Future cash flows are estimated and offset. The Group periodically assesses the need for foreign 2015 maturity structure — loans and interest currency hedging; entering into foreign currency derivative contracts is generally subject Book value as of Nominal Up to 6 6-12 1-2 3-5 More than to Board approval. Currency risk is managed on an overall Group level. Amounts in thousands of U.S. Dollars December 31, 2015 values months months years years 5 years

Secured bank loan USD (CAT) 6 417 6 637 917 1 036 4 684 -- The Group's exposure to foreign exchange risk, based on nominal amounts of 1 000 is Secured bank loan USD (DNB) 104 802 110 887 2 110 2 110 106 667 -- shown in the table below (all amounts presented in USD): Secured bank loans NOK (Innovasjon Norge) 15 389 20 365 484 484 4 053 4 012 11 332 Euro NOK Euro NOK Liquidity loan USD (Aker ASA) 21 259 22 322 - 22 322 --- As of December 31, 2015 As of December 31, 2014 Non-secured loan NOK (Antarctic Harvesting Holding AS) 1 334 1 334 ---- 1 334 Accounts receivable 1 325 108 2 886 (2) Overdraft facility 9 104 9 104 9 104 ---- Cash 1 033 965 - - Total 2015 maturity of loans and interest on Other assets 544 499 (2 091) 3 906 interest-bearing debt 158 305 170 649 12 615 25 952 115 404 4 012 12 666 Secured bank loan - (15 218) - (16 868) Accounts payable (603) (3 658) (1 631) (2 777) Other balance sheet items - (1 953) (97) (22 789) Accounts payable and other current liabilities 17 912 17 912 17 912 ---- Gross balance sheet exposure 2 299 (19 257) (933) (38 530) Non-current non-interest-bearing liabilities 6 046 6 046 1 417 4 629 --- Total liabilities 182 263 194 607 31 944 30 581 115 404 4 012 12 666 Net exposure 2 299 (19 257) (933) (38 530)

2014 maturity structure — loans and interest Book value as of Nominal Up to 6 6-12 1-2 3-5 More than Sensitivity analysis Amounts in thousands of U.S. Dollars December 31, 2014 values months months years years 5 years A 10 percent increase or decrease in USD relative to the Euro and the NOK would have reduced or increased the Group’s profit before tax with USD 0.2 million and USD 1.9 million, Secured bank loan USD (CAT) 8 251 8 654 1 010 1 000 6 644 -- respectively. Secured bank loan (DNB) 104 694 110 625 1 977 1 977 106 671 -- Secured bank loans NOK 18 507 25 649 585 582 3 598 4 846 16 038 ii) Interest rate risk Liquidity loan from Aker ASA, NOK denominated 13 495 14 372 - 14 372 --- The Group’s borrowings and any surplus cash balances are held at variable and fixed Overdraft facility 12 057 12 057 12 057 ---- interest rates linked to the Norwegian or London interbank offered rate (NIBOR and Total 2014 maturity of loans and interest on LIBOR). A movement of 100 basis points in the interest rate on borrowings and surplus interest-bearing debt 157 004 171 357 15 629 17 931 116 913 4 846 16 038 cash balances through the year would have impacted the Groups profit before tax with USD 1.1 million. Accounts payable and other current liabilities 17 911 17 911 17 911 ---- Non-current non-interest-bearing liabilities 6 046 6 046 -- 4 846 - 506 Total liabilities 180 961 195 314 33 540 17 931 121 759 4 846 16 544

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Interest rate profile The short-term nature of financial instruments such as cash and bank deposits results in the book value At the close of the year, the interest rate profile for the Group's interest-bearing financial instruments was as approximating fair value. The same approach applies to receivables and debt associated with the business follows: cycle. Financial assets that are classified as held for sale and financial assets at fair value through profit and Effective Effective loss are recorded at fair value. As of interest rate as As of interest rate as As of December 31, 2015 December 31, of December 31, December 31, of December 31, Fair value Amounts in thousands of U.S. Dollars 2015 2015 2014 2014 measurement Amounts in thousands of U.S. Dollars Book value Fair value using Fixed-interest instruments Secured loans from Innovasjon Norge (14 206) 5.50% (16 685) 5.27% Asset carried at amortized cost: Assets designated at fair value through profit or loss 1 585 1 585 Level 2 Loan from Antarctic Harvesting Holding AS (1 334) 7.00% - Net fixed interest (15 540) (16 685) Asset carried at amortized cost: Loans and receivables 34 630 34 630 Level 2 Floating-interest instruments Cash and cash equivalents 2 752 2 752 Level 2 Financial assets Total financial assets 38 967 38 967 Cash and cash equivalents 2 752 variable 1 2 408 variable 1 Long-term interest bearing receivables 4 833 variable 2 5 917 Liability book carried at amortized cost: Short-term interest bearing receivables 10 410 variable 2 4 750 Secured bank loan USD (CAT) (6 417) (6 022) Level 2 Financial liabilities Secured bank loan USD (DNB) (104 694) (103 459) Level 2 Secured bank loan - Innovasjon Norge (1 183) 5.83% (1 821) 5.85% Secured bank loan NOK (Innovasjon Norge) (15 389) (10 840) Level 2 Secured bank loan - Caterpillar Finance (6 417) 2.20% (8 251) 2.18% Liquidity loan USD (Aker ASA) (21 259) (21 259) Level 2 Secured bank loan - DNB (104 802) 6.10% (104 694) 6.10% Bank overdraft (9 104) (9 104) Level 2 Liquidity loan from Aker ASA (21 259) 5.50% (13 495) 6.71% Non-secured loan NOK (Antarctic Harvesting Holding AS) (1 334) (1 334) Level 2 Accounts payable and other liabilities (17 911) (17 911) Level 2 Overdraft facility (9 104) variable 2 (12 057) variable 2 Total financial liabilities (176 108) (169 929) Net variable interest (124 770) (127 243)

