INARCTICA 2023 Annual Report

The Company’s strategy is focused on growing market share, revenue, and the amount of marketable fish production. We achieve this through the vertical integration of our business: we buy and build fry breeding and feed production plants in Russia and launch production of deepprocessed fish products. In the upcoming years, we will build a comprehensive and continuous production cycle and drastically lessen our reliance on imports.

The market for red fish saw a shift in demand in 2023, with restaurateurs showing a greater inclination to purchase Russian salmon over Chilean salmon. The explanation is straightforward: the fish can only be shipped from Chile in frozen state, which degrades its flavour. From the harvesting site to the retail counter, Russian salmon never goes through freezing process — it always stays fresh. And it is something restaurateurs are willing to pay a premium for.

By embracing change, fostering vertical integration, and boosting corporate sustainability, we enjoy a persistent superiority in the Russian salmon and trout farming industry. These steps, coupled with favourable market conditions, are bearing fruit: in 2023, we generated record revenue of RUB 28.5 billion and raised over RUB 3 billion in an SPO.

INARCTICA follows best practices in corporate governance. Independent directors with backgrounds in running successful businesses in the sector advise the Company on important matters. We have put in place efficient risk management so that investors and shareholders can feel secure knowing that the Company is adhering to the approved strategy and balancing the interests of stakeholders.

We value investor trust greatly, and with their help, we are putting our investment plans into action in anticipation of significant expansion over the next several years.