Russian Company Presentation

August 2020 Company at a Glance

1 3 . The largest Russian producer of farmed . Market Cap (MOEX: AQUA) ~ 250 mln USD1 and trout Listed on Moscow Stock Exchange 14% market share in Russia . 1,2x Net debt/EBITDA as of 31.12.2019 The only supplier of ultra-fresh salmonids in Russia

2 4 . Fully integrated value chain . 16,9 ktonnes HOG volume of harvest2 Core: Smolt facilities, Farming sites, Processing, Sales . 456 employees Infrastructure: Feed and live fish carriers, service vessels, delicing . 35 available sites with harvest capacity up to 50 ktonnes live fish system, repair facilities, fish health expertise

Key Group financials 3, USD mln Geography of production

Fish farms and facilities 3 Smolt facilities in Revenue 2016-19 Operating EBITDA in Murmansk and Karelia CAGR 54% 2016-19 CAGR 52%

41% 41% 136 39% 30%

86

51 53 50 37 32 35 37 15 15 HQ: 6 Moscow

2016 2017 2018 2019 Revenue Operating EBITDA Net profit EBITDA Margin, %

1. As of 05.08.2020 2. Data for 2019. Head-On-Gutted = Live fish multiplied by coefficient: 86% for salmon, 84% for sea trout and 82,33% for lake trout; 3. IFRS Operating EBITDA does not account for revaluation of biological assets 2 Business model (1/2) Core cycle of Aquaculture Salmon Production

Marketable Primary Smolt facilities Sales fish grow-out processing

Incubation of eggs (external in cages Primary processing: Sales through distributors supplier) and farming of smolt to to an average weight of slaughter, gutting and and direct to retailers, 100-170 g. 4.5-5.5 kg packaging outsourced logistics

 2 facilities in Norway:  21 sites in Murmansk region  Processing plants in  Direct contracts with – Villa Smolt AS (each with production capacity of Murmansk (JV) and Karelia leading retailers and 5-11 ktonnes* of live fish) and – Olden (owned) processors 14 sites in Karelia Oppdrettsanlegg AS  Ability to increase capacities  Effective outsourcing of  7 operational sites in Murmansk  Accumulated global without heavy CAPEX logistic services and 4 in Karelia experience of smolt  84 tonnes/day average  Urgent delivery to farming  Continuous search for new capacity consumers (2-3 days to attractive sites  Capacity - 6 mln pcs of  200 tonnes/day peak cities of Central region of smolt  50 ktonnes potential harvest capacity Russia) volume**

* The maximum allowed biomass has no limitations imposed by Government bodies. Maximum capacity is only defined by technological and biological safety factors **Live Fish 3 Business model (2/2) Infrastructure of farmed salmon production

Service vessels Feed carrier fleet Wellboats (Catamarans, passenger vessels, workboats)

- 7 catamarans for set up of farming equipment

- 5 passenger vessels for transportation of personnel

- Workboats for service operations on farms

2 feed carriers 2 live fish carriers with capacity: with monthly capacity - up to 105 tonnes and 50 tonnes up to 6 ktonnes of feed of whole fish equivalent

Delicing system (FLS, 4 lines) Repair department Service department

- Service and repair of farming equipment - Set up of farming equipment

- Workboats manufacturing - Net cleaning and service facilities

Diving department Biological department

4 Investment Highlights

1. Leader in in Russia, positive global industry trends

. Largest Russian player in the aquaculture sector with 14% market share. . Russian market – one of the largest markets for fish consumption in the world with potential for growth. . Global consumption of has risen by more than 3X over the past 20 years, share of aquaculture in the overall volume exceeds 70%. . Growth in global prices for salmonids given increasing demand. . Limited supply due to lack of available on-growing sea sites in leading producing countries.

2. Unique location of production assets . Location – one of the few areas left vacant and available for salmon production in the world. And the only area for Atlantic salmon production in Russia. . High barriers to entry due to limited number of new licenses. . Potential increase of capacity by 2.5x by 2025 from current 20 ktonnes/year1. . Short distance to end consumers creates unique conditions for delivery of high-margin chilled fish.

3. Well-designed and operating production technology

. Global standards of fish farming at all business stages: smolt and marketable fish farming, processing and service. . Diversification of biological assets. Farming of different species (salmon and trout) with separation of site clusters. . Rich experience in managing biological risks and coping with sea site challenges.