Total interest-bearing debt (140 310) (143 929) As of December 31, 2014 Fair value 1 Different cash and cash equivalents carry different interest rates, as such no effective interest rate has been calculated. measurement 2 Different loans/receivables carry different interest rates, as such no effective interest rate has been calculated. Amounts in thousands of U.S. Dollars Book value Fair value using iii) Bunker risk Asset carried at amortized cost: Assets designated at fair value through profit or loss 1 668 1 668 Level 2 One of the Group’s significant operating costs is the bunker cost. As such, the Group is exposed to bunker price fluctuations since the vessels use bunkers as fuel. The profitability and cash flow of the Group will therefore Asset carried at amortized cost: depend upon the market price of bunkers. The Group does not hedge the bunker price risk, but monitor Loans and receivables 32 882 32 882 Level 2 movement in prices closely in order to implement other actions. Cash and cash equivalents 2 408 2 408 Level 2 36 958 36 958 Fair values Total financial assets The fair values quoted in the table below are categorized within the fair value hierarchy, described below, and Liability book carried at amortized cost: based on the lowest level input that is significant to the fair value measurement as a whole: Secured bank loan USD (CAT) (8 251) (7 667) Level 2 • Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities. Secured bank loan USD (DNB) (104 694) (103 705) Level 2 • Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement Secured NOK bank loan (Innovasjon Norge) (18 507) (12 721) Level 2 is directly or indirectly observable. Liquidity loan NOK from Aker ASA (13 495) (13 495) Level 2 • Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. Bank overdraft (12 057) (12 057) Level 2 Accounts payable and other liabilities (17 501) (17 501) Level 2 All fair values using Level 2 valuation techniques are based on discounted cash flow models. Total financial liabilities (174 505) (167 146)

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Capital management Note 22: Related parties One objective of the group’s asset management is to build and maintain financial flexibility to realize its strategic goals. The capital structure should reflect the Group’s operational risk, and offer flexibility for potential The Group’s financial statements include the following transactions and intercompany balances with Aker and investments. The Group’s liquid funds should be readily available and subject to a conservative investment companies controlled by Aker. Refer to note 9 for transactions with joint ventures and note 25 for remuneration strategy involving low risk. As a wholly owned subsidiary of Aker ASA, the company has been dependent on to key management. financial support relating to fund expansion. Aker is the controlling shareholder of the Group. The Group manages its capital structure and makes any necessary modifications based on an ongoing Transactions with Aker and affiliates Year ended December 31, assessment of the financial conditions under which the business operates, and short- to medium term Amounts in thousands of U.S. Dollars 2015 2014 projections. The capital structure is managed through adjustment of dividend payout, issuance of new shares, or repayment or incurrence of new debt, (including subordinated debt from Aker). We intend to commence Office rent, facilities services and IT (1 227) (1 371) payment of regular dividends as soon as we are able; however, the company is in a development and growth Interest expenses and guarantee fee (3 039) (5 933) phase and thus subject to higher volatility in its net cash flows than a mature company. Total (4 266) (7 304)

The interest expense relates to the interest bearing debt to Aker, refer to note 15 for details on amounts due Note 21: Co ntingencies and legal claims as of 31 December 2015 and 2014. The guarantee fees relates to the guarantee provided from Aker related to the Group’s long-term loan with DNB (see note 16). The Group recognizes a provision when it has a legal or constructive obligation as a result of a past event, where it is probable that payment or the transfer of other assets will be required to settle the obligation, and Management believes that the services are provided on arms-length principles and conditions. a reliable estimate can be made of the amount of the obligation.

With worldwide operations, the Group is involved in disputes in the ordinary course of its business activities. Provisions to cover projected losses arising from such disputes are made to the extent negative outcomes are Note 23: Salaries and other remuneration to the Board of Directors and executive probable and reliable estimates can be prepared. However, the final outcome of any such dispute is inherently management uncertain, and the resulting liability may exceed any provision made. As of December 31, 2015 and December 31, 2014, no provisions were made for legal claims. Remuneration paid to Directors in 2015 totaled USD 24 080. Directors did not receive any other remuneration in 2014.

