Committees under the Board of Directors

In 2023, there were four committees formed under the Company's Board of Directors:

The Board of Directors strives to compose its committees in line with the recommendations of the Corporate Governance Code of the Bank of Russia and the requirements of the Moscow Exchange Listing Rules. According to these documents, the Audit Committee and the Nomination and Remuneration Committee of the Company's Board of Directors should consist of independent Board members, and if this is not possible for objective reasons, the majority of their members should be independent.

Until 29 December 2023, the Audit Committee consisted of two independent directors, V. Pogulyaev and R. Kascheyev, as well as the Chair of the Board of Directors, E. Chernova. On 29 December 2023, The Company's Board of Directors re‑elected the Audit Committee, including V. Alexandrov, R. Kascheyev and V. Pogulyaev.

As of the date of this Annual Report, the composition of the Audit Committee fully complies with the requirements of the Moscow Exchange Listing Rules. The Nomination and Remuneration Committee of the Company's Board of Directors is made up entirely of independent Board members. The Committee is chaired by A. Vasilenko who possesses all the necessary HR management skills as well as a wealth of experience working for businesses across a variety of industries.

Audit Committee of the Board of Directors

Vladislav Pogulyayev

Report of the Chair of the Audit Committee on the work performed by the Committee in 2023

In 2023, the Audit Committee of the Board of Directors held five meetings, three of them in person. All meetings were attended by all members of the Audit Committee, as well as other Board members.

The main areas of focus for the Audit Committee in 2023 were:

1. Risk management measures
2. Review of business plan for 2024
3. Control over the reliability of the consolidated financial statements

In 2022, the Audit Committee made significant efforts to review the completeness of the risk map and the quality of the risk management processes. Therefore, the Audit Committee did not hold separate meetings to discuss the risk management process in 2023. However, the issues related to risk management and the completeness of the risk map were covered at almost all meetings of the Audit Committee. The Audit Committee is planning a separate meeting in early 2024 to update the risk map and risk management processes.

In reviewing the draft 2024 Business Plan, the Audit Committee was satisfied that the planning process was of a high quality, both in terms of the correctness and traceability of all the figures in the business plan, and (perhaps more importantly) that the preparation took account of all available relevant information on all areas of Board focus: strategy, new divisions, procurement and logistics management, sustainable development plans, risk management programmes, etc.

The Audit Committee observes that all management representatives and line managers of the Company are heavily and genuinely invested in the planning and review process, which gives the Board assurance that the Company's 2024 business plan is pertinent, comprehensive, and represents a high‑quality outlook.

Nevertheless, the Audit Committee is concerned about the increased complexity of planning processes, both because of the greater uncertainty in many key business processes and because of the amplification of the Company's business and the creation of new divisions. In this regard, the Audit Committee discussed with management the need to increase the staffing of the Company's finance unit.

As part of its inherent activities, the Audit Committee held three meetings to monitor the reliability of the Company's annual and interim consolidated financial statements.

The Audit Committee also recommended the auditors’ nominees to the Board of Directors and subsequently met with them. The Audit Committee believes that the Company’s consolidated financial statements are accurate because every conversation with the auditors went as expected and all significant issues of the audit were covered.

The role of the Audit Committee is to evaluate the efficiency of the Company's risk management and internal control system, as well as internal and external audits of the Company, and to provide recommendations to the Board of Directors when making decisions on these issues. The Audit Committee also reviews the Company's financial performance, analyses the Company's financial statements (including interim financial statements), and makes recommendations to ensure that the Company strictly complies with applicable Russian law.

The Audit Committee of the Board of Directors is chaired by an independent member of the Board of Directors, which is in line with the recommendations of the Corporate Governance Code of the Bank of Russia.

The following three people make up the incumbent Audit Committee of the Board of Directors, which was elected on 29 December 2023 (Board meeting minutes No. 423 dated 29 December 2023):

• Vladislav Pogulyayev — Chair of the Audit Committee
• Vladimir Alexandrov
• Roman Kascheyev

Five Audit Committee meetings were held in 2023, three of which were held in person, including via videoconference, and two of which were held by absentee ballot. The meetings reviewed candidates for external and internal auditor, the Company's business plan and heard the auditors' reports.

Strategy Committee of the Board of Directors

Sayyora Ayupova

Report of the Chair of the Strategy Committee on the Work Performed by the Committee in 2023

The Strategy Committee of the Board of Directors of INARCTICA PJSC met twice in the reporting year. The Committee reviewed the delivery on investment projects, the Company's long‑term development strategy until 2030, the strengthening of marketing competences to promote the corporate brand in the HoReCa channel, as well secondary public offering of the Company's shares.

In the first quarter of 2024, INARCTICA PJSC completed the construction of a fry plant in Kondopoga and completed the design and evaluation stage for the construction of a feed mill in Veliky Novgorod. In 2023, the Company's management gained significant experience and perfected their expertise in construction, and began cooperating with Alekseev‑Akvatek to work out technological issues. Thus, in 2024, the Company stands ready to design a fry plant in Retinskoye and to explore the possibility of building post‑smolt plants in the future.

In December 2023, the Company approved an updated strategic development plan for 2024–2030 focused on adapting and growing the business in the new environment. The three key objectives of the new strategy are import substitution and technological sovereignty, adaptation to changing conditions, and vertical integration of the Company.

