1
ANNUAL REPORT 2022
Annual Report – 2022 2
CHAPTER 1
THIS IS AKER BIOMARINE
Letter from the CEO
4
Company presentation
5
Organization
8
Strategy
16
CHAPTER 3
FINANCE
Financial statements
48
Board of Directors’ Report
51
Consolidated financial statements
56
Notes to the consolidated financial statements
61
Financial statements Aker BioMarine ASA
102
Notes to the financial statements Aker BioMarine ASA
107
Responsibility statement
113
Independent auditors report
CHAPTER 2
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Sustainability in Aker BioMarine
Reporting framework and assessments
Environment
Social
36
Governance
44
1. This is Aker BioMarine
Annual Report – 2022 3
CHAPTER 1
THIS IS AKER BIOMARINE
Letter from the CEO
4
Company presentation
5
Organization
8
Strategy
16
1. This is Aker BioMarine
Annual Report – 2022 4
Our course is set for growth
If there’s one word to describe 2022 for Aker BioMarine it would be “turnaround”.
After a challenging 2021, we drew on our “can do
and grind through” attitude to focus our efforts
and seize opportunities that support our mission
to improve human and planetary health. I am
pleased to say that that Aker BioMarine was able
to turn the ship around and show growth in 2022.
Years of hard work, investments and patience
has finally gotten the company to scale, and our
course is now set for further growth.
Our improved performance stems from growing
sales, improved harvesting and a concerted
effort across Aker BioMarine to streamline our
operations and uncover efficiencies. The
improvement program that was initiated in late
2022 is targeting to significantly reduce cost, in
addition to strengthen the core business
platform and create a more robust company set
for further growth.
Core activities
During 2022, the Human Health & Nutrition team
executed their sales acceleration plan. A great
deal of effort has been put into re-organizing this
line of business launching new products,
publishing new science and driving regulatory
approvals, and we expect to return to growth in
2023-24.
Harvesting delivered a new all-time high
production record, exceeding production the year
before by 19%. Thanks to an efficient supply
chain and logistics operation, we also made
significant strides in Animal Health & Nutrition in
2022. Feed producers, as well as fish and shrimp
farmers, are benefiting from the proven
advantages of the QRILL products in terms of the
growth and health of their marine species. With a
competent team of sales and marketing
resources locally in all the key markets we
operate, we grew our Aquaculture sales
significantly last year.
Our brand business also saw good developments
in 2022. Our own consumer brand, Kori,
continued its growth throughout the year, with
both increase in distribution and same store
sales. In the private label business, we
transitioned in new management during 2022, as
the founders exited the business. With the new
management in place, we have laid the
foundation for the next growth phase.
A sustainable fishery
As a company, we are only able to grow as long
as we take care of the ecosystem in which we
harvest. We are proud to report that in 2022, new
research concluded that the Antarctic krill fishery
is the cleanest in the world based on its
extremely low bycatch rate. We also received the
results of Sustainable Fisheries Partnership’s
2021 review showing that Aker BioMarine is an A-
rated fishery for the seventh consecutive year.
One of our core priorities is to contribute to a
thriving Antarctic ecosystem, which is why in
2022, we pledged an additional USD 1 million to
support of the Antarctic Wildlife Research Fund
and its work to ensure a resilient Antarctica and
up-to-date information.
Backed by science
We believe that scientific research is key to
building better understanding of krill and its
potential for both human and animal health.
During the year, we participated in several
scientific studies that documented the impact
and potential of krill on both humans and
animals. Among others we learned, through a
study with Oslo University Hospital, the
University of Oslo, and Akershus University
Hospital, that krill can slow down aging at a
cellular level and improve quality of life in
humans. We also confirmed, through a review of
more than a decade’s worth of data and
research, that krill has a positive impact on
growth performance, feed intake, filet quality and
organ health in salmonids. In addition, we
participated in a breakthrough study with CSIRO,
Australia’s national science agency, to investigate
the effects of krill oil on osteoarthritis of the
knee. After the six-month trial, scientists
concluded that krill oil significantly reduced knee
pain and improved stiffness and physical
function.
Innovation
At Aker BioMarine, we are investing in technology
and innovation. We made significant progress in
2022 with Aion, a company spun out of Aker
BioMarine to focus on scaling circular plastics,
starting with Aker BioMarine`s own challenges
with plastic waste. We announced during the year
that Ocean 14 Capital Ltd., a private equity firm,
will jointly finance Aion along with us, to support
the company during its initial growth phase. It
was also a year of progress for our new plant in
Ski, Norway, where we plan to produce a new
protein product and host our own protein
innovation center. The plant is currently on track
for a mid-2023 opening. In addition, we signed
our first commercial agreement for Lysoveta in
2022, with the aim to develop products for
important areas like Alzheimer and Gestational
diabetes.
People
When I look back on 2022, I see a year of
extraordinary achievements, due to our
extraordinary people. Together, we have
weathered all the challenges that we faced. We
continue to be a ‘can do and grind through’
organization, meeting each challenge head on
and staying laser focused on growing our
company because of our strong belief in the
health benefits of krill. I want to thank our
people, our investors, our partners, our
customers, and everyone out there cheering us
on for the past 16 years. We’ve come a long way
on our krill journey, but we have just started to
tap into the great potential that lies ahead.
Matts Johansen
CEO Aker BioMarine
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About us
Revenue
USD million
Adjusted EBITDA1 and margin
USD million and %
Aker BioMarine is a biotech innovator and Antarctic krill harvesting company, created
because of our strong belief in the positive health effects of krill.
16 years later, we continue to develop our business as we take care of the ecosystem from which we harvest. Our fully integrated
value chain stretches from sustainable krill harvesting in pristine Antarctic waters through our Montevideo logistics hub, Houston
production plant, to customers around the world. The company has a strong position in its industry and is the world's leading
supplier of krill.
Key Figures
ESG- Highlights
People
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Aker BioMarine around the world
Aker BioMarine is present all over the world from Australia to the US, with headquarters in Oslo, Norway.
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Our fully integrated value chain
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Company structure
Aker BioMarine is a company with two primary business segments: Ingredients and Brands.
The ingredients segment involves offshore
harvesting and production, logistical operations,
and onshore manufacturing and sales of krill-
derived products. These products are distributed
globally to the nutraceutical, pet food, and
aquaculture industries. The Brands segment
focuses on human consumer goods, with Lang
Pharma Nutrition (Lang) and Epion as its two
main components. Lang produces and distributes
private label vitamins and supplements to the
largest retailers in the US market. On the other
hand, Epion is Aker BioMarine's consumer brand
company, which launched its first brand, Kori, in
the US mass market in 2020.
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Management team
As of March 2023
Matts Johansen
Chief Executive Officer (CEO)
Matts Johansen has been CEO of Aker BioMarine since 2015. He first joined the
company in 2009 as Chief Operating Officer. Prior to his career in Aker BioMarine,
Johansen served as the Chief Marketing Officer at Telefónica O2. He studied at
Oslo University College and completed executive education at Columbia
University.
Tone Lorentzen
EVP Supply Chain
Tone Lorentzen joined Aker BioMarine in 2015 and currently oversees Aker
BioMarine’s entire supply chain, including global logistics, customer care,
production at the krill oil factory in Houston, third party production, product
quality and HSSE. Prior to joining the company, she held roles at Nycomed,
Amersham, GE Healthcare and Trygg Pharm.
Katrine Klaveness
Chief Financial Officer (CFO)
Katrine Klaveness became CFO of Aker BioMarine in 2018. Prior to joining Aker
BioMarine, she spent the first part of her career in McKinsey & Company,
followed by several years in senior positions in Aker ASA’s investment team
and Aker BP. Klaveness holds a master’s degree from BI Norwegian Business
School.
Simon Seward
EVP Human Health and Nutrition
Simon Seward joined Aker BioMarine in 2019. He is responsible for global sales
and marketing of the company’s Human Nutrition & Health products. Prior to
joining Aker BioMarine, he was SVP Sales & Marketing at Algalif and Commercial
Director at NutraQ. Seward has a master’s degree in Marketing from Staffordshire
University.
Trond Atle Smedsrud
EVP Strategic Investments
Trond Atle Smedsrud joined Aker BioMarine in 2015. He is responsible for
exploring, securing, and growing corporate investments. Smedsrud has also
served as head of Aker BioMarine’s Marketing and Innovation department.
Previously, he held senior positions at Coca-Cola and PwC. He has a master’s
degree from BI Norwegian Business School.
Hege Spaun joined Aker BioMarine in 2016. She is responsible for the People and
Culture, as well as ensuring that the company is in the forefront of driving the
sustainability agenda and transitioning our operations accordingly. She
previously held various positions in DNV. Spaun holds a master’s degree in
Psychology from the University of Oslo.
Webjørn Barstad
EVP Offshore
Webjørn Barstad joined Aker BioMarine in 2020 as Executive Vice President
Offshore. Previously, he served as CEO for Lerøy Havfisk and Lerøy Norway
Seafoods, and as COO at Lerøy Seafood Group. Barstad has a master’s degree in
International Banking and Financial Studies from HeriotWatt University Business
School, Edinburgh
Sigve Nordum
EVP Animal Health and Nutrition
Sigve Nordrum joined Aker BioMarine in 2007. He is responsible for the global
sales and marketing of krill products for animal and aquaculture markets.
Previously, he worked at BioMar and the Norwegian Ministry of Fisheries. He
has a master’s degree from the Norwegian School of Life Sciences and a PhD
from the Norwegian Veterinary College.
Hege Spaun
Chief Officer People & External Affairs
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Our journey
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Ingredients and brands
Our business is categorized into four main sectors: Human Health and Nutrition, Animal Health and Nutrition, Consumer Brands and
Innovations
Human and Animal Health and Nutrition
.
Omega-3s have recognized health benefits for dogs and
humans alike. A pet food that contains omega-3 is the first step
to ensuring that pets can benefit from this important nutrient
on a regular basis. QRILL Pet is a functional marine ingredient
made from whole Antarctic krill that is rich in marine omega-3s
and is naturally rich in choline, astaxanthin and marine
proteins. It is also sustainable, traceable, and sourced from
some of the cleanest waters on Earth. Krill supports the health
of several vital organs, including the heart, kidney, liver, brain,
skin, and coat. QRILL™ Pet comes from one of the most
sustainable fisheries. The Aker BioMarine krill fishery is MSC
certified.
Krill meal is a well-known, sustainable source of nutrition that
improves feed quality for farmed fish and shrimp. Harvested
from one of the world’s most well-managed fisheries (CCAMLR),
QRILL Aqua ingredient for formulated feeds leaves a low marine
footprint and a continually declining carbon footprint, in addition
to being fully traceable and certified by MSC. Antarctic krill that is
rich in marine omega-3s and is naturally rich in choline,
astaxanthin and marine proteins. It is also sustainable, traceable,
and sourced from some of the cleanest waters on Earth.
Scientific studies show that krill products, such as QRILL Aqua,
QRILL High Protein and AstaOmega Oil, have high potential to
improve aquaculture feeds, enhancing their nutritional
composition and attractability, and in turn stimulating the growth
and health of both shrimp and fish.
Omega-3s are an essential part of the diet for human health
and wellbeing. However, an estimated 97 percent* of the
population has less than optimal omega-3 levels, exposing
them to an increased risk of various lifestyle diseases. Superba
krill oil is a marine phospholipid complex of choline, omega-3s
and the powerful antioxidant astaxanthin.
Clinical data shows
that Superba krill has multiple health benefits for heart, joint,
skin, cognitive health and active lifestyle and can significantly
increase the omega-3 index level after just one month when
consumed daily.
Superba will contribute to improving general
health and support the efforts to alleviate lifestyle diseases by
delivering 5 billion doses of health promoting nutrients by
2030.
*A 2016 study published in Progress in Lipid Research
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Aker BioMarine have an independent company in the US, named Epion Brands Inc. Epion
distributes the company’s Kori krill oil product to large retail chains, including Walmart,
Target, CVS and Costco. Kori krill has established a large retailer footprint in a short period of
time, at an unprecedented pace in the US supplement industry. Through its market presence,
Epion gets first-hand consumer information and provides valuable insight into consumer
behavior and needs for Aker BioMarine. Through an innovative and positive-oriented market
approach, with a focus on younger generations, Epion maintains a solid footprint on US retail
shelves.
Aker BioMarine acquired Lang Pharma Nutrition, Inc. in 2019, a company with more than 35
years of history and experience in the nutrition and dietary supplement industry. Lang
Pharma is a key partner to the world’s leading mass market retail chains, with close to 200
different products on shelves of retailers, including Costco, Sam’s Club, Walmart, Target,
CVS and Walgreens. The US vitamin and supplement industry is growing. Lang Pharma, with
its lean, yet flexible market approach and responsive culture, is uniquely positioned to
support Aker BioMarine’s ambitions to expand the company’s footprint in the US market.
Consumer brands
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Innovation Brands
LYSOVETA ™ is the new supplement product from Aker
BioMarine, specifically targeting brain health. It contains
essential nutrients for brain function, that are important
across the whole lifespan. In 2022 the first commercial
agreement was signed with Trofi Nutritional Inc. Trofi aim to
develop medical food products based on Lysoveta targeting
brain health and reproductive health. Pilot production
capabilities has been established at the Houston factory, and
Aker BioMarine is expecting regulatory approval for sale in
the US market in 2023.
Understory, formerly called INVI, is a range of high purity protein
peptides products with complete amino acid profile and
naturally rich in nutritionally important minerals. These protein
peptides are ideal for incorporation into ready-to-mix and
ready-to-drink beverages, as well as other premium formats for
brands targeting the beauty, wellness, and sports/active
consumer segments. Understory has received regulatory
approval for sale in the Unites States, Australia, and New
Zealand with processes on-going in the EU and other target
geographies. Aker BioMarine plans to ramp up production in a
new launch plant with first product in the market in 2023.
AION is an Aker BioMarine spinoff within plastic circularity and
circular tech. AION is a business model innovation that grew out
of Aker BioMarine’s own ambition to see own plastic waste
being repurposed into new value chain, driving both
environmental impact and cost efficiencies. Today AION helps
companies within different sectors turn their plastic problems
into impactful solutions. AION’s digital platform AION Loop
collects data in all parts of the value chain, providing AIONs
customers and the recycled plastics industry with traceability
and documented environmental effects of plastic circularity.
Per December 2022, AIONs customer list included McDonalds,
Veidekke, American Seafoods, HAVI, Sodexo, KAOS,
NorgesGruppen, Circmar and Surfact.
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Research and innovation
As the world’s largest krill harvester and supplier, we are committed to exploring and
investigating krill oil nutrients and their biological effects
.
Since Aker BioMarine was founded in 2006, we
have taken a leading role in the development and
utilization of Antarctic krill resources through
science and innovation. We harvest krill, study its
biological effects, isolate important nutrients, and
develop krill-derived products for the consumer
health and animal nutrition markets.
Over the years, we have played a leading role in
the growing krill industry, building a company
filled with passionate people who put innovation
at the core of our business. We invest significantly
in science, with the aim to build fundamental
knowledge about krill and to research the
biological effects of krill nutrients. As a result, Aker
BioMarine has taken several new and important
products to market, with more on the way.
A key part of our strategy
Science and innovation are key elements of our
strategy. We currently employ 14 scientists, all of
whom hold PhDs, to help drive our research
agenda. Since 2006, krill products from Aker
BioMarine have been involved in approximately
200 studies, primarily through research or by
donating krill oil or meal. In 2022, 35 scientific
articles on krill oil/meal were published in total.
Refer to the section titled “Our scientific
publications on krill oil and meal in 2022” for the
list of studies that Aker BioMarine has invested in
and/or donated product, or was otherwise
involved in, during the year.
Our patents
Since day one, Aker BioMarine has been fully
committed to scientific research and business
development in the nutritional marine lipid field,
specifically related to krill products. This
commitment has led us to patent our own
technology and to acquire other technology. As a
result, we currently have the world’s largest and
most innovative patent portfolio in our field. This
includes harvesting technology and production
methods, through patents covering today’s
commercially available krill products, as well as
nutraceutical innovations that will be available to
consumers in the years to come. By the end of
2022 we held 101 patents in total, of which 25 were
granted in 2022.
Research and innovation center
Following a delay in the project in 2022, Aker
BioMarine is now back on track to open its pilot
plant in 2023. We plan to develop a highly
concentrated protein isolate at this factory,
located in Ski Business Park, Norway, and it will
also be home to an adjacent research and
innovation center focused on long-term product
development. Through this, we aim to strengthen
the local environment for marine biotechnology
and create high-competence jobs within a
sustainable and innovative industry.
Research funding
In 2022 alone, our contribution to marine science
in Antarctica, through in catch or in kind, has been
in excess of USD 1 million. This includes our
annual contribution to
environmental NGOs to promote science on the
Antarctic ecosystem and a more resilient
Antarctica. AWR has since its inception financed 22
scientific projects with total funding of
approximately USD 1.4 million.
Our scientific publications on krill oil and meal in 2022:
Krill oil can slow down aging and help improve life
quality
A
at the University of Oslo,
Oslo University Hospital, and Akershus University
Hospital, revealed that krill oil can slow down aging
processes in cells and tissues in nematode worms
and human cells. The next step for the scientists
will be to investigate if we see similar results in
humans. Published in Aging
Krill oil reduces knee pain and stiffness
A new study by CSIRO, Australia’s national science
agency (sponsored by Swisse’s H&H Research)
investigated the effects of krill oil on adults
suffering from knee osteoarthritis. The scientists
concluded that krill oil resulted in improvements
in knee pain, stiffness, and physical function in the
participants. Published in the American Journal of
Clinical Nutrition
Krill oil beneficial for muscle function and size in
seniors
A newly published study by the Institute of
Cardiovascular and Medical Sciences, University of
Glasgow, found that just four grams per day of krill
oil can have beneficial effects on skeletal muscle
strength and size in healthy, older people.
Published in Clinical Nutrition
Krill meal exhibits highest protein and amino acid digestibility
in shrimp diets
Leading university aquaculture research teams in Brazil
evaluated the digestibility of crude protein and essential amino
acids of different feed ingredients. Digestibility is an important
quality parameter that defines the value of raw materials and
allows formulating on a digestible protein and amino acid basis.
The study concluded that aquatic ingredients, yielded higher
digestibility compared to plant and terrestrial animal by-
products, with krill meal exhibiting the highest values. Published
in Revista Brasileira de Zootecnia (RBZ).
Krill meal improves health and performance of salmonids
In a review article from 2022, Aker BioMarine researchers
concluded that Antarctic krill products, when included in feed,
have a positive impact on feed intake, growth performance, fillet
quality and organ health in salmonids. Published in Hindawi.
Krill meal shows high potential for developing sustainable
shrimp feed formulations
ICAR and Aker BioMarine concluded that krill meal is a beneficial
functional ingredient for shrimp dietary feed. The trial showed
that inclusion of 4 to 6% krill meal in the diet can lead to higher
body weight and greater survival among shrimp and that already
2% dietary krill meal increases immune gene expression in the
hepatopancreas of shrimp. Published in Aquaculture. Reports
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Annual Report – 2022 15
Our key milestones 2022
Lysoveta agreement signed
Aker BioMarine signed with biotech entrepreneur, Dr. Michael
Davidson, to develop pharmaceutical therapies for brain and
eye diseases based on Lysoveta.
Introduced a new delivery platform: PL+
We introduced a new delivery platform for enhanced
bioavailability of dietary supplement ingredients, called PL+.
Utilizing the true potential of phospholipids (PL’s). The
platform will help bring new products to market.
Healthy aging
New research found that krill oil can slow down aging and help
improve life quality. The study, published in Aging, shows that
krill oil inhibits many processes driving aging in nematodes
worms used in the trial.
Norway’s sustainability pledge
As a part of the Bellona initiative “The Raw Materials Pledge”
(Råvareløftet), Aker BioMarine were among the industry
contributors to a report on how to speed up the use of new and
sustainable raw materials for fish feed where krill is an
important part of the solution.
Investment in AION
Ocean 14 Capital Ltd. entered an investment agreement with
AION to provide financing, along with Aker BioMarine, through
a joint NOK 40 million convertible loan facility.
World’s cleanest fishery
A study published in the journal Fisheries Management and
Ecology, concluded that the Antarctic krill fishery is the world’s
cleanest due to its low bycatch rate (0.1% - 0.3%), as compared
to other fishery bycatch levels (10% - 55%).
Approved in both US and Canada
QRILL™ AQUA made headway in the North American market in
2022 with its registration with both the Canadian Food
Inspection Agency (CFIA) and the Food and Drug Administration
(FDA) approval in the United States.
Cost-effective krill
A new review article from Instituto de Ciências do Mar,
Brazil (Labomar) and Aker BioMarine concluded that krill
meal is a cost-effective, functional ingredient for shrimp
feed that enhances growth.
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We take responsibility for our operations in
Antarctic waters and support efforts to protect
precious marine resources. This requires
constructive relationships with governmental and
regulatory agencies, industry peers, the research
community, and environmental NGOs. We actively
engage and collaborate with these key stakeholders.
Social Capital
Aker BioMarine holds Antarctic krill fishing licenses
issued by Norway, our home country. Our long-term
access to the krill fishery depends on the
responsible development of the krill industry. We
must continue to ensure that there is scientific
evidence and confidence that krill harvesting
remains sustainable and closely aligned with global
efforts to combat climate change.
Natural Capital
In 2021, Aker BioMarine transferred from Euronext
Growth to the Oslo Stock Exchange. Strong
financial backing is crucial for our company’s
growth and essential for across-the-board
excellence. At Aker BioMarine, we believe that
financial and sustainable performance are
interlinked and serve to reinforce each other,
requiring both to be in equal focus.
Financial Capital
Aker BioMarine has made several major
infrastructure investments throughout its value
chain. We are boosting supply chain efficiency
through capital investments in our Antarctic factory
vessels, as well as at our port facilities in
Montevideo and factory in Houston. We lease
warehouses and office space at our headquarters
in Oslo and our sales offices in the United States,
Latin America, Australia, and Asia. Our krill vessels,
support vessel, and the manufacturing plant in
Houston are wholly owned by us.
Manufactured Capital
Innovation is part of our DNA. From pioneering the
Eco-Harvesting system to developing new products
verticals, we are proud of our in-house spirit of
invention. We believe that transparency helps our
industry evolve. That is why we share our catch data
and technology to further research efforts and
promote our way of thinking. However, we protect
our intellectual property rights through our patent
and copyright strategy.
Intellectual capital
At Aker BioMarine, we aim to do things that no one
has ever done before. When confronted with
challenges, many companies choose to bring in
outside expertise. But for us – a company that
operates on the frontiers of a niche industry – we
believe in building and developing our own
expertise in-house. Our people are our most
valuable asset.
Human Capital
Our Mission is to
improve human and
planetary health
We take care of the resources on which our business
depends, providing a clear strategy and building a
culture of autonomy and trust.
Our Capitals
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Operational risk & opportunities
Below is an overview of the company’s operational risks and opportunities. For a comprehensive risk and
opportunity view, please also see the financial risk in chapter 3 (Note 19 and the Board of Directors` Report).
Risks
Impact
Risk mitigation and management*
Future sales growth
Increased competition from other fisheries entering the market plus
alternative sources of omega-3s, such as GMO plants and algae, could
impact growth in the demand for krill products globally and also put
pressure on prices. Entry into new Asian markets with different
regulatory regimes could also impact sales short to medium term,
whilst offering good long-term sales potential.
We work every day to increase awareness among our existing and potential customers to the
benefits of krill. We employ local people that are close to customers and key decision makers
in our larger markets that understand both the market dynamics and regulations. We
continuously develop new research and science that underpins and supports the product
claims and marketing messaging.
Access to harvesting in the Antarctic
Changes in regulations from CCAMLR (Commission for the
Conservation of Antarctic Marine Living Resources), new Marine
Protected Areas (MPAs) affecting the fishing area, or broader
regulatory bodies limiting the harvesting areas may reduce access to
krill. Increased competition from new countries, e.g., China could also
affect the company’s ability to harvest krill.
The krill biomass survey in 2019 showed an abundant healthy krill biomass. We invest in the
development of Feedback Management: the future krill management system that gives
CCAMLR higher scientific certainty that krill harvesting does not negatively impact the
ecosystem. We drive responsible fishing practices through ARK and actively engage with
scientists, regulators and NGOs as an observer in CCAMLR and a multitude of formal and
informal venues and opportunities for dialogue. We see our vessels as an important platform
for independent scientific research and support scientists in their sampling and field work.
We established the Antarctic Research Fund (AWR) together with WWF-Norway and ASOC.
Operational breakdown
A major incident in our onshore facility in Houston or on any of our
vessels due to technical issues, natural disasters or pandemic related
could have serious operational, environmental, and financial impact.
We conduct training, monitoring, compliance testing and vessel safety audits on a frequent
basis, also with external parties. We have increased our product inventory safety stock in
Houston to cater for potential downtime.
Economic downturn
Global economic downturn/recession that negatively would impact
our growth ambitions.
Relentless work to keep fixed and variable cost base on a sustainable level and identify
projects/investments that can be paused to secure low cost if sales are declining.
Improvement project and implementation of capital release process are key.
Product safety
Severe adverse test results of our product quality e.g., serious
incidents due to toxins in product or rumors of dangerous product.
We have stringent and comprehensive QC processes for testing for contaminants and
neurotoxins.
*The management must do its best effort defined mitigating activities that can or should reduce the risk, but there is no guarantee that the risk will be significantly reduced or fully eliminated despite
mitigating initiatives being implemented
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Risks (continued)
Impact
Risk mitigation and management
Climate change and extreme weather
can affect the krill biomass with
regards to availability, composition,
and movement and create a
challenging operational
environment.
Availability of the krill and the patterns of movement and
composition and could affect the harvesting, wear and tear on
equipment and affect Houston production with access to power and
water
Change in composition of the krill will affect the product and product
seasonality.
We survey the krill biomass every season, showing an abundant healthy krill biomass. We
collaborate with CCAMLR with providing scientific support, and drive responsible fishing
practices through ARK. We actively engage with scientists, regulators and NGOs as an
observer in CCAMLR. We also Investigate alternative (ways to get) raw material (e.g., harvest in
other areas such as area 58).
We adapt to composition changes by continuously monitoring products and having adaptive
production set-ups to meet any changes.
We invest in vessels and insurance of production facilities.
We conduct training, monitoring, compliance testing and vessel safety audits on a frequent
basis, also with external parties.
There is a political risk related to
decarbonizing shipping with likely
IMO regulations on carbon and taxes
on fossil fuels.
The cost of fuel will increase with an urgent need of decarbonizing
the fleet.
We are actively working on decarbonization and have implemented several resources savings
changes in 2021 and are planning implementation of more. We are actively monitoring the
situation with regards to the availability and technological readiness of alternative fuels and
infrastructure in a hard-to-abate industry like the maritime.
Opportunities
Impact
Capitalize on opportunities
Krill nutrients to support health and
nutrition
Increased understanding of the benefits of krill products to support
healthy lifestyles and prevent lifestyle diseases can benefit society
and our business.
We invest in scientific studies to identify and substantiate benefits and marketing campaigns
to increase public awareness of the benefits of krill nutrients for human and animal health
and nutrition
New krill derived products
Development and launch of new products with added health and
nutrition benefits increases the value of krill raw material and
positive societal impact
We are developing new lipid and protein products for human nutrition for launch into growing
consumer product segments e.g. LYSOVETA and Understory.
Attracting and retaining talent
Attracting and retaining the right people is critical to reach our
aspirations, and it is important to us that we build an organization
that can provide our people with the right opportunities for growth.
Corporate brand of sustainability and biotech innovation, as well as competitive
compensation & benefits. We have built a culture based on freedom and trust to retain talent
and attract the new generation of job seekers. We have implemented a career model that
ensures that all our employees have equal opportunities for advancement in their career no
matter if it’s a managerial, professional or commercial role.
Gender equality
Companies where women account for over 15 percent of senior
management show higher returns. This represents an opportunity for
our company to ensure democratic representation and diversity in
management.
We have structured our recruitment and internal promotion processes to ensure equal
opportunities, implemented performance review and leadership development program. The
management team has 40% women. Increased focus on recruiting women into middle
management positions.
1. This is Aker BioMarine |
Annual Report – 2022 19
Opportunities
Impact
Capitalize on opportunities
The climate change is driving a
growing market demand for healthy
and sustainable food.
Delivering high quality health nutrients in a sustainable way is both
good for our business and society with a reduced carbon footprint.
We work together with customers to drive sustainability and increase awareness of marine
ingredients as a source
Access to green finance
By proving ESG commitment, governance and progress, we can be
more attractive to financial institutions and on the stock market
By ensuring adherence, excellent governance and progress towards, as well as adherence to
sustainability linked loans and EU taxonomy, AKBM will capitalize on the positive
opportunities connected with the increasing financial opportunities I the green shift.
Low carbon intensity in products and
environmental focus from
customers.
Consumer driven drive towards carbon and environmentally friendly
products and transparency in CO
2
A thorough environmental declaration on our products and aim to decarbonization in value
chain benchmarked annually by third parties will be used to demonstrate our effort to
decarbonization and improvement of the environmental footprint of our products.
Metrics and Targets
Aker BioMarine has committed to ESG targets as described on page 21-34
2. Sustainability
Annual Report – 2022 20
CHAPTER 2
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Sustainability in Aker BioMarine
21
22
23
Environment
24
Social
36
Governance
44
2. Sustainability |
Annual Report – 2022 21
Sustainability in Aker BioMarine
Aker BioMarine is committed to achieving a positive impact on human health without compromising the health of the planet.
Sustainability, transparency, and responsibility
are characteristics of our company governance
and way of operating. This ensures our long-term
profitability and gives us license to operate. We
have set ESG ambitions towards 2030 and 2050,
and work in close collaboration with our
stakeholders to ensure the well-being of people,
communities, and nature wherever we operate.
The basis for sustainability in Aker BioMarine is
the precautionary harvesting of the raw material,
Antarctic krill, one of the world’s biggest and
most unique marine biomasses. We aim to
deliver krill products that support nutritious and
sustainable diets and have set a path towards
50% reduction of CO
2
-emissions intensity by
2030, with the long-term target being carbon
neutrality by 2050. To fully succeed with its
ambitions to significantly reduce CO2-footprint
AKBM will, along with the systematic
implementation of measures to increase energy
efficiency, also depend on available technology,
and infrastructure in a hard-to-abate industry
and market development.. We are on track to
eliminate product waste and be fully circular in
our principal waste streams by 2026. The vision
of circularity inspired the launch of AION in 2020,
a circularity company dedicated to helping
companies recycle and reuse waste. In our
efforts towards reaching our ESG ambitions we
benchmark ourselves internally, while embracing
transparency and external scrutiny of the
progress we make. We are part of the solution to
feed a growing population in a sustainable way,
and continuously innovate to ensure that we
maximize the utilization and value of our
resources while causing minimal footprint.