4. Achievement of operating and financial efficiency . 39% Operating EBITDA Margin. . Global EBIT/kg leader as of 2019 among public salmon producers (EBIT/kg – EUR 2,6). . Zero income tax2 and loan interest subsidies under agriculture producer state support system

5. Well balanced long-term growth strategy

. Building vertically integrated production to reduce operational risks and increase profitability. . Focus on biological security and stocking of 6+ mln smolts each year. . Active expansion of Murmansk region operations while maintaining stable production in Karelia.

Source: Salmon Industry Handbook 2019, OECD-FAO Agricultural Outlook 2019-2028, Fishpool.eu 1. Live fish equivalent 2. In accordance with part 1.3 of article 284 of the Russian Tax Code, a 0% rate is set for agriculture producers and aquaculture organizations on a perpetual basis. 5 Leader in salmonids farming in Russia

1. Higher consumption of salmonids with simultaneous growth in the company’s market share

Outlook for salmon market in Russia (HOG ktonnes), company’s share on the Russian market (%)

Russian salmonids Total Russian fish 27% 250 2018-2019 market volume** 2019 market volume*** ~ 750 mln 8.7 bln 200 USD USD

150 136 14% 130 108 113 84 100 86 80 10% 5% 5% 50 3%

1% 4 9 16 35 4 1 5 0 2014 2015 2016 2017 2018 2019 2025Е

RA* Imports to Russia Total market RA market share

2. No substantial competition in Russia guarantees domination in ultra-fresh salmon and trout production

3. Opportunities of diversification: export sales and production of value-added products

* Russian Aquaculture Sales Volume of salmon and sea trout, Head-On-Gutted ** Company estimate *** According to Strategy of Russian industry development until 2030 (The Government order № 2798-p dd 26.11.2019) 6 Strong Market positions Unique location Developed technology Financial efficiency Growth Strategy Growth of Global Salmonids Market

Fish becomes the main source of animal protein for human … with great potential for farmed fish consumption… Structure of annual consumption of fish and meat per capita globally in 2019, kg Growth in global consumption of fish (production – for aquaculture) and meat in natural terms per capita between 2019-2028, %

3% 14% Fish Fish 3,1% 33% Poultry Aquaculture fish 10,7%

64kg/year Pig meat Sheep meat 4,0% 24% Beef and Veal Poultry 3,5% Beef and Veal 1,0% 26% Sheep meat Pig meat 0,3%

High share of aquaculture in global production of salmonids… … amid growth in global prices

Global production of salmonids, ktonnes Dynamic of global prices of salmonids, EUR/kg

+70%

3,42 6,8 3,13 3,28 6,5 6,3 2,97 2,94 2,86 3,03 6,0 2,74 26% 2,45 2,54 28% 5,1 4,8 2,16 2,25 26% 28% 27% 4,7 4,7 28% 33% 27% 4,1 36% 3,5 3,6 31% 42% 36% 3,2

72% 74% 72% 67% 74% 72% 73% 73% 69% 58% 64% 64%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Aquaculture Harvest Итого

Source: OECD-FAO Agricultural Outlook 2019-2028, FishPool, MOWI Salmon Industry Handbook 2020 7 Strong Market positions Unique location Developed technology Financial efficiency Growth Strategy Russian Aquaculture in Global Market

Company efficiency is on par with global industry High market cap growth potential, P/E* across industry leaders, EBIT/kg 12M 2019, EUR

R_AQUA_Murmansk 2,6 Trailing P/E (2019) Bakkafrost 2,6 31,7 х Mowi Ireland 2,5 SalMar Central Norway 2,3 Grieg Rogaland 2,3 24,9 х 24,7 х 24,6 х Leroy Aurora 2,2 NRS North 2,0 18,9 х 18,4 х SalMar Northern Norway 2,0 Grieg BC (Finnmark) 1,8 Mowi Norway 1,7 Leroy Midt 1,5 8,8 х Mowi 1,4 Mowi Faroes 1,3 5,4 х Norskott Havbruk 1,1 Arnarlax 1,0 Mowi 1,0 Multiexport 0,8 Bakkafrost Grieg MOWI Norway Leroy Sal Mar Salmones Russian Leroy Sjotroll 0,7 AS Royal Camanchaca Aquaculture Grieg BC (BC ) 0,5 Salmon NRS South 0,1 Mowi Canada 0,1

2018 global market harvest volume, Live fish Equivalent**, ktonnes

417

192 188 180 158 116 83 82 59 56 50 20

Mowi New Lerøy Salmar Cooke Grieg Multiexport Australis Salmones Bakkafrost Russian Aquachile Seafood Aquaculture Seafood foods seafood Blumar Aquaculture 2019