Year ended December 31, Amounts in U.S. Dollars Board membership 2015 2014

Ola Snøve Chairman of the Board - - Gabriella T. Bastiani Director - - Bjørn Flatgård Director 24 080 31 746 Total 24 080 31 746

Remuneration paid to the CEO and executive Group management The CEO and members of executive management are members of collective pension and insurance plans that cover all employees. The Group uses standard employment contracts; customary terms govern severance pay for the Group CEO and members of executive management in the event of resignation or dismissal. The Group does not offer any share incentive programs for employees. However the Board of Directors has adopted an Executive Management Compensation Program consisting of a short term (“Annual Bonus”) and long term (“Value Creation Bonus”) incentive scheme. The Annual Bonus is up to 50 percent of base salary for the CEO and up to 30 percent of base salary for the other members of the Group management. The Annual Bonus is based on specific bonus criteria for each fiscal year. For 2015, 75 percent of the Annual Bonus is related to

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Hallvard Muri Per Olav Utby Kristine Hartmann 1 EBITDA performance for 2015. Maximum payout is reached if actual EBITDA for 2015 reaches 100 percent of the Year ended December 31, Year ended December 31, Year ended December 31, 2015 budget EBITDA. 25 percent of the Annual Bonus is based on the individual performance for each of the CEO and other members of Group Management as determined by the Board of directors and CEO respectively. Amounts in U.S. Dollars 2015 2014 2015 2014 2015 2014 Fixed salary 578 937 495 044 192 550 151 355 60 790 - The Value Creation Bonus applies to the five year period 2012 – 2016. The payable bonus in cash will depend on the Variable salary (bonus) 715 030 336 744 19 866 14 548 - - Group’s EBITDA for the year 2016. An EBITDA of minimum USD 34 million for the accounting years 2016 will provide 20 percent of the maximum payout, linearly increasing to 100 percent payout ratio for a consolidated EBITDA of Other remuneration 1 429 2 207 712 1 224 737 - USD 67 million. If the Group reaches the maximum consolidated EBITDA of USD 67 million in an accounting year Net pension cost 10 362 11 928 9 796 7 061 5 322 - earlier than 2016, the bonus will be paid the following accounting year. The table below summarizes the minimum Total 1 305 759 845 923 222 924 174 188 66 849 - and maximum Value Creation Bonus for each of the members in the executive management denominated in NOK.

1 1 1 Min. pre-tax Max. pre-tax Todd Norton Sigve Nordum Trond Atle Smedsrud bonus (NOK bonus (NOK Year ended December 31, Year ended December 31, Year ended December 31, Name Min % Max % million) million) Amounts in U.S. Dollars 2015 2014 2015 2014 2015 2014

Matts Johansen 20% 100% 4.0 20.0 Fixed salary 106 688 - 67 683 - 44 084 - Webjørn Eikrem 20% 100% 4.0 20.0 Variable salary (bonus) ------Fredrik Nygaard 20% 100% 3.0 15.0 Other remuneration -- 825 - 592 - Total 11.0 55.0 Net pension cost 4 267 - 18 370 - 3 090 - Total 110 955 - 86 878 - 47 765 - The Value Creation Bonus is compensation linked to the financial performance at the end of a five-year period. The eligible executives have all been with the company since the inception of the program. As such, any compen- Torbjørn Furuseth 1 sation paid out is a retention bonus for the period. If the Group reaches the minimum threshold of USD 34 Year ended December 31, million, the average bonus paid over the five year period would be NOK 2.2 million per eligible member of the EMT. If the Group reaches the maximum threshold of USD 67 million, the average bonus paid over the five Amounts in U.S. Dollars 2015 2014 year period would be NOK 11 million per eligible member of the EMT. If the Group does not reach the minimum Fixed salary 44 084 - threshold, the eligible members of the EMT will not receive any bonus compensation. As of 31 December 2015, Variable salary (bonus) - - USD 1.1 million has been accrued on the value creation bonus. Other remuneration 592 - Remuneration paid to other members of Group executive management Net pension cost 3 090 - Members of the Group’s executive management team may be dismissed upon three to six months' notice. Total 47 765 - In the event that the company terminates the employment, members of Group executive management are 1 Part of the group executive management from July 1, 2015. entitled to three to six months' severance pay after the end of the notice period. Norwegian members of Group executive management are covered by the company's collective service pension plan. The pension is capped at a salary of 12 times the National Social Security base amount (NOK 90 000). In June 2015 Matts Johansen was appointed CEO of the Group after Hallvard Muri who decided to step down after seven years in the position. When Hallvard Muri resigned as CEO his share of the value creation bonus Group management remuneration for the year ended December 31, 2015 and 2014: was settled and he received six months’ severance pay. At the same time, the EMT was extended to include 9 Webjørn Eikrem Matts Johansen Fredrik Nygaard members. In February 2016 it was decided to merge the Offshore and Onshore supply chain departments. In Year ended December 31, Year ended December 31, Year ended December 31, that event, Per Olav Utby resigned his position as Executive Vice President Onshore Supply Chain. The merged department will be led by Webjørn Eikrem. Amounts in U.S. Dollars 2015 2014 2015 2014 2015 2014

Fixed salary 185 454 277 745 223 538 283 056 181 966 259 530 Variable salary (bonus) 18 163 119 649 19 412 120 507 17 823 98 511 Other remuneration 1 997 16 386 1 708 2 487 1 898 2 881 Net pension cost 38 700 39 647 9 403 11 069 23 306 21 923 Total 244 314 390 093 254 061 385 496 224 993 362 437