Despite the challenges brought about by changes across the Company's value chain, INARCTICA PJSC will continue to focus on aquaculture salmon farming in northern conditions. In 2023, the Company managed a successful stocking, delivery of the first shipment of salmon roe from Chile and its planting at the Aquaculture Breeding Centre. The Company will continue to evaluate the efficiency of new solutions and approaches and monitor estimated losses in the changed value chain during the adaptation period, especially in 2024–2026, to control the cost of manufactured products. The Company's strategic objective is to scale up R&D competences across the entire salmon farming chain and to devise a detailed development roadmap. Currently, the Company is the only supplier of ultra‑fresh salmon on the Russian market.

Commercially, the Company will concentrate in 2024 on forming long‑term partnerships with retailers, marketplaces, and building a transparent distribution chain in the HoReCa channel — a strategic growth point for the INARCTICA business and brand. The Company will expand investment in PR promotion of the INARCTICA corporate brand with a focus on popularising salmon consumption in Russia.

In 2024, the Strategy Committee will continue to track the progress on investment projects, expand the Company’s R&D and PR competences, and explore new commercial approaches to doing business. Additionally, the Committee members will devote attention to building a marketing and innovation strategy for the development of the subsidiary of INARCTICA PJSC — Archangelsk Algae Combine LLC acquired at the end of 2022.

The purpose of the Strategy Committee of the Board of Directors is to ensure that the Company's Board of Directors effectively addresses issues pertaining to identifying the priority areas, strategic goals, and fundamental principles of the Company's strategic development, monitoring the advancement of adopted programmes, and making recommendations to the Board of Directors on these areas.

The following three people make up the incumbent Strategy Committee of the Board of Directors, which was elected on 18 July 2023 (Board meeting minutes No. 407 dated 19 July 2023):

• Sayyora Ayupova — Chair of the Strategy Committee
• Vladimir Alexandrov
• Dmitry Vasilkov

The Strategy Committee met two times in 2023 in face‑to‑face format, including by videoconference. The meetings were attended by all Committee members. The meetings reviewed the progress on investment projects, the Company's long‑term strategy until 2030, and the required costs and skills for marketing in 2024.

Nomination and Remuneration Committee of the Board of Directors

Anna Vasilenko

Report of the Chair of the Nomination and Remuneration Committee on the Work Performed by the Committee in 2023

The primary responsibility of the Nomination and Remuneration Committee under the Company's Board of Directors is to offer suggestions regarding hiring, training, and extending invitations to the most deserving individuals to join the Board of Directors. In 2023, the Committee devoted particular attention to the training of key executives, long‑term motivation of INARCTICA employees, and the KPI system.

We take an active approach to succession planning at INARCTICA, keeping in mind the Company's business strategy and objectives. With a training programme at SKOLKOVO, Moscow School of Management (launched as recommended by the Committee), INARCTICA's key executives will be able to expand their managerial and financial competencies.

As part of our ongoing efforts to enhance the top management KPI framework, we are accounting for the intricacies of the external environment as well as notable shifts in suppliers and contractors.

During the meetings, the Committee members evaluated the Board of Directors' independence, authorised the Company's long‑term employee incentive programme, and examined the succession planning of key personnel as well as management key performance indicators for 2023. The relevant recommendations of the Committee were forwarded to the Board of Directors.

The Nomination and Remuneration Committee’s work plan for 2024 includes the preparation of a new long‑term incentive system for employees. Issues related to human resources that impact the Company’s potential for sustainable development are be slated to receive special consideration.

The Nomination and Remuneration Committee's main goal is to ensure that the Company's Board of Directors works efficiently to resolve matters pertaining to corporate personnel policy, standards, and principles for selecting candidates for the Company's governing bodies, as well as subsidiaries and affiliates.

The following three people make up the incumbent Nomination and Remuneration Committee of the Board of Directors, which was elected on 18 July 2023 (Board meeting minutes No. 407 dated 19 July 2023):

• Anna Vasilenko — Chair of the Nomination and Remuneration Committee
• Sayyora Ayupova
• Vladislav Pogulyayev

In 2023, the Nomination and Remuneration Committee held eight meetings, of which two were held in person and six — by absentee balloting. During their meetings, the Committee members assessed the independence of the Board members, approved key performance indicators (“KPIs”) for top management, the fourth stage of the share option plan and the payment of the annual bonus based on the Company's performance in 2022, discussed the motivation of the Company's employees. At their last meeting, which was held in absentia on 20 December 2023, they also made recommendations regarding personnel appointments within the Company. The relevant recommendations of the Nomination and Remuneration Committee were forwarded to the Board of Directors.

The Sustainable Development Committee exists to make sure that the Board of Directors properly addresses matters pertaining to the Company's sustainable development. The Company's sustainable development encompasses a broad spectrum of initiatives, including environmental protection, natural resources used by the Company, waste management, social issues, employee working conditions, gender diversity and other types of diversity among the Company employees, workplace safety, and corporate governance issues.

Work plan of the Board of Directors for the first half of 2024

The following matters should be taken into consideration and decided by the Board of Directors, in accordance with its action plan for the first half of 2024:

• To examine proposals for the agenda of the annual General Meeting of Shareholders of the Company for 2023 and discuss nominations to the Board of Directors of the Company
• To review of the Company's IFRS financial statements for 2023
• To examine the year‑end 2023 report on the senior management's performance and drive
• To assess whether the Company's management completed the tasks assigned to it by the Board and how well they did it
• To give preliminary approval to the Company's Annual Report for 2023
• To give preliminary approval of the annual accounts/financial statements for the Company's performance in 2023
• To convene the annual general meeting of the Company's shareholders
• To make recommendations to the annual General Meeting of Shareholders on the distribution of profits (including the payment (declaration) of dividends) and losses of the Company for 2023
• To approve the Company's ESG Report 2023