About the Report

The Report is prepared based on the Russian Accounting Standards of INARCTICA PJSC, unless otherwise specified in the Report, and complies with the requirements of the legislation of the Russian Federation on securities and the regulatory acts of the Bank of Russia on disclosure of information.

This Report is preliminarily recommended for approval by the Board of Directors of INARCTICA PJSC (Minutes No. 431 dated 27 May 2024).

Boundaries and Content of the Report

The Annual Report provides information on the Company's performance in 2023, based on the data available to the Company as of this writing.

All pertinent details concerning the Company's governing and supervising bodies, as well as their individual remuneration, are disclosed in this Report in compliance with the requirements of the legislation of the Russian Federation on personal data. Information regarding the employment and positions held by members of the Board of Directors in other companies is presented based on the data they provided to the Company as of the end of the reporting year. In this context, the term “present” refers specifically to 31 December 2023.

This Report encompasses forecasts, statements of intent, opinions, and current expectations of the Company regarding its performance results, financial position, liquidity, growth prospects, strategy and the development of the industry in which the Company operates. By their very nature, such forward‑looking statements entail risks and uncertainties, as they are contingent upon events and circumstances that may or may not occur in the future.

Expressions such as “intends”, “seeks”, “expects”, “estimates”, “plans”, “believes”, “assumes”, “may”, “shall”, “will”, will continue” and other similar phrases generally denote the predictive nature of a statement and imply the risk that the mentioned events or actions may not happen due to various factors. The Company hereby clarifies that these forward‑looking statements do not guarantee future performance indicators. The actual performance, financial position and liquidity of the Company, as well as the development of the industry, may significantly differ from the data provided in the forward‑looking statements contained herein. Furthermore, even if the aforementioned indicators align with the forward‑looking statements presented in this Report, such results and events do not serve as a guarantee of similar outcomes in the future.

The Company does not make any explicit or implicit representations or warranties and shall not be liable for any losses incurred, directly or indirectly, by individuals or legal entities as a result of using the forward‑looking statements from this Annual Report for any reason. It is advised that such individuals should not rely solely on the forward‑looking statements contained herein, as they do not represent the only possible scenario.

Unless required by the legislation of the Russian Federation, the Company is under no obligation to revise or confirm expectations and estimates, or publish updates or changes to the forecasts presented in this Report in connection with subsequent events or the receipt of new information.

Statement of the Chair of the Board of Directors

Ekaterina Chernova

Dear valued partners,

The Board of Directors of the INARCTICA Group and the management have faced significant challenges over the past two years. We had to rebuild our supply chains — which is what most Russian companies have been doing — as the EU sanctions have caused restrictions on the supply of some of the equipment needed for salmon farming. Our suppliers from Norway and other Scandinavian nations have also chosen to voluntarily impose sanctions on us. We were able to locate new suppliers from friendly nations rather quickly: for fish feed, we have Turkey, Armenia, Belarus and other countries; for equipment, we primarily turn to China. We have found new suppliers even in the South America.

The production of fries, a crucial component of fish farming, was a particularly pressing issue. In 2023, the Company acquired and started upgrading three fry farms in Russia. We also have a major new smolt plant under construction in Karelia and are planning to build our own fish feed plant, which will fully cover the Company's needs in terms of volume and quality. As a result, we are totally restructuring the business to become a vertically integrated one instead of one that depends on imports.

People are the most important resource throughout periods of significant change, rising process complexity, and the introduction of new business verticals!

We value and cherish each and every employee, and enjoy record low turnover rates. We make every effort to maintain a positive work environment and look out for our employees, particularly those who work in the severe winter weather in the Arctic environment. Regarding sustainability work (ESG), the letter S was our primary focus for 2022 and 2023.

In 2023, we gained the support and confidence of our investors — our successful SPO at the end of the year not only added financial stability for our capital investments but also advanced the Company to a new level: as a result of the increased trading volume and capitalisation growth, we were listed on the Tier 1 quotation list of the Moscow Exchange in October 2023. Investors no longer consider us to be a small cap company — instead, we are nearly a blue chip. In doing so, we offer both business growth and stable dividends. This is the mix that is most attractive to retail investors.

We created the Atlantic salmon and trout aquaculture industry in our country from scratch and continue to grow it. Our business is growing stronger and more sustainable, offering our customers freshly produced, healthful goods made in Russia!