Group accounts: Income statement | Balance sheet | Cash flow | Changes in equity | Notes to the accounts

Share-based payment The consolidated financial statements for the Group in 2014 included the following subsidiaries: On February 21, 2014 the Executive Management Team (“EMT”) acquired certain shares in the Company from Aker ASA. Each of the EMT members made the investment through each of their fully owned companies. The Group's The Group's shareholding share of voting Administrative headquarters % of total in % rights in % Location Country Price per Number of outstanding Name Company share shares shares Aker BioMarine Antarctic AS 100 100 Oslo Norway Aker BioMarine Antarctic S.A. 100 100 Nueva Palmira Uruguay Webjørn Eikrem KSSW AS NOK 23.40 112 935 0.16% Aker BioMarine Antarctic US Inc 100 100 Issaquah USA Matts Johansen KMMN Invest AS NOK 23.40 112 935 0.16% Aker BioMarine Antarctic Services AS 100 100 Oslo Norway Fredrik Nygaard FDN Invest AS NOK 23.40 112 935 0.16% Aker BioMarine Antarctic Australasia Pty Ltd 100 100 Melbourne Australia Aker BioMarine US Holding Inc 100 100 Issaquah USA

The share purchase and shareholder agreements contain restrictive covenants on sale or other transfers of the shares including a 3 year lock-up period. To compensate for the lock-up period, Aker ASA provided EMT a 20 percent discount. Total outstanding shares in the Company is 69 053 544. The shares are accounted for in Note 25: Events after the balance sheet date accordance with IFRS 2, and as the lock-up period is a non-vesting condition the discount is included in the valuation. Letter of intent to acquire Aker BioMarine Manufacturing LLC and Aker BioMarine Financing LLC On February 5, 2016, the directors in the wholly owned subsidiary Aker BioMarine US Holding Inc. signed a letter The share-based payment has had no effect on the Group’s Profit or loss, Balance sheet and Equity as of of intent (hereafter “Side Letter of Agreement”) to acquire Naturex Inc.’s ownership interest in the two joint December 31, 2014. ventures Aker BioMarine Manufacturing LLC and Aker BioMarine Financing LLC. Attached to the Side Letter of Agreement was a draft Unit Purchase Agreement that will be signed when all relevant parties (such as external lenders) have given their consent to the transaction. The acquisition will secure the Group 100 percent voting rights in the joint ventures and therefore control over the Krill oil facility and the production of Superba™ Krill oil. Note 24: Group companies The financial effects of this transaction have not been recognized at 31 December 2015. The operating results and The consolidated financial statements for the Group in 2015 included the following subsidiaries: assets and liabilities of the joint ventures will be consolidated from the date when Aker BioMarine gain control. The purchase consideration has not been finally agreed when signing the Side Letter of Agreement. Information The Group's The Group's required by IFRS 3 will be disclosed when the transaction is final. Acquisition related costs incurred up to 31 shareholding share of voting Administrative headquarters December 2015 have been recognized as an asset in the Balance sheet and will be expensed in the Profit or in % rights in % Location Country loss in the period when the Unit Purchase Agreement is signed. Aker BioMarine Antarctic AS 100 100 Oslo Norway Patent Dispute with Olympic Holding AS and Related Entities Aker BioMarine Antarctic S.A. 100 100 Nueva Palmira Uruguay On January 22, 2016, the wholly owned subsidiary Aker BioMarine Antarctic AS filed suit in the District Court of Aker BioMarine Antarctic US Inc 100 100 Issaquah USA Delaware against Olympic Holding AS and their partners for infringement of U.S. patents 9 028 877 and 9 078 905 Aker BioMarine Antarctic Services AS 100 100 Oslo Norway covering the Rimfrost Sublime krill oil product and its production method, claiming that the infringement stops Aker BioMarine Antarctic Australasia Pty Ltd 100 100 Melbourne Australia and payment of treble damages for all infringing activities. Aker BioMarine Production LLC 100 100 Issaquah USA Odalson S.A. 100 100 Montevideo Uruguay Aker BioMarine US Holding Inc 100 100 Issaquah USA

Parent company accounts: Profit and loss account | Balance sheet | Cash flow | Notes to the accounts

AKER BIOMARINE AS Profit and loss account for the year ended December 31

Amounts in thousands of U.S. Dollars Note 2015 2014

Operating revenues 3 1 838 2 173 Revenues from Group companies 13 5 102 5 023 Salaries and other payroll expenses 4 (3 979) (3 206) Other operating expenses 5 (2 575) (6 284) Operating expenses Group companies 13 (967) (1 122) Operating loss before depreciation, amortization and impairment (581) (3 416)

Depreciation, impairment, and amortization 8 (1 494) (1 817) Operating loss (2 075) (5 233)

Interest income from Group companies 13 3 119 2 552 Net foreign exchange gain / loss (-) 2 827 2 756 Other interest income and financial income 14 10 1 526 Interest and guarantee expenses to Group companies 13 (5 417) (5 921) Other financial expenses 14 (5 097) (5 734) Net financial items (4 558) (4 823) Net loss before tax expense (6 633) (10 056)