* www.marketscreener.com, as of 05.02.2020 ** Kontali report, October 2019 8 Strong Market positions Unique location Developed technology Financial efficiency Growth Strategy Unique Location of Production Assets

Public link for sites visualization: Geography of Atlantic salmon farming https://www.google.com/maps/d/viewer?ll=69.32126029477915%2C33.56314660195312&z =9&mid=1lPZ_AuRhaE8dhqi0UYOSXqlIrNU Object of Vessel type Route Minimum distance between transportation Cluster 2 clusters – 15 km 2 Live-fish Route 1. Barents sea sites - 25+km Marketable fish carriers Murmansk processing facilities 15+km 15+km 2 Feed carriers Fish Feed Route 2. Norway – Murmansk Cluster 1 15+km

. Global growth of salmon production Cluster 3 is limited by water areas with suitable environmental conditions Cluster 4 Route 2 Cluster 5 . Murmansk Region is the only territory in Russia suitable Route 1 for Atlantic salmon farming where most of suitable fish sites are controlled Smolt Primary by the Company facilities Fish farms and processing facility  Russian Far East lacks in Norway facilities in suitable salmon Murmansk and farming sites Karelia protected from extreme wind and wave exposures

 The Barents Sea is an Saint- environmentally Petersburg pristine area and native habitat for Atlantic salmon Current . Foreigners have limited access to distribution Future growth marine facilities in Murmansk Region geography (already in due to military restrictions Moscow progress) Nizhny Novgorod . Short distance to end consumers grants advantage when delivering Perm Ekaterinburg Novosibirsk high-value chilled (not frozen) fish

9 Strong Market positions Unique location Developed technology Financial efficiency Growth Strategy Well-designed and operating farming technologies (1/2) Sustainable farming technology

Well-developed fish farming technology

Length of full cycle: 17 – 28 months

June June October – Start of Harvesting March – Start of Harvesting (East sites) September (West sites) Finish of Harvesting (West sites)

1 year 12 – 16 mon. 17 – 21 mon. 22 – 28 mon.

Main stages Stocking of smolt Growth Harvest (West sites) Harvest (East sites)

Salmon 0.12 kg 1.7 kg 4.0 kg 5.0-6.0 kg 6.5 kg

Trout 0.16 kg 1.9 kg 3.8 kg 4.9 kg

High efficiency of production of salmonids compared with meat products

22 or 28 months Feed conversion 1,1 1.9 3.0 4-10 coefficient1 1.1 per cycle

Share of edible meat2, depending on 68% 46% 52% 41% % 68% average Edible meat, temperature 61 кг 24 17 4-10 kg/100 kg of feed3 61

Maximum amount of edible meat per 100 kg of feed due to combination of high conversion of feed and a high share of edible meat in overall biomass

Source: MOWI Salmon Industry Handbook 2019 Notes: 1. Amount of feed per kg to increase the commodity weight by 1 kg; 2. Share of edible meat in overall biomass; 3. Increase of edible share per 100 kg of feed 10 Strong Market positions Unique location Developed technology Financial efficiency Growth Strategy Operating metrics

Harvest volume (Head-On-Gutted), ktonnes Biomass, end of period, ktonnes

16,9

16,9 16,7

10,1 10,5

6,5 4,8 5,3

2016 2017 2018 2019 2016 2017 2018 2019

Source: Company data 11 Strong Market positions Unique location Developed technology Financial efficiency Growth Strategy Key Financials

Revenue, USD mln Revenue structure, 2019

6% 136 Salmon

86 Trout (sea) 32% USD 51 136m 37 62% Trout (lake), trout and fishoil 2016 2017 2018 2019

Operating EBITDA, USD mln Net debt, USD mln

53 65 52 54 35

15 15

3,44 13 3,49 41% 41% 1,23 30% 39% 0,36 2016 2017 2018 2019 2016 2017 2018 2019 Operating EBITDA EBITDA Margin, % Net debt Net debt/EBITDA (x)

Source: IFRS, Company data 12 Strong Market positions Unique location Developed technology Financial efficiency Growth Strategy Risks and mitigation measures

Potential risks Measures for risk mitigation

• Internal expertise and equipment for early disease detection Biological risks • Attracting global leaders in fish health services industry for analysis of fish Risk of disease transfer from wild fish, risk of pathogens introduction, • Smolt control and vaccination epizootics, genetic mutation risk due to leakage of aquaculture • Regular monitoring of sea lice, purchase of special feed that slows down sea reproduction • Capacities for emergency harvest and processing of infected fish