2. Sustainability |
Annual Report – 2022 22
Reporting frameworks and assesments
The following company divisions and reporting frameworks have been used in Aker BioMarines ESG-reporting 2022
In the financial reporting, the company has
divided its operations into two segments,
Ingredience and Brands. However, it should be
noted that for our ESG (Environmental, Social, and
Governance) reporting, we present a
comprehensive view of the company as a whole.
This ESG-reporting is structured into three
sections: Environmental, Social and Governance.
Under each section we discuss relevant material
topics. The following framework have been used:
With Reference to the GRI Standards
Aker BioMarine have been reporting with
reference to the GRI Standards. The GRI Index is to
be found as appendix 3.
TCFD
Aker BioMarine is committed to implementing the
recommendations of the TCFD, and we will provide
investors and other stakeholders with decision-
useful information on climate-related risks and
opportunities that are relevant to our business
through the pillars of TCFDs framework for
disclosure.
Voluntary taxonomy reporting
Being a Norwegian company, Aker BioMarine is not
covered by the taxonomy regulation as the
regulation has not yet come into effect in Norway.
Aker BioMarine's have conducted a voluntary
taxonomy report (see Appendix 1). The Company
reports activities linked to our supply vessel
Antarctic Provider (eligible) and our fishing
vessels and production plant in Houston (non-
eligible).
GHG-protocol
Aker BioMarine have reported our emissions
following the GHG-protocol (appendix 2) PwC have
provided independent assurance on the
company’s greenhouse gas emissions in 2022. The
assurance engagement covers all activities in Aker
BioMarine integrated value chain. The
Independent Assurance Statement includes
emissions data for Scope 1, 2 and 3 for 2021 and
2022.
Transparency Act
The Company have published its Transparency Act
Report on the company website. It s reported
accordance with the Norwegian Transparency Act
(the“Transparency Act”) section 5 and summarizes
the policies and procedures in Aker BioMarine ASA
(“AKBM”) with respect to safeguarding of human
rights and decent working conditions and
provides information on the implementation and
results of Aker BioMarine’s due diligence.
2. Sustainability |
Annual Report – 2022 23
Our stakeholders
Aker BioMarine has a wide range of stakeholders that are mapped and identified based on their criticality for operations and business
continuity. A close dialog with our stakeholder gives us increased knowledge and understanding of our impact on our surroundings – and
also how our surroundings might impact us.
STAKEHOLDER GROUP
MATERIALITY AND PURPOSE
RELATED RISK
KEY POINTS OF MEANINGFUL ENGAGEMENT
GOVERNMENTS AND POLITICIANS
National legislation (fishery licenses) and international
legislation (Antarctic marine management) decides the
framework in which krill harvesting, logistics and
market access all depend on
-Acute transitional policy towards low-emission society
-Regulations that do not favour krill harvesting
-Lack of knowledge of and interest in Antarctica as a
place of sustainable food production
-Lack of progress in regulations can impact reputation
and independent certification schemes
-Annual participation in CCAMLR meetings and working
groups
-Regular dialogue and input to Governments
NON-GOVERNMENTAL AND INDUSTRY ORGANIZATIONS
Environmental advocacy can sway public opinion,
customers and policy. Industry affilations and
organization can protect interests
-Campaigns in the interest of protecting intrinsic value
of protecting Antarctica may have no place for fishery
-Biased advocacy can devaluate an otherwise working
Antarctic marine management system
-Too low industry standard
-Venues of collaboration with NGOs in AWR and
governance of Industry Voluntary Measures
-Regular contact meetings eith environmental NGOs to
exchange points of view
-Regular meetings in ARK to secure industry best
practice
FINANCIAL AND INVESTORS
Financial institutions, owner and investors need to see
profitability, and growth in company to keep up
investments long-term
-Long term view of company not attuned to short term
investments
-Dip in markets
-Owner dialogue and investor relations activities
-Quarterly reports and Capital Markets Updates
CUSTOMERS AND CONSUMERS
A strong customer and consumer base drives
profitability in company
-loss of confidence in krill products
-lack of belief in omega-3 supplements
-Consumer chooses cheaper options
-Communication of news, data and messaging on the
benefits of krill
LOGISTICS AND SUPPLIERS
Third party suppliers of goods and services are key to
business continuity
- Disruptions in supply chain or untrustworthy suppliers
impair delivery of product
-Non-compliance or lack of transparency in supply
chain may lead to breaches of national/international
regulations and/or breach internal codes
-Supplier screening and tight procurement policies
SCIENCE AND ACADEMIA
Generate knowledge, science and qualified opinion on
sourcing and effects of krill as material and product.
Fundamental for sustainability and product claims
-Too little science generated to support the niche of
krill harvesting and production
-Science that is critical or non- supportive, with or
without solid grounds and data
-Collaboration and partnerships with academic
institutions built around studies
-Communication of krill related science findings
EMPLOYEES
Attracting and retaining the right people is key for
growth
- Competence and knowledge loss
- Delayed results, growth targets not achieved
Dialog and involvement of employee representatives,
managers, relevant strategies for attraction and
retention, strong Employer Value Proposition
PUBLIC AND SOCIETY
Public perception and legitimacy
-Risk of losing footing and social legitimacy in society
-Awareness the wider public interests beyond key
markets and consumers
-Educating public on health benefits of Omega 3 and
importance of blue foods
2. Sustainability |
Annual Report – 2022 24
ENVIRONMENTAL
To us, it makes no sense to take something out of the ocean to improve
our health, if it simultaneously compromises the health of the ocean or
the planet. In this section we focus on the following material topics that
represents our environmental impact and how we approach them:
●
Aker BioMarine are actively working to
reduce our impact and lower emissions
from our operations, read about our
initiatives in
Emissions.
●
Dependent on ocean resources, Aker
BioMarine is concerned about rising
levels of plastic pollution and water
emission. Read about our approach in
Waste and circularity.
●
In addition, you can also read about our
approach how we structure our work on
climate-related risks and opportunities
,
and our
EU Taxonomi-report.
●
With an ambition to become the most
sustainable fishery in the world,
Fishery
management
is a top priority.
●
Aker BioMarine has built strong
awareness about the Antarctic
ecosystem and continuously works to
minimize any negative impact. You can
read about our approach in
Biodiversity
and nature.
●
Developing a sustainable source of
protein, along with other important
nutrients, has become an increasingly
important mission. Read more in
Sustainable ingredients.
2. Sustainability |
Annual Report – 2022 25
Climate risks and opportunities
Aker BioMarine will systematically implement, track progress, and publicly disclose climate-related efforts in alignment with the Task Force
on Climate-related Financial Disclosures (TCFD)
Aker BioMarine is committed to implementing the
recommendations of the TCFD, and we will provide
investors and other stakeholders with decision-
useful information on climate-related risks and
opportunities that are relevant to our business
through the pillars of TCFDs framework for
disclosure.
The principal channel for Aker BioMarine’s TCFD
disclosure to external stakeholders is our Annual
Report. As part of our risk review, we conducted
an updated climate risk analysis using the TCFD
framework. In this process, we involved
stakeholders from all parts of the organization
and systematically mapped and assessed our
exposure to climate risk. We are tracking our
exposure to climate risk on an annual basis, and
our company strives to cut carbon intensity in half
by 2030, which is an essential metric for climate
risk exposure. We continuously take climate risks
and opportunities into account in our strategic
decision-making.
Climate-related risks and opportunities are
described in “Operational risks and opportunities”
table on page 17. Our ESG metrics and targets are
addressed on page 21 - page 34.
Governance
The Board of Directors in Aker BioMarine has
strong oversight over climate-related risks and
opportunities, with most Board members
possessing knowledge about climate effects, ESG
targets and governance. Aker BioMarine has
identified climate-related operational and
financial risks through the systematic mapping of
operations and related risks, as well by identifying
risk mitigation opportunities through internal and
stakeholder collaboration.
Unit / Role
Responsibility
Chief Executive Officer
Overall responsibility for climate-related risks
and opportunities, necessary strategic alignment,
and updates to the Board of Directors.
Sustainability Team
Responsible for disclosing the actual and
potential impact of climate-related risks and
opportunities for the business model and
operations, setting the frames for strategic
alignment. Ensures continuous follow-up on
targets and metrics across business units as chair
for Climate and Decarbonization Committee and
by reporting quarterly into the Board of Directors’
Audit Committee
Climate and Decarbonization
Committee
Responsible for ongoing oversight of climate-
related issues, monitoring quarterly progress on
climate-related targets and metrics. Presents and
evaluates new initiatives from the business units.
Provides advice on significant investment
decisions. Provides input on climate-related
strategic alignment.
Chief Financial Officer
Responsible for the annual climate-related risk
management, as an integrated part of Aker
BioMarine’s overall risk management procedure.
The Aker BioMarine management team functions
as the steering group of the climate and
decarbonization committee. This group monitors
all climate-related activities and prioritizes and
aligns climate strategy with the business strategy.
The climate and decarbonization committee is
structured as a dedicated project within the
company, consisting of an internal working group,
an advisory board with key internal and selected
external advisors, and steered by the executive
management team.
The company’s ESG targets are monitored and
tracked through our Power BI reports, where goals
are reported bi-monthly, semi-annually, or
annually, depending on available granularity.
Progress on ESG targets is reported bi-annually to
the Board of Directors and presented to the audit
committee quarterly.
In addition to our ESG targets, we have committed
to a sustainability linked loan with four ESG
related KPIs on CO
2
consumption in our production and a HSSE score
on LTIFR (Lost Time Injury Frequency Rate). The
progress on these KPIs is linked to the interest
rate of the loan and provides additional
governance for our efforts to ensure that we meet
our environmental and sustainability targets.
2. Sustainability |
Annual Report – 2022 26
Fishery management
When we first launched the Aker BioMarine krill fishery, we had the opportunity to build our business from the ground up and getting it
right from the start. Our ambition was clear: to become the most sustainable fishery in the world and ingrain sustainability thinking
throughout our operations and within our corporate vision.
Along on our journey, we’ve prided ourselves in
being a pioneer in the aquaculture industry, and
the first krill company to receive an MSC
certification back in 2011. We’ve never lost focus
on driving best practices for the entire industry.
We constantly strive to do better. This has served
as a steadfast principle in the Aker BioMarine
playbook, and is what will help us maintain our
position as a front-runner among sustainable
fisheries into the future.
Our Results in 2022
A sustainable fishery is not an end point for Aker
BioMarine. Rather, it’s a process of continuous
improvement and learning. It’s a process that
began more than 15 years ago, and it is still our
focus today. This is what we have achieved within
the field of sustainable fisheries in 2022:
Increased harvest
Aker BioMarine has three active vessels in the krill
fishery, all of which operates under licenses
granted by Norwegian authorities. The company
maintains its status as a leader in the krill industry
through its volume (accounted for 71% of total krill
catches in the 2021/2022 season) and quality of
operations. We increased our harvest with 23%
from the previous season.
External audit and certification
As a result of its precautionary and science based
management of krill, the krill fishery has received
consecutive A-ratings from Sustainable Fisheries
Partnership. Aker BioMarine was MSC re-certified
in 2020 for 5 years. During the reporting year, we
also received Friends of the Sea (FoS) full
recertification, following an external audit of our
fisheries operation, management, and chain of
custody.
Our guidelines/principles:
●
Participate in krill management discussions
and maintain an active and transparent
stakeholder management approach
●
100% international observer coverage on all
fishery vessels
●
Independent third-party sustainability
certifications to build confidence and
credibility with customers and stakeholders
●
Industry conservation leadership through
self-imposed measures of spatial protection
and gear development and application
●
Active participation in with the work of the
Commission on the Conservation of Antarctic
Marine Living Resources (CCAMLR),
compliance with and development of science-
based regulations and ecosystem-based
approach.
Result 2022
●
100% fulfilment
●
USD 1 043 million
spent, which is
a 90% increase from
last year
KPI
●
MSC certification, independent
observer coverage on board while
fishing
●
USD spent on marine science and
feedback management
ESG 2030 ambitions
●
We aim to maintain unconditional reputable
certification and ensure transparency in
vessel operations
●
We aim to improve sustainability of fisheries
through contributing to data and science
driven regulation and ocean management
2. Sustainability |
Annual Report – 2022 27
Protecting the surrounding ecosystem
In 2022, Aker BioMarine continued to participate in
Voluntary Restricted Zones (VRZs) measures in
area 48.1 of the Antarctic Peninsula, which
provided spatial protection to breeding penguin
colonies and improved the sustainability of the
krill fisheries.
We also worked to strengthen measures to avoid
bycatch of marine mammals during operations on
all vessels. The latest successful improvement
resulted from learnings after a humpback whale
became entangled on the mouth of the trawl in
January 2022.
We introduced new measures and increased
monitoring to avoid incidental mortality of birds.
In 2022, the extensive offshore trials to assess the
use of net monitoring cable were finalized
according to CCAMLR protocol, and they
concluded that there was low risk of incidental
mortality of birds. Aker BioMarine’s measures to
avoid bycatch of marine mammals and incidental
mortality of birds is now considered best practice
by CCAMLR.
Science and innovation
During 2022, AKBM consulted extensively with
CCAMLR on a revised krill management system. A
CCAMLR scientific working group (WG-FSA)
reached an agreement that krill quotas may be
increased in the future if spread out across fishing
grounds in Area 48.1 of the Antarctic Peninsula,
and subjected to more consistent biomass
monitoring.
We also continued close monitoring of the fishing
ground through the increased use of our
unmanned ocean vehicle. This enables our fleet to
detect krill more easily.
In addition, we continued our partnership with
Hub Ocean in 2022, working to structure and share
vital acoustic data collected from fishery vessels
during fishing operations.
Our cargo vessel, Antarctic Provider, was in 2022
equipped to facilitate scientific studies with its fit-
for-purpose echo sounder and research trawl that
collects scientific information. We allocated 12
days of vessel time specifically and entirely to the
purpose of conducting krill biomass science, led
by the Institute of Marine Research (IMR).
Our evaluation and next moves:
In 2023, Aker BioMarine targets several milestones
that will substantially lift the company’s
performance within Sustainable Fisheries. These
include:
●
Continue CCAMLR support
CCAMLR is reaching the next step of the krill
feedback management process marked by
the further consolidation of the scientific
milestones that will inform its policies. We
will support this work in several different
ways, including the collection and sharing of
acoustic data.
●
Maintain voluntary measures with ARK
Aker BioMarine will maintain support across
countries and companies in ARK to ensure
compliance and continuation of the
voluntary measures for seasonal penguin
protection in Antarctica.
●
Increase oversight with drones
We will strengthen our unmanned ocean
drone initiative, as these are critical tools for
locating krill and increasing our efficiency.
Aker BioMarine will maintain transparency in
vessel operations through 100%
international observer coverage and by
engaging with stakeholders to ensure
industry-leading safety and transshipment
practice.
●
Reduce
bycatch. We will strive to maintain our low
bycatch levels and incidental mortality
during our operations, and we will work to
improve other mitigation measures
according to best practices
Krill and krill harvesting around the Antarctic Peninsula
Krill harvesting is restricted to the area around the Antarctic Peninsula, called
CCAMLR Area 48.1- 48.4. While this area constitutes only a small part of Antarctica, it
amounts to 3.5 million km2 in size, which is roughly 5% bigger than India.
What is Antarctic krill?
Antarctic krill is a free swimming, shrimp-like
crustacean with a hugely abundant biomass. It is
considered a keystone species in the Antarctic.
Scientists have estimated there to be about 500
million tons of krill in Antarctica, the highest
densities of which are found in the area around
the Antarctic Peninsula (Area 48).
Who regulates Antarctic krill?
The Antarctic krill fishery is managed by
Commission on the Conservation of Antarctic
Marine Living Resources (CCAMLR), an
international treaty organization established in
1982. Aker BioMarine serves as observer to the
CCAMLR through the Association of Responsible
Krill Harvesters (ARK).
Actual catches from the krill fishery
In the 2021/22 fishing season, five countries
(Norway, Chile, Korea, China and Ukraine) were
engaged in the krill fishery. The total recorded krill
catch for all vessels was 415 000 mt.
The future of krill fishery and management
While climate is changing in Antarctica, krill is
resilient, abundant and can sustain the increasing
global demand for low carbon blue foods. To
manage this valuable resource going forward, the
CCAMLR plans to increase krill data collection,
monitoring and analysis through a new system
called “feedback management”. The krill industry,
spearheaded by Aker BioMarine, will acoustically
monitor the krill biomass at the appropriate scales
set by CCAMLR.
The krill biomass
Antarctic krill has been a focus of systematic
scientific studies for more than 100 years. While
earlier research points to the decline of the krill
biomass, the acoustic monitoring conducted over
the past quarter century suggests that krill is stable
in density and distribution.
In 2019, Norway led a large-scale, international
synoptic krill survey that estimated a standing krill
stock of 62.6 million metric tons in Area 48. These
scientific estimates are higher than the previous
large-scale krill survey conducted in 2000.
Aker BioMarine’s krill fishery operations
Aker BioMarine operates three vessels: Saga Sea,
Antarctic Sea, and Antarctic Endurance, in addition
to the cargo vessel, Antarctic Provider. All vessels
are owned by Aker BioMarine and licensed to
Norway.
Industry conservation of krill through voluntary
spatial measures
CCAMLR has established a network of Marine
Protected Areas in the waters around Antarctica.
Aker BioMarine believes that this will help enable
both Antarctic wildlife and the krill fishery activity
to thrive long-term. To support these efforts, Aker
BioMarine and ARK adopted the voluntary
restricted zones (VRZs) in 2019 to protect penguin
colonies during breeding season. In 2020, these
seasonal voluntary measures were expanded to a
year-round permanent closure of a 4,500 square-
kilometer area of ocean to ensure protection of the
largest Adélie penguin colony in the region.
2. Sustainability |
Annual Report – 2022 28
Biodiversity and nature
Antarctic krill are a vital source of food for marine predators in Antarctica. Though the krill biomass remains healthy and abundant, the krill
fishery adheres to strict catch limits to protect biodiversity in the ocean.
As a result of this precautionary approach, few
other fisheries in the world have as low catch
limits in proportion to the biomass, with actual
catch rates below the limit.
Precaution
Commission for the Conservation of Antarctic
Marine Living Resources (CCAMLR) treaty, but it is
an all-important principle in krill fishery
management. At Aker BioMarine, we strive to
generate new knowledge about krill and its
ecosystem, in an effort to stimulate a thriving
fishery and protect nature and biodiversity in the
region.
Our Approach:
Since its inception, Aker BioMarine has built
strong awareness about the Antarctic ecosystem
and continuously works to minimize any negative
impact. This approach has made Aker BioMarine
and the krill fishery ‘best in practice’ when it
comes to biodiversity and nature. Our primary
focus is on these key topics:
Krill and natural variability in population
Aker BioMarine’s fishers know what many
scientific studies also confirm: there is no such
thing as a typical krill year. The variability of the
krill biomass is consistently high. During some
years, the krill swarms are easy to find; in other
years, it is harder work.
“A good krill year” is signified by an abundance
of krill for both fisheries and the surrounding
ecosystem. However, large swarms of krill can
disperse just as unpredictably as they form, in
response to currents, tides, and storms. Neither
scientists nor fishermen fully understand the
root cause of these changes, and so, they keep
chasing the answer to the question, “What makes
a good krill year?”.
Another variable is related to global warming and
its effect on the Antarctic climate. This makes it
especially important to observe any changes to
sea ice. Larval krill are dependent on this ice as
their nursery ground, where they feed on the ice-
trapped algae. Our science and fisheries
operations have also observed that krill density
in winter is higher than in summer. This makes it
more logical to conduct intensive krill harvesting
during winter, when the Antarctic breeding
season is over.
The krill-based ecosystem
Most of the large Antarctic animals that depend
on krill as a food source are relatively healthy,
with some variation in local populations. The size
of penguin populations has changed over time,
due to factors such as food supply, adaptation to
a changing climate, and retreating sea ice that
separate colonies from their food source.
Scientists have also spotted these population
changes in the areas where fisheries operate as
well as the areas that are untouched.
ESG 2030 ambitions
We aim to improve sustainability of
fisheries through contributing to data
and science driven regulation and ocean
management
KPI
USD spent on marine
science and feedback
management
Result 2022
USD 1 043 million spent,
which is a 90% increase
from last year
2. Sustainability |
Annual Report – 2022 29
Antarctic whale populations are on the rebound,
following near depletion due to whaling activities
in the early 1900s. The reported abundance of
whales is a clear sign that krill, a primary food
source for whales, is not in short supply. Whales
are efficient feeders, and an adult whale can eat
several tons of krill per day. Scientists have yet
to establish what the increased feeding
competition from whales will mean for other
krill-dependent species in the ecosystem,
including penguins.
There is no compelling evidence at present to
suggest that the krill fishery is adversely affecting
the krill population or that it serves as a threat to
biodiversity. However, at a time when nature is
changing more rapidly than ever before, we must
make sure that the krill fishery does not add
pressure to an already delicate ecosystem.
For Aker BioMarine, a mediating factor is to serve
as a source of knowledge, which is why we work
to generate new research and fill in the
knowledge gaps about krill and the ecosystem.
Our Results in 2022:
AWR
In 2015, Aker BioMarine established the Antarctic
Wildlife Research Fund (AWR), in collaboration
with NGOs and under the advisory of Antarctic
scientists. Since then, the Fund has awarded
more than 1.4 million USD to Antarctic research
projects on krill and the ecosystem. Aker
BioMarine contributes 200,000 USD annually to
AWR, which secures the continuation of the fund.
In 2022, Aker BioMarine pledged 1 million USD in
funding over the next 5 years to AWR. In addition,
Aker BioMarine has supported AWR in the
allocation of funding to two new science projects
in 2022, focused on crabeater seals and baleen
whale populations. Aker BioMarine has also
collaborated with AWR on a study to detect
possible bycatch of ice krill in the krill fishery.
Key milestones related to the study of krill and
its ecosystem
●
We hosted a team of Antarctic scientists from
Alfred Wegener Institute (AWI) on board our
Antarctic Endurance vessel to generate
greater insights into krill behavior and climate
change for CCAMLR.
●
We participated in the founding meeting of
the Science-Industry Forum to coordinate and
enable CCAMLR science work from industry
vessels.
●
We collected acoustic data on krill to increase
CCAMLR’s knowledge about krill density and
distribution, which we can apply to
ecosystem-based krill management.
●
We supported ad-hoc scientific studies and
sampling through our networks, in connection
with CCAMLR and through MRAG observers.
●
We made our industry vessels available to
scientists for investigation of the unsolved
mysteries of krill and the Antarctic ecosystem.
Our evaluation and next moves:
Our approach to supporting scientific research
on biodiversity and the krill ecosystem will
continue in 2023.
We plan to actively follow the developments in
the Task Force for Nature Based Disclosures
(TNFD).
Aker BioMarine has a high awareness around EU
Taxonomy (see page 35) and will report in line
with Environmental Delegated Act 2023, which
includes fisheries and biodiversity.
We will continue to be an advocate for a krill
management system that continuously evaluates
new data on the functional relationships
between the krill fishery and the krill-based
ecosystem. A certain level of precaution is
warranted and necessary to secure Antarctic
biodiversity for the long-term, but an overly risk-
adverse system will inhibit krill harvesting and its
contribution to global food security and health
Our guidelines/principles:
●
Be a positive force in Antarctic marine
conservation through substantial in-cash and
in-kind funding of scientific research relevant
to krill
●
Continue our science driven programs of
monitoring of the ecosystem from our vessels
and unmanned ocean vehicles
●
Maintain conservation leadership as an
advocate for industry wide voluntary
measures where this can safeguard the
ecosystem and ensure the position of krill
harvesting as a long-term and sustainable
contributor to food security
●
Be supportive of development of evidence
based information that can enhance our
understanding of the functional relationship
between krill, krill based predators and the
krill fishery
2. Sustainability |
Annual Report – 2022 30
Sustainable ingredients
Krill, when included as an ingredient in feed and for human nutrition, has proven positive health benefits for both people and animals.
At Aker BioMarine, we continuously work to
innovate products and develop ingredients that
deliver essential nutrients from krill, including
omega-3 fatty acids.
We believe that krill has far-reaching potential for
human and animal health, and as such, we are
dedicated to expanding and developing our
product portfolio. As a science-based
organization, we have an in-house Research and
Development department that collaborates with
scientific institutions to develop new technologies
and product innovations based on research and
experimental trials. We also work closely with our
customers to ensure that we design our products
according to their needs, which can range from
better growth performance in shrimp to reduced
joint pain among arthritis sufferers.
Developing a sustainable source of protein, along
with other important nutrients, has become an
increasingly important mission. The world’s
population is increasing and to remain on track
towards ambitious global climate goals, we must
reduce the impact of food production, specifically
in terms of deforestation, water pollution, and
greenhouse gas emissions. At the same time, we
must also work to ensure the health and wellbeing
of people through a stable supply of the right
proteins and nutrients for the body.
Aker BioMarine owns the supply chain from
harvesting of krill to the manufacturing of krill oil
on land. We have implemented processes for food
defense and safety across the whole supply chain.
Access restrictions, closed manufacturing, sealed
packed product and full testing of our products.
All steps are followed up by our Quality
department: Traceability and mass balance is
inspected by 3-party certifying companies through
ours MSC CoC and Friends of the Sea CoC program.
We qualify suppliers and set up quality
agreements with them that can affect food quality,
safety and security.
Our results in 2022:
Human health
Krill Protein Plant and Innovation Center
Aker BioMarine’s new protein plant and
innovation center in Norway experienced strong
development in 2022, and construction is now well
underway. We are simultaneously ramping up
staffing and operational planning, and we are
currently on track for operational start-up in mid-
2023. This new protein plant, funded in part by
Innovation Norway, will enable rapid product and
ESG 2030 ambitions
●
We aim to make aquaculture production
more efficient, by contributing to 1
billion extra servings of seafood
produced annually
●
We aim to develop innovative products
that play an integral role in sustainable
diets and the future food system
●
We aim to combat lifestyle diseases by
delivering 5 billion doses of health
promoting nutrients annually
●
We aim to decarbonize aqua and animal
feed by delivering low-carbon marine
ingredients
Result 2022
●
2030-goal fulfilment: 22%
16,9% increase from last year
●
18 376 083 USD
60% increase from last year
●
2030-goal fulfilment: -19%
10% decrease from last year
●
2743 mt avoided CO
2
-
emissions
14% increase from last year
KPI
●
Extra servings of
sustainable seafood
●
R&D spent on
sustainable diets
●
Doses of marine
nutrients
●
Avoided emissions in
aquaculture (ton CO
2
)
2. Sustainability |
Annual Report – 2022 31
process development as well as commercial
production.
PL+
In 2022, Aker BioMarine announced a new and
unique delivery platform in the human health
space, called PL+ by Aker BioMarine. The PL+
platform is based on phospholipids from krill oil,
and it is intended as a product for the dietary
supplement space. The primary benefit of PL+ is
that it can be used to boost the uptake of other
nutritional ingredients for human health,
increasing cost effectiveness and enhancing
overall product quality.
Documented effects of krill oil in 2022
Research teams from the University of Oslo, Oslo
University Hospital and Akershus University
Hospital published a new scientific paper that
concluded krill oil has the potential to inhibit
many of the processes that drive aging.
In a six-month trial conducted by CSIRO,
Australia’s national science agency, scientists
discovered that krill oil led to improvements in
knee pain, stiffness, and physical function in
adults with mild to moderate knee osteoarthritis.
Animal health
Proven benefits
The sustainability of ingredient sources is
increasingly important for the aquaculture
industry. Antarctic krill is a sustainable ingredient
that enables the aquaculture industry to reduce
reliance on costly and limited-in-supply marine
products. In 2022, we continued to demonstrate
the benefits of using QRILL™ AQUA products in
aquaculture. We focused on the nutritional
qualities of krill meal and oil, and how they
support more efficient and robust aquaculture
production. We have also published a cost-
formulation tool that demonstrates the economic
benefits of using QRILL AQUA in shrimp feed.
Improved health across species
Increasing the omega-3 index is known to reduce
inflammation and improve overall health across
many species. For dogs, we have demonstrated
that using krill meal in the feed increases the
omega-3 index after only a few weeks of feeding.
Our studies also show that krill increases in the
omega-3 index significantly more than fish- and
plant-derived omega-3 sources.
We have also demonstrated through scientific
research that krill oil is well-tolerated in horses
and that the omega-3 index increased
significantly after only a few weeks of use.
Collaboration for novel ingredients
In Aker BioMarine, we have been active in the Raw
Materials Pledge “Råvareløftet”. This pledge is an
industry-formed and Bellona-led project that
aims to identify sustainable ingredients for the
growing salmon aquaculture industry in Norway.
To speed up the inclusion of alternative
ingredients in aquaculture feed, Aker BioMarine,
in 2022, applied for salmon aquaculture trial
licenses, along with Nofima and LetSea, and
others. The goal of this project is to combine more
sustainable, alternative ingredients in salmon
feed, with the aim to reach a 25% inclusion level
by 2030. This will help stimulate the growth of the
local ingredient industry, as well as the
aquaculture industry.
Developed EPD
In 2022, Aker BioMarine has continued the work to
fulfill our ambitious ESG ambitions. We have
further developed our decarbonization agenda,
and we have developed a EPD (environmental
product declaration) report for the “2022 fisheries
and production of krill meal” in collaboration with
external verifiers. Since 2020, we have significantly
reduced our CO
2
a combined reduction in all environmental
stressors of more than 30% in this period.
Approved for Canada and USA
We achieved significant regulatory wins in 2022,
with the approval of the sale of krill meal to the
aquaculture industry in Canada and USA. In
addition, the Indian import duty for krill meal to
shrimp aquaculture was significantly reduced,
which has lowered the entry barrier to the Indian
market.
Partnership with focus on data
Aker BioMarine has partnered with Terravera, a
foundation rooted in academia with a mission to
make sustainability values transparent,
understandable, and accessible. Terravera will
apply a data and modelling driven approach to
investigate and showcase the real sustainability
proposition behind krill meal.
Our evaluation and next moves:
Aker BioMarine will continue to focus on
demonstrating the health, cost and sustainability
benefits from using krill as a feed ingredient for
farmed species.