Tax expense 7 - - Net loss (6 633) (10 056)

Allocation of loss for the year Loss for the year (6 633) (10 056) Transferred to/from retained earnings 6 633 10 056 Total - -

Parent company accounts: Profit and loss account | Balance sheet | Cash flow | Notes to the accounts

AKER BIOMARINE AS Balance sheet as of December 31

Amounts in thousands of U.S. Dollars Note 2015 2014 Amounts in thousands of U.S. Dollars Note 2015 2014

ASSETS EQUITY AND LIABILITIES Property, plant and equipment 8 239 - Share capital 6 63 684 63 684 Intangible assets 8 4 336 5 717 Share premium 6 135 644 135 644 Shares in subsidiaries and other companies 9 305 447 305 447 Total paid-in capital 199 328 199 328 Long-term receivables from Group companies 13 30 450 32 950 Retained earnings 6 (722) 5 911 Total non-current assets 340 471 344 114 Total equity 198 606 205 239

Accounts receivable and other non-interest-bearing receivables 708 502 Interest-bearing loans 10 104 802 104 694 Current receivables from Group companies 13 1 857 43 Pension liabilities 11 197 506 Cash and cash equivalents 12 584 85 Other long term debt to Group companies and related parties 13 5 849 4 889 Total current assets 3 148 630 Total non-current liabilities 110 849 110 089 Total assets 343 619 344 744 Current interest bearing debt to related parties 13 21 258 13 495 Current debt to related parties 13 386 1 913 Accounts payable and other current liabilities 3 417 1 951 Bank overdraft 10 9 104 12 057 Total current liabilities 34 165 29 416 Total liabilities 145 013 139 505 Total equity and liabilities 343 619 344 744

Oslo, February 18, 2016 The Board of Directors and CEO of Aker BioMarine AS

Ola Snøve Bjørn Flatgård Gabriella Bastiani Frank Grebstad Torill Nielsen Matts Johansen Chairman Deputy Chair Director Director, Director, CEO elected by the employees elected by the employees

Parent company accounts: Profit and loss account | Balance sheet | Cash flow | Notes to the accounts

AKER BIOMARINE AS Statement of cash flow for the year ended December 31

Amounts in thousands of U.S. Dollars Note 2015 2014

Net loss before tax expense (6 633) (10 056) Net expensed interest, interest paid and received 13, 14 975 625 Depreciation, impairment, and amortization 8 1 494 1 817 Unrealized foreign exchange (gain) / loss and other non-cash-generating items (3 101) (2 228) Changes in ordinary operating items (427) 6 394 Net cash flow from operating activities (7 692) (3 448)

Payments for fixed and intangible assets 8 (351) (127) Net cash flow from long term receivables 13 2 500 (13 500) Net cash flow from investment activities 2 149 (13 627)

Proceeds, new short-term loans, related parties 13 8 995 15 917 Change in bank overdrafts 10 (2 953) 1 108 New equity 6 - 135 Net cash flow from financing activities 6 042 17 160

Net change in cash and cash equivalents 499 85 Effect of changes in foreign exchange rates on cash and cash equivalents Cash and cash equivalents as of January 1 85 - Cash and cash equivalents as of December 31 584 85

Parent company accounts: Profit and loss account | Balance sheet | Cash flow | Notes to the accounts