Financial risks • Balanced and diversified debt portfolio Change of market conditions, price decrease, shortage of financing, • Financial controlling of OPEX and CAPEX currency risk

Operational risks • CAPEX consisting of best-in-class core equipment for fish farming; Equipment failures, planning mistakes resulting in operational break- • Development of sustainable service and engineering departments downs, low efficiency, death of fish

Marketing risks • Focus on ultra fresh fish as unique value proposition Demand forecasting errors, increase of competition

Legal risks • Regular monitoring of changes in legislation; Change in legislation in regards to tax rates, customs duty rates, • Active participating in lawmaking as an industry and business representative; farming sites usage conditions • Interaction with the state to protect title to sites

Commercial risks • Work with reliable suppliers Breach of agreement terms by key suppliers • Continuous dialogue with alternative contractors

• Accumulated experience and expertise help successfully manage possible industry risks • The Company is focused on everyday implementation of world best practice in fish farming, operations and biological safety

13 Strong Market positions Unique location Developed technology Financial efficiency Growth Strategy Transparent group structure

Group structure as of 30.04.2020 Stockholders structure as of 30.04.2020, %

Vorobiev Maxim*

15,30% PJSC “Russian Aquaculture” "Svinyin & Partners" Asset 1,73% management 9,53% 100% 48,44% CFC Direct investments

Treasury shares LLC “Aquaculture” 24,995% Free float, minorities and management** 100%

LLC “Russian Sea – Aquaculture” (*) In order to exclude possible uncertainties regarding the Politically exposed person status of the family members of Vorobiev Maxim we inform that no sanctions are imposed on Vorobiev Maxim and he is acting as an 100% 100% independent person. Furthermore, in the course of our usual operating activity we received the confirmation from the Ministry of Foreign Affairs of Norway about lack of legal grounds under the regulations based on the EU 40% Tri ruchja / MRP ØYRALAKS AS Oldenselskapene AS (Primary processing sanctions to freeze transactions made by Vorobiev Maxim affiliate entity. (Norway) (Norway) facility, Murmansk) (**) Individually no entity or person holds more than 4%.

100% 100%

Olden Villa Smolt AS Oppdrettsanlegg AS (Norway) (Norway)

14 ESG

# ESG activities Description

Russian Aquaculture has committed to fish injury and disease prevention: • Smolt production: a world leading breeding company supplies high quality live eggs; we vaccinate and thoroughly Fish Health and Welfare check all our smolts prior to shipping 1 • On-growing. company’s biology department monitors fish health at different locations on an daily basis while maintaining contact with foreign fish health professionals • Primary processing. all offal is converted to marketable

2 Escape prevention Company has zero escape rate since start of operations in 2012

All dead fish collected at farming sites are processed into environment-friendly ensilage that the company sells to mink 3 Mortality disposal and other animal growers. Russian Aquaculture has no track record of violating environment protection legislation.

4 Antibiotic use Company does not use antibiotics at its sea sites

Cold Barents sea climate slows down reproduction of sea lice. Nevertheless Company has acquired medication-free 5 louse treatment system FLS.

High personnel safety standards: no lethal accidents since start of operations. 6 Personnel Regular training of personnel; long-term incentives and benefits to attract and keep best employees in industry.

Company keeps experimenting with new equipment and methods such as ROVs, biomass counters, mortality collectors, 7 Innovation and R&D feeding efficiency improvement, application of artificial intelligence, etc.

Russian Aquaculture is committed to support local communities through regular organization of social events and charity 8 Local communities acts (e.g. donation of ALV systems to Murmansk hospitals during COVID-19 pandemic in April-May, 2020)

15 PJSC «Russian Aquaculture»

121353, Russia, Moscow, Belovezhskaya str., 4

Ilya Sosnov CEO

[email protected] Disclaimer

This Document is published for information purposes. This Document is not a prospectus, a resolution to issue securities, an offer to buy securities or any assets or to subscribe to securities or to sell the securities or any assets, is not a public offer or invitation to make offers, is not an advertisement of securities, guarantee or promise to sell securities or any assets or to offer securities or enter into any agreement, and should not be interpreted as such. This Document must not be treated as and is not a recommendation to acquire securities of PJSC Russian Aquaculture or any other securities or assets mentioned herein. This Document is not intended to serve as a basis for making any investment decisions. The information contained in this Document may change considerably. This Document does not provide exhaustive information about PJSC Russian Aquaculture required for examining the Company, making any conclusions or investment decisions. 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