GRI 416-1 Assessment of the health and safety impacts of product and service categories
a) Percentage of significant product and
service categories for which health and
safety impacts are assessed for
improvement.
a iii)Total number of incidents of non-compliance with
regulations and/or voluntary codes concerning the
health and safety impacts of products and services
within the reporting
None
None
2. Sustainability |
Annual Report – 2022 32
Emissions
IPCC details the severe consequences of climate change on our planet and societies, and the resulting rise in extreme weather will severely
impact our food.
Aker BioMarine is committed to helping the world
ensure a sustainable supply of protein, a key
ingredient for a more resilient food system. At the
same time, we are, across Aker BioMarine, actively
working to reduce our impact and lower emissions
from our operations.
While krill has a low carbon footprint compared to
other animal proteins, this does not diminish our
commitment to sustainable practices and to
meeting the goals set in the Paris Agreement. We
believe that new technologies must be developed
to cut emissions in our operations and throughout
our value chain.
Today the market for alternative fuels and zero
emissions technology for ships of our size and
operational profile is still in its initial stages of
development.
We are currently focused on the systematic
decarbonization of our value chain. We are
updated and involved in new technology, and
have designed our supply vessel to be more
updated and energy efficient than the older
vessels. and more easily convertible to blending
in alternative fuels once they are available..
In addition, we are improving our data quality and
the reporting from our operations and suppliers.
Our CO
2
track our emissions to determine the effects of
our different actions and operational
adjustments.
Our focus and results in 2022:
In 2022, Aker BioMarine developed tighter internal
controls to secure our progress according to ESG
indicators. We also continued the work with our
Climate and Decarbonization Committee (CDC),
overseen by the Executive Management. This
Committee is dedicated to ensuring, both
strategically and tactically, the reduction of our
carbon emissions.
Collection and utilization of data
We aim to continue reaping the benefits of our
data management system. This system combines
direct data gathered by drones with data from
other sources, including weather, historical
fishing, and ocean data, to detect and predict the
KPI
●
CO
2
produced
●
Avoided emissions in
aquaculture (ton CO
2
)
Result 2022
●
2030-goal fulfillment: 36%.
18% intensity reduce from last
year
●
2743 mt avoided CO
2
-emissions
14% increase from last year
ESG 2030 ambitions
●
We aim to reduce our carbon intensity
per ton krill produced by 50 percent from
2020 levels
●
We aim decarbonize aqua and animal
feed by delivering low-carbon marine
ingredients
Our guidelines/principles:
●
Improving Planetary Health is a vision that
requires continuous improvement.
●
We have an ambition to reduce our
CO
2
-intensity
per tonne
produced by 50% from 2020 to 2030, a
continuation of our positive trajectory since 2012.
●
We aim to be net-zero by 2050.
●
Improvements through data-based decision-
making throughout the value chain.
●
Use of ship transport whenever possible.
●
Reduce the carbon footprint of our fishing
operations and production processes, and
actively search for zero emission fuel.
●
Engage in carbon offset initiatives.
2. Sustainability |
Annual Report – 2022 33
location of krill. The goal is to verify krill
availability, ensure higher asset utilization, meet
our sustainability goals, and support a well-
managed fishery.
Focus on energy optimization
Our targeted efforts to improve operational
control and offshore procedures have resulted in
a reduction in fuel use and energy consumption.
As a result, our CO
2
tCO
2
/ton krill meal, which is an almost 18%
decrease compared to the last reporting year.
We are committed to reducing our energy
consumption. An important part of this work is to
make the most out of every kWh of energy we
consume. In 2022, we installed a heat recovery
system that recovered waste heat from one of our
processing steps and then re-used that heat in
our factory. We estimate that we will save up to
500 MT of fuel or 1600 tons CO
2
technology in 2023.
Collaboration for change
By joining the First Movers Coalition, we have
committed to powering at least 5% of our deep-
sea shipping with zero-emission fuels by 2030,
using ships that are zero-emission fuels
compliant. As member of environmental NGO-led
Råvareløftet (Raw Materials Pledge), Aker
BioMarine co-delivered a report to Norwegian
politicians on how to accelerate the identification,
development, industrialization and phasing in of
new and sustainable raw materials for fish feed.
Through these efforts, we hope to reinforce krill’s
role as an important part of a more sustainable
aquaculture future.
Evaluation and next moves
In 2022, we made solid progress towards
emissions reductions through use of technology
and operational improvements. Throughout our
operations, we see increased effort among our
employees to save fuel and reduce emissions, as
shown through innovative new ideas and
initiatives stemming from all levels of Aker
BioMarine. We will continue to prioritize our
search for and implementation of fuel-saving
technology going forward, and in 2023, we plan to
report on our progress in terms of emissions
reduction according to the EU taxonom.
Emission
Global tonnes CO
2
e
Scope
2021
2022
Direct Emissions (Scope 1)
96,750
96,864
Fishery and offshore production
92,493
94,082
Production at Houston Plant
4,124
2,641
Production at Lang Pharma
133
141
Indirect Emissions (Scope 2 - location based)
5,304
3,953
Purchased electricity Houston
5,190
3,849
Purchased electricity India
33
33
Purchased electricity Lang Pharma
25
25
Purchased electricity Montevideo
45
36
Purchased electricity Oslo
11
10
Indirect Emissions (Scope 3)
13,786
12,270
Business travel
41
234
Crewing travel
854
653
Packaging used - bags
1,132
1,227
Packaging used - drums
357
288
Transport of goods
11,403
9,868
Total
115,868
113,087
Scope 2 (market based emissions)
4,695
4,028
PwC has provided limited assurance on scope 1, 2, and 3 emissions for 2022. Reported according to the GHG
protocol, as applied in methodology statement climate accounts (appendix 2).
In 2021 we used marked based conversion factor for the norwegian locations.
-For more information on climate risk, please see Note 11
-There has been a slight increase in emission in 2022 due to increased production.
-
The company’s KPI is CO
2
2. Sustainability |
Annual Report – 2022 34
KPI
Waste
Result 2022
97% of annual recyclable waste
recycled 63% increase from last year
ESG 2030 ambitions
We aim to ensure full circularity on all
of our principal waste streams
Waste and circularity
As a biotechnology company dependent on ocean resources, Aker BioMarine is concerned about rising levels of plastic pollution and the
detrimental effects this has on marine life.
The World Bank says that the world will produce
70% more waste by 2050 than we do today. It’s a
prediction that means that people and companies
are failing to manage waste responsibly, which
leads to harmful environmental consequences.
We also see food and product waste as an
increasingly prevalent issue. When products are
deemed lower quality, they are often discarded. At
Aker BioMarine, we believe that these products
and commodities should be redirected into areas
of use, to avoid landfill or incineration as an end
point.
With these key beliefs as our starting point, Aker
BioMarine is committed to doing its part to move
from a linear to a circular economy, while
maintaining a strong focus on sound resource
utilization.
Our focus and results in 2022:
Traceable and circular waste management
In 2020, Aker BioMarine established a circular
solution company called AION. AION recycles the
company’s plastic streams and biological residue
into new products, in alignment with Aker
BioMarine’s zero-waste vision. In 2022, Aker
BioMarine continued to improve product waste
through circular sales and re-purposing of
traditional products to eliminate waste from our
production. Recycling our plastic waste through
AION has helped ensure traceable and circular
value chains.
High level of circularity
In the reporting year, AION recycled 59% of our
plastic waste and we have improved our routines
for increased recycling going forward. We also
reduced product waste by 48% from 2021, and by
96% from 2020. Combined we recycled 97% of our
principal waste streams compared to 2021.
Reducing emission to water
During the year, we implemented a new process
for pretreating wastewater from our Houston
plant. This has resulted in significant reductions
in our effluent water concentrations for
Carbonaceous biological oxygen demand (CBOD),
total solids (TSS), and oil and grease. In 2022, we
reduced our emissions to water by 4.62 tons.
Evaluation and next moves
●
During the reporting year, we demonstrated
our commitment to circularity, and we are
proud to have made significant progress
towards 100% circularity on our principal
waste streams.
●
We successfully developed systems for
pretreating wastewater.
●
We implemented new routines to increase the
recycling share of our plastic waste and are
confident this will give results in 2023.
●
We will continue to focus on finding plastics
suppliers with a greater degree of recycled
materials in our packaging.
●
Going forward, we will continue our efforts to
reduce overall water consumption.
ddd
Our guidelines/principles:
●
100% circularity on principal waste streams
●
Reduce water consumption
●
Follow strict rules for waste handling on ships
through our Garbage Management Plan
●
Adhere to port and state regulations for waste
management
●
Take part in initiatives to improve waste
management from ships to ports, such as UN
Global Compact GloLitter
Water
2021
2022
Total water withdrawn, Mega liter
126,59 ML
96,23 ML
Total water consumed
38,84 ML
33,80 ML
Emissions to water
4,73 MT
4,62 MT
2. Sustainability |
Annual Report – 2022 35
Taxonomy status
Aker BioMarine's have conducted a voluntary taxonomy report.
Aker BioMarine has completed the taxonomy with
the best intention and a focus on transparency
and an explanation of the interpretation of the
taxonomy criteria. The interpretation of the
criteria is based on both the explicit information
available at the time of the assessment and the
understanding of the purpose of the requirement.
The criteria related to minimum social safeguards
are still not adopted by the EU. Still, Aker
BioMarine has mapped its operations against the
process of due diligence on responsible business
by the OECD Guidelines for Multinational
Enterprises. Through this assessment we have
identified some areas of improvements where we
have defined mitigating actions being
implemented within 2023. Based on this, we have
concluded that we comply with the minimum
social safeguards.
The taxonomy regulation is still in a phase of early
adoption and Aker BioMarine is closely following
any clarifications from the EU Commission or any
changes in industry best-practice when it comes
to interpreting the activity descriptions or
technical screening criteria
Key Performance Indicators
The key performance indicators presented in the
report includes turnover, OpEx and CapeX. Aker
BioMarine has calculated the KPIs according to
the Annex 1 of Art 8 Delegated act. Aker BioMarine
has one asset defined as eligible from the
taxonomy requirements, transport, that you can
see on the KPIs presented. See appendix 2 for
more information.
Reporting requirements for Aker
BioMarine
According to the Non-Financial Reporting
Directive (NFRD) article 19(a) and 29(a), non-
financial undertakings which are public-interest
entities (i.e., listed) with more than 500
employees, in the case of a group on a
consolidated basis, are required to report on the
taxonomy. As of 2023, the undertakings are
required to report on the proportion of their
taxonomy-eligible and taxonomy-aligned
activities.
As a Norwegian company, Aker BioMarine is not
covered by the taxonomy regulation, since the
regulation has not yet come into effect in Norway.
This report is therefore Aker BioMarine's voluntary
taxonomy report.
CapEx
Turnover
OpEx
2. Sustainability |
Annual Report – 2022 36
S
OCIAL
We take pride in our passionate employees who always go the extra mile.
We believe diversity is a prerequisite for innovation and this is reflected
in our workforce, from our fishermen to our science team.
In this section we focus on three material topics that represent our
social impact and our approach:
●
You can read about our approach to
HSSE
people-first culture.
●
You can also read about how we work to
attract, foster, and build employees, in
Talented and competent employees.
●
The rich diversity among our employees
is vital to ensure that we stay innovative
and successful as a company. You can
read more about this in
Equality and
non-discrimination
.
2. Sustainability |
Annual Report – 2022 37
Equality and non-discrimination
Diversity at Aker BioMarine means all the differences and similarities that make us unique as individuals. The rich variety we have among
our employees both reflected in the number of different nationalities and professions is vital to ensure we stay innovative and successful
as a company.
State of gender equality
Women comprise 44,4% of our Executive
Management Team (EMT). In addition, the CEOs of
Houston Manufacturing and Epion Brands LLC are
women. Overall, we have good gender balance in
our offices, with 53.44% female employees in
Norway, and 50,26% of our sales organization
globally. The female ratio in middle management
positions is 44,11%. This is a significant
improvement from the previous year (24,13%). We
will continue to have focus on maintaining this
improvement trend in the following years.
Fishery is generally a heavily male-dominated
industry, as is the case in Aker BioMarine. We
have 6 females working onboard our vessels in
key crew positions. Additionally, 17 women are
working in other positions in the fleet among our
global employees.
Our focus and results in 2022:
Several new leader positions filled by women.
In 2021 a mapping of all positions in the onshore
organization revealed that there is a gender
imbalance in senior management positions. Thus,
we have set a goal that 50% of vacant leadership
positions shall be filled by women. This year, 67%
of vacant leadership positions were filled by
women. With a focus on encouraging and
promoting women to pursue leadership careers,
75% of the new female leaders were internal
promotions.
Reduced gender pay gap
For our onshore office positions in Norway, HR
and the EMT conducted a detailed job analysis
for all positions in 2022, on the factors of
education and experience requirements, problem
solving, social skills and -contacts, financial
responsibility, impact, and mental- and physical
working environment. The analysis resulted in 7
different levels of job positions. Groups 2-3
represent senior managers, groups 4-5;
experienced professionals, 6-7; entry-
intermediate level employees. A consequence of
this grouping is that the level of job
requirements, complexity and responsibility is
not
equal
for all positions represented in the
groups in the table below and thus, naturally the
salary level will vary. Indeed, the analysis reveals
that the main explanations for differences are
longer tenure and work experience as well as
market level salary differences between the
professions in the salary groups. However, given
that women are paid less than men in all the
groups, we cannot reject the notion that gender
discrimination may be a factor in the gender pay
gap. In 2020, we started to identify and analyze
gender pay gaps for all employees in Norway.
Particular focus has been placed on closing the
gap between men and women during the annual
salary adjustment process, which resulted in a
reduction in gender difference of 6% for
permanent employees in 2022 compared to 2021.
Ensuring zero discrimination
Employee surveys for our onshore personnel
include questions on fair treatment, respect and
valuation of differences, unpleasant comment(s)
or conduct(s) that was offensive, embarrassing,
or hurtful.
Employees can anonymously raise a concern on
misconduct, breaches, or potential violations
through our webpage. The Whistleblower
function is handled by an external party to
secure anonymity
.
The employee survey results show that 8% of our
responding employees (61% of onshore
personnel) have experienced unpleasant
comment(s) or conduct(s) they felt was offensive,
embarrassing, or hurtful. This is a decrease by 4
% from 2021. We do not know the severity of
these experiences and there have been no
formal reports requiring a follow up from
management and HR; however, we take this
seriously and will inform and ensure that
employees know where to seek support and how
and where to report it, so we can manage the
situation in a proper way and continue to work
towards our goal of zero discrimination.
One case was reported through our anonymous
Whistleblower function during 2022, but the case
was found not to be in breach of our Code of
Conduct. There have been no reports of
discrimination related to gender, pregnancy,
maternity leave or adoption, care responsibilities,
ethnicity, religion, disability, sexual orientation or
gender identity.
Focus on inclusion
The headquarter office building is built in
compliance with regulations on access for all and
is wheelchair accessible with elevator access to
all levels, low thresholds, automatic door
openers and dedicated toilet rooms.
We have initiated a closer collaboration with
Stiftelsen Vi, a foundation with the aim to give
people with disabilities equal opportunities for
success. Together we will work to increase the
chances of including people with disabilities in
the work-life. This collaboration will be further
detailed in 2023 We celebrated Pride Month with
several activities both via our online community
and in the various offices. Throughout the month
of October, we put a focus on mental health,
reflecting on the importance of mental wellbeing
by sharing our own stories internally to decrease
the stigma on mental health issues.
Our evaluation and next moves
We will continue having a particular focus on
reducing gender pay gaps and to improve the
gender balance in management levels this and
the following years. For 2023 we will keep our
ambitious goal of having 50% of vacant
leadership positions filled by women.
We will ensure that employees know where to
seek support and how and where to report it, so
we can manage the situation in a proper way and
continue to work towards our goal of zero
discrimination
.
Our guidelines/principles:
●
Aker BioMarine shows respect for all individuals and act
responsibly to prohibit discrimination or
harassment of any kind, which is clearly stated in our
Code of Conduct.
●
Aker BioMarine complies with recognized international
conventions and is committed to respect basic human
and trade union rights.
●
We acknowledge the fundamental principles of human
rights, as defined in the Universal Declaration of Human
Rights, the ILO Declaration on Fundamental Principles
and Rights at Work, as well as the OECD guidelines on
Multinational Companies. Considerations of equality and
non-discrimination is an integral part of our employee
policy.
●
The ”AKBM Balance” is still valid as our policy supporting
a hybrid work model. Our employees are trusted to
structure their work in a way that balances their work and
family life.
2. Sustainability |
Annual Report – 2022 38
Sate of gender equality
Gender balance
Temporary
employees**
Parental leave
Part-time
workers**
Involuntary part-
time
N
N
Average # weeks
N
N
Organization
Women
Men
Women
Men
Women
Men
Women
Men
Women
Men
Offshore
Harvesting
6
95
–
2
–
2
–
–
–
–
Brands
48
30
1
–
Houston
Manufacturing
11
34
–
2
NA*
NA*
–
–
–
–
North America
8
7
–
–
NA*
NA*
–
–
–
–
Norway
70
61
7
3
48
38
4
3
–
–
Rest of the world
18
27
4
1
NA*
NA*
1
–
–
–
Total
161
254
12
8
5
3
–
–
*Not tracked for our global employees, as different national laws apply
**Part-time employees are interns who combine work with studies and employees working part-time on their own will. Temporary
employees are mainly substitution for those who are on parental- or sick leave.
Gender pay gap overview
Gender balance
Gender pay gap*
Number of employees
Cash reward
Non-cash reward
Women
Men
Women
Men
Women
Men
Group 1 (EMT)**
4
4
96%
100%
46%
100%
Group 2***
2
5
Group 3***
3
13
Group 4
15
10
89%
100%
85%
100%
Group 5
18
15
93%
100%
87%
100%
Group 6
18
10
85%
100%
101%
100%
Group 7
9
1
100%
100%
Total
69
58
90.75%
100%
91.00%
100%
Analysis for all Norway-based permanent employees. Cash reward includes salary, annual leave allowance,
bonus. Non-cash reward include pension, insurance, newspaper, electronic communication.
* Women percentage shows women's pay in relation to men
** CEO excluded
*** Privacy regulations. At least 5 employees of each gender needs to be represented in order to include in
report.. Exception is made for Group 1 (EMT), as this is reported in the Management Remuneration report
2. Sustainability |
Annual Report – 2022 39
Action
overview and action plan
HR area
Background for measures
Description of measures
Goals and KPIs for measures
Responsible
Deadline/ Status
Result
Recruitment
Majority of men in
management- and senior
level positions
Implement policy of 50%
women among qualified
candidates in recruitment
processes for leadership
positions
50% women among qualified
candidates
50% of vacant leadership positions
are filled by women in the period
2022-2023
HR
2023/In process
Policy implemented
In 2022, 67% of vacant leadership
positions were filled by women.
Promotion- and
development
opportunities
Majority of men in
management- and senior
level positions
Encourage and promote
women to pursue leadership
career
50% of vacant leadership positions
are filled by women in the period
2022-2023
HR
2023/In process
67% of vacant leadership
positions are filled by women, of
which 75% were internal
promotions.
Compensation terms
Gender difference in pay on
all levels for onshore
positions in Norway
Analysis of job complexity
and -requirements
Reduce gender difference
during recruitments and
salary adjustment process
Equal pay for equal work of same
quality
HR
In process
Reduction of gender difference
by 6% in Norway
Harassment
8% of respondents have
experienced unpleasant
comment(s) or conduct(s)
they felt was offensive,
embarrassing, or hurtful.
Monitor and measure
Respond to complaints
Encourage reporting
Harassment claims are reported
and managed appropriately
Zero discrimination
HR/Compliance
Officer
Started
8% vs 2021 result of 12%, (4%
reduction)
Work/life balance
Enable employees to
balance work and family life
Implemented ‘AKBM Balance’
policy on flexibility of work
place
Stress levels remain at current level
HR
Complete
Stress levels remain at same
level as previous years
Discrimination factors
:
gender, pregnancy, maternity leave or adoption, care responsibilities, ethnicity, religion, disability, sexual orientation, gender identity and gender expression and combinations of
these factors
2. Sustainability |
Annual Report – 2022 40
Health, Safety, Security & Environment
People are at the core of everything we do in Aker BioMarine, and our approach to HSSE reflects our strong people-first culture.
We are in pursuit of HSSE excellence, which has
led us to implement our own management system
to anticipate, assess, plan, prepare, train, and
equip our personnel and the environment we
work in. We do this to protect our people, our
assets, our reputation, and stakeholders. This
system gives us the ability to respond and recover
in a coordinated, proactive, robust, and effective
way to prevent damaging or potentially damaging
incidents, regardless of cause, wherever we
operate in the world.
Our approach is documented in our HSSE
management system, which was created in 2022. It
is a set of integrated principles underpinned by
procedures, designed to be robust enough to:
●
Prevent
incidents / accidents from occurring
which could have negative impact on Aker
BioMarine
●
Protect
our people, assets, operations, and
reputation
●
Prepare
our response and recovery from
incidents / accidents to ensure we can
maintain operations of our business during
critical or major incidents
Our focus and results in 2022:
From the Antarctic waters we fish, to the complex
business environments we navigate, Aker
BioMarine is not without risk. We see this as a
positive challenge, and we embrace the idea that
some risk is essential if we are to continually
innovate. That means that for us, the correct
adoption of HSSE should be a business enabler
rather than a restrictive measure.
We strive to be resilient and strong in our HSSE
approach. Here are some examples of what we
have accomplished in 2022:
New management system
Creation and analysis were in focus in 2022, as we
laid the groundwork to build a management
system and a full recovery process, enabling us to
correctly identify, report, capture, investigate and
share learning across our global organization for
any incident, accident, or event that may occur.
This groundwork is fundamental to our continued
success. It has and will continue to align the
organization according to one way of working. It
will also give us continuity in the way HSSE is
handled globally. In addition, it also provides us
with true and comprehensive information about
the state of our vessels, sites, office safety, and the
human occupational safety and health practice in
our organization.
By using the information gathered, we will develop
and promote innovative health and safety
outcomes that will improve the safety and
wellbeing of our entire organisation and others
within our industry.
Innovative audit
Our Houston site has achieved great HSSE
improvements this year, with zero reportable
incidents of note. The Houston-based HSSE
manager has raised awareness on these topics
and serves as a single point of contact to
champion HSSE on a permanent basis. One
example is the innovative audit and HSSE walk
program that this manager created. It is a program
that invites employees from office-based roles
and others (who typically would not be in an
operational environment) to view and
Our guidelines/principles:
●
HSSE management system
●
HSSE policy
●
Code of conduct
2. Sustainability |
Annual Report – 2022 41
assess the operations. This initiative not only
builds understanding and cooperation between
departments, it also has enabled “fresh eyes” on
our business to better assess safety risks and seek
improvements.
Safety trainings
Aker BioMarine’s vessels have undergone a series
of inspections and audits this year, all of which
resulted in only minor findings. The total
recordable accidents/incidents declined since
2021, and we met all our targets. The chief officers
(with safety responsibility) are embarking on
training to further develop their skills and
awareness around reporting and investigation for
any incident on board our vessels.
Focus on information security
In 2022, security was highlighted as part of our
information security improvement program, which
helped us improve our maturity on the topic. The
program involved procedure and framework
improvements, a complete training and
awareness schedule, which included our
executive team, and an overall increase in
preventative and protective measures of both
technical and human nature.
Evaluation and next moves:
The coming year will consist of training and
implementation in terms of our HSSE evolution.
The HSSE responsible(s) for each site / office
location will be provided training on all areas of
HSSE, and they will be used to champion and lead
all activities. This will help to create excitement
and build a positive culture towards safety across
our company in 2023.
The vessels and offload will be the operational
focus, as we continue to train and engage the chief
officers, captains, and key crew at all available
opportunities.
In 2023, we will also continue to improve and focus
specifically on building the foundations for risk
management. Through this work, we aim to
address strategic risk management, including
operational risk management and documentation
at the sites.
(GRI 403-2) Number of serious incidents reported (onshore and
offshore)
2021
2022
Sick leave
0.76%
0.49%
LTI
3
2.34
Fatalities
0
0
2021
2022
(AKBM KPI) Number of reported whistleblowing incidents
0
2
(AKBM KPI) Number of reported incidents concluded to constitute a
breach in governing rules and regulations
0
0
2. Sustainability |
Annual Report – 2022 42
Engaged and competent employees
People are the heart of Aker BioMarine, which means that attracting, fostering, and building talent are critical to our success.
Given the challenging labor market conditions
through 2022, our primary focus was on
developing ways to attract and retain employees.
As part of these efforts, we hosted focus groups
with our employees to better understand what
makes us an attractive employer. We also
implemented a process to more closely follow-up
with new hires and their managers, and we
reviewed and improved our employee benefits
packages.
Our focus and results in 2022
Attract new talent
In 2022, we kicked off the work to create our
employer branding strategy. We sought input from
employees across the company and through this
process, we increased our knowledge about our
different employee segments, what they
appreciate about our culture, and where we
should focus going forward to attract the right
talent in the current (and future) labor market.
New-hire follow-up
To give our new employees a solid starting point
to deliver and succeed, we added a few key
milestones to the first six months of employment.
The HR team now follows up with each new
employee after six weeks on the job, and then
again at three and six months. These follow-ups
are run with both the employee and the direct
manager to assess the overall employee
experience.
GRI 405-1 i. Gender
2021
2022
Female
Male
% Female
Female
Male
% Female
Offshore harvesting
7
95
6.86%
6
95
5.94%
Brands
-
-
0.00%
48
30
61.54%
US Houston manufacturing
18
58
23.68%
11
34
24.44%
Sales
Organisation
US
52
35
59.77%
8
7
53.33%
Norway
70
62
52.67%
70
61
53.44%
Rest of the world *
13
19
40.63%
18
27
40.00%
Total
160
269
37.30%
161
254
37.53%
2. Sustainability |
Annual Report – 2022 43
Review and update of benefit packages
A competitive labor market with a high number of
job openings has given workers greater
opportunities, while making it more challenging
for companies to hire. This situation motivated the
kick-off of our assessment and subsequent
update of the company’s global benefit packages
(monetary and non-monetary). Our aim was to
ensure that Aker BioMarine’s benefits are
attractive and competitive going forward, helping
us to successfully recruit and retain our
employees.
Inspired by our Norwegian values, many of our
locations offer health and wellness grants,
training and development support, generous paid
vacation, and parental leave, in addition to
flexible working hours.
Our offshore operation unit has implemented a
loyalty program that offers a salary increase every
second year until the employee completes 10-
years with the company.
Performance enablement
We implemented an OKR (Objectives and Key
Result) framework in 2022 across the organization
to track progress, create alignment, and
encourage engagement around measurable goals.
Leadership development
During the reporting year, we launched “People
Syncs”, an experience exchange group for people
managers to align on people matters, share goals,
challenges, and concerns, and lean on each other
for support and other perspectives. This has
proven to be a valuable initiative that has helped
us to continually improve the employee
experience. As of 2022, all employees entering
their first people manager roles are enrolled in
“Leadership Fundamentals”, our online training
program that covers key aspects of leadership in
Aker BioMarine. In addition, several of our more
experienced people managers attended external
communication and leadership training based on
individual needs during the year.
Evaluation and next moves
Our people managers play an important role in
ensuring a great employee experience. Going
forward, we will continue to emphasize leadership
development and work closely with all people
managers to create a global common practice,
which will include how we motivate employees to
continuously develop and grow.
(GRI 401) New employee hires and employee turnover
2021
2022
New hires
19%
20%
Turn over
14%
27%*
The numbers are for the whole AKBM
*Largely impacted by the company downsizing in Houston Manufacturing
Percentage of employees receiving
regular performance reviews
2021
2022
Offshore
harvesting
A process to implement performance
review will be initiated in 2022
100%
Brands
100%
Houston Manufacturing
42%
100%
US (Sales organization)
100%
100%
Norway
100%
100%
Rest of the word
100%
100%
2 Sustainability |
Annual Report – 2022 44
GOVERNANCE
Aker BioMarine firmly believes that sustainability, transparency, and accountability,
backed by robust governance, are crucial for our operations. These values
ensure our profitability in the long run and allow us to operate with
integrity. In this section you will find our Corporate governance report.
2 Sustainability |
Annual Report – 2022 45
Corporate governance report
Effective corporate governance provides the foundation for long-term, sustainable value creation. Corporate governance is therefore a key
concern for Aker BioMarine ASA (“Aker BioMarine” or “the Company”).
As a portfolio company within the Aker family, we
believe in active ownership. Our main shareholder
is active in setting clearly defined strategic goals
for the Company and is involved through the
boardroom and direct dialogue with company
management, promoting shareholder value.
Pursuant to section 3-3b of the Norwegian
Accounting Act and the recommendations in the
Norwegian Code of Practice for Corporate
Governance, most recently revised in the autumn
of 2021, the board has reviewed and updated the
Company’s corporate governance principles.
The
individual recommendations of the Norwegian
Corporate Governance Board (NUES) are
discussed below. Aker BioMarine’s principles are
largely consistent with the recommendations.
Corporate governance
Aker BioMarine’s corporate governance principles
are established by the board. The purpose is to
ensure a productive division of roles and
responsibilities among Aker BioMarine’s owners,
board and executive management, as well as to
ensure satisfactory controls of the Company’s
activities.
Aker BioMarine’s business
Aker BioMarine’s business purpose is expressed in
the Company’s Articles of Association: “The
company’s purpose is to carry out sustainable krill
fishing, develop, produce, transport,
commercialize and market products from krill and
other raw materials for use within human and
animal health and nutrition, including
investments in and operation of other businesses
with similar purpose.”
The board has prepared clear goals, strategies
and a risk profile for the company’s business
activities such that the Company creates value for
shareholders in a sustainable manner. The
Company has defined sustainability as a
foundation for the entire operation, with an
overall mission to “improve human and planetary
health”. The Company reports on ESG -
Environmental, Social, Governance – as part of its
Annual Report. The board evaluates targets,
strategies and its risk profile on an annual basis,
at a minimum.
Equity and dividend
Capital structure
The Aker BioMarine group had USD 378.7 million in
book equity as of 31 December 2022,
corresponding to an equity ratio of 46.0 per cent.
The capital structure is appropriate and adapted
to the objectives, strategy, and risk profile.
Dividend policy
The Company has not established any dividend
policy to date but will strive to follow a dividend
policy favorable to the shareholders. The
Company has not paid any dividends on its shares
during the financial years ended 31 December
2022, 2021 or 2020.