AKER BIOMARINE AS Notes to the parent company accounts Note 1: Accounting principles Note 1: Accounting principles 63 The annual report is prepared and presented recorded in the balance sheet at face value after rates, future wage adjustments, pension payments Note 2: Business combination 64 Note 3: Operating revenues 64 according to the Norwegian Accounting Act of 1998 provision for expected losses. Provisions for losses and other Social Security payments, future return and generally accepted accounting practices in are made on the basis of individual assessment of on pension assets, and actuarial assumptions as to Note 4: Salaries and other payroll expenses 64 Norway. receivables. mortality and voluntary resignation. Pension assets Note 5: Other operating expenses 64 are valued at fair value. Note 6: Equity 65 Subsidiaries and associated companies Functional currency and foreign currency Note 7: Tax expense and deferred tax 65 Subsidiaries are valued according to the cost method. Aker BioMarine AS has U.S. Dollars as functional Changes in pension obligations due to changes in Investments are valued at acquisition cost for the currency and the financial statements are presented pension plans are distributed over the estimated Note 8: Fixed assets and Intangible assets 66 Note 9: Shares in subsidiaries and other shares, unless a write-down has been necessary. in U.S. Dollars, i.e. the currency which best reflects the average remaining service period. Changes in pension companies 66 Investments are written down to market value if the primary economic environment in which the entity obligations and pension assets that are attributable decline is viewed as not transitory in nature and when operates. Foreign-currency-denominated monetary to changes in and deviations from assumptions Note 10: Interest-bearing loans from external parties 66 deemed necessary according to generally accepted items are valued at the year-end exchange rate. used in preparing estimates (estimate changes) are accounting principles. Write-downs are reversed if the distributed over the estimated average remaining Note 11: Pension expenses and liabilities 66 basis for the write-down is no longer present. Short-term investments earnings period if the deviation as of 1 January does Note 12: Restricted funds 66 Short-term investments (shares, certificates held not exceed 10 percent of the greater of gross pension Note 13: Transactions with subsidiaries and Associated companies and investments in joint as current assets) are valued at market value on the liabilities and pension assets. When the accumulated related parties 67 venture are valued according to the equity method in balance sheet date. Dividends and other distributions effect of changes in estimates, changes in assumptions Note 14: Other financial income and expenses 67 the parent company accounts. The latter Investments received are recognized as financial income. and deviations from actuarial assumptions exceed Note 15: Events after the balance sheet date 67 are initially valued at acquisition cost for the shares, 10 percent of the higher of pension obligations and and subsequently adjusted to reflect the investor's Property, plant and equipment, and pension plan assets, the excess amount is recognized share of the net assets of the associate. intangible assets over the estimated average remaining service period. Other acquired intangible assets are recognized Classification and valuation of balance sheet in the balance sheet at acquisition cost, less any Payments to the company’s contribution-based items accumulated amortization and impairment losses. pension plan are expensed in step with incurred Current assets and short-term liabilities include items premiums. that fall due within one year of their acquisition date Estimated useful lives for the current and comparative and items that are associated with the business reporting periods are as follows: Taxes cycle. Other items are classified as operating assets • Property, plant and equipment 0–5 years Tax expenses in the profit and loss account comprise or long-term liabilities. Current assets are valued at • Intangible assets 0–3 years taxes payable for the period and any change in the lower of acquisition cost or market value. Current deferred tax/deferred tax benefit. In 2015 deferred liabilities are recorded in the balance sheet at face Revenue recognition tax is calculated as 25 percent of the temporary value at the time of the transaction. Income arising from royalties shall be recognized if differences between accounting and tax values, as all the following conditions are satisfied: well as the tax deficit carryforward at the end of the Fixed assets are recorded at acquisition cost. Upon • It is probable that the economic benefits associated accounting year (2014: 27 percent). Tax increasing and a change in value not deemed to be temporary, the with the transaction will flow to the company; and tax reducing temporary differences that are reversed affected fixed asset is written down to market value. • The amount of revenue can be measured reliably. or can be reversed in the same period, are offset. Net Long-term liabilities are recorded in the balance sheet deferred tax benefit is recorded in the balance sheet at face value at the date they are assumed. Pensions to the extent it is likely that it will be used. Pension costs and liabilities are estimated on the basis Receivables of straight-line earnings and salary at retirement. Cash flow statement Accounts receivable and other receivables are Calculations are based on assumptions as to discount The cash flow statement has been prepared using

Parent company accounts: Profit and loss account | Balance sheet | Cash flow | Notes to the accounts the indirect method. Cash and cash equivalents that affect the reported amounts in the profit and loss Note 4: Salaries and other payroll expenses comprise cash, bank deposits, and other short-term statement, the measurement of assets and liabilities, liquid placements. and the disclosure of contingent assets and liabilities Salaries and payroll expenses comprise the following: on the balance sheet date. Use of estimates Amounts in thousands of U.S. Dollars 2015 2014 Preparation of the financial statement in accordance Contingent losses deemed probable and quantifiable Salaries (3 318) (2 538) with generally accepted accounting practices requires are expensed as incurred. management to make estimates and assumptions Other personnel costs (151) (144) Employer's social security contribution (511) (359) Pension expenses 1 (165) Total (3 979) (3 206) Note 2: Business combination Average number of employees 18 9 Aker BioMarine AS was incorporated June 30, 2014 under the name of Superba ASA. On October 22, 2014 the General meeting of the company approved the demerger plan between Old Aker BioMarine AS and Superba Please refer to note 23 in the consolidated financial statements for Aker BioMarine Group for further information ASA, where all krill related assets , the CLA®/Tonalin patent portfolio and all employees was transferred into on salaries and other remuneration to the executive management group and the Board of Directors. Superba ASA. The demerger is for accounting purposes based on accounting continuity and with effect from January 1, 2014. Superba ASA changed name and legal form to Aker BioMarine AS in 2015.

Note 5: O ther operating expenses

Note 3: Operating revenues Other operating expenses comprise the following:

Operating revenues in 2015 are distributed as follows: Amounts in thousands of U.S. Dollars 2015 2014 North Amounts in thousands of U.S. Dollars Norway EU America Total Professional services (1 686) (5 757) Office rent (226) - Royalty revenues - 1 403 435 1 838 License fee CLA®/Tonalin portfolio (217) (213) Total operating revenues - 1 403 435 1 838 Travel (179) (66) Other operating expenses (267) (247) Operating revenues in 2014 are distributed as follows: Total other operating expenses (2 575) (6 284) North Amounts in thousands of U.S. Dollars Norway EU America Total Remuneration paid to auditor included in other operating expenses: Royalty revenues - 1 748 426 2 173 Total operating revenues - 1 748 426 2 173 Amounts in thousands of U.S. Dollars 2015 2014

Ordinary auditing services 79 136 Other services 46 978 Tax advisory - - Total 126 1 114

Costs to auditor are presented excluding VAT.

Parent company accounts: Profit and loss account | Balance sheet | Cash flow | Notes to the accounts

Note 6: Equity Note 7: Tax expense and deferred tax

The company's share capital amounts to NOK 379.786.568 distributed as 69 053 544 shares issued, each with a par value of NOK 5.50. All shares are equal in all respects. Amounts in thousands of U.S. Dollars 2015 2014 Income tax expense Changes in equity are set forth below: Share Share Retained Total Current tax on profits for the year (27%) - Amounts in thousands of U.S. Dollars capital premium earnings equity Change in deferred tax 6 091 (5 248) Unrecognized change in deferred tax assets (6 091) 5 248 Incorporation June 30 2014 135 - - 135 Income tax expense - Share capital reduction (135) - - (135) Demerger from Aker BioMarine AS 63 684 135 644 16 287 215 615 Tax base Actuarial losses - - (320) (320) Profit (loss) before tax (6 757) (9 908) Loss for the year - - (10 056) (10 056) Currency translation from USD to NOK - - Equity as of December 31 2014 63 684 135 644 5 911 205 239 Tax base (statutory tax purposes) (6 757) (9 908) Loss for the year (6 633) (6 633) Equity as of December 31 2015 63 684 135 644 (722) 198 606 Tax base (statutory tax purposes) (6 757) (9 908) Expenses not tax deductible 2 2 Interest rate deductability 4 063 6 733 Please refer to note 18 in the consolidated financial statements for Aker BioMarine Group for list of shareholders. Change in deferred tax 944 1 452 Tax base (1 747) (1 721) Tax loss carried forward 1 747 1 721 Tax base - -

Temporary differences

Amounts in thousands of U.S. Dollars Change 2015 2014

Property, plant and equipment and intangible assets 3 936 5 064 Gain and loss accounts 258 383 Post employment benefit liabilities (197) (506) Net deferred tax assets 944 3 997 4 941 Tax losses carried forward (132 347) (103 497) Interest rate deductability carry forward (9 727) (6 733) Basis for deferred tax asset 32 788 (138 077) (105 289) Deferred tax asset (2015: 25%) 6 091 (34 519) (28 428) Unrecognized deferred tax assets 34 519 28 428

Parent company accounts: Profit and loss account | Balance sheet | Cash flow | Notes to the accounts

Note 8: F ixed assets and Intangible assets Note 9: Shares in subsidiaries and other companies

Furnitures License Shares in subsidiaries and other companies comprised the following as of 31 December 2015: Amounts in thousands of U.S. Dollars & fixtures Development agreements Total Ownership Equity as of Profit/loss Book value Amounts in thousands of U.S. Dollars in % 1 Headquarter December 31, 2015 before tax December 31, 2015 Acquisition cost as of January 1, 2015 - 3 396 17 682 21 078 Investments 254 96 - 351 Aker BioMarine Antarctic AS 40 Oslo, Norge 129 456 10 972 305 447 Acquistion cost as of December 31, 2015 254 3 493 17 682 21 429 1 Share of ownership equals share of voting rights. Accumulated amortization and impairment as of Shares in subsidiaries and other companies comprised the following as of 31 December 2014: January 1, 2015 (2 676) (12 685) (15 361) Ownership Equity as of Profit/loss Book value Amortization for the year (16) (202) (1 276) (1 494) Amounts in thousands of U.S. Dollars in % 1 Headquarter December 31, 2014 before tax December 31, 2014 Accumulated amortization and impairment as of December 31, 2015 (16) (2 878) (13 960) (16 854) Aker BioMarine Antarctic AS 100 Oslo, Norge 117 150 (14 027) 305 447

1 Book value as of December 31, 2015 239 615 3 721 4 575 Share of ownership equals share of voting rights.

License Amounts in thousands of U.S. Dollars Development agreements Total Note 10: Interest-bearing loans from external parties

Acquisition cost as of January 1, 2014 - - - Amounts in thousands of U.S. Dollars 2015 2014 Additions through demerger from Aker BioMarine AS 3 265 17 682 20 947 Non-current liabilities Investments 131 - 131 Loan from DNB ASA 104 802 104 694 Acquistion cost as of December 31, 2014 3 396 17 682 21 078 Current liabilities Accumulated amortization and impairment as of January 1, 2014 - - - Working capital facility from DNB ASA 9 104 12 057 Accumulated depreciation on intangible assets Total interest-bearing current liabilities 113 906 116 751 transferred in demerger (2 158) (11 409) (13 566) Amortization for the year (518) (1 276) (1 794) For further details on the interest-bearing loans from DNB ASA, please refer to note 15 in the consolidated financial statements for Aker BioMarine Group. Accumulated amortization and impairment as of December 31, 2014 (2 676) (12 685) (15 361)

Book value as of December 31, 2014 720 4 997 5 717 Note 11: Pension expenses and liabilities Pension expenses and liabilities relating to the defined-benefit plan are discussed in note 4 to the consolidated The company’s intangible assets mainly comprise of the CLA®/Tonalin patent portfolio and the related royalty financial statements for Aker BioMarine Group. The company complies with all requirements for coverage by agreements, which terminates in 2018. All intangible assets are amortized using the straight-line method, and a collective pension plan, and all relevant laws and regulations. will be fully amortized at year-end 2018. Pension costs associated with contribution-based pension plans amounted to USD 90 000 in 2015 (2014: USD Furniture and fixtures capitalized in 2015 comprise furniture and IT-equipment acquired when moving office 105 000). address to Lysaker, Norway. All fixed assets are depreciated using the straight-line method, and have estimated useful life of 5 years. Note 12: Restricted funds

The company has USD 584 thousand in restricted funds associated with employee tax withholdings as of December 31, 2015 (2014: USD 85 thousand).