Board authorizations
The board’s proposals for board authorizations
comply with the relevant recommendation in the
Norwegian Code of Practice for Corporate
Governance. Board authorizations are limited to
defined purposes and are dealt with as separate
items at the annual general meeting. Board
authorizations are limited in time to no later than
the date of the next annual general meeting.
Equal treatment of shareholders
The Company has a single class of shares, and all
shares carry equal rights. Aker BioMarine has
developed principles and guidelines for
transaction agreements and other agreements
not forming part of ordinary operations involving
companies in which Aker BioMarine and/or
entities within the Aker group has significant
ownership interests. Transactions involving own
shares are executed on Oslo Børs. Buybacks of
own shares are executed at the current market
rate.
Additional information on transactions with
related parties can be found in Note 21 to the 2022
consolidated accounts.
Shares and negotiability
There are no restrictions on owning, trading or
voting for shares in Aker BioMarine. Oslo Stock
Exchange has granted a waiver from the
requirement of having at least 25% free float of
shares when listed on OSE per Section 6.3 of the
Continuing Obligations.
General meetings
Participation
Aker BioMarine encourages all its shareholders
to participate in general meetings. Through the
general meeting, shareholders exercise the
highest authority in the Company. The annual
general meeting in 2023 will take place on 20
April.
Aker BioMarine has decided to hold its general
meeting as a digital meeting to ease participation
both for foreign and national shareholders
compared to a physical meeting. Shareholders
unable to attend the general meeting live during
the digital event may use electronic voting to vote
directly on individual agenda items during the
pre-meeting registration period. Shareholders
unable to attend the meeting may also vote by
proxy. The procedures for electronic voting and
the proxy voting instructions are described in the
meeting notification and published on the
Company’s website.
Meeting chair, voting, etc
The Public Companies Act stipulates that a
general meeting must be declared open by the
chairman of the board of directors, or a person
nominated by the board of directors. The general
meeting then elects a chairman for the meeting.
The NUES Code of Practice further stipulates that
the board of directors should ensure that the
general meeting is able to elect an independent
chairman. Aker BioMarine follows this principle.
Attendance
The leader of the nomination committee and the
Company’s auditor shall normally attend general
meetings in order to present the committee’s
proposal. The general meeting elects the
members of the nomination committee and
shareholder-elected board members. The
nomination committee focuses on composing a
board that works optimally, and on ensuring that
board members’ experience and qualifications
complement each other, and that statutory
gender representation requirements are met. The
general meeting will be requested to vote for
board members individually.
Nomination committee
Aker BioMarine has a nomination committee as
required by its articles of association. The
nomination committee must comprise at least two
members, and each member is normally elected
for a two-year period. The members and chairman
of the nomination committee are elected by the
Company’s general meeting, which also
determines the remuneration payable to
committee members. Instructions for the
nomination committee’s operations were adopted
by the annual general meeting in 2021. The
2 Sustainability |
Annual Report – 2022 46
primary responsibilities of the nomination
committee are to recommend candidates and
remuneration for the Company’s board of
directors and nomination committee, and
remuneration for members of the audit
committee.
Svein Oskar Stoknes, CFO of Aker ASA, is Aker
BioMarine’s current chairman of the nomination
committee. The instructions to and the current
composition of the nomination committee is in
line with NUES’ Code of Practice. Shareholders
who wish to contact the nomination committee
can do so using the following email address:
svein.stoknes@akerasa.com.
Board of directors and Audit
committee – composition and
independence
Board of directors
Employees’ rights to representation and
participation in the current composition of the
board is presented on the Company’s web pages
and in our annual reports, as are board
members’ qualifications and expertise. The
current members of the board were elected in
2021 for a term of two years and are up for
election in 2023.
Audit committee
The Company has established an audit committee
comprising of two members from the board of
directors. The composition of the audit committee
fulfils the required qualifications and competence
in accounting and auditing under the Norwegian
Public Limited Liability Companies Act.
The Company has resolved a mandate for the work
to be carried out by the audit committee. The
function of the audit committee is to prepare
matters to be considered by the board of directors
and to support the board of directors in the
exercise of its management and supervisory
responsibilities relating to financial reporting,
statutory audit, and internal control. The audit
committee shall report and make
recommendations to the board of directors, but
the board of directors retains responsibility for
implementing such recommendations.
The work of the board of directors
The board of Aker BioMarine has established
board instructions that regulate areas of
responsibility, tasks, and the division of roles
between the board, the board chairman, and the
CEO. Furthermore, the audit committee has been
granted a mandate which regulates its areas of
responsibilities, tasks, relations with the external
auditor and reporting routines to the board of
directors. The composition of the committee is
presented in the Annual Report. The board has
considered whether Aker BioMarine should have a
separate compensation committee but has
concluded that it is currently not necessary.
The board carries out an annual self-evaluation.
Risk management and internal
control
Governing principles
The board of Aker BioMarine establishes the
overall principles for governance and control in
the Company through the adoption of various
governing documents. For particularly important
areas of group-wide relevance, the board ensures
that governing documents of Aker BioMarine are
aligned with the broader Aker group. For example,
Aker’s Code of Conduct also expresses Aker’s
expectations of the portfolio companies’
respective codes of conduct. The same applies to
important areas such as human rights, anti-
corruption, and supplier conduct.
Aker BioMarine has established a compliance
officer function with dual reporting duties to the
Company’s CEO and audit committee. The
compliance officer’s main task is to ensure that
Aker BioMarine is compliant with relevant laws
and regulations, including the internal regulations
and guidelines of Aker BioMarine. Aker BioMarine
has chosen a risk-based approach to the
compliance officer’s mandate. The compliance
officer contributes to and benefits from effective
information and knowledge sharing between the
various compliance departments in the broader
Aker group.
Aker BioMarine has implemented a
whistleblowing channel for reporting of serious
matters, such as potential breaches of ethical
guidelines and violations of the law. Information
about the whistleblowing channel, including
contact information and the procedure for dealing
with whistle blows, is available on the Company’s
website.
Furthermore, the Company seeks to promote
diversity and prevent gender discrimination in the
workforce through clear recruitment
requirements and the development of individuals
and programs that support equal opportunity.
This means that the Company is committed to
both promoting and paying employees fairly,
regardless of individual characteristics, and that
individuals with the same jobs, with equal
professional experience, who perform equally
well, shall receive the same pay in Aker BioMarine.
Risk management and internal control
The board carries out a bi-annual risk-based
review of the Company’s operations. Prior to the
bi-annual risk reporting to the board, the audit
committee reviews the reported main risks and
relevant risk-mitigating measures. The audit
committee also reviews the Company’s internal
controls and overall risk management.
Aker BioMarine has established a procedure for
internal control over financial reporting (ICFR).
The ICFR framework is based on COSO Internal
Control Integrated Framework. The ICFR
framework is implemented through a risk-based
and top-down approach, to provide appropriate
organization of the financial reporting, ensuring
that Aker BioMarine’s activities, accounts and
management are subject to adequate control.
In connection with the process of preparing Aker
BioMarine’s financial statements, clearing
meetings are held with Aker ASA with the main
purpose of ensuring the quality of the financial
reporting. The clearing meetings focus on
significant valuation items, off-balance sheet
items, related transactions, new or modified
accounting principles, ICFR, and special
judgmental items in the annual report. External
auditors are present at the meetings.
The audit committee prepares a preliminary
review to the board of the quarterly and annual
financial statements, focusing on valuation items,
judgmental items, and the application of new
accounting principles, as well as any material
related-party transactions.
Board remuneration
Board remuneration reflects the board’s
responsibilities and expertise, time spent and the
complexity of the business. Remuneration does
not depend on Aker BioMarine’s financial
performance, and there are no option programs
for any of the board members.
The annual general meeting determines the board
remuneration after considering recommendations
by the Company’s nomination committee. The
board members elected by and among the
employees do not receive board remuneration.
Additional information on remuneration paid to
individual board members for 2022 can be found
in the financial statements and in the 2022
Remuneration report.
Remuneration of executive
management
The board has adopted a declaration on the
remuneration of executive management in
accordance with section 6-16a of the Norwegian
Public Limited Liability Companies Act.
Furthermore, the Company has drafted a
remuneration report in accordance with section 6-
16b of the Norwegian Public Limited Liability
Companies Act. Both documents are available on
the Company’s website, and the 2022
remuneration report is attached to the Company’s
2 Sustainability |
Annual Report – 2022 47
annual report for 2022. The annual general
meeting will hold an advisory vote over the
remuneration report.
The employment contract of the CEO has been
approved by the board. The remuneration paid to
the CEO is approved by the board after
considering recommendations from the chairman
of the board. The CEO determines the
remuneration payable to key executives in
accordance with board guidelines. Aker BioMarine
has no stock option programs.
Information and communication
Aker BioMarine’s reporting of financial figures and
other information is based on transparency and
equal treatment of stakeholders. All stock
exchange notifications and press releases are
published on the Company’s website,
www.akerbiomarine.com. Stock exchange notices
are also available at www.newsweb.no.
The Company organizes presentations in
connection with its financial reporting. These
meetings are generally broadcasted directly via
the internet (webcast) or run as a physical
meeting. The Company’s financial calendar is
published on Aker BioMarine’s website and
www.newsweb.no.
Takeover
Aker BioMarine does not have separate guidelines
on how to respond in the event of a takeover bid.
The Norwegian Code of Practice for Corporate
Governance recommends the adoption of such
guidelines. Aker Capital AS controls a total of 77.78
percent of Aker BioMarine’s shares. In view of this,
the board has deemed separate takeover
guidelines as recommended by the Code to be
unnecessary.
Auditor
The external auditor makes an annual
presentation of the auditing plan to the audit
committee.
The external auditor participates in all meetings
of the audit committee and in the board meeting
when the annual accounts are approved. The
minutes from the audit committee meetings are
distributed to the board. The external auditor
reviews, with the audit committee, any material
changes in the Company’s accounting principles
and assessments of material accounting
estimates. There have been no disagreements
between the external auditor and management on
any material issues.
The auditor reports to the audit committee on its
assessment of the internal controls over financial
reporting process. The outcome of this review is
presented to the audit committee and the board.
The audit committee meets with the auditor
without representatives of executive management
being present.
The audit committee receives an overview of
services rendered by the auditor to the Company.
The audit committee also approves the fees paid
to the auditor for material additional services. The
remuneration paid to the auditor in 2022 for both
audit and other services is presented in the
financial statements. These details are also
presented to the annual general meeting. Further,
the external auditor has provided the audit
committee with written confirmation that the
requirement of independence is met. Extended
tasks related to selection of an external auditor,
purchase of audit services and follow-up of the
external auditor are handled by the audit
committee.
With effect from the annual general meeting held
in April 2022, PWC has been the auditor of the
Group.
3. Finance
Annual Report – 2022 48
CHAPTER 3
FINANCE
Financial statements
Board of Directors’ Report
Consolidated financial statements
Notes to the consolidated financial statements
Financial statements Aker BioMarine ASA
Notes to the financial statements of Aker BioMarine ASA
Responsibility statement
Independent auditors report
Alternative performance measures
3. Finance |
Annual Report – 2022 49
2022
AKER BIOMARINE GROUP
CONSOLIDATED FINANCIAL STATEMENTS
3. Finance |
Annual Report – 2022 50
Kimberly Mathisen
material business contacts.
Board member
since 2022
Sindre Skjong
Director, elected by the employee
Board member
since 2019
Sindre Skjong, an employee-elected representative to the Board, has
been in Aker BioMarine since 2005. He currently serves as the
company’s VP Technical Operations of Offshore Operations. Skjong
holds a Class I Chief Engineer degree from Aalesund Maritime Skole and
was educated as a Coastal Captain at Aukra Maritime Skole. He is a
Norwegian citizen.
Kjell Inge Røkke
is independent of the company’s management and
material business contacts.
Director
Board member
since 2016
Kjell Inge Røkke, Aker ASA’s main owner, has been a driving force in the
development of Aker since the 1990s. In 1996, the Røkke controlled
company, RGI, became Aker's largest shareholder, which later merged
with Aker. Røkke is currently chairman of Aker ASA, The Resource Group
TRG AS, TRG Holding AS. He is a Norwegian citizen.
Board member
since 2014
Lise Wiger
Director, elected by the employee
Board member
since 2021
Lise Wiger, an employee-elected representative to the Board, has been
a part of Aker BioMarine since 2017. Wiger started her Aker BioMarine
career as part of the accounting team, and she now serves as FRC
Manager for the company. Wiger studied at Santa Barbara City College
and BI Norwegian Business School. She is a Norwegian citizen.
Board of Directors
As of March 2023
Anne Harris
is independent of the company’s management, material
business contacts and main shareholder.
Director
Board member
since 2021
Anne Harris has been the Chief Financial Officer (CFO) of Statkraft since
2019, and has previously held leadership roles in Norsk Hydro ASA,
Entra Eiendom AS and Multiconsult ASA. She has been on the Board at
the Institute for Energy Technology (IFE) (2015-2021) and COWI Holding
from 2021. Harris holds an MSc from BI Norwegian Business School. She
is a Norwegian citizen.
Director
Kimberly Mathisen became CEO of HUB Ocean in January 2022, after
serving as GM Norway for Microsoft. She is on the Board of Bayer and
Aize and is on the Advisory Board of Nysnø and Sintef. She has served
on the Boards of e.g Yara, Abelia, NHST and Kappa Bioscience. Mathisen
has a bachelor’s degree from the University of Illinois and MBA from
Harvard Business School. She is an American and Norwegian citizen.
Cilia Holmes Indahl
is independent of the company’s shareholder.
Director
Board member
since 2021
Cilia Holmes Indahl leads the foundation for EQT, a global investment
company. She is also the Co-founder of Sustainability Hub Norway.
Indahl holds an Economics degree with a double master's degree in
International Business and Sustainable Innovation from the Norwegian
School of Economics (NHH) and HEC Paris. She is a Norwegian citizen.
Ola Snøve
is independent of the company’s management and material
business contacts.
Chairman
Ola Snøve has served as Aker BioMarine’s Chair of the Board since 2014.
Previously, he was Investment Director of Aker ASA for more than ten
years, and he is the former President & CEO of Epax. Snøve holds a
MSc and a PhD from the Norwegian University of Science and
Technology, and an MBA with Distinction from INSEAD. He is a
Norwegian citizen.
3. Finance |
Annual Report – 2022 51
BOARD OF DIRECTORS’ REPORT
Aker BioMarine increased Net sales to USD 277.2
million for 2022 and improved Net profit
substantially, reaching USD 10.0 million. The
adjusted EBITDA for 2022 was USD 69.0 million
with a solid margin of 25%. The increase in sales
from the previous year is largely explained by both
higher volumes and higher prices of Qrill Aqua.
Aker BioMarine has a relatively high fixed cost
base with high operational leverage, yielding
higher earnings growth as the top line increases.
Harvesting operations for the year were good, with
all three vessels in full operation. Offshore
production was 52,000 tons, 19% up from 2021.
Although offshore production still not reflects the
full capacity of the fleet, 2022 volume was the
highest in the company’s history.
Aker BioMarine’s competitive position remains
solid. In krill harvesting, the company accounts for
around 70% of all the global krill catch, even while
holding a minority of the total number of fishing
vessels. The onshore operation in Houston, US,
produced at high efficiency in the first half of the
year. As planned, the plant closed 1 June to allow
for upgrades and improvements of the facility,
rebalancing inventory levels, as well as preparing
the plant for production of new products. Towards
the end of the year, a particular krill oil quality was
produced to prepare for the planned re-entry to
South Korea for Superba.
In the animal health and nutrition business, QRILL
Aqua ingredients continued with good sales
development. Sales volume increased 15% in 2022
compared to the year before, and with higher
product prices, revenues increased 27% for the
year. Good customer demand and higher offshore
krill meal production were the main reasons for
the high growth. In the human health and
nutrition business, total krill oil sales are still
impacted by the shortfall of volumes in South
Korea.
Aker BioMarine’s own krill oil brand, Kori, is sold
on the shelves of the largest retailers in the US.
Kori sales increased to USD 14.1 million in 2022
from USD 7.5 million compared to 2021, which is an
88% increase. During the year Aker BioMarine
introduced two new Kori stock-keeping units
currently sold direct to consumers through
Amazon.
Aker BioMarine has for many years invested in
innovation and research and development (R&D).
Innovation is an integral part of the company’s
DNA and is at the core of the company culture. In
2022, Aker BioMarine and others published several
studies documenting the benefits of both krill oil
for human consumption and krill meal for animal
feed. These studies equip Aker BioMarine and
customers with more information about their krill-
based products, which enables greater awareness
and sales.
In 2022 there were good progress in the ongoing
strategic innovation projects. At the plant in
Houston, US, preparation and commissioning for
producing Lysoveta in small scale were completed
and the product is waiting for US regulatory
approval expected in the first half of 2023.
Customer outreach and dialog has started to
prepare for market launch. In September, Aker
BioMarine signed an agreement with Trofi
Nutritional Inc. with the aim to develop medical
foods products based on Lysoveta, targeting
Alzheimer’s disease, male infertility and
gestational diabetes, in addition to pre-natal
supplements in the US.
The INVI protein product was in 2022 rebranded
“Understory”. The protein plant in Norway is close
to completion, and subject to commissioning, first
commercial production is expected mid-2023. In
2022, Aker BioMarine completed a spin-off of AION
and transferred the operational control and
majority of the voting rights and board
representatives in Aion AS to Ocean 14 Capital Ltd.
Aker BioMarine further developed the company’s
ESG framework with ambitious targets for 2030
and 2050. The company’s ambition is a reduction
of CO
2
emissions by 50% in 2030 and to be net zero
in 2050. The probability of successfully meeting
these targets is dependent on systematic
implementation of measures to increase energy
efficiency as well as external factors such as
market willingness to pay premium for low-
emission products, available technology, and
infrastructure in a hard-to-abate industry. In its
2022 review, Sustainable Fisheries Partnership
awarded Aker BioMarine’s Antarctic krill fishery an
A-rating for the 7
th
is rated as one of the world’s most sustainable
fisheries.
BUSINESS OVERVIEW
Aker BioMarine is a biotech innovator and
Antarctic krill-harvesting company, dedicated to
improving human and planetary health. The
company has a strong position in its industry and
is the world's leading supplier of krill-based
ingredients for nutraceutical (Superba),
aquaculture (QRILL Aqua), and animal feed
applications (QRILL Pet). In addition, the company
develops a new potential product, Lysoveta, for
targeted transporter of EPA and DHA from krill.
Aker BioMarine is also targeting the protein
market with the new product Understory, a highly
concentrated protein isolate from krill. The
company’s business is supported by research, and
there are around 200 published studies showing
the benefits of krill for humans and animals.
Aker BioMarine’s fully integrated value chain
starts with sustainable krill harvesting in
Antarctica. The catch technology ensures very
limited bycatch and utilizes 100% of the raw
material. The three harvesting vessels are
outfitted to simultaneously produce ingredients
while catching krill. From the logistics hub in
Montevideo, Uruguay, Aker BioMarine distributes
products to customers globally, and ships
ingredients to Houston for the production of krill
oil. The company has inhouse sales and
distribution teams locally in the important
markets where it operates, selling products to
customers in more than 60 countries. The
Company has its own private label business in the
US, Lang Pharma Nutrition, and a krill oil brand,
Kori, through Epion Brands LLC. Both companies
are US based in Rhode Island and New York.
Aker BioMarine’s purpose is to improve human
and planetary health, and this guides all
employees and management when making
decisions and setting priorities. Aker BioMarine
adapted its strategy to UN’s Sustainable
Development Goals (SDG) in 2015, and the
company focuses on four of the SDGs:
●
GOOD HEALTH AND WELL-BEING by combating
lifestyle deceases through its Superba krill oil
products.
●
ZERO HUNGER by making aquaculture more
efficient through its QRILL Aqua products.
●
RESPONSIBLE CONSUMPTION AND
PRODUCTION through mapping out CO
2
waste stream and implementing new
initiatives to reduce the footprint each year.
●
LIFE BELOW WATER by building the most
sustainable fishery in the world, and being
transparent, responsible, and contributing to
science in Antarctica.
Aker BioMarine owns and operates three krill
harvesting vessels under Norwegian flag: Saga
Sea, Antarctic Sea and Antarctic Endurance. The
vessels produce krill feed products and
intermediates onboard. In addition, the company
owns the newbuilt support vessel Antarctic
Provider (under Norwegian flag), that was
delivered in 2021. Antarctic Provider transports
krill products, crew, fuel and consumables
between the harvesting vessels and the logistics
hub in Montevideo, Uruguay. Aker BioMarine holds
four krill harvesting licenses issued by the
3. Finance |
Annual Report – 2022 52
Norwegian Government, three of which are in use
today. The company also owns and operates its
onshore krill oil plant in Houston, US.
The Aker BioMarine headquarters are located at
Fornebu, Norway. The shares of the company
trades on Oslo Børs.
FINANCIAL INFORMATION
Consolidated results
In 2022, Net sales increased by 6% to 277.2 million,
from 262.1 million in 2021, mainly driven by higher
sales in the Ingredients segment. Net profit for the
year was USD 10.0 million, up from a loss of USD
8.0 million in 2021. The significant improvement in
Net profit is driven by higher offshore production
and gross margins for the QRILL category as well
as a gain following the Aion transaction of USD 5.8
million recognized as ‘Other operating income’
and USD 3.4 reported as ‘Other financial Income .
Adjusted Group Earnings before Interest, Tax,
Depreciation, Amortization and special operating
items (“Adjusted EBITDA”) was USD 69.0 million in
2022, compared to USD 47.9 million in 2021.
Cash flow
Cash flow from operations was USD 15.1 million in
2022, an increase from USD 2.6 million in 2021,
mainly due to release of receivables and several
effects in 2021 not recurring in 2022. The difference
between cash flow from operations and the
operating profit (loss) in the statements of profit
or loss mainly represents changes in working
capital, depreciation and amortization, as well as
financial expenses such as interest and guarantee
fees included in cash flow from operations. Cash
flow from investing activities includes cash
investments in the protein plant, as well as growth
and maintenance capital expenditures on existing
assets. Total investments for the year were USD
56.4 million compared to USD 81.1 million in 2021,
where 2021 was impacted by the delivery of the
transport vessel Antarctic Provider. Net cash flow
from financing activities was USD 52.5 million
compared to USD 78.9 million in 2021.
Financial position
As of 31 December 2022, the equity ratio was 46%,
compared to 49% at year-end 2021. Cash and cash
equivalents amounted to USD 22.3 million,
compared to USD 11.1 million as of year-end 2021.
In addition, the company’s fuel hedge amounted
to USD 11.0 million, USD 12.5 million last year. Total
assets amounted to USD 822.4 million and total
equity was USD 378.7 million. Corresponding 2021
figures were USD 757.5 million in total assets and
USD 370.4 million in total equity. The increased
asset base mainly comprised of investments into
the protein plant as well as higher inventory
values following build-up of krill oil inventory.
Interest-bearing debt amounted to USD 381.2
million as of 31 December 2022, of which USD 333.6
million is long-term interest-bearing debt and
USD 47.6 million is short-term interest-bearing
debt. Total interest-bearing debt was USD 324.8
million last year. The available liquidity under the
company’s debt facilities amounted to USD 48.9
million as of 31 December 2022
.
AKER BIOMARINE ASA
The parent company Aker BioMarine ASA is a
holding company, with financial activities and with
corporate functions. Aker BioMarine ASA had a Net
gain of USD 25.8 million in 2022, compared to USD
5.2 million in 2021. The increase in Net gain is
primarily driven by lower operating expenses as
well as gain following the Aion transaction. Total
assets were USD 548.2 million as of 31 December
2022, compared to USD 523.5 million in 2021. Cash
and cash equivalents were USD 3.9 million as of 31
December 2022, up from USD 0.5 million in 2021.
The Board of Directors has proposed that the Net
profit for the period is allocated to retained
earnings.
FINANCIAL RISK AND RISK
MANAGEMENT
Aker BioMarine is exposed to credit, liquidity and
interest risk in addition to operational risks and
uncertainties related to harvesting and offshore
processing technologies, fluctuations in annual
krill harvesting, onshore production processes
and product quality, ability to develop new
products, and general market risk, which includes
product sales.
Other key operational risks and uncertainties
Future sales growth
: Increased competition from
e.g., China could impact the ability to grow the
demand for krill products globally, but also
putting pressure on prices. New and stricter
regulatory regimes could also impact sales short
to medium term, similar to the situation the
company experienced in South Korea.
Access to harvesting in the Antarctic
: Changes in
any regulations from CCAMLR (Commission for the
Conservation of Antarctic Marine Living
Resources), new Marine Protected Areas (MPAs)
affecting the fishing area, or transitional climate
risk of broader regulatory bodies limiting the
harvesting areas may reduce access to krill.
Increased competition from other harvesting
countries, e.g., China could also affect the
company’s ability to harvest krill. Weather- and ice
conditions might also affect harvesting from year
to year.
Climate change
: Any climate change affecting the
krill biomass with regards to availability and fat
composition, could significantly affect the
harvesting. In addition, ice and weather conditions
could create a more challenging operational
environment both offshore, and also for the
onshore plant in Houston.
Operational breakdown
: A major disaster or
incident, due to technical issues or natural
disasters, in the Houston plant or on any of the
harvesting and support vessels could have serious
operational, environmental, and financial impact.
Key financial risk and uncertainties
The company’s activities create exposure to
various types of risk which are associated with the
financial instruments and markets in which it
operates. The most significant types of financial
risk are credit risk, liquidity risk, and market risks
Risk management is carried out in order to create
predictability and stability for operating cash
flows and values. The Company can use financial
derivatives to hedge against risk relating to
operations, financing, and investment activities. In
2020 the company entered into a fuel hedge
contract with DNB for hedging of bunkers oil for
the period 2021-2024.
Credit risk
: Relates to receivables from customers
and is monitored on a routine basis with credit
evaluations being performed on customers as
appropriate. When entering significant sales
contracts, the sales department seeks to reduce
credit risk through more stringent payment terms
including requirement of up-front payments. The
company has had low losses on receivables as the
sales department is maintaining close contact
with each customer and routine billing and cash
collection is performed.
Liquidity risk
: Inability to meet financial liabilities
as they mature. The company has not hedged
against exposure to interest-rate fluctuations on
debt and is therefore exposed to fluctuations on
the variable rate amount of interest-bearing
liabilities.
The company was in need of a waiver for its
leverage covenant during 2022, and there is a risk
that the company will need a waiver for part of
2023 as well. As a result of this, the company has
engaged in dialogue with its bank group and
obtained a waiver for 2023.
Other financial risk
:
These are described in more detail in Note 19
(Financial risk) to the consolidated financial
statements, but include:
●
Currency: Aker BioMarine operates in a global
market and is exposed to currency
fluctuations, primarily in the USD, NOK and
EUR exchange rates with USD as its functional
currency. The company seeks to ensure that
revenues and expenses are in the same
currency. The company periodically assesses
the need for foreign currency hedging.
Currency risk is managed on an overall Group
level.
●
Interest rate: The majority of the Group’s debt
facilities is floating. Aker BioMarine is
therefore exposed to interest rate volatility
and development, and the company
periodically assesses the need for interest
rate swaps or fixed papers when entering new
debt facilities.
●
Fuel price: Fuel cost is one of the company’s
largest operating costs. In June 2020 the
company entered into a hedging arrangement
for MGO fuel by using call options for 2021-
2024. Total volume over the four-year period
were 143 077 metric ton of MGO with the
purpose of securing the future cash-flows
from operating the company’s fleet.
3. Finance |
Annual Report – 2022 53
The Group has adopted a risk management policy
to identify, measure, and mitigate risks.
HEALTH AND SAFETY
The krill-harvesting vessels, as well as the support
vessel, operate in rough waters in Antarctica. Crew
health and the working environment are
important concerns for the company. Despite the
demanding conditions, illness and accident rates
onboard are low. ‘Safety first’ is key focus
throughout the company’s different operations.
Sick leave rates are low onboard the vessels, at
the plant in Houston, and in the other office
locations.
In 2022, the company implemented a global and
holistic approach for health and safety to
integrate the production sites, vessels, and office
spaces, in addition aligning strategic, tactical, and
operational needs. The key achievement has been
the establishment of a management system and a
full recovery process, enabling us to correctly
identify, report, capture and investigate any
incident, accident, or event that may occur.
The company has established an emergency
preparedness manual for the total business and
an emergency response notification telephone
system, which allows employees to report/notify
an emergency incident anywhere in the world at
any time. Aker BioMarine has put in place systems
to ensure that crew members have access to
medical attention, in case of injury or illness when
vessels are operating far from shore. The onboard
working environment is reported as good, as
evidenced by the low crew turnover rate.
The company aims to minimize personnel injuries,
environmental harm, and vessel or property
damage, and conducts systematic safety drills
that prepare crew and onshore personnel for
handling demanding scenarios that may occur on
board or onshore. Personnel safety is important
and efforts to further improve safety are ongoing.
During 2022 the offshore operations had four
employee injuries leading to lost time. In total, the
offshore operations experienced 29 recordable
incidents of various nature. At the plant in
Houston, US there were no recordable incidents in
2022. There are no reports of significant injuries
caused by other conditions associated with the
company’s operations. The company views
accidents and hazardous conditions with great
concern. Incidents and procedures are reviewed
regularly, and measures are implemented to avoid
recurrence.
The registered sick leave in the company’s
offshore operation was 0.9% in 2022, up from 0.6%
in 2021. At the Houston plant sick leave was 1.2%
in 2022, up from 0.5% in 2021. In the other offices,
the sick leave was 1.3% in 2022, up from 1.0% in
2021.
ENVIRONMENT
Aker BioMarine targets to reduce its operational
footprint in all parts of the value chain. The main
resources Aker BioMarine utilize are krill, energy,
water, and land, where the most significant
environmental impacts of the company’s activities
relate to climate change, biodiversity and nature,
recycling and waste management.
The activities mostly impacting the environment
are the capture of krill, energy consumption and
emissions from the three vessels. Two vessels
fishing in Antarctica and the support vessel that
transports krill, supplies and crew from the fishing
vessels. Energy consumption and emissions from
the manufacturing facilities that produce krill
products and the transport of these products to
customers mainly in the US, Europe and Asia.
Environmental sustainability has always been an
integral part of Aker BioMarine’s operations and
business model. Known for its transparent
operations and voluntary measures to set
industry best practice and contributions to
Antarctic science, the company was the first krill
fishery to receive the Marine Stewardship Council
(MSC) certification in 2010, and its second re-
certification 2020 for another 5 years, once again
rated as state-of-the-art both on sustainability of
the stock, limited ecosystem impact of operations
and effective management of krill.
Aker BioMarine’s Eco-Harvesting technology was
designed and patented to efficiently harvest krill
and reduce by-catch to a minimum compared to
conventional trawling. The technology has evolved
significantly and played an important role for krill
fisheries being recognized by a scientific study in
2022 as one of the world’s cleanest fisheries.
.Aker BioMarine’s ESG framework details our
ambition to reach targets, such as reduction of CO
2
intensity by 50% in 2030 and the aim to be net zero
in 2050. Targets also include 100% circularity in
principal waste streams by 2030 and dedicated
efforts to protect marine biodiversity and
environment. In 2022, the company has developed
an improved internal control procedure to secure
progress along ESG indicators, and continued the
work of the Climate and Decarbonization
Committee (CDC), overseen by the Executive
Management, dedicated to work strategically and
tactically to ensure CO
2
CO
2
of the Annual Report.
For Aker BioMarine, environmental sustainability
is also about positive impact. The Company is
committed to utilize its platforms and resources
to increase scientific knowledge to the best for
krill management and conservation. Examples are
annual allocation of vessel days dedicated to
scientific surveys and investigations of krill by
marine scientists. Furthermore annual cash
contributions secures the running of the Antarctic
Wildlife Research Fund (AWR) which from 2015 to
date has funded 22 Antarctic krill and ecosystem
projects with the total of USD 1.4 million.
Aker BioMarine established the circular solution
company AION, which recycles the company’s own
plastic streams and biological residue into new
products and hence driving the company towards
its zero-waste vision. In 2022, Aker BioMarine has
continued to improve product waste through
circular sales and re-purposing of traditional
products.
Aker BioMarine maintains an extensive
stakeholder collaboration with authorities,
science institutions and environmental NGOs that
are engaged in the Antarctica specifically, as well
as the broader community, in order to position
marine resources as an important component into
future foods and nutrients.
For further information, see chapter 2 in the
Annual report.
ORGANIZATION
Driving equality and diversity through an engaged
and well-respected workforce is a key enabler to
delivering on the company’s overall strategy.
Therefore, it is fundamental for Aker BioMarine to
maintain a working environment with equal
opportunities for all based on qualifications,
regardless of gender, ethnicity, religion, age,
sexual orientation, or disability. Aker BioMarine’s
diverse workforce consists of approximately 40
nationalities and includes a wide range of
competencies and insights, which serves to
benefit both customers and the overall business.
Aker BioMarine seeks to promote diversity and
prevent gender discrimination in the workforce
through clear recruitment requirements and the
development of individuals and programs that
support equal opportunity. This means that the
company is committed to both promote and pay
employees fairly, regardless of individual
characteristics, and that individuals with the same
jobs, with equal professional experience, who
perform equally well, shall receive the same pay
in Aker BioMarine. Salary reports identified certain
differences with respect to equal pay, and the
company is making necessary adjustments to
align the identified differences, and in 2022 Aker
BioMarine was able to reduce the gap by 6 %
through the salary adjustment process. Further
analysis is conducted to evaluate whether any
differences in salary are linked, directly or
indirectly, to gender. The female ratio in middle
management positions is 44%, a significant
improvement from the year before (24%). The
management continue focus on improving and
maintaining the gender balance in leadership
positions in the years coming.
Aker BioMarine has a low percentage of women in
its fisheries in Antarctica and manufacturing in
Houston. However, the company has a balanced
mix of women and men in its other offices where
54% are women among the 269 employees.
In 2022, Aker BioMarine invited employees to
participate in an employee share purchase
program. The program offers employees on active
payroll in the Norwegian Group Companies to
purchase ordinary shares in the company at a
reduced offer price conditional upon a lock-up
period of two years. The main purpose of the
program is to align the interest between the
shareholders and the Aker BioMarine employees
and encourage participation in the long-term
3. Finance |
Annual Report – 2022 54
value creation of Aker BioMarine. In 2022, a total
of 51 647 shares were subscribed to by a total of
45 employees.
For further details see section 2 in the Annual
Report. The report on Corporate Social
Responsibility, which is approved by the Board of
Directors, is included in the Environmental, Social
and Governance chapter.
CORPORATE GOVERNANCE
Aker BioMarine is a public limited liability
company organized under Norwegian law and with
a governance structure based on Norwegian
corporate law and other regulatory requirements.
The company's corporate governance model is
designed to provide a foundation for long-term
value creation and to ensure good oversight. Aker
BioMarine has seven board members, none of
whom are members of the company's
management and two of whom are employee
representatives. Three of the board members are
female and four are male. A majority of the board
members are independent of the company
management and significant business partners,
and two of the shareholder-elected board
members are independent of Aker ASA. The
Chairman is elected by the General Meeting.
The Board of Aker BioMarine establishes the
overall principles for governance and control in
Aker BioMarine ASA through the adoption of
various governing documents. Aker BioMarine
follows the Norwegian Code of Practice for
Corporate Governance. The company's practice is
largely in accordance with these
recommendations. Aker BioMarine ASA holds a
Directors and Officers Liability Insurance on
behalf of the Board of Directors and the CEO
As of 31 December 2022, Aker Capital AS held 77.7%
of the shares in Aker BioMarine, and the CEO,
through his wholly owned subsidiary KMMN Invest
II AS, held 1.2%.
Reference is made to the Corporate Governance
Report (see chapter 2 in the Annual Report), which
is approved by the Board of Directors.
Transparancy Act
The Company have published its Transparency Act
Report on the company website;
accordance with the Norwegian Transparency Act
(the“Transparency Act”) section 5 and summarizes
the policies and procedures in Aker BioMarine ASA
(“AKBM”) with respect to safeguarding of human
rights and decent working conditions and
provides information on the implementation and
results of Aker BioMarine’s due diligence.
EVENTS AFTER THE END OF THE
REPORTING PERIOD
There have been no events after the balance sheet
date.
BUSINESS OUTLOOK
The global omega-3 supplement market is,
according to Grand View Research, expected to
grow at an annual compounded rate of around 7-
8% towards 2030 largely attributable to the rising
use of omega 3-based ingredients in the human
diet to support brain and heart health. Further,
krill and algae are expected to be the main growth
drivers due to the declining availability of fish as
the main ingredient. Aker BioMarine expects
healthy demand in the aqua feed market.
Aker BioMarine will continue to expand its sales
and marketing efforts to develop the company’s
existing and new markets with prospective leads
and new customers, in addition to further
increasing sales among its current customer-base.
Asia is expected to be an important growth region
for both Superba™ and QRILL Aqua. The company
targets higher sales in its consumer brands
business in the US.
Aker BioMarine has historically observed annual
variations in catch volumes, due to both weather
conditions and the occurrence of krill in the
various sub-areas in Antarctica. The company
plans for average annual harvesting volumes of
55,000 – 60,000 metric tons, although there will
still be seasonal and operational variations from
year to year.
Aker BioMarine aims long-term annual average
company sales growth of around 15% p.a.
The company continue to focus’ on the ongoing
strategic innovation projects. For Lysoveta, the
expected development includes scale-up of
commercial and manufacturing activities in the
US, that is the first target market. Aker BioMarine
aims to have regulatory approval for product sale
in the US by the end of 2023 with technical
samples already available for research, and in
2022, the company signed an agreement with Trofi
Nutritional Inc. with the aim to develop medical
foods products based on Lysoveta.
The Board recognizes that future events are
uncertain in nature.
GOING CONCERN ASSUMPTION
Aker BioMarine had at year-end a total equity of
USD 378.7 million, implying an equity ratio of 46%.
In addition there is available capacity under the
debt facilities, and it is assessed that the entity is
able to continue as a going concern. Management
has close dialog with the bank group on financing
and covenant levels for 2023. Therefore, pursuant
to section 3-3a of the Norwegian Accounting Act,
the Board of Directors confirms that the going
concern assumption, on which the financial
statements have been prepared, is deemed
appropriate.
3. Finance |
Annual Report – 2022 55
Oslo 21 March 2023
The Board of Directors and CEO of Aker BioMarine
3. Finance |
Annual Report – 2022 56
AKER
BIOMARINE
GROUP
ACCOUNTS
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
For the year ended 31 December
USD Millions
Note
2022
2021
Net sales
2
Cost of goods sold
12
-162.4
-174.0
Gross profit
Selling, general and administrative expense
4
-86.5
-85.7
Depreciation, amortization and impairment (non-production assets)
8, 9, 10
-16.4
-19.2
Other operating income
2
Operating profit (loss)
-13.7
Financial income
5
Financial expenses
5, 18
-22.0
-15.7
Net foreign exchange gain/loss
5, 18
Profit (loss) before tax
-7.4
Tax expense
7
-2.2
-0.6
Net profit (loss)
-8.0
Earnings per share to equity holders of Aker BioMarine ASA
24
Basic
-0.09
Diluted
-0.09
3. Finance |
Annual Report – 2022 57
AKER
BIOMARINE
GROUP
ACCOUNTS
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the year ended 31 December
USD Millions
Note
2022
2021
Net profit (loss)
-8.0
Change in fair value cash flow hedges
19
-1.9
Total items that may be reclassified to profit and loss
-1.9
Total other comprehensive income (loss)
-1.9
Total comprehensive income (loss)
-2.8
3. Finance |
Annual Report – 2022 58
AKER
BIOMARINE
GROUP
ACCOUNTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As per 31 December
USD Millions
Note
2022
2021
ASSETS
Property, plant and equipment
8, 10, 19
Right-of-use assets
18
Intangible assets and goodwill
9, 10
Contract cost
2
Non-current interest-bearing receivables
Investments in equity-accounted investee
1
Total non-current assets
Inventories
12
Trade receivable and other current assets
13, 19
Derivative assets
19
Cash and cash equivalents
14, 19
Total current assets
Total assets
LIABILITIES AND OWNERS' EQUITY
Share capital
23
Other paid-in equity
Total paid-in equity
Translation differences and other reserves
Retained earnings
-194.4
-204.4
Total equity
Interest-bearing debt
15, 18, 19
Deferred tax liability
7
Other non-interest-bearing non-current liabilities
16
Total non-current liabilities
Interest-bearing current liabilities
15, 18, 19
Accounts payable and other payables
17, 19
Total current liabilities
Total liabilities
Total equity and liabilities
3. Finance |
Annual Report – 2022 59
3. Finance |
Annual Report – 2022 60
CONSOLIDATED STATEMENTS OF CASH FLOW
for the year ended 31 December
USD Millions
Note
2022
2021
Net profit (loss)
-8.0
Tax expenses
7
Net interest and guarantee expenses
5
Interest paid
-17.6
-12.8
Interest received
Taxes paid
7
-2.8
Other P&L items with no cash flow effect
-10.7
-21.1
Impairment charges
10
Depreciation and amortization
8, 9
Foreign exchange loss (gain)
-0.3
Change in accounts receivable, other current receivables, inventories, accounts payable and other
-38.0
-31.6
Net cash flow from operating activities
Payments for property, plant and equipment
8
-40.5
-78.7
Payments for intangibles
9
-5.6
-2.4
New long-term receivable interest bearing
-2.0
Instalment short/long-term receivable, interest bearing
Earn Out payment
16
-11.1
Net cash flow from investing activities
-56.4
-81.1
Proceeds from issue of debt and change in overdraft facility
15, 19
Instalment interest-bearing debt
15, 19
-14.2
-260.3
Proceeds from issue of external interest-bearing debt
15, 19
Net funds from issue of shares
15
Net cash flow from financing activities
15
Net change in cash and cash equivalents
Cash and cash equivalents as of 1 January
14
Cash and cash equivalents as of 31 December
14
3. Finance |
Annual Report – 2022 61
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Share
Share
Other paid-in
Other
Retained
Total
USD Millions
capital
premium
capital
reserves
earnings
equity
Balance as of 1 January 2021
-36.3
-196.4
Net profit (loss) for the year
-8.0
-8.0
Other comprehensive income (loss)
Total comprehensive income (loss)
-8.0
-2.8
Balance as of 31 December 2021
-36.3
-204.4
Balance as of 1 January 2022
-36.3
-204.4
Net profit (loss) for the year
Other comprehensive income (loss)
-1.9
-1.9
Total comprehensive income (loss)
-1.9
Capital increase
Total transactions with owners
Balance as of 31 December 2022
-36.3
-194.4
3. Finance |
Annual Report – 2022 62
Note 1 – General Information
These consolidated financial statements are for the reporting entity
. The Company is a
domiciled in
.
The Group is a
. The operations
of the Group spans from harvesting krill in the Antarctica with vessels owned by the Group, includes
distribution world-wide from Uruguay, and further processing of the krill into oil-products in the United
States.
These consolidated financial statements were authorized for issue by the Board of Directors’ and the
CEO on 21 March 2023. The consolidated financial statements will be submitted to Aker BioMarine’s
annual General Assembly on 20 April 2023 for final approval.
Basis for preparation
The consolidated financial statements have been prepared in accordance with IFRS and the IFRS
Interpretations Committee (IFRIC) interpretations as approved by the IASB and adopted by the EU as of
31 December 2022. The consolidated financial statements of
a going concern basis under the historical cost convention, except as otherwise described in the
sections below where fair value is required for derivatives and contingent consideration. Certain
comparative figures may be reclassified to conform to the presentation adopted in the current year.
In these consolidated financial statements amounts have been rounded to the nearest million USD,
unless otherwise stated. As a result of rounding differences, amounts may not add up to the total.
Summary of Group accounting policies
Accounting policies that relate to the consolidated financial statements in general are set out below,
while the accounting policies related to specific assets, liabilities or financial statements line items are
included in the corresponding note disclosure. All accounting policies have been consistently applied
to all the years presented, except for the accounting policies related to leasing agreements. IFRS 16
Leases
was implemented as of January 1, 2019. See Note 18 for additional information.
Functional and presentation currency
Transactions recorded in the financial statements of each subsidiary are done in its functional
currency, i.e. the currency that best reflects the primary economic environment in which the entity
operates. The consolidated financial statements are presented in US Dollars (“USD”), which is the
Group’s presentation currency as the Group’s cash flow and economic returns are principally
denominated in USD and is the functional currency of each key subsidiary. The functional currency of
the parent company
Critical accounting estimates and significant judgments
The preparation of consolidated financial statements in conformity with IFRS requires management to
make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and
liabilities. The estimates and judgments are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable, and constitute management’s best
judgment at the date of the consolidated financial statements. In the future, actual results may differ
from those estimates.
Where appropriate, present values are calculated using discount rates reflecting the currency and
maturity of the items being valued. Further details of critical estimates and significant judgments are
set out in the related notes to the consolidated financial statements.
The critical estimates that have a significant risk of resulting in a material adjustment to the carrying
amounts of assets and liabilities within the next financial year results relate to:
●
Technical assessments when estimating the useful life of the Group’s vessels and machinery
(see Note 8),
●
Estimating the recoverable amount of the tangible and intangible assets, goodwill and RoU (not
explained) assets allocated to the Krill cash generating unit when conducting impairment tests
(see Note 9 and 10),
●
Allocation of production cost between products produced in the Ingredients segment (see Note
12).
The significant judgements that management has made in the process of applying the entity’s
accounting policies and that have the most significant effect on the amounts recognized in the financial
statements relate to:
●
Expenses included as part of the indirect production costs capitalized as a part of the inventory
and the measurement of the krill- based products held as Inventories at year end (see Note
12),
●
Recognition and measurement of expenditure on vessels and machinery included in Property,
plant and equipment (see Note 8).
Changes in accounting policies and new pronouncements
There are no changes in the accounting policies for the consolidated financial statements for the year
ending 31 December 2022 as compared to the accounting policies for the 2021 reporting year. The new
IFRS standards applicable for reporting periods on or after 1 January 2022 adopted by the Group have
not had a material impact for the Group’s financial reporting.
None of the issued, not yet effective IFRS standards, amendments to such standards or IFRIC
interpretations are expected to have significant effects for the Group’s financial reporting.
Significant changes in the current reporting period
The financial position and performance of the group was particularly affected by the following events
and transactions during the reporting period:
●
Aion transaction: In April 2022, a third party obtained control of the Group’s investment in Aion
AS leading to derecognition of consolidated assets and liabilities and a subsequent gain
recognized as ‘Other operating income’ in the Statement of Profit or Loss (see Note 2). The
Group’s involvement in Aion is limited to board participation and purchase of circular products
on market terms. The investment in Aion is treated as ‘Investments in equity-accounted
investees’ in the Statement of Financial Position.
●
Construction of protein plant: During the year the Group has capitalized investments into the
new protein plant (see Note 8). The plant will be finalized in 2023.
Going concern
These financial statements have been prepared under the assumption of going concern. Prior to the
authorization of these financial statements, Management has been in dialog with the bank group
regarding additional financing alternatives and covenants for 2023.
3. Finance |
Annual Report – 2022 63
Note 2 – Revenue and Other income
Revenue primarily stems from the sale of Qrill™ branded ingredients, or Krill oil during the year, used
either in the feed industry or within human health and nutrition. Lang, the distributor of private labels
within the Brands segment operates within the human health and nutrition markets but also sells other
natural supplements in addition to Krill oil. The Group’s main performance obligation is related to the
delivery of agreed volumes of the above-mentioned products. Some customers have longer term frame
agreements, agreeing the prices of the product per MT/KG, but all sales are based on individual
purchase orders detailing the volume to be delivered at a certain point in time, at a designated
location.
The Group recognizes as revenue the agreed transaction price in a contract with a customer at the time
when the Group transfers the control of a distinct product or service to the customer.
Ordinary purchase orders are normally the contracts with the customer which create enforceable rights
and obligations. Volume discounts are the dominant sales incentives used by Aker BioMarine. Volume
discounts with retrospective effect are systematically accrued and recognized as reduction of revenue
based on the best estimate of the amounts potentially due to the customer.
Under IFRS 15 the Group’s revenue from sale of Krill oil and Qrill™ is recognized at a point in time, when
the customer obtains control over the goods.
Control is transferred to the customer according to agreed delivery terms, which is based on
standardized contract templates as published by the International Chamber of Commerce (set forth in
the Incoterms 2010). All sales are conducted using F-terms (delivery terms where the risk and
responsibility for any cost of transport, insurance etc. are transferred to the buyer when the goods are
on board the vessel/truck) or C-terms (delivery terms where seller pays the costs and freight to bring
the goods to the port of destination), meaning the risk is transferred upon handing the goods over to
the carrier engaged by either the customer or Group, respectively.
The main performance obligations for the Group are related to the sale of goods of specified amounts
and quality to customers. For a significant part of the sales, the Group organizes and pays for shipping
of the goods (C-terms). The Group has assessed that for these sales, there are two performance
obligations, and that the Group acts as an agent for the shipping services. As a result, shipping revenue
and related shipping costs are netted in the consolidated statement of profit or loss. The shipping
commission for transport of goods is considered by the Group to be immaterial and further, the Group's
delivery obligation is satisfied at the same time as the control of the goods is transferred to the
customers. Consequently, the shipping commission is not separated from the revenues of sale of
goods.
The goods are sold with standard warranties that the goods sold comply with agreed upon specification
and condition. The Group does not have any significant obligations for returns or refunds, and any
warranties would be accounted for using IAS 37
Provisions, contingent liabilities and contingent assets
.
Payment terms are usually between 30-60 days. The Group does not have any contracts with a
significant financing component.
Geographical allocation of revenue from sale of products (based on location of customer) :
Year ended 31 December
USD Millions
2022
2021
Norway
26.8
22.9
EMEA
50.9
54.0
Americas
144.3
138.6
Asia Pacific
55.2
46.6
Total
277.2
262.1
During the reporting periods the Group has had one customer exceeding 16.1% of Net sales. In 2021,
12.6% of the Net sales was towards this customer. The revenue from this customer is attributable to the
Ingredients segment. The Group’s three largest customers in terms of revenue accounted for 34.5% of
the revenue in 2022 (2021: 32.8%). North America is the Group’s largest market which accounted for USD
134.8 million of total Net sales (2021: USD 130.7 million).
Assets and liabilities related to contracts with customers
The Group has recognized an incremental cost of obtaining customer contracts, which the Group
expects to recover. A success fee of USD 10 million was paid upon signing of a significant contract in the
Brands segment in 2020 and this contract cost is being amortized over 5 years. The carried amount as
of 31 December 2022 was USD 5.2 million. The Group expects to recover this cost from future sales and
the Group would not have incurred these incremental costs if a certain contract had not been obtained.
Liabilities with customers is less than the reporting threshold as of 31 December 2022 (2021: USD 0.1
million), the liabilities relate to prepayments from customers.
The timing of revenue recognition, billings, and cash collections results in billed trade receivables (Note
13 and 19) and prepayments from customers (contract liabilities). Prepayments up front is common
practice to reduce price risk for new customers.
Other operating income is comprised of the following:
Year ended 31 December
USD Millions
2022
2021
Aion transaction
5.8
-
Gain from sale of fixed asset
-
0.4
Rebalancing fuel hedge
2.9
2.5
Other
1.5
0.2
Total
10.2
3.1
The spin-off of Aion AS (see Note 1) in Q2 resulted in a total gain of USD 9.2 million where USD 5.8
million has been recognized as other operating income and USD 3.4 million has been recognized as
Finance Income in the Statement of Profit or loss. In September 2021 the supply vessel La Manche was
sold with a transaction price of USD 1.8 million. This resulted in a gain of USD 0.4 million. Other consist s
of insurance and other reimbursements. Refer to Note 19 for more information about the fuel hedge.
3. Finance |
Annual Report – 2022 64
Note 3 – Operating segments and adjusted EBITDA
The Group discloses segment information and identifies reportable segments in accordance with IFRS 8
Operating Segments
. IFRS 8 requires management to report segment information according to the
organization and reporting structure used by the chief operating decision maker (CODM). The Group
defines the CODM as the Executive Management Team (EMT) and the CEO.
The Group’s operations have historically occurred in one reportable segment with the production and
sale of krill products. This is the Ingredients business segment. Following the acquisition of Lang on 1
March 2019, the Group has two reportable segments. The production and sale of krill products remains
the same, but with Lang there is now a distribution segment, the Brands business. The two segments
are operated and managed separately, and financial results are measured and reported on a stand-
alone basis for the two operating segments. The key financial metric that management uses for
decision making is Adjusted EBITDA.
Transactions between the two segments are eliminated in the ‘Adjustments’ column, as well as group
adjustments in relation to financial items (such as changes in earn-outs) and depreciation and
amortization on group assets (such as customer lists acquired in a transaction).
The Ingredients business consists of offshore harvesting and production activities, the logistical
operations and the onshore manufacturing and sale of krill oil products globally to distributors and
feed producers. This segment sells the products Krill oil and Krill Meal. This was the Group’s core
business and only identified segment up until the acquisition of Lang on 1 March 2019.
The Brands segment is the human consumption distribution business. As of 31 December 2022, the
Brands segment comprises the group legal entities Lang Pharma Nutrition LLC (Lang), Epion Brands LLC
(Epion) and the holding company New Ride LLC. Lang acquires raw materials derived from krill, fish and
plants. These raw materials are then processed and packaged, labeled and sold to retailers in the US
market. The Brands segment sells the products under the brand name Qrill
TM
names.
Recognition and measurement applied to the segment reporting is consistent with the accounting
principles applied when preparing the financial statements. Transactions between segments and
internally within the Ingredients segment follow recognized principals of transfer pricing. The
geographical distribution of revenue is presented in Note 2. This is not part of the monthly/bi-monthly
segment reporting to management. Segment financial information is given in the tables below for the
years 2022 and 2021.
Operating segments 2022:
Unallocated &
USD Millions
Ingredients
Brands
Eliminations
Total
External sales
128.7
108.2
-
236.9
Internal sales
47.9
6.7
-14.3
40.3
Cost of goods sold
-101.2
-81.7
20.5
-162.4
Gross profit
75.4
33.2
6.2
114.8
SG&A
-55.7
-30.8
-
-86.5
Depreciation, amortization and impairment
-9.6
-6.8
-
-16.4
Other operating income/(cost), net
10.1
0.2
-
10.2
Operating profit
20.2
-4.2
6.2
22.1
Net financial items
-6.1
-3.9
-
-10.0
Tax expense
-0.5
-1.7
-
-2.2
Net profit (loss)
13.6
-9.8
6.2
10.0
Depreciation, amortization and impairment (Note
8)
44.6
6.8
-
51.4
EBITDA
64.8
2.6
6.2
73.6
Adjusted EBITDA
60.2
2.6
6.2
69.0
Unallocated &
Balance sheet items
Ingredients
Brands
Eliminations
Total
Property, plant and equipment
332.9
0.3
-
333.2
Right-of-use assets (leasing)
9.7
0.2
-
9.9
Intangible assets
92.6
70.1
-
162.7
Cash and cash equivalents
9.9
12.4
-
22.3
Interest-bearing debt
-311.8
-69.4
-
-381.2
Inventory
138.0
39.2
5.5
182.7
Net interest free asset and liabilities
53.6
1.0
-5.5
49.1
Total equity
324.9
53.8
-
378.7
3. Finance |
Annual Report – 2022 65
Operating segments 2021:
Unallocated &
USD Millions
Ingredients
Brands
Eliminations
Total
External sales
83.3
104.1
-
187.4
Internal sales
86.3
6.3
-17.9
74.7
Cost of goods sold
-109.0
-81.7
16.7
-174.0
Gross profit
60.6
28.7
-1.2
88.1
SG&A
-59.2
-26.5
-
-85.7
Depreciation, amortization and impairment
-17.2
-2.0
-
-19.2
Other operating income/(cost), net
3.1
-
-
3.1
Operating profit
-12.7
0.2
-1.2
-13.7
Net financial items
-10.6
16.9
-
6.3
Tax expense
1.2
-1.8
-
-0.6
Net profit (loss)
-22.1
15.3
-1.2
-8.0
Depreciation, amortization and impairment (Note
8)
54.9
2.0
-
56.9
EBITDA
42.5
2.2
-1.2
43.2
Adjusted EBITDA
45.4
2.5
-
47.9
Unallocated &
Balance sheet items
Ingredients
Brands
Eliminations
Total
Property, plant and equipment
327.5
0.4
-
327.9
Right-of-use assets (leasing)
10.8
0.4
-
11.2
Intangible assets
104.7
66.9
-
171.6
Cash and cash equivalents
5.9
5.2
-
11.1
Interest-bearing debt
-324.8
-
-
-324.8
Inventory
104.2
39.4
-5.4
138.2
Net interest free asset and liabilities
76.6
-46.8
5.4
35.2
Total equity
304.9
65.5
-
370.4
Adjusted EBITDA
The Executive Management Team (EMT) evaluates the performance based on Adjusted EBITDA. This
metric is defined as operating profit before depreciation, amortization, write-downs and impairments,
and special operating items. Special operating items include gains or losses on sale of assets, if
material, restructuring expenses and other material items which are not primarily related to the period
in which they are recognized or special in nature compared to ordinary operational income or
expenses. See description of the Alternative Performance Measures (APM) attached to the consolidated
financial statement.
The EMT has provided the following information:
Year ended 31 December
USD Millions
2022
2021
Krill oil
158.6
163.8
Krill meal
105.1
83.1
Qrill™ Pet and other products
13.0
15.4
Other income
10.6
3.1
Total revenue and other income
287.3
265.4
Total operating expenses before depreciation, amortization and impairment
-213.8
-222.2
Special operating items
-4.5
4.7
Adjusted EBITDA
69.0
47.9
The following table reconciles Adjusted EBITDA to Net loss in the consolidated statements of profit or
loss.
Year ended 31 December
USD Millions
2022
2021
Net loss
10.0
-8.0
Tax expense
2.2
0.6
Financial income
-4.0
-21.3
Financial expenses
22.0
15.7
Net foreign exchange gain/loss
-8.1
-0.6
Operating profit
22.1
-13.7
Depreciation, amortization and impairment
51.4
56.9
EBITDA
73.5
43.2
Special operating items
-4.5
4.7
Adjusted EBITDA
69.0
47.9
3. Finance |
Annual Report – 2022 66
The following table reconciles Special operating items.
Year ended 31 December
USD Millions
2022
2021
La Mance operating cost and gain from sale
-
0.4
Restructuring and improvement program
1.3
-2.7
Transaction related costs- SG&A
-
-1.3
Oslo Børs listing
-
-1.1
Aion transaction
-5.8
-
Special operating items
-4.5
-4.7
Note 4 – Selling, General & Administration expenses and
Other operating cost
The presentation of operating expenses in the consolidated statements of profit or loss is based on
function of the expenses. Production and operating expenses are recognized in the same period as the
corresponding revenue from sale of product is recognized.
Salaries and payroll expenses not related to production, sales and distribution costs, and other general
and administrative costs are recognized when they occur or when the Group has a liability for future
expenses. Production and operating expenses allocated to product is presented within Note 12
Inventories.
Selling, General and Administrative expenses consists of:
Year ended 31 December
USD Millions
2022
2021
Sales and Distribution Costs
-67.7
-63.5
Research and Development
-4.0
-3.0
Administrative Costs
-14.8
-19.2
Total
-86.5
-85.7
Sales and Distribution costs are all costs related to selling, marketing, and distributing and storing the
goods world-wide.
Research and Development costs represent the Innovation department where ongoing studies within
the application and use of krill as an ingredient both for human and for animal feed is being expensed.
The department also works on early phase product development, finding new application for the raw
material, and bringing this out to the market.
Administrative costs represent the head office costs which includes the management group, finance,
and Transformation (sustainability, strategy and IT), providing services to the entire Group.
Government grants
During 2022 the Group received grants of USD 0.36 million (2021: USD 0.68 million). The grants are partly
included in the Research and Development and partly ‘Asset under construction’ to net the costs that
the grants are intended to compensate. There are not any unfulfilled conditions or other contingencies
on these grants.
Salary specification by function
The below schedule describes the total salary costs of the Group. Salaries from the onshore and
offshore part of the Group is allocated to inventory, as presented in Note 12. Selling, general and
administrative salaries specifies the salary part of the total expenses of USD 86.5 million (2021: USD 85.7
million), as also presented within Note 4.