Parent company accounts: Profit and loss account | Balance sheet | Cash flow | Notes to the accounts

Note 13: Transactions with subsidiaries and related parties Note 14: Other financial income and expenses

In 2015 and at year-end 2015, Aker BioMarine AS recognized the following transactions in the statement of profit and loss and the Other interest- and financial income balance sheet with other Group companies and related parties: Amounts in thousands of U.S. Dollars 2015 2014 Aker Aker BioMarine Aker Aker BioMarine Antarctic BioMarine Interest income, bank 10 24 BioMarine Antarctic Australasia US Holding Executive Amounts in thousands of U.S. Dollars Aker ASA Antarctic AS US Inc Pty Ltd inc management Total Gain on receivable - 1 502 Other financial income - - Transactions recorded in profit and loss Total 10 1 526 Management fee (484) 5 047 37 12 6 - 4 618 Office rent (483) -- --- (483) Accrual for value creation bonus ------Other financial expenses Interest income - 3 119 - --- 3 119 Interest expenses (1 162) -- --- (1 162) Amounts in thousands of U.S. Dollars 2015 2014 Guarantee fee (1 877) (2 379) - --- (4 256) Interest expenses (5 033) (5 181) Transactions recognized in balance sheet at year-end Other financial expenses (64) (553) Long-term interest bearing receivable - 30 450 - --- 30 450 Total (5 097) (5 734) Accrual for value creation bonus --- -- 1 220 1 220 Current recivables - 1 829 18 6 3 - 1 857 Accrued guarantee fees, long-term 4 629 -- --- 4 629 Short-term interest bearing debt 21 258 -- --- 21 258 Current liabilities 361 25 - --- 386 Note 15: E vents after the balance sheet date

In 2014 and at year-end 2014, Aker BioMarine AS recognized the following transactions in the statement of profit and loss and the No material events that affect the financial statements have occurred after the balance balance sheet with other Group companies and related parties: sheet date other than those presented in note 25 to the consolidated financial statements Aker Aker BioMarine of the Aker BioMarine Group. Aker BioMarine Antarctic BioMarine Antarctic Australasia Aker Pharma Executive Amounts in thousands of U.S. Dollars Aker ASA Antarctic AS US Inc Pty Ltd Holding AS management Total Transactions recorded in profit and loss Management fee (424) 4 984 26 13 -- 4 599 Office rent (699) -- --- (699) Accrual for value creation bonus ------Interest income - 2 552 - --- 2 552 Interest expenses (478) -- --- (478) Guarantee fee (2 412) (3 031) - --- (5 443) Transactions recognized in balance sheet at year-end Long-term interest bearing receivable - 32 950 - --- 32 950 Accrual for value creation bonus --- -- 1 444 1 444 Current recivables -- 30 7 6 - 43 Accrued guarantee fees, long-term 3 445 -- --- 3 445 Short-term interest bearing debt 13 495 -- --- 13 495 Current liabilities 717 1 195 - --- 1 913

“We are thoroughly committed to responsible management of the Antarctic Krill biomass — for the wellbeing of our oceans and planet and to ensure the future of our business.”

Aker BioMarine Antarctic AS Oksenøyveien 10 Contact P.O. Box 496 NO-1327, Lysaker Norway information Tel: + 47 24 13 00 00 Fax: + 47 24 13 01 10 Aker BioMarine AS Aker BioMarine Antarctic US Oksenøyveien 10 410 Newport Way NW P.O. Box 496 Issaquah, WA 98027 NO-1327, Lysaker United States Norway Tel: +1 206 855 6736 Tel: + 47 24 13 00 00 Fax: + 47 24 13 01 10 Odalson S.A. Rincon 467 Piso 5 Esc. A [email protected] Montevideo www.akerbiomarine.com Uruguay Tel.: +598 2916 22 79

Aker BioMarine Antarctic Australasia Pty Ltd 315/838 Collins Street, Docklands VIC 3008 Australia Tel: +61 3 9999 1112 Mob +61 404 141111

Aker BioMarine Antarctic AS Shanghai Representative Office Room 1008, Kerry Parkside, 1155 Fang Dian Road, Pudong Shanghai 201204 P.R. China Tel: +86 (0)21 6035 6300

Photo/illustration: Kjell Rune Venås Jo Michael Rita Lavin Anders Muhlbradt Shutterstock.com Naturalife Erik Digman, www.digmanphotography.com Barry Fantich, Fantich Studios

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