Salary specification by function:
Year ended 31 December
USD Millions
2022
2021
Offshore - inventoriable
-25.2
-27.2
Onshore - inventoriable
-10.5
-12.4
Selling, general and administrative
-32.6
-32.0
Total
-68.3
-71.6
Number of employees at year-end
628
589
Full time Equivalent
626
568
Total salary cost comprises of the following:
Year ended 31 December
USD Millions
2022
2021
Salaries
-57.9
-61.8
Employer's social security contribution
-1.0
-1.1
Pension expenses
-1.5
-1.9
Other benefits
-7.9
-6.8
Total
-68.3
-71.6
Pension plans
The Group has a defined contribution plan that cover all employees except one employee who has a
defined benefit plan. The plans comply with laws and regulations set forth in the different countries of
operations. At the end of the year the defined benefit obligations were USD 0.5 million and the assets
were USD 0.4 million. The fair value of the net obligation has been calculated using an appropriate
discount rate. During the year the Group expensed USD 0.04 million, net of settlements and curtailment,
on the defined benefit plan (2021: USD 0.05 million), and USD 1.5 million for the contribution plan (2021:
USD 1.9 million).
3. Finance |
Annual Report – 2022 67
Remuneration to the Group auditors (excluding VAT):
PwC is the Group auditor of Aker BioMarine ASA (KPMG for 2021 and earlier years). The following table
shows the fees to the appointed auditors for 2022 and 2021. For both categories the reported fee is the
recognized expense for the year.
Year ended 31 December
USD Millions
2022
2021
Audit fees
-0.3
-0.3
Other audit and attestation services
-0.1
-0.1
Fees for tax services
-0.1
-
Total
-0.5
-0.4
Note 5 – Financial income and expenses
Financial income comprises interest income on financial investments and foreign exchange gains
recognized in the consolidated statement of profit or loss. Financial expenses include interest expense
and guarantee fees.
Year ended 31 December
USD Millions
2022
2021
Interest income, bank deposits
0.2
-
Interest income loans and receivables (amortized cost)
0.4
-
Subsidiaries- shares change in fair value, impairment, gain and losses
3.4
-
Earn Out adjustment
-
21.1
Other financial income
-
0.2
Total financial income
4.0
21.3
Interest expense on financial liabilities at amortized cost
-20.3
-13.7
Other financial expenses
-1.7
-2.0
Total financial expenses
-22.0
-15.7
Foreign exchange gains (realized and unrealized)
14.3
6.0
Foreign exchange losses (realized and unrealized)
-6.2
-5.3
Foreign exchange gains/losses net
8.1
0.6
Net financial expenses
-9.9
6.2
Other financial expenses include provision and guarantee expenses paid to DNB.
Capitalized borrowing costs
Borrowing and refinancing costs have been capitalized. The applied interest rate is the CIRR
(Commercial Interest Reference Rates).
Year ended 31 December
USD Millions
2022
2021
Endurance
0.4
0.5
Refinancing - New Bank Syndicate
1.4
1.9
Total
1.8
2.4
3. Finance |
Annual Report – 2022 68
Note 6 – Asset acquisition and business combinations
There have been no material business combinations or asset acquisitions during 2022 and 2021.
Note 7 – Income tax
The Group is headquartered in Norway and pays taxes according to the rates applicable in the
countries and states in which it operates. All the vessels operate under Norwegian tax jurisdiction. Most
taxes are recorded in the statement of profit or loss and relate to taxes 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 reporting period date using
the applicable tax rate.
Reconciliation of nominal statutory tax rate to effective tax rate:
Year ended 31 December
USD Millions
2022
2021
Profit (loss) before tax
12.2
-7.4
Calculated income tax at statutory rate of 22%
-2.7
1.6
Tax differential Norway and abroad
-0.5
0.2
Unrecognized change in deferred tax assets
-5.8
-6.9
Permanent differences
-
-0.5
Currency translation and other
6.8
5.0
Total tax expense
-2.2
-0.6
Effective tax rate
18%
-8%
* The Group files its tax return in NOK
Deferred tax assets comprise:
Year ended 31 December
USD Millions
2022
2021
Property, plant and equipment and intangible assets
-10.6
-12.6
Inventory
-
1.5
Tax losses carried forward
60.8
67.0
Interest rate deductability carry forward
13.0
11.0
Other
2.7
-
Deferred tax assets
65.9
66.9
Unrecognized deferred tax assets
-71.3
-71.8
Recognized deferred tax asset (liabilities)
-5.4
-4.9
Current income tax expenses relate to subsidiaries in US (21% Federal tax rate) and Australia (30%).
There were no changes in corporate tax rates in these countries over 2022 and 2021. In Norway the
corporate tax rate was reduced from 23% to 22% in 2019 and is unchanged in 2022. The recognized
deferred tax liability of USD 5.4 million relates to the entities in the US.
The movement in deferred tax assets from USD 71.8 million in 2021 to USD 71.3 million in 2022 is mainly
due to decrease in taxable losses, interests where deductibility has been denied, and temporary
differences related to the Group’s fixed and intangible assets.
Based on the historical losses of the Group, it was concluded that deferred tax assets could not be
recognized in the consolidated statement of financial position as of 31 December 2022 or 2021.
Of the Group’s tax losses carried forward, USD 0.7 million was in the US subsidiary Aker BioMarine
Manufacturing LLC, whereas the remaining tax loss carried forward was with Aker BioMarine ASA and
Aker BioMarine Antarctic AS, both Norwegian legal entities.
3. Finance |
Annual Report – 2022 69
Note 8 – Property, plant and equipment
Property, plant and equipment are recorded at cost, less any accumulated depreciation and any
accumulated 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 items are available for use as intended by management.
Expenditures to replace a component of property, plant and equipment are capitalized if it is probable
that future economic benefits associated with the asset will flow to the Group and the costs can be
measured 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 inspections and overhauls or to improve a vessel’s operating
efficiency, functionality or safety are capitalized.
USD Millions
Vessels, transportation
equipment, etc.
Machinery
Asset under construction
Buildings and Land
Total
Acquisition cost as of 1 January 2022
285.4
163.2
25.7
18.8
493.1
Investments
10.1
7.7
21.9
0.8
40.5
Asset retirements
-12.6
-21.3
-
-
-33.9
Deconsolidation
-
-0.4
-
-
-0.4
Other reclassifications
0.8
-0.2
-1.0
-
-0.4
Acquisition cost as of 31 December 2022
283.7
149.0
46.5
19.6
498.8
Acc. depreciation and impairment as of 1 January 2022
-89.8
-68.7
-2.7
-4.0
-165.2
Depreciation for the year
-18.9
-15.2
-
-0.7
-34.8
Asset retirements
12.6
21.4
-
-
34.0
Other reclassifications
-
0.4
-
-
0.4
Acc. depreciation and impairment as of 31 December 2022
-96.1
-62.1
-2.7
-4.7
-165.6
Book value as of 31 December 2022
187.6
86.9
43.8
14.9
333.2
Depreciation period
Depreciation method
Straight-line
3. Finance |
Annual Report – 2022 70
Major inspections of vessels are performed on a regular basis as required by the classification
society, such as Det Norske Veritas and according to laws and regulations. The costs of such
inspections are, including replacement spares 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 or as incurred.
Depreciation of vessels is included in the cost of inventory conversion (see Note 12).
Movements in property, plant and equipment in 2021
USD Millions
equipment, etc
Machinery
Asset under construction
Buildings and Land 2)
Total
Acquisition cost as of 1 January 2021
206.6
157.3
12.5
18.6
395.0
Investments
6.7
6.4
65.5
0.2
78.8
Sale of vessel
-1.4
-0.5
-
-
-1.9
Other reclassifications 1)
73.5
-
-52.3
-
21.2
Acquisition cost as of 31 December 2021
285.4
163.2
25.7
18.8
493.1
Acc. depreciation and impairment as of 1 January 2021
-69.7
-52.9
-2.7
-3.2
-128.5
Depreciation for the year
-18.9
-15.9
-
-0.5
-35.3
Impairment
-1.8
-
-
-0.3
-2.1
Other reclassifications 1)
0.6
0.1
-
-
0.7
Acc. depreciation and impairment as of 31 December 2021
-89.8
-68.7
-2.7
-4.0
-165.2
Book value as of 31 December 2021
195.6
94.5
23.0
14.8
327.9
Depreciation period
Depreciation method
Straight-line
1) Net Other reclassifications include reclassifications payments related to construction of a new charter vessel from Asset under construction to prepayment. See Note 13 Trade receivable and other current assets.
Reconciliation depreciation and amortization
USD Millions
2022
2021
Depreciation for the year of Property, plant & equipment
(34.8)
(35.3)
Impairment Property, plant & equipment
-
(2.1)
Amortization for the year of Intangible assets
(10.2)
(11.9)
Amortization for the year of Contract cost
(2.0)
(2.0)
Leasing (ROU) depreciation
(4.4)
(5.6)
Total
(51.4)
(56.9)
Depreciation and amortization related to production assets and included in cost to inventory
(35.0)
(37.7)
Depreciation and amortization related to other assets
(16.4)
(19.2)
3. Finance |
Annual Report – 2022 71
The Group’s total depreciation, amortization, and impairment is presented in the above schedule.
As compared to the consolidated statement of profit or loss the USD 16.4 million (2021: USD 19.2
million) relates to depreciation and amortization of assets not directly used in the production of
goods, and therefore recognized as depreciation, amortization and impairment in the statement of
profit or loss. Other assets primarily consist of the customer portfolios recognized following the
business combinations /asset acquisitions of Lang, Neptune and Enzymotec, and the impairment
of customer portfolios and trademarks. Inventoriable depreciation mainly consists of the Group’s
operating harvesting vessels and the manufacturing plant in Houston, Texas, amounting to USD
35.0 million (2021: USD 37.7 million).
Investments in 2022:
Investments in machinery and vessels are mainly installments and harvesting equipment on the
vessels. Assets under construction comprise the investments the Group has in Understory and
Lysoveta initiatives. The Group has had its annual shipyard in Q4-22 where all the vessels were
upgraded. Shipyard expenses amounted to USD 12 million in 2022.
Asset retirements in 2022:
Asset retirements mainly include machinery and harvesting equipment. All components that have
been retired were fully depreciated.
See Note 18 Leasing of right-of-use assets.
The decrease in depreciation of fixed asset from 2021 to 2022 is mainly related to asset retirement.
As of 31 December 2022, the Group has USD 7.4 million in commitments for further investments in
property, plant and equipment (2021: USD 10.0 million). For details on mortgages and pledging of
security, see Note 15.
Note 9 – Goodwill and Intangible Assets
Intangible assets, acquired individually or as a group, are recognized at cost when acquired.
Intangible assets with finite useful lives are carried at cost less accumulated amortization,
recognized on a straight-line basis over their estimated useful lives, and accumulated impairment
losses. The estimated useful life and amortization method are reviewed at the end of each
reporting period, and assets are tested for impairment if impairment indicators exist.
Intangible assets acquired in a business combination are recognized at fair value separately from
goodwill when they arise from contractual or legal rights or can be separated from the acquired
entity and sold or transferred. Intangible assets with indefinite useful lives are carried at cost less
accumulated impairment losses. These assets are not amortized, but are tested for impairment
annually, and more frequently if indicators of possible impairment are observed, in accordance
with IAS 36.
Goodwill
Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration
transferred over the Group’s interest in net fair value of the net identifiable assets, liabilities and
contingent liabilities of the acquiree and the fair value of the non-controlling interest in the
acquiree. Goodwill is not amortized, and thus tested for impairment annually, and more frequently
if indicators of possible impairment are observed. Goodwill is allocated to the cash generating
units ("CGU"), which are expected to benefit from synergies of the combination. Each unit to which
goodwill is allocated represents the lowest level within the Group at which goodwill is monitored
for internal management purposes and reporting.
Intangible assets
Development
Expenditures for research activities performed to gain new scientific, technical or other knowledge
are 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 probable and the Group intends to and has adequate resources to complete
development and to use or sell the asset. The amount capitalized includes the cost of materials
and direct attributable expenses. Additions to development in 2022 include Understory (protein
product project) and development of other new products.
License agreements
License agreements acquired separately are measured at cost. Following initial recognition, the
Group’s license agreements are recorded less any accumulated amortization and impairment
losses. The license relates to the Group’s technology to extract purified krill oil at the facility in
Houston, Texas.
Fishing License
One of the Group’s fishing licenses is recognized at USD 10.5 million. The license relates to krill
fishery in the Southern Ocean and will remain in the Group’s possession if all applicable
requirements are met, and as such they are determined to have an indefinite life.
Customer relation
Customer relation (customer contracts) were acquired as part of business combinations
recognized at fair value. Following initial recognition, the customer relations are recorded less any
accumulated amortization and impairment losses.
Trademark
Trademark are intangible assets with indefinite useful lives that are not amortized but carried at
cost less accumulated impairment losses. The trademarks include NKO and KREAL.
3. Finance |
Annual Report – 2022 72
Movements in intangible assets for 2022
USD Millions
Goodwill
Development
License
agreements
Fishing license
Customer
relation
Trademark
Total
Acquisition cost as of 1 January 2022
94.6
8.2
2.4
10.5
91.7
5.7
213.1
Additions - external cost
-
5.7
-
-
-
-
5.7
Deconsolidation
-
-4.0
-
-
-0.3
-
-4.3
Reclassifications
-
-0.5
-
-
0.5
-
-
Acquisition cost as of 31 December 2022
94.6
9.4
2.4
10.5
91.9
5.7
214.5
Amortization and impairment losses as of 1 January 2022
-
-5.3
-1.5
-
-33.9
-0.9
-41.6
Amortization for the year
-
-0.2
-0.5
-
-9.5
-
-10.2
Reclassifications
-
0.1
-0.2
-
0.1
-
-
Amortization and impairment losses as of 31 December 2022
-
-5.4
-2.2
-
-43.3
-0.9
-51.8
Book value as of 31 December 2022
94.6
4.0
0.2
10.5
48.6
4.8
162.7
Amortization period
7-10 years
Amortization method
Straight-line
Straight-line
Straight-line
Movements in intangible assets for 2021
USD Millions
Goodwill
Development
License
agreements
Fishing license
Customer
relation
Trademark
Total
Acquisition cost as of 1 January 2021
94.6
5.3
2.4
10.5
91.7
5.7
210.2
Acquisition
-
2.9
-
-
-
-
2.9
Acquisition cost as of 31 December 2021
94.6
8.2
2.4
10.5
91.7
5.7
213.1
Amortization and impairment losses as of 1 January 2021
-
-5.3
-1.0
-
-23.4
-
-29.7
Amortization/ impairment for the year
-
-
-0.5
-
-10.5
-0.9
-11.9
Amortization and impairment losses as of 31 December 2021
-
-5.3
-1.5
-
-33.9
-0.9
-41.6
Book value as of 31 December 2021
94.6
2.9
0.9
10.5
57.8
4.8
171.5
Amortization period
7-10 years
Amortization method
Straight-line
Straight-line
Straight-line
3. Finance |
Annual Report – 2022 73
Segment allocation of goodwill and intangible assets:
USD Millions
Segment
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Ingredients
66.4
66.4
1.8
2.4
-
0.9
10.5
10.5
19.7
24.6
4.8
4.8
Brands
28.2
28.2
3.0
0.6
-
-
-
-
28.4
33.3
-
-
Total
94.6
94.6
4.8
3.0
-
0.9
10.5
10.5
48.1
57.9
4.8
4.8
*In 2021 the Group revised the internal allocation of goodwill and intangible assets between the 2 segments.
Note 10 – Impairment assessment
Property, plant and equipment, RoU assets, intangible assets and goodwill are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable, in accordance with IAS 36 Impairment of Assets. Goodwill and intangible assets with
indefinite life are required to be tested for impairment annually, in addition to any tests required when
impairment indicators are determined to be present.
Identification of CGU's involves judgment, considering if an active market exists for the output produced
by an asset or group of assets, independent cash inflows as well as how management monitors the
Group's operations or how management makes decisions about continuing or disposing of the Group's
assets and operations.
Based on a thorough analysis, a CGU for goodwill impairment testing is assessed to be the krill
business as a whole (the "Ingredients" segment) because the offshore harvesting and production,
logistical operation, onshore manufacturing and sale of krill oil products globally to distributors and
feed producers form an integrated value chain for which no independent prices for the intermediate
products exist. This level is also the level at which management monitors, makes strategies, operates,
allocates resources and makes decisions on acquisitions, continuation, or disposals.
For the “Brands” segment, goodwill is monitored and tested at segment level which is a group of CGUs.
The segment consists of the human consumption distribution business, which comprises of Lang and
Epion. Lang acquires products derived from krill, fish and, plants then packages, labels, and sells the
products onwards to retailers in the US market. Approximately 30% of Lang’s revenue is derived from
sale of krill oil and part of this revenue is towards Epion. The Group sells Kori Krill oil (own national krill
oil brand in the US) through Epion to the same retailers as Lang. The purpose of Kori krill oil is to
increase the awareness of krill oil in the Omega-3 category, which also benefits the private label sale of
krill oil from Lang. The Brands segment has management functions such as CEO and Finance Director
(overlooking both Lang and Epion). Impairment testing has been done at the operating segment level.
Indicators that could trigger an impairment test includes such conditions as significant
underperformance in sales volumes or margins relative to historical or projected results, significant
changes in the Group's planned use of the assets, obsolescence or physical damage of an asset, or
significant negative industry or economic trends.
Fair value may be estimated based on recent transactions on comparable assets. Calculation of the
value in use of an asset or CGU involves estimating the future cash inflows and outflows to be derived
from continuing use of the asset/CGU and from its ultimate disposal.
Impairment losses are only reversed to the extent that the asset’s carrying value does not exceed the
carrying value that would have been determined, net of depreciation, if no impairment had been
recognized.
Goodwill impairment testing
Mandatory annual tests for impairment are performed for CGUs and operating segments with allocated
goodwill or assets with indefinite useful life, and for assets/CGUs/operating segments where
impairment indicators have been identified. Impairment tests are performed on Ingredients and Brands
(the Ingredrients CGU and Brands operating segment both with allocated goodwill). The impairment test
of the Ingredient segment also includes a fishing license and trademark assets with indefinite useful
life.
Main assumptions for the value-in-use calculation
The Group updates its Group Business Plan for the next five years on an annual basis. The purpose of
the Group Business Plan process is to set overall goals for the business and define the steps necessary
to achieve these goals. The plan facilitates the strategic planning process and provides the Board of
Directors/Executive Management with a structure to monitor progress towards these goals. It is a result
of a bottom-up involvement of the organization, and the key goals and objectives are in turn
communicated to the broader organization to set the direction for departments and employees. In the
value in use assessment used for impairment testing purposes, the business plan has been risk
adjusted to reflect accuracy of previous budgets towards actual figures.
The Group Business Plan uses sensitivities and scenarios to analyze and understand how changes in
one or more internal/external variables impacts the future of the Group’s financials. Scenario planning
and sensitivity analysis provides a rational and structured way to analyze the impact from altering key
variables such as sales units, prices and timing, production volumes, COGS, etc. The scenarios and
sensitivities are used by the Board of Directors/Executive Management to measure and manage the risk
profile.
The discount rates used reflect the current market assessment of the risks specific to each CGU or
operating segment and are estimated based on the weighted average cost of capital. The discount rate
is estimated based on a weighted average of equity return requirements and expected costs of debt,
assuming a projected debt-to-equity ratio of 1. The basis for the discount rate is a risk-free interest rate
set at 10 years US government bonds, and the credit risk premium has been set equal to the credit
spread (compared to government bonds) for US corporate bonds with credit rating B. The Group has
used different discount rates for the Ingredients CGU and the Brands operating segment to reflect the
different market operations.
Climate risk has been assessed when performing the value-in-use calculation, primarily in the
Ingredients CGU. Any climate change affecting the krill biomass with regards to availability and
nutrients composition could significantly impact the harvesting. In addition, ice and general weather
conditions could create operational difficulties. In the value-in-use calculations the normal production
capacity of krill meal considers these uncertainties.
3. Finance |
Annual Report – 2022 74
Ingredients:
Projected cash flows are based on management’s best estimates and the business plan for the
Ingredients segment for the subsequent five years period. The estimates are based on detailed forecast
prepared by the various departments in the ingredients segment. For subsequent periods, the model is
based on an estimated terminal growth. In the forecast for the period 2023-2026, revenue projections
are based on executed agreements, actual historical prices, and management’s evaluation of the
potential for new agreements. The estimated operating margin is in accordance with management’s
forecast which is based on the scalability in the business model. As approximately 65 per cent of the
Group’s operating expenses are fixed costs (in line with IAS 2), increased sales levels will contribute to
higher operating margins. Future product pricing has as per the above been based on historical prices
and management’s expectation with regards to new arrangements. The Group expects slightly lower
krill oil sales prices as well as a moderate increase in the krill meal sales prices in the forecast period,
compared to the sales price levels in 2022. Sales volumes have been modelled to follow the production
targets, however lagging as to allow for building and maintaining safety-stock.
In the Ingredients impairment model the forecast period is 2023-2026. At the end of the forecast period
there is an extrapolation period from 2027-2031 (as no detailed budget is prepared after 2026). In the
extrapolation period growth has been set to 10.0%. The growth rate is set to 10% to reflect increased
sale of krill oil in regions such as South Korea and China, combined with further increase of prices for
premium products. The discount rate is based on a WACC of 9.6% and in the terminal value it is
assumed a long-term annual growth equal to 2.0%. The discount rate has decreased from last year due
to a reduction in the small stock premium when calculating the cost of equity,.
Capital expenditure is based on the long-term technical and operations program and firm
commitments. It is also assumed that the vessels will be replaced upon the end of the assumed useful
life.
Brands
Projected cash flows are based on management’s best estimates and the business plan for the Brands
segment for the subsequent five years period. The estimates are based on a detailed forecast prepared
by management in Lang and Epion. For subsequent periods, the model is based on an estimated
terminal growth, that does not exceed the growth for the products, industry or country (US) in which the
segment operates. In the forecast for the period 2022-2025, revenue projections are based on executed
agreements, actual historical prices, and management’s evaluation of the potential for new agreements.
The estimated operating margin is in accordance with management’s forecast.
In the Brands impairment model the forecast period is 2023-2026. At the end of the forecast period
there is an extrapolation period from 2027-2031. In the extrapolation period growth has been set to
5.0%. The discount rate is based on a WACC of 10.4% and in the terminal value it is assumed a long-
term annual growth equal to 2.0%.
Segment
2022
2021
2022
2021
Ingredients
9.6 %
10.0 %
9.8 %
11.6 %
Brands
10.4 %
8.0 %
10.7 %
11.5 %
* The pre-tax discount rate is the discount rate without tax charge in the cash flow yielding the same recoverable
amount.
Sensitivities - impact of possible changes in key assumptions:
Ingredients
The sensitivities of the value in use have been tested by using simulations of various combinations of
discount rates, terminal value growth, changes in vessel production volumes, sales prices, krill
production and sales in addition to fuel cost and EBITDA. The CGU’s value in use is significantly higher
than the carrying amount. No reasonable possible change in any of the key assumptions would cause
the unit’s recoverable amount to be lower than the carrying value.
Brands
The sensitivities of the value in use have been tested by using simulations of various combinations of
discount rates, terminal value growth, sales, and EBITDA.
The operating segment’s value in use is significantly higher than the carrying amount. No reasonable
possible change in any of the key assumptions would cause the unit’s recoverable amount to be lower
than the carrying value.
Intangible assets impairment testing
For customer relations, cash inflows can be monitored at a lower level than the identified
CGU/operating segment for goodwill impairment testing. During 2022, Management has assessed that
there was no impairment based on a separate impairment test per customer portfolio in 2022.
All other intangible assets have been assessed for impairment with the conclusion that the value in use
is higher than the book value.
3. Finance |
Annual Report – 2022 75
Note 11 – Climate risk
The Group’s ambition on ESG is to be 100% circular in its principal waste streams by 2030, reduce CO
2
emission intensity by 50% by 2030, and be net zero in 2050. Given the increasing concerns globally
regarding climate matters and the increasing demand for action, the Group has mapped the entire
value chain to identify main sources of CO
2
emissions from these sources. The Group’s reporting on ESG follow the Task Force on Climate-
Related Financial Disclosures (TCFD) framework.
The Group has established a decarbonization committee responsible for ongoing oversight of
climate-related issues as well as monitoring quarterly progress on climate-related targets and
metrics. The Committee presents and evaluates new initiatives from different parts of the business,
provides advice on significant investment decisions and provides input on climate-related strategic
alignment.
To achieve 50% carbon reduction by 2030 and net-zero by 2050, the decarbonization committee is
currently analyzing potential future investments in the harvesting and production operations,
working to realize greater efficiencies, and evaluating new measures to implement, such as how the
Group transports goods and eliminating waste streams.
Financial impact of climate change on main asset classes
The following assessment considers the financial impact of climate change on the Group’s main
assets and its ability to continue as a going concern.
Property, plant, and equipment
The Group’s property, plant and equipment primarily consists of three krill harvesting vessels, one
service vessel, the protein facility in Ski, Norway and the extraction facility in Houston, US.
Management has assessed if climate change could be an indicator of impairment or if climate
change would require modifications to the useful life assessment of its assets.
In respect to the offshore activity, there was a large-scale research survey on krill biomass around
the Antarctic Peninsula in 2019 which found more krill than what was found in the large-scale krill
survey in 2000. Recent harvest figures also support the fact that krill availability is good. In addition,
the Group’s Antarctic krill fishery was awarded an A-rating from the Sustainable Fisheries Partnership
in 2021 and the fishery is also an MSC certified fishery. The increasing krill availability and A-
rated/MSC certified fishery combined with increasing market demand for krill meal reduces the risk
of climate related impact on the assets. During 2022, the Group reassessed the useful life for one of
the vessels and determined it could extend the end of useful life from 2025 to 2029.
In respect to the onshore activity, the extraction facility in Houston, Texas is in a geographical area
which has from time to time been exposed to extreme weather. This has resulted in a few temporary
shutdowns and increased maintenance requirements, especially for roofing and securing equipment
outside factory walls (such as evaporators and skids). Based on Management’s assessment, the
useful life assessment and residual value reflect weather conditions in the area. The level of repair
and maintenance (R&M) costs are uncertain, and these costs are expensed when R&M activities
occur.
For the Group’s assets, there are no known legal restrictions, government actions or natural climate
events that indicate the need to reassess the useful lives or residual value of the Group’s property,
plant, and equipment.
Intangible assets
The Group’s intangible assets are mainly in relation to goodwill, customer portfolios, trademarks and
licenses (see Note 9). Based on the current outlook, combined with all climate related activities that
the Group performs, Management concludes that climate change has not impacted the Group’s
assessment of value in use of these assets.
Trade and other receivables
The Group has trade and other receivables towards feed producers, distributors, and retailers. The
expected credit loss (ECL) model in IFRS 9 Financial Instruments requires the use of reasonable and
supportable information that is available without undue cost or effort. Based on customer
segmentation and business activity, Management has assessed that climate change does not affect
the assumptions that are made to estimate ECL.
Inventory
The Group’s inventory is primarily krill derived products sold to customers in the aforementioned
industries. Based on studies done by the decarbonization committee, krill products perform well in
life cycle assessment (LCA) analyses because the products are low on many stressors, including biotic
resource use, land use, freshwater use, acidification, and eutrophication potential. Compared to other
ingredients, krill has one of the lowest CO
2
2
expected that there will be a decline in demand for products that emit greenhouse gases, which
could then indicate that inventories or assets might be impaired. Management confirms that no
climate related matters impact the value of the Group’s inventory.
Deferred income taxes
The Group has significant tax losses being carried forward which have not been recognized as
deferred tax assets (see Note 7). Based on an overall assessment, the Group has not recognized any
deferred tax assets. However, Management concludes that climate change does not impact the
Group’s tax losses in carryforwards.
Circularity
The Group’s goal is to be 100% circular in its principal waste streams by 2030. In 2022, 59% of all
plastic waste in the Ingredients segment was recycled and prepared for circular products (pallets,
trays, tags etc), increased from 50% in 2021. With respect to products, 14 MT was discarded, equivalent
to 0.024% of produced volume in 2022, which is a decrease from 30 MT in 2021. Management confirms
that the Group has systems and processes in place to reach the circularity goals.
CO
2
The current CO
2
certain measures such as green electricity and gas in Houston, as well as heat recovery on one of the
krill harvesting vessels (0.3 reduction), green transport (0.3 reduction), and green fuels on the service
vessel (0.3 reduction). These measurements require limited additional investments. The remaining
reduction would likely take form of abatement programs. The goal of these measures is to reduce the
CO
2
2
emission to net zero in 2050 will require additional efforts including technology yet unknown with
related uncertain capital requirements.
As part of the reduction plan the costs associated with each activity have been estimated and certain
costs have already been capitalized by the Group as part of the 2022 shipyard. Green electricity in
Houston and green transport will be expensed as incurred as part of regular operating costs. The
actual cost of green fuels on the service vessel is uncertain as there are no forward curves etc.
indicating the market price when the transition will occur.
3. Finance |
Annual Report – 2022 76
Given that the identified measurements do not require substantial capital expenditures or additions
to property, plant, and equipment combined with significant uncertainty on future market prices on
green fuels, Management has not identified future costs that meet the definition of a contingent
liability under IAS 37 ‘Provisions, Contingent liabilities and contingent assets.’ Based on
Management’s assessment, the cost of the different measures does not significantly impact the
impairment testing or sensitivity analysis.
Management confirms that climate related risks does not impact the Group’s ability to operate as a
going concern.
Note 12 – Inventories
Inventories are measured at the lower of cost and net realizable value. The cost of finished goods and
raw material and goods under production comprises the costs of raw materials, direct labor and other
direct costs, and related production overheads. Indirect costs allocated to inventories, include salaries,
depreciation and certain other directly attributable operating expenses. The Group allocate cost of
inventories using a weighted average cost formula.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated
costs of completion and the estimated costs necessary to make the sale. The impairment from cost to
net realizable value is recognized in ‘Cost of goods sold’ in the Consolidated statement of Profit or loss.
Ingredients:
The production of krill derived products in the Ingredients segment is highly complex in several stages.
First, the raw krill is harvested in the Southern Ocean using Eco-Harvesting. Then the raw krill is
processed into krill meal and raw krill oil onboard the vessels. These products are subsequently
shipped to the logistics hub in Montevideo, Uruguay. From Uruguay the meal is sent to feed customers
or to the Group’s krill oil facility in Houston where krill oil is extracted from the meal. After the oil
extraction, the Group has a low fat/ high protein krill meal and krill oil, where krill oil is the main
product. As part of the reprocessing of krill oil the Group gets a neutral oil that can be blended into krill
oil or used as ingredient into other applications. The low fat/ high protein krill meal is currently sold to
feed customers. In future production this meal will be used as an ingredient to the Group’s novel
protein product.
Brands:
In the Brands segment, raw materials and goods under production and finished goods inventory
include processing cost incurred by the Group from outside manufacturing service providers.
Inventory balances as of 31 December 2022 and 2021 are shown below:
Year ended 31 December
USD Millions
2022
2021
Raw materials and goods under production
20.5
24.4
Finished goods
162.2
113.8
Total
182.7
138.2
Cost of inventories recognized at net realizable value
-
37.2
Carrying value of inventories recognized at net realizable value
-
30.3
Write-down of inventories recognized towards net change in inventories in the
period*
-
-6.9
Carrying value of inventories pledged as security
182.7
138.2
*) Includes weight corrections, replacements to customers and obsolesence
The inventory balance is pledged as security at both 31 December 2022 and 2021 and is included in the
book value of assets pledged as security, please refer to Note 15.
Movements in inventory during 2022:
USD Millions
Ingredients
Brand
Elim
Total
Inventory at 1 January 2022
104.2
39.4
-5.4
138.2
Acquired inventory for sale
-
81.5
-9.6
71.9
Production
164.5
-
-
164.5
Sale
-101.2
-81.7
20.5
-162.4
Consumption
-31.5
-
-
-31.5
Other changes
1.3
-
-
1.3
Freight
0.6
-
-
0.6
Inventory at 31 December 2022
137.9
39.2
5.5
182.7
3. Finance |
Annual Report – 2022 77
Reconciliation of net change in inventories 2022:
USD Millions
2022
Cost of goods sold before elimination of internal sales and internal profit
-182.9
Produced inventory
164.5
Acquired inventory
81.5
Rework, consumptions and obsolete
-29.5
Elimination of internal profit on stock
10.9
Net change in inventories
44.5
Cost of goods sold before elimination of internal sales and internal profit
-182.9
Elimination of cost of internal sales
20.5
Cost of goods sold recognized in Profit and Loss
-162.4
Movements in inventory during 2021:
USD Millions
Ingredients
Brand
Elim
Total
Inventory at 1 January
80.5
36.7
-2.7
114.6
Acquired inventory for sale
-
84.4
-19.4
65.0
Production
169.8
-
-
169.8
Sale
-109.0
-81.7
16.7
-174.0
Consumption
-38.9
-
-
-38.9
Other charges
6.3
-
-
6.3
Freight
2.3
-
-
2.3
NRV
-6.9
-
-
-6.9
Inventory at 31 December
104.2
39.4
-5.4
138.2
Reconciliation of net change in inventories 2021:
USD Millions
2021
Cost of goods sold before elimination of internal sales and internal profit
-190.7
Produced inventory
169.8
Acquired inventory
84.4
Rework, consumptions and obsolete
-37.2
Elimination of internal profit on stock
-2.7
Net change in inventories
23.6
Cost of goods sold before elimination of internal sales and internal profit
-190.7
Elimination of cost of internal sales
16.7
Cost of goods sold recognized in Profit and Loss
-174.0
The total production value of goods manufactured can be specified as follows:
Year ended 31 December
USD Millions
2022
2021
Salaries
-32.2
-35.7
Direct Production
-8.9
-7.9
Fuel
-18.6
-17.2
Consumables
-4.2
-4.2
R&M
-8.0
-6.7
Other
-12.7
-15.3
Nutra Freight
-3.1
-2.3
Capsulation
-5.0
-4.9
Contract manufacturing
-
-0.7
Uruguay
-8.3
-
Depreciation
-35.0
-37.7
Consumption of krill raw materials
-31.5
-38.9
Total costs allocated to inventory
-167.5
-171.5
3. Finance |
Annual Report – 2022 78
Note 13 – Trade receivable and other current assets
As per 31 December
USD Millions
2022
2021
Accounts receivable
59.9
50.3
Prepaid expenses
9.6
17.3
Other current receivables
13.2
10.1
Total
82.7
77.7
The change in prepayments relates mainly to stock of fuel, packing material and other equipment
related to the operation of the vessels and the factory in Houston.
Note 14 – Cash and cash equivalents
Cash and cash equivalents in the consolidated statement of financial position and statement of cash
flow comprise cash at banks, including restricted deposits, and cash on hand.
As per 31 December
USD Millions
2022
2021
Cash and bank deposits
21.0
9.1
Restricted bank deposits
1.3
2.0
Cash and cash equivalents
22.3
11.1
Restricted bank deposits relate to employee tax withholdings used to settle tax remittances with the tax
authorities on a periodic basis. As of 31 December 2022, the Group had drawn USD 33.9 million (2021:
USD 16.9 million) out of a total of USD 40.0 million available in an overdraft facility.
Note 15 – Interest bearing debt
The Group recognizes interest-bearing debt initially at fair value, net of transaction costs incurred.
Subsequently, the debt is carried at amortized cost. Any difference between the proceeds (net of
transaction costs) and the redemption value is recognized in the consolidated statements of profit or
loss over the period of the debt using the effective interest method.
As per 31 December
USD Millions
2022
2021
Non-current liabilities
Secured bank loans
326.5
285.3
Non-current NOK-denominated loan from Antarctic Harvesting Holding AS
1.3
1.3
Leasing liabilities
5.8
7.5
Book value total interest-bearing non-current liabilities
333.6
294.1
Current liabilities
Current portion of secured loans
9.4
9.4
Overdraft facilities
33.4
16.9
Leasing liabilities
4.8
4.4
Book value total interest-bearing current liabilities
47.6
30.7
Book value total interest-bearing liabilities
381.2
324.8
Total interest-bearing debt was at USD 381.2 million, including IFRS 16 leasing commitments of USD 10.5
million as of 31 December 2022. Cash amounted to USD 22.3 million, implying net interest-bearing debt
of USD 370.6 million, up from USD 313.7 million same period last year. The increase is mainly due to
investments in the protein factory, upgrades at Houston Plant as well as shipyard.. Total available
liquidity as of 31 December 2022 was USD 48.9 million (cash and available amounts under the debt
facilities).
The company signed and executed its new financing structure with a bank group consisting of DNB
Bank, Cooperative Rabobank and Nordea Bank. The new facility has a more favorable structure with
increased flexibility on covenants, dividends, and indebtedness. The amortization profile is changed as
a result of moving from several term loans into a larger corporate revolving credit facility (RCF) and only
one term loan for the Endurance vessel. The Group obtained a covenant waiver for the second quarter
and the rest of 2022. The waiver was granted by the bank group prior to 30 June 2022 and sets out a new
maximum threshold up to 6.5:1 (net interest-bearing debt / 12 month Adjusted EBITDA). For fourth
quarter 2022 (and year 2022) the company is compliant with the loan Covenants.
3. Finance |
Annual Report – 2022 79
Terms and debt repayment schedule per 31 December 2022:
Loan
Currency
USD Millions
Nominal interest rate
Year of maturity
Instalments
Secured bank loan - Bank syndicate
USD
77.3
3,13 % (fixed)
2031
Quarterly
Secured loan - Bank syndicate
USD
258.6
SOFR + margin
1)
2024
In full upon
termination
Antarctic Harvesting Holding AS
NOK
1.3
7.0%
-
-
Overdraft facility with DNB
USD
33.4
NOWA+0,13% yearly framework
agreement provision
2)
n/a
n/a
Leasing financing
NOK/USD
10.5
6.4 - 7.3%
< 2026
Monthly
1) SOFR: Secured Overnight Financing Rate
2) NOWA: Norwegian Overnight Weighted Average
The following table displays debt secured by mortgaged assets:
As per 31 December
USD Millions
2022
2021
Secured bank loans
335.9
294.7
Overdraft facility
33.4
16.9
Total secured debt
369.3
311.6
Book value of assets pledged as security
Operating assets
731.9
721.1
Asset pledged as security per company as of 31 December 2022:
AKBM US
Holding
AKBM
Manufacturing
USD Millions
Group total
Antarctic AS
New Ride
Lang
Ships/Rigs
187.2
187.2
-
-
-
-
Customers receivable
46.3
32.0
-
-
-
14.3
Shares
261.7
108.2
100.6
-
52.9
-
Inventory
128.9
91.4
-
-
-
37.5
Other assets
107.8
50.4
-
57.0
-
0.4
Total
731.9
469.2
100.6
57.0
52.9
52.2
3. Finance |
Annual Report – 2022 80
The following table reconciles the movements in liabilities to cash flow from financing activities in 2022:
Secured bank
loans
Proceeds from
owner
USD Millions
Lease
Bank overdraft
Total
Balance Interest bearing debt at 31 December 2021
294.7
1.3
11.9
16.9
324.8
Changes in Financing cash flows
Secured bank loan - RCF - DNB/ RABO
50.0
-
-
-
50.0
Instalment Secured bank loan DNB/GIEK/NEK
-9.4
-
-
-
-9.4
Lease payments
-
-
-4.8
-
-4.8
Overdraft facility with DNB/RABO
-
-
-
16.5
16.5
Net cash flow from financing activities
40.6
-
-4.8
16.5
52.3
Non-Cash changes
Leasing financing (IFRS16)
-
-
3.5
-
3.5
Other changes, liability related
Interest/fees charged to loan
0.6
-
-
-
0.6
Total liability related changes
0.6
-
-
-
0.6
Balance Interest bearing debt at 31 December 2022
335.9
1.3
10.6
33.4
381.2
3. Finance |
Annual Report – 2022 81
The following table reconciles the movements in liabilities to cash flow from financing activities in 2021:
Secured bank
loans
Proceeds from
owner
Lease
Bank overdraft
Total
Balance Interest bearing debt at 31 December 2020
215.0
1.3
13.8
12.7
242.8
Changes in Financing cash flows
Refinancing new bank syndicate
210.0
-
-
-
210.0
Secured bank loan - RCF + TL NewRide - DNB/ RABO
65.0
-
-
-
65.0
Secured bank loan - DNB and Eksportkreditt (Provider)
60.0
-
-
-
60.0
Instalment Secured bank loan DNB/GIEK/NEK
-182.3
-
-
-
-182.3
Instalment bank loan Provider
-60.0
-
-
-
-60.0
Instalment Innovation Norway
-10.2
-
-
-
-10.2
Instalment Caterpillar Finance
-1.4
-
-
-
-1.4
Lease payments
-
-
-6.3
-
-6.3
Overdraft facility with DNB/RABO
-
-
-
4.2
4.2
Net cash flow from financing activities
81.1
-
-6.3
4.2
79.0
Non-Cash changes
Leasing financing (IFRS16)
-
-
4.5
-
4.5
Other changes, liability related
Interest/fees charged to loan
-1.5
-
-
-
-1.5
Effect of changes in foreign exchange rates
0.1
-
-0.1
-
-
Total liability related changes
-1.4
-
-0.1
-
-1.5
Balance Interest bearing debt at 31 December 2021
294.7
1.3
11.9
16.9
324.8
Note 16 – Other non-current liabilities
Year ended 31 December
USD Millions
2022
2021
Contingent consideration
–
10.6
Pension liabilities
0.1
0.2
Total
0.1
10.8
The earn-out period related to Lang Acquisition was from 2019 through 2021. The fair value of the earn-
out (USD 10.2 million) was reevaluated per 31 December 2021 and paid out in 2022.
Note 17 – Accounts payable and other payables
Accounts payable and other payment liabilities comprise the following items:
Year ended 31 December
USD Millions
2022
2021
Accounts payable
39.0
25.3
Accrued expenses
14.9
17.6
Other current liabilities
3.2
3.7
Total
57.1
46.6
Foreign exchange and liquidity risks are described in Note 19.
3. Finance |
Annual Report – 2022 82
Note 18 – Leasing
The Group leases various types of assets, with the most significant monetarily being the leases for
office buildings, warehouses and a tramper vessel. The smaller leases comprise mainly leases for
housing for employees, IT equipment and production-related equipment in the factory.
Management determines the lease term as the non-cancellable term of the lease, as well as any
additional periods covered by an option to extend the lease if it is reasonably certain to be exercised.
Time periods in the lease covered by an option to terminate the lease are also included in the lease
term if it is reasonably certain the termination clause will not to be exercised. Management applies
judgement in evaluating whether it is reasonably certain to exercise a renewal option, considering all
relevant factors as well as the potential economic incentives related to the exercise of the renewal
option. The lease period in the current leases held by the Group varies from one to five years. Several
of the leases have a lease term that includes the optional renewal period. Most of the leases include a
clause for annual price increases during the term of the lease agreement.
The Group has elected not to recognize right-of-use (ROU) assets and lease liabilities for the following
types of leases, as allowed under IFRS 16:
●
Short-term leases with a lease term of less than 12 months from commencement that does not
include any purchase or renewal options, and
●
Leases of low- value assets.
The Group recognizes a ROU asset as of the lease commencement date. The ROU asset is initially
measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses
and adjusted for certain remeasurements of the lease liability. The ROU asset is generally depreciated
on a straight-line-basis over the shorter of the estimated useful life of the asset or the lease term and
is subject to impairment assessments of non-financial assets.
The lease liability is initially measured at the present value of the future lease payments at
commencement date discounted using either:
●
The rate implicit in the lease, or if that cannot be determined, or
●
The leasing entity’s incremental borrowing rate.
The Group is calculating the incremental borrowing rate in a model with an interest rate swap rate as a
basis and adjustments reflecting:
●
Credit worthiness of the lessee
●
Lease term of the contract
●
Acquisition cost of the ROU
●
Type of asset and
●
Jurisdiction and the contact’s currency.
The Group’s ROU asset as at 31 December 2022 include:
USD Millions
Buildings and
vessel
Machinery and
equipment
Total
Balance as of 1 January 2022
11.0
0.3
11.3
Depreciation for the year
-4.2
-0.2
-4.4
Additions to ROU assets
0.6
-
0.6
Adjustment of ROU asset
2.4
-
2.4
Balance as of 31 December 2022
9.8
0.1
9.9
Additions to ROU assets relates to the new lease of offices in Bangkok, Beijing, and Uruguay; a new
lease of a warehouse in Uruguay, and the annual CPI adjustments in some of the lease payments.
The Group’s ROU asset as at 31 December 2021 include:
USD Millions
Buildings and
vessel
Machinery and
equipment
Total
Balance as of 1 January 2021
12.6
0.5
13.1
Depreciation for the year
-5.3
-0.2
-5.5
Additions to ROU assets
3.5
-
3.5
Adjustment of ROU assets
0.2
-
0.2
Balance as of 31 December 2021
11.0
0.3
11.3
Additions to ROU assets relates to the new lease of a factory in Ski, Norway, warehouses in India and
Uruguay, and the annual CPI adjustments in some of the lease payments.
Amounts recognized in profit or loss:
Year ended 31 December
USD Millions
2022
2021
Expenses related to short-term lease
-3.9
-1.8
Leasing expenses related to variable payments not included in lease liabilities
-2.0
-0.1
Interest on ROU lease liabilities
-0.7
-0.9
Effect of changes in foreign exchange rates
0.2
0.1
Total
-6.4
-2.7
ROU assets recognized in cash flow statement:
-4.8
-6.3
3. Finance |
Annual Report – 2022 83
Future lease liability payments as of year-end 2022 and 2021 (IFRS 16)
USD Millions
2022
2021
Within one year
4.9
4.2
1-2 years
3.1
3.4
3-5 years
0.7
4.0
More than 5 years
1.0
0.3
Total
9.7
11.9
Lease liabilities as of 31 December 2022 totaled USD 10.5 million (31 December 2021: USD 11.9 million) of
which USD 4.8 million (31 December 2021: USD 4.4 million) was classified as current and USD 5.8 million
(31 December 2021: USD 7.5 million) as non-current, see Note 15.
Note 19 – Financial risk
The Group's activities expose it to various types of risk which are associated with the financial
instruments and markets in which it operates. The most significant types of financial risk the Group is
exposed to are credit risk, liquidity risk, and market risks (including foreign exchange risk, interest rate
risk and bunker risk. To manage these risks, risk management is carried out in order to create
predictability and stability for operating cash flows and values. Management can use financial
derivatives to hedge against risk relating to operations, financing, and investment activities if the
financial derivative has been approved by the Board of Directors. In 2020 the company entered a fuel
hedge contract with DNB, see further description of the contract below under iii) Fuel price risk.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations. The Group’s main credit risk relates to receivables
from customers. Exposure to that risk is monitored on a routine basis and credit evaluations are
performed on customers as appropriate. When entering significant sales contracts, the sales
department seeks to reduce credit risk through more stringent payment terms including requirement of
up-front payments. The Group has had low losses on receivables as the sales department is
maintaining close contact with each customer and routine billing and cash collection is performed.
The book value of financial assets represents the maximum credit exposure.
Receivables presented under Trade Receivables are ordinary account receivables generated through
sales of goods, accounted for under IFRS 15. The Group does not grant any payment terms more than 12
months, meaning that if the Group were to estimate expected credit losses (ECL) as according to
general or simplified approach, the ECL would (for all material purposes) represent the lifetime
expected credit losses.
The Group has determined to apply the practical expedient for measuring ECL of the Account
Receivable, mainly due to the large extent of smaller clients, and the limited amount of losses over the
past years.
The Group has designed a provision matrix based on the assessment on historical data over the last
years to identify whether there are either geographical or market (Qrill / Superba) indications of
whether any additional breakdowns into sub-portfolios is required. The reasonability of the ECL
accruals compared to prior years actual losses has also been assessed, to ensure it constitutes a
reasonable expectation.
The ECL rates per portfolio will be reviewed at each reporting date to assess if the matrix still reflects
the current conditions, and if the provision still is at a reasonable and supportable level, reflecting the
future economic conditions.
Aging profile of accounts receivable and bad debt provisions:
As per 31 December
USD Millions
2022
2021
Not at maturity
46.5
28.2
0-30 days overdue
10.1
10.2
31-120 days overdue
2.0
9.5
121- 365 days overdue
2.4
3.3
More than one year overdue
0.3
-
Total trade receivable
61.3
51.2
Bad debt provision
-1.3
-0.9
Write off and allocation for loss on trade receivable are included under operating expenses in the
consolidated profit and loss.
Movements in allocation to loss on trade receivable and contract assets:
USD Millions
2022
2021
Balance at 1 January under IFRS 9
-0.9
-0.7
Impairment loss (write-off) on trade and other receivables
-0.4
-0.4
Effects of changes in foreign exchange rates
-
0.2
Allocation to loss on trade receivable and contract assets
-1.3
-0.9
The Group`s two most significant customers account for USD 10.7 million of the receivables carrying
amount as of 31 December 2022 (2021: USD 12.1 million).
Liquidity risk
Liquidity risk is the risk that the Group will be unable to meet its financial liabilities as they mature.
The Group 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 369.2
million as of 31 December 2022 (2021: USD 311.6 million).
3. Finance |
Annual Report – 2022 84
Overview of maturities including estimated interest payments by category of liability in 2022:
USD Millions
December
Nominal values
Up to
6 months
6-12 months
1-2 years
3-5 years
More than 5
years
Secured bank loans
335.9
-393.1
-16.3
-16.5
-291.8
-36.0
-32.4
Interest bearing debt, non-current, related parties
1.3
-1.8
-0.1
-0.1
-0.1
-0.1
-1.4
Overdraft facility
33.4
-33.4
-33.4
-
-
Leasing liabilities (IFRS16)
10.5
-9.7
-2.5
-2.4
-3.1
-0.7
-1.0
Total 2022 maturity of loans and interest on interest-bearing debt
381.1
-438.0
-52.3
-19.0
-295.0
-36.8
-34.9
Accounts payable and other current liabilities
57.1
-57.1
-57.1
-
-
-
-
Non-current non-interest-bearing liabilities
5.5
-5.5
-
-
-0.0
-
-5.5
Total liabilities
443.8
-500.6
-109.4
-19.0
-295.1
-36.8
-40.3
Overview of maturities including estimated interest payments by category of liability in 2021:
USD Millions
December
Nominal values
Up to
6 months
6-12 months
1-2 years
3-5 years
More than 5
years
Secured bank loans
294.7
-325.8
-9.3
-9.2
-18.1
-248.0
-41.2
Interest bearing debt, non-current, related parties
1.3
-1.8
-0.1
-0.1
-0.1
-0.1
-1.4
Overdraft facility
16.9
-16.8
-16.8
-
-
-
-
Leasing liabilities (IFRS16)
11.9
-11.9
-2.1
-2.1
-3.5
-4.0
-0.3
Total 2021 maturity of loans and interest on interest-bearing debt
324.8
-356.3
-28.3
-11.4
-21.7
-252.0
-42.9
Accounts payable and other current liabilities
46.6
-46.6
-46.6
-
-
-
-
Non-current non-interest-bearing liabilities
15.7
-15.5
-
-
-10.6
-
-4.9
Total liabilities
387.1
-418.4
-74.9
-11.4
-32.3
-252.0
-47.8
Due to lower-than-expected sales, there is a risk for the Group to be in breach with its leverage
covenant (net debt/LTM Adjusted EBITDA). The Group had an optional waiver through 2022 and has for
2023 continued the dialogue with its bank group to obtain waivers for the leverage covenant for part of
the year where this could be necessary.
3. Finance |
Annual Report – 2022 85
Market risk
Foreign exchange risk
The Group operates in a global market and is exposed to currency fluctuations, primarily through
fluctuations in the USD, NOK and EUR exchange rates. In addition, the Group has operations with
exposure to local currencies in Uruguay, Australia, India, Thailand, New Zealand, Canada and China, but
these exposures are regarded minimal. The Group has USD as its presentation and functional currency
in the main group companies. The Group has NOK denominated financial instruments thus the
consolidated statement of financial position is exposed to changes in NOK/USD exchange rate
.
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 currency hedging. Currency
risk is managed on an overall Group level.
As of 31 December 2022 the Group recognized an asset of USD 11.0 million from a fuel hedge contract,
see description under iii) Fuel price risk.
The table below shows the Group's exposure to foreign exchange risk as per 31 December.
2022
2021
USD Millions
Euro
NOK
Euro
NOK
Accounts receivable
-
6.2
0.3
6.1
Cash
-0.3
-2.3
-
-15.3
Other assets
-
-
-
-
Secured bank loan
-
-
2.5
-22.6
Accounts payable
-1.1
-13.2
-1.9
-11.9
Other balance sheet items
-
-7.0
-
-0.2
Gross balance sheet exposure
-1.4
-16.3
0.9
-43.9
Currency forwards
-
-
-
-
Net exposure
-1.4
-16.3
0.9
-43.9
Sensitivity analysis
A 10% 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 0.1 million related to Euro and USD 1.6 million related to NOK,
respectively.
Interest rate risk
The Group’s borrowings and any surplus cash balances are held at variable and fixed interest rates
linked to the Norwegian or London interbank offered rate (NIBOR and LIBOR, 3 or 6 months). A
movement of 100 basis points in the interest rate on borrowings and surplus cash balances as of 31
December 2022 would have affected the Group’s profit before tax with USD 2.8 million (2021: USD 1.3
million). This analysis assumes that all other variables, especially the exchange rates, remain constant.
3. Finance |
Annual Report – 2022 86
Interest rate profile
At the close of the year, the interest- rate profile for the Group's interest-bearing financial instruments
was as follows:
USD Millions
Year ended 31 December
2022
Effective interest rate year
ended 31 December 2022
Year ended 31 December
2021
Effective interest rate year
ended 31 December 2021
Fixed-interest instruments
Loan from Antarctic Harvesting Holding AS
-1.3
7.0 %
-1.3
7.0 %
Secured bank loan - Bank syndicate
77.2
3.1 %
-96.0
3.1 %
Net fixed interest instruments
75.9
-97.3
Floating-interest instruments
Financial assets
Cash and cash equivalents
22.3
variable *)
11.1
variable *)
Financial liabilities
Secured bank loan - Bank syndicate
-335.9
3,1%-7,1%
-198.7
3.1 %
Overdraft facility
-33.4
variable **)
-16.9
variable **)
Leasing liabilities (IFRS16)
-10.5
variable **)
-11.9
variable **)
Net variable interest instruments
-357.5
-216.4
Total net interest-bearing debt
-281.6
-313.7
*) different cash and cash equivalents carry different interest rates, as such no effective interest rate has been calculated
**) different loans/ receivables carry different interest rates, as such no effective interest rate has been presented
3. Finance |
Annual Report – 2022 87
Fuel price risk
Marine Gasoil (“MGO”) fuel used for vessel propulsion and krill meal production is one of the Groups’
most significant operating costs. The profitability and cash flow of the Group will therefore be affected
by the market price of MGO. To reduce Aker BioMarine’s exposure to fluctuations in the fuel price, the
operating subsidiary Aker BioMarine Antarctic AS purchased call options on Gasoil 0.1% at barges FOB
Rotterdam in 2020. These options give Aker BioMarine Antarctic AS the right to purchase Gasoil 0.1% at
barges FOB Rotterdam at defined price (“the strike”) each month until December 2024. As of 31
December 2022, Aker BioMarine held 44,604 call option contracts giving the Group the right to purchase
44,604 MT of fuel between 2022 and 2024. The value of these options is reflected in the mark-to-market
(“M2M”) value, which at 31 December 2022 was USD 11.0 million.
Contracts
(000)
Strike
(USD/MT)
M2M 31
December
2022 (USDM)
2023
22.3
550.0
6.2
2024
22.3
580.0
4.8
Total
44.6
11.0
Classification of derivatives
The Group uses fuel options for economic hedging purposes and not as speculative investments. From 1
January 2021 the Company met the requirements for using hedge accounting on its fuel options which
means that the options are recognized in the balance sheet under the line item ‘Derivative assets’.
During 2022, the Group rebalanced its call option portfolio to align with an updated forecast of
production and operations. As a result, the Group sold 7 454 call options. The sale has been recognized
as a rebalancing effect of designated fuel volumes and have been accounted for in accordance with the
requirements for discontinuation of hedge accounting. The gain from rebalancing was USD 2.9 million
and was recognized as ‘Other operating income’ in the statement of profit or loss, see Note 2. Contracts
not sold continue to follow hedge accounting.
In addition to the USD 2.9 million recognized from the rebalancing exercise, the Group also recognized
profits from cash-settling expiring option contracts throughout the year. In total, the Group realized a
gain of USD 14.6 million on cash settled contracts.
Fuel hedge cash flow overview:
USD Millions
2022
Hedge settlements
15.0
Sale of surplus call options
2.9
2021 net cash impact
17.9
M2M Hedge value 2023-2024 calls
11.0
Net cash equivalent 2023-2024
11.0
Hedge reserves
The Group’s hedging reserves mainly relate to fuel hedge contracts for hedging of bunkers oil for the
period 2021-2024. Total hedge reserve was USD 5.4 million as of December 2021. The fair value of the
hedging instrument decreased by USD 1.9 million in 2022, leading to a total hedge reserve of USD 3.5
million at the end of the year.
Hedge effectiveness
The Group determines hedge effectiveness at the inception of the hedge relationship, and through
periodic prospective effectiveness assessments, to ensure that an economic relationship exists
between the hedged item and hedging instrument. As of 31 December 2022, the hedge was found
effective.
Movements in the fuel hedge reserve for the year ended 31 December:
USD Millions
2022
2021
Opening balance as per 1 January
5.4
0.1
Change in fair value of hedging instrument recognised in OCI
-1.9
5.2
Reclassified to the cost of inventory – not included in OCI
-15.0
-3.8
Intrinsic value of options
17.8
6.9
Reclassified from OCI to profit or loss
-2.8
-3.0
Closing balance as per 31 December
3.5
5.4
Fair values
The Group had financial receivables that under IFRS 9, based on evaluation of business model applied,
will be measured at fair value over the profit and loss; however, this is in line with how these assets
previously have been accounted for, and the last applicable receivable was settled in 2019.
Trade receivables are classified at amortized cost. An expected loss recognition process is used,
utilizing the practical expedient. Expected credit losses (ECL) are calculated based on a matrix taking
into consideration customer risk, and geographical segments and historical data.
Based on the Group’s assessment, there were no new classification requirements following IFRS 9
implementation, which had material impact on accounting for financial assets or liabilities upon
implementation in 2018.
The fair values quoted in the table below are categorized within the fair value hierarchy, described
below, and based on the lowest level input that is significant to the fair value measurement as a whole:
●
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
●
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
●
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
All fair values using Level 2 valuation techniques are based on discounted cash flow models.
The short-term nature of financial instruments such as cash and bank deposits result in the book value
approximating fair value. The same approach applies to receivables and debt associated with the
3. Finance |
Annual Report – 2022 88
business cycle. Financial assets that are classified as held for sale and financial assets at fair value
through profit and loss are recorded at fair value.
Capital management
The Group’s objectives when managing capital are to i) ensure the Groups ability to continue as a going
concern, and ii) maintain an optimal capital structure to reduce the cost of capital and be in
compliance with bank covenants.
In order to maintain or adjust the capital structure, the group may obtain short term funding through
supply chain financing, receivables purchase agreements, issue new shares or sell assets to reduce
debt. Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio
as agreed with the bank syndicate which is net interest-bearing debt / 12 month Adjusted EBITDA (see
Note 15).
Note 20 – Contingencies and legal claims
The Group recognizes a provision when it has a legal or constructive obligation as a result of a past
event, when it is probable that payment or the transfer of other assets will be required to settle the
obligation and 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 probable and reliable estimates can be prepared. However, the outcome of any
such dispute is inherently uncertain, and the resulting liability may exceed any provision made.
As per 31 December 2022 no provisions were made for legal claims
.
Note 21 – Related parties
The Group’s consolidated financial statements include the following transactions and intercompany
balances with Aker ASA and companies controlled by Aker ASA. Refer to Note 22 for remuneration to key
management.
Aker ASA is the controlling shareholder of the Group.
The guarantee fee relates to the guarantee provided from Aker ASA related to the Group’s long-term
loan with DNB/Rabobank (see Note 15).
USD Millions
2022
2021
Office Rent Fornebu Næring
-1.0
-1.1
Recharge Rev Ocean
0.1
0.1
Management fee
-1.3
-0.8
-2.3
-1.8
Guarantee fee Aker ASA
-
-0.3
Total
-2.3
-2.1
Note 22 – Salaries and other remuneration to the Board of
Directors and executive management
Board remuneration
There is no remuneration paid to the Board members and Employee representative other than ordinary
salaries. For details about board remuneration, refer to the Company’s Remuneration Report which is
published on the Company’s website.
https://www.akerbiomarine.com/investor-other-reports-and-presentations
Remuneration paid to the CEO and Executive management team (EMT)
The CEO is member of the defined contribution pension and insurance plans that cover all employees.
The Group uses standard employment contracts. The CEO may be dismissed upon three months' notice.
If the company terminates the employment, the CEO is entitled to three months' severance pay after
the end of the notice period. The pension is capped at a salary of 12 times the National Social Security
base amount.
The Group implemented share incentive programs for employees in February 2022.
In addition to the EMT bonus program also referred to in the Remuneration report, Aker BioMarine has
established a bonus program for level two managers based on EBITDA performance. Sales resources
have separate bonus programs linked to achievement of certain sales related KPIs.
Based on the company’s performance in 2020, management team was awarded a bonus totaling USD
0.9 million that was accrued in 2021 and paid in 2022. No bonus awarded in 2021 or 2022, except for one
member of the EMT.
For details about remuneration paid to the CEO and EMT, refer to the Company’s Remuneration Report
which is published on the Company’s website.
https://www.akerbiomarine.com/investor-other-reports-and-presentations
3. Finance |
Annual Report – 2022 89
Note 23 – Group companies
As of 31 December 2022, Aker Capital AS held 77.7% of the shares in Aker BioMarine, and the CEO,
through his wholly owned subsidiary KMMN Invest II AS, held 1.2%.
Assessment of non-controlling interests:
Through its fully owned company Antarctic Harvesting Holding AS (AHH), The Resource Group TGR AS,
subscribed to 555,900 new shares (the A-shares) in Aker BioMarine Antarctic AS for a cash
consideration of NOK 11 million in September 2015. The shares subscribed to constitute a separate
share class with rights to an annual preferential dividend of 7% of the invested capital, but with no
economic rights to any profits above this level. The preferred shares are included as interest bearing
debt in the statement of financial position.
The structure enables the company to access foreign capital while remaining in compliance with its
fishing licenses. Through the shareholders agreement, the company holds the majority of the voting
rights for all matter except the reserved matters. The reserved matters give AHH some rights, but not
power over the relevant activities. AHH’s rights are either protective or relates to activities that does
not significantly affect the return. The company has power over the relevant activities, and has
control over Aker BioMarine Antarctic AS.
Based on the content of the shareholder agreement between the company and AHH, the company
defines Aker BioMarine Antarctic AS as a subsidiary, even if the ownership is 40% (the B-shares). It
has therefore been assessed that the shareholders agreement does not give rise to any non-
controlling interests in the Group financial statements.
Investments in associates
The Group accounts for investments in associates under the equity method. As per 31 December
2022, the investment and share of results are immaterial to the Group’s financial statements.
The consolidated financial statements for the Group in 2022 included the following subsidiaries:
Shareholding
Voting rights
in %
in %
Location
Country
Aker BioMarine Antarctic AS
40
Lysaker
Norway
Aker BioMarine Antarctic US LLC
100
100
Issaquah
USA
Aker BioMarine Antarctic Services AS
100
100
Lysaker
Norway
Aker BioMarine Antarctic Australia Pty Ltd
100
100
Melbourne
Australia
Aker BioMarine Manufacturing LLC
100
100
Houston
USA
Aker BioMarine Antarctic SA (former Odalson S.A.)
100
100
Montevideo
Uruguay
Aker BioMarine US Holding Inc
100
100
Issaquah
USA
Complector Ship Management AS
100
100
Lysaker
Norway
Aker BioMarine Asia Ltd
100
100
Hong Kong
China
Aker BioMarine Shanghai International Trading Co Ltd
100
100
Shanghai
China
Aker BioMarine Canada Inc
100
100
Vancouver
Canada
Euphausia LLC
100
100
Wilmington
USA
Aker BioMarine (Thailand) Ltd
100
100
Bangkok
Thailand
Aker BioMarine India Private Ltd
100
100
Mumbai
India
NewRide LLC
100
100
Issaquah
USA
Epion Brands LLC
100
100
Issaquah
USA
Lang Pharma Nutrion Inc
100
100
Middletown
USA
Wanaka BioMarine Ltd
100
100
Nelson
New Zealand
Aker BioMarine Japan K.K
100
100
Tokyo
Japan
Aker BioMarine Chile S.A
100
100
Puerto Varas
Chile
Aion AS (until April 2022, see Note 1)
100
100
Lysaker
Norway
*) Aker BioMarine ASA has all voting rights except for certain fundamental matters which require consent from both
shareholders
3. Finance |
Annual Report – 2022 90
The consolidated financial statements for the Group in 2021 included the following subsidiaries:
Shareholding
Voting rights
Administrative headquarters
in %
in %
Location
Country
Aker BioMarine Antarctic AS
40
Lysaker
Norway
Aker BioMarine Antarctic US LLC
100
100
Issaquah
USA
Aker BioMarine Antarctic Services AS
100
100
Lysaker
Norway
Aker BioMarine Antarctic Australia Pty Ltd
100
100
Melbourne
Australia
Aker BioMarine Manufacturing LLC
100
100
Houston
USA
Aker BioMarine Financing LLC
100
100
Houston
USA
Aker BioMarine Antarctic SA (former Odalson S.A.)
100
100
Montevideo
Uruguay
Aker BioMarine US Holding Inc
100
100
Issaquah
USA
Complector Ship Management AS
100
100
Lysaker
Norway
Aker BioMarine Asia Ltd
100
100
Hong Kong
China
Aker BioMarine Shanghai International Trading Co Ltd
100
100
Shanghai
China
Aker BioMarine Canada Inc
100
100
Vancouver
Canada
Euphausia LLC
100
100
Wilmington
USA
Aker BioMarine (Thailand) Ltd
100
100
Bangkok
Thailand
Aker BioMarine India Private Ltd
100
100
Mumbai
India
NewRide LLC
100
100
Issaquah
USA
Epion Brands LLC
100
100
Issaquah
USA
Lang Pharma Nutrion Inc
100
100
Middletown
USA
Wanaka BioMarine Ltd
100
100
Nelson
New Zealand
Aion AS
100
100
Lysaker
Norway
*) Aker BioMarine ASA has all voting rights except for certain fundamental matters which require consent from both
shareholders
Note 24 – Earnings per share
USD Millions
2022
2021
Continued operations:
Net profit (loss)
10.0
-8.0
Profit (loss) from continued operations attributable to Equity holders of the
parent
10.0
-8.0
Number of shares
Share outstanding as per 1 January
87,586,086
87,586,086
Capital increase
51,647
-
Shares outstanding as per 31 December
87,637,733
87,586,086
Weighted average number of shares as per 31 December
87,629,125
87,586,086
Earnings per share
Basic
0.11
-0.09
Dilluted
0.11
-0.09
Note 25 – Events after the end of the reporting period
The Group performed a review of events after the balance sheet date through the date the financial
statements were issued and determined that there were no such events requiring recognition or
disclosure in the financial statements.
3. Finance |
Annual Report – 2022 91
3. Finance |
Annual Report – 2022 92
AKER BIOMARINE ASA
FINANCIAL STATEMENTS
2022
3. Finance |
Annual Report – 2022 93
STATEMENT OF PROFIT OR LOSS
For the year ended 31 December
USD Millions
Note
2022
2021
Operating revenues
2
0.2
0.2
Revenues from Group companies
12
16.9
16.8
Total revenues
17.1
17.0
Salaries and other payroll expenses
3, 14
-8.1
-10.8
Other operating expenses
4
-6.1
-8.9
Operating expenses Group companies
12
-0.3
-0.6
Operating profit/loss before depreciation, amortization and impairment
2.6
-3.3
Depreciation, impairment, and amortization
7
-0.1
-0.1
Operating profit (loss)
2.5
-3.4
Interest income from Group companies
12
10.3
14.3
Net foreign exchange gain / loss (-)
3.6
0.5
Other interest income and financial income
13
10.1
-
Interest and guarantee expenses to Group companies
12
-0.3
-2.5
Other financial expenses
13
-0.3
-3.7
Net financial items
23.4
8.6
Profit (loss) before tax
25.8
5.2
Tax expense
6
-
-
Net profit (loss)
25.8
5.2
Allocation of loss for the year
Profit (loss) for the year
25.8
5.2
Transferred to accumulated loss
-25.8
-5.2
3. Finance |
Annual Report – 2022 94
STATEMENT OF FINANCIAL POSITION
As per 31 December
USD Millions
Note
2022
2021
ASSETS
Property, plant and equipment
7
0.2
0.3
Intangible assets
7
0.2
-
Shares in subsidiaries and other companies
8
315.6
305.8
Other interest-bearing receivables, external, non-current
2.6
-
Long-term receivables from Group companies
12
213.9
211.4
Total non-current assets
532.5
517.5
Accounts receivable and other non-interest-bearing receivables
0.7
0.5
Current receivables from Group companies
12
11.1
5.0
Cash and cash equivalents
11
3.9
0.5
Total current assets
15.7
6.0
Total assets
548.2
523.5
LIABILITIES AND OWNERS' EQUITY
Share capital
5
75.9
75.9
Share premium
5
472.9
472.7
Total paid-in capital
548.8
548.6
Accumulated loss
5
-5.1
-30.9
Total equity
543.7
517.7
Pension liabilities
10
0.1
0.2
Total non-current liabilities
0.1
0.2
Current debt to related parties
12
0.1
0.3
Accounts payable and other current liabilities
4.3
5.3
Total current liabilities
4.4
5.6
Total liabilities
4.5
5.8
Total equity and liabilities
548.2
523.5
3. Finance |
Annual Report – 2022 95
Oslo 21 March 2023
The Board of Directors and CEO of Aker BioMarine ASker
3. Finance |
Annual Report – 2022 96
STATEMENT OF CASH FLOW
For the year ended 31 December
USD Millions
Note
2022
2021
Profit (loss) before tax
25.8
5.2
Net expensed interest, interest paid and received
12,13
-10.5
21.4
Depreciation, impairment, and amortization
7
-9.6
0.1
Unrealized foreign exchange (gain) / loss and other non-cash-generating items
0.4
-
Changes in ordinary operating items
-7.9
18.4
Net cash flow from operating activities
-1.8
45.1
Payments for fixed and intangible assets
7
-0.3
Net cash flow from long term receivables
12
5.3
15.0
Net cash flow from investment activities
5.0
15.0
Capital Increase
0.2
-
Proceeds, new short-term loans, related parties
12
-
-
Change in bank overdrafts
9
-
-
Change in bank loan
9
-
-59.9
Net cash flow from financing activities
0.2
-59.9
Net change in cash and cash equivalents
3.4
0.2
Cash and cash equivalents as of 1 January
0.5
0.3
Cash and cash equivalents as of 31 December
3.9
0.5
3. Finance |
Annual Report – 2022 97
Note 1 – Accounting principles
The annual report is prepared and presented according to the Norwegian Accounting Act of 1998 and
generally accepted accounting practices in Norway.
Subsidiaries and associated companies
Subsidiaries are valued according to the cost method. Investments are valued at acquisition cost for
the shares, unless a write-down has been necessary. Investments are written down to market value if
the decline is viewed as not transitory in nature and when deemed necessary according to generally
accepted accounting principles. Write-downs are reversed if the basis for the write-down is no longer
present.
Associated companies and investments in joint venture are valued according to the equity method in
the parent company accounts. The latter Investments are initially valued at acquisition cost for the
shares, and subsequently adjusted to reflect the investor's share of the net assets of the associate.
Classification and valuation of balance sheet items
Current assets and short-term liabilities include items that are due within one year. Other items are
classified as non-current assets or long-term liabilities. Current assets are valued at the lower of
acquisition cost or market value. Current liabilities are recorded in the balance sheet at face value at
the time of the transaction.
Non-current assets are recorded at acquisition cost. Upon a change in value not deemed to be
temporary, the affected fixed asset is written down to market value. Long-term liabilities are recorded
in the balance sheet at face value at the date they are assumed.
Receivables
Accounts receivable and other receivables are recorded in the balance sheet at face value after
provision for expected losses. Provisions for losses are made based on individual assessment of
receivables.
Functional currency and foreign currency
Aker BioMarine ASA has US Dollars as functional currency and the financial statements are presented in
US Dollars. Foreign-currency-denominated monetary items are valued at the year-end exchange rate,
and currency translation effects are presented within net foreign exchange gain/loss in the financial
statement.
Property, plant and equipment, and intangible assets
Other acquired intangible assets are recognized in the balance sheet at acquisition cost, less any
accumulated amortization and impairment losses.
Estimated useful lives for the current and comparative reporting periods are as follows:
●
Property, plant and equipment: 0–5 years
●
Intangible assets: 0–3 years
Revenue recognition
Income arising from royalties and management services provided to subsidiaries shall be recognized if
all the following conditions are satisfied:
●
It is probable that the economic benefits associated with the transaction will flow to the Company;
and
●
The amount of revenue can be measured reliably.
Taxes
Tax expenses in the profit and loss account comprise taxes payable for the period and any change in
deferred tax/deferred tax benefit. In 2022, deferred tax is calculated as 22% of the temporary
differences between accounting and tax values, as well as the tax deficit carryforward at the end of the
accounting. Tax increasing and tax reducing temporary differences that are reversed or can be reversed
in the same period, are offset. Net deferred tax benefit is recorded in the balance sheet to the extent it
is likely that it will be used.
Cash flow statement
The cash flow statement has been prepared using the indirect method. Cash and cash equivalents
comprise cash, bank deposits, and other short-term liquid placements.
Use of estimates
Preparation of the financial statement in accordance with generally accepted accounting practices
requires management to make estimates and assumptions that affect the reported amounts in the
profit and loss statement, the measurement of assets and liabilities, and the disclosure of contingent
assets and liabilities on the balance sheet date. Actual results may differ from estimates.
Contingent losses deemed probable and quantifiable are expensed as incurred.
Note 2 – Operating revenues
Operating revenues in 2022 are distributed as follows:
North
USD Millions
Norway
EU
America
Other
Total
Other revenue
0.2
-
-
-
0.2
Management fee from Group companies
16.9
-
-
-
16.9
Total operating revenues
17.1
-
-
-
17.1
Operating revenues in 2021 are distributed as follows:
North
USD Millions
Norway
EU
America
Other
Total
Other revenue
0.2
-
-
-
0.2
Management fee from Group companies
16.7
-
-
-
16.8
Total operating revenues
17.0
-
-
-
17.0
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Annual Report – 2022 98
Note 3 – Salaries and other payroll expenses
Salaries and payroll expenses comprise of the following:
Year ended 31 December
USD Millions
2022
2021
Salaries
-5.5
-8.7
Other personnel costs
-1.1
-0.7
Employer's social security contribution
-1.1
-1.0
Pension expenses
-0.4
-0.4
Total
-8.1
-10.8
Average number of employees
47.0
54.0
Note 4 – Other operating expenses
Other operating expenses comprise the following:
Year ended 31 December
USD Millions
2022
2021
Professional services
-1.8
-4.9
Office rent
-1.1
-1.1
Travel
-0.2
-0.3
Other operating expenses
-3.0
-2.6
Total other operating expenses
-6.1
-8.9
Remuneration paid to auditor included in other operating expenses 1):
Year ended 31 December
USD Millions
2022
2021
Ordinary auditing services
-0.2
-0.1
Other services
-0.1
-0.1
Tax advisory
-0.1
-0.1
Total
-0.4
-0.3
1) Remuneration to the auditor is presented excluding VAT.
Note 5 – Equity
The Company's share capital amounts to NOK 525 516 516 distributed as 87 637 733 shares issued, each
with a par value of NOK 6.00. All shares are equal in all respects.
As of 31 December 2022, Aker ASA owns 77.7% of the shares in the Company, 1.2% are owned by the
Company’s CEO through a holding company, and the remaining 21.1% shares by other investors.
Changes in equity are set forth below:
USD Millions
Share capital
Share premium
Accumulated loss
Total equity
Equity as of 1 January 2021
75.9
472.7
-41.7
506.9
Correction from prior year
-
-
5.6
5.6
Loss for the year
-
-
5.2
5.2
Equity as of 31 December 2021
75.9
472.7
-30.9
517.7
Capital Increase
-
0.2
-
0.2
Loss for the year
-
-
25.8
25.8
Equity as of 31 December 2022
75.9
472.9
-5.1
543.7
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Annual Report – 2022 99
The 20 largest shareholders as per 31 December 2022:
Shareholder
Number of shares
Per cent
Aker Capital as
68,132,830
77.7 %
Arctic Fund Management AS
2,003,769
2.3 %
Danske Capital AS
1,579,123
1.8 %
Strawberry Capital AS
1,475,105
1.7 %
DNB Asset Management AS
1,156,021
1.3 %
KMMN Invest II AS
1,050,308
1.2 %
Storbrea AS
665,000
0.8 %
VJ Invest AS
604,902
0.7 %
Beck Asset Management AS
600,000
0.7 %
OP Asset Management AS
518,253
0.6 %
Tigerstaden Marine AS
456,119
0.5 %
Handelsbanken Fonder
426,128
0.5 %
Aktia Asset Management
400,000
0.5 %
RAM Rational Asset Management
395,000
0.5 %
Varner AS
334,282
0.4 %
Centragruppen AS
329,345
0.4 %
Mandatum Fund Management
287,577
0.3 %
Haadem Invest AS
250,000
0.3 %
Loe Equity AS
240,000
0.3 %
DNB Asset Management AS
197,264
0.2 %
Total
81,101,026
93%
Note 6 – Tax expense and deferred tax
Year ended 31 December
USD Millions
2022
2021
Income tax expense
Change in deferred tax
-
2.9
Unrecognized change in deferred tax assets
-
-2.9
Tax base
Profit (loss) before tax
25.8
5.2
Currency translation from USD to NOK
23.5
-
Tax base (statutory tax purposes)
49.3
5.2
Tax base (statutory tax purposes)
49.3
5.2
Change in deferred tax
-
0.6
Tax base
49.3
5.8
Tax loss carried forward
-49.3
-5.8
Temporary differences
Property, plant and equipment and intangible assets
-0.1
-
Gain and loss accounts
0.1
0.1
Post employment benefit liabilities
-0.1
-0.2
Net deferred tax assets
-0.1
-0.1
Tax losses carried forward
-83.0
-155.1
Interest rate deductability carry forward
-15.1
-16.5
Basis for deferred tax asset
-98.1
-171.6
Deferred tax asset (22%)
-21.6
-37.8
Unrecognized deferred tax assets
21.6
37.8
Deferred tax has not been capitalized as it is not considered probable that the Company will have
future taxable profit available, against which the unused tax losses and unused tax credits can be
utilized.
3. Finance |
Annual Report – 2022 100
Note 7 – Fixed assets and Intangible assets
Movements in property, plant, and equipment in 2022
Furniture
USD Millions
& fixtures
Total
Acquisition cost as of 1 January 2022
0.6
0.6
Retirement
0.1
0.1
Acquistion cost as of 31 December 2022
0.7
0.7
Accumulated amortization and impairment as of 1 January 2022
-0.3
-0.3
Depreciation for the year
-0.1
-0.1
Retirement
-0.1
-0.1
Accumulated amortization and impairment as of 31 December 2022
-0.5
-0.5
Book value as of 31 December 2022
0.2
0.2
Movements in property, plant, and equipment in 2021
Furniture
USD Millions
& fixtures
Total
Acquisition cost as of 1 January 2021
0.6
0.6
Acquistion cost as of 31 December 2021
0.6
0.6
Accumulated amortization and impairment as of 1 January 2021
-0.2
-0.2
Depreciation for the year
-0.1
-0.1
Accumulated amortization and impairment as of 31 December 2021
-0.3
-0.3
Book value as of 31 December 2021
0.3
0.3
Movements in intangible assets in 2022
USD Millions
Intangibles
Total
Acquisition cost as of 1 January 2022
-
-
Investments
0.3
0.3
Retirement
-
-
Acquistion cost as of 31 December 2022
0.3
0.3
Accumulated amortization and impairment as of 1 January 2022
-
-
Amortization for the year
-
-
Accumulated amortization and impairment as of 31 December 2022
-
-
Book value as of 31 December 2022
0.3
0.3
All fixed assets are depreciated using the straight-line method and have estimated useful life of 5
years.
Operating lease expense amounted to USD 1.3 million in 2022 and USD 1.3 million in 2021. The
Company’s lease commitments under non-cancellable leases amounts to approx. USD 1.4 million
annually, until 2025. Operating lease costs are expensed as incurred. The Company has no financial
lease arrangements.
Note 8 – Shares in subsidiaries
Through its fully owned company Antarctic Harvesting Holding AS, The Resource Group Trg AS, owns
555,900 A-shares in Aker BioMarine Antarctic AS. The remaining 370,600 B-shares are held by Aker
Biomarine ASA. Based on the content of the shareholder agreement between the Company and
Antarctic Harvesting Holding, the Company defines Aker BioMarine Antarctic AS as a subsidiary for
accounting purposes, even if the ownership is 40%.
Shares in subsidiaries and other companies comprised the following as of 31 December 2022:
USD Millions
Ownership in
% 1)
Headquarter
Equity
Profit/loss
before tax
Book value
Aker BioMarine Antarctic AS
40
Bærum, Norway
-6.7
-49.9
305.4
Aion AS 2)
100
Bærum, Norway
-1.8
-0.3
0.4
Complector Ship Management AS
100
Bærum, Norway
-
-
-
Shares in subsidiaries and other companies
305.8
1) Share of voting rights equals share of ownership. 2) Based on preliminary unaudited financials
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Annual Report – 2022 101
Shares in subsidiaries and other companies comprised the following as of 31 December 2021:
USD Millions
Ownership in
% 1)
Headquarter
Equity
Profit/loss
before tax
Book value
Aker BioMarine Antarctic AS
40
Bærum, Norway
49.6
-32.4
305.4
Aion AS
100
Bærum, Norway
0.1
0.1
0.4
Complector Ship Management AS
100
Bærum, Norway
-
-
-
Shares in subsidiaries and other companies
305.8
1) Share of voting rights equals share of ownership.
Note 9 – Interest-bearing loans from external parties:
As per 31 December
USD Millions
2022
2021
Non-current liabilities
Loan from DNB ASA
-
-
Current liabilities
Working capital facility from DNB ASA
-
-
Total interest-bearing current liabilities
-
-
In November 2021, Aker BioMarine Antarctic AS entered into a new sustainability-linked multicurrency
term and revolving facility, and all loans in Aker BioMarine ASA were repaid.
Note 10 – Pension expenses and liabilities
The Company 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. The Company’s defined benefit obligation cover one employee. At the end of the year the
defined benefit obligations were USD 0.5 million and the assets were USD 0.4 million. The fair value of
the net obligation has been calculated using an appropriate discount rate. During the year the
Company expensed USD 0.4 million, net of settlements and curtailment, on the defined benefit plan
(2021: USD 0.4 million). In addition, USD 0.02 million related to changes in actuarial assumptions is
expensed in other comprehensive income (2021: USD 0.02 million).
Pension expenses and liabilities relating to the defined-benefit plan are discussed in Note 4 to the
consolidated financial statements for Aker BioMarine Group. The Company complies with all
requirements for coverage by a collective pension plan, and all relevant laws and regulations.
Note 11 – Restricted funds
The Company has USD 0.3 million in restricted funds associated with employee tax withholdings as of 31
December 2022 (2021: USD 0.3 million).
Note 12 – Transactions with subsidiaries and related parties
In 2022 and at year-end 2022, Aker BioMarine ASA recognized the following transactions in the
statement of profit and loss and the balance sheet with other Group companies and related parties:
USD Millions
Aker ASA
Aker
BioMarine
Antarctic AS
Other
subsidiaries
Fornebu
Gateway
Felleskost AS
Cognite
Other
related
parties
Total
Transactions recorded in profit and loss
Management fee (income)
-
16.8
0.1
-
-
0.1
17.0
Mangement fee (costs)
-0.1
-
-
-
-
-0.2
-0.3
Interest income
-
10.2
0.1
-
-
-
10.3
Transactions recognized in balance sheet at year-end
Long-term interest bearing
receivable
-
213.9
-
-
-
-
213.9
Current receivables
-
11.0
-
-
-
-
11.0
In 2021 and at year-end 2021, Aker BioMarine ASA recognized the following transactions in the
statement of profit and loss and the balance sheet with other Group companies and related parties:
USD Millions
Aker ASA
Aker
BioMarine
Antarctic AS
Other
subsidiaries
Fornebu
Gateway
Felleskost AS
Cognite
Other
related
parties
Total
Transactions recorded in profit and loss
Management fee (income)
-
16.7
0.1
-
-
0.1
16.9
Mangement fee (costs)
-0.1
-
-
-0.2
-0.3
-
-0.6
Interest income
-
14.3
-
-
-
-
14.3
Guarantee fee
-0.3
-2.2
-
-
-
-
-2.5
Transactions recognized in balance sheet at year-end
Long-term interest bearing
receivable
-
209.4
2.0
-
-
-
211.4
Current receivables
-
4.9
0.1
-
-
-
5.0
Current liabilities
0.2
-
-
-
0.1
-
0.3
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Annual Report – 2022 102
Note 13 – Other financial income and expenses
Other interest- and financial income:
Year ended 31 December
USD Millions
2022
2021
Interest income, bank
0.1
-
Other financial income
10.0
-
Total
10.1
-
Other financial expenses:
Year ended 31 December
USD Millions
2022
2021
Interest expenses
-0.3
-3.2
Other financial expenses
-
-0.5
Total
-0.3
-3.7
Note 14 – Salaries and other remuneration to the Board of
Directors and executive management
Board remuneration
There is no remuneration paid to the Board members and Employee representative other than ordinary
salaries. For details about board remuneration, refer to the Company’s Remuneration Report which is
published on the Company’s website.
https://www.akerbiomarine.com/investor-other-reports-and-presentations
Remuneration paid to the CEO
The CEO is member of the defined contribution pension and insurance plans that cover all employees.
The Group uses standard employment contracts. The CEO may be dismissed upon three months' notice.
If the company terminates the employment, the CEO is entitled to three months' severance pay after
the end of the notice period. The pension is capped at a salary of 12 times the National Social Security
base amount.
The Group implemented share incentive programs for employees in February 2022.
In addition to the EMT bonus program also referred to in the Remuneration report, Aker BioMarine has
established a bonus program for level two managers based on EBITDA performance. Sales resources
have separate bonus programs linked to achievement of certain sales related KPIs.
Based on the company’s performance in 2020, management team was awarded a bonus totaling USD
0.9 million that was accrued in 2021 and paid in 2022. No bonus awarded in 2021 or 2022, except for one
member of the EMT.
For details about remuneration paid to the CEO and EMT, refer to the Company’s Remuneration Report
which is published on the Company’s website.
https://www.akerbiomarine.com/investor-other-reports-and-presentations
3. Finance |
Annual Report – 2022 103
Directors’ responsibility statement
Today, the board of directors and the chief
executive officer reviewed and approved the
board of directors’ report and the consolidated
and separate annual financial statements of Aker
BioMarine ASA, consolidated and parent
company for the year ending and as of 31
December 2022.
Aker BioMarine ASA’s consolidated financial
statements have been prepared in accordance
with IFRSs and IFRICs adopted by the EU as well
as additional disclosure requirements in the
Norwegian Accounting Act and as such are to be
applied per 31 December 2022. The separate
financial statements of Aker BioMarine ASA have
been prepared in accordance with the Norwegian
Accounting Act and Norwegian accounting
standards as at 31 December 2022. The board of
directors’ report for the group and the parent
company satisfy with the requirements of the
Norwegian Accounting Act and Norwegian
accounting standard no. 16, as at 31 December
2022.
To the best of our knowledge:
The consolidated and separate annual financial
statements for 2022 have been prepared in
accordance with applicable accounting
standards.
The consolidated and separate annual financial
statements give a true and fair overall view of
the assets, liabilities, financial position and
profit/loss of the group and for the parent
company as of 31 December 2022.
The board of directors’ report provides a true
and fair review of the development and
performance of the business and the position of
the group and the parent company, the principal
risks and uncertainties the group and the parent
company may face.
Fornebu, 21 March 2023
The Board of Directors and CEO of Aker BioMarine ASA
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Alternative performance measures |
Annual Report – 2022 114
ALTERNATIVE PERFORMANCE MEASURES
Alternative performance measures, meaning financial performance measures not included within the
applicable financial reporting framework, are used by the Group to provide supplemental information
by excluding items that in management’s view, does not give indications of the periodic operating
results. Financial APMs are used to enhance comparability of the results from a period to the next, and
management uses these measures internally when driving performance in terms of long- and short-
term forecasts. The measures are adjusted IFRS measures, and are defined, calculated and consistently
applied in the Group’s financial reporting. The Group focuses on EBITDA and Adjusted EBITDA when
presenting the period’s financial result internally and externally. Adjusted EBITDA is adjusted for special
operating items.
Financial APMs should not be considered as substitute for measures of performance in accordance with
applicable financial reporting framework.
The Group uses the following APMs in the reporting:
●
EBITDA: Operating profit before depreciation, amortization, write-downs and impairments
●
Adjusted EBITDA: Operating profit before depreciation, amortization, write-downs and impairments,
and Special operating items
●
EBITDA margin %: EBITDA as a percentage of Net sales
●
Adjusted EBITDA margin %: Adjusted EBITDA as a percentage of Net sales
●
Gross margin %: Gross profit as a percentage of Net sales
●
CAPEX: The sum of Payments for property, plant and equipment and Payments for intangibles
(included in the consolidated statement of cash flow)
“EBITDA” and “Adjusted EBITDA” are used as APMs to facilitate operating performance comparisons from
period to period, and the others are relevant key figures mainly in connection with the mentioned
performance measures. The significant items of income and expenditure represent the difference
between EBITDA and Adjusted EBITDA and are labeled "Special operating items" (which is also the
wording used in the Group’s financing agreements).
As per the Group’s APM guideline, Special operating items fall within these brackets:
●
Restructuring costs: In the event of the initiation of a restructuring program, IAS 37 defines a
restructuring as a program that materially changes the scope of a business or the manner in which
it is conducted, and any associated costs are non-recurring.
●
Launch cost: In the event of the launch of a new brand, the related costs are considered as non-
recurring until the launch of the brand. Examples of relevant costs are employment of management
team, R&D on packaging and capsules, general start-up cost, and significant market development
costs.
●
Transaction related costs: These costs include fee to legal and tax advice related to a share issue
(unless not carried towards equity) or M&A valuation fee, underwriting fee, roadshow costs, certain
bonus schemes directly linked to the transaction.
●
Settlements: In the event where the company has paid settlements to other parties.
●
Legal expenses: Litigation expenses in the form of a lawsuit settlement, legal and consultancy fees
are all nonrecurring expenses.
●
Gains/ losses on sale of assets: The sale of assets is not part of the company's normal operations,
and any (material) gains or losses are considered non-recurring.
●
Impairments: When the (reversal of) impairment is the result of an isolated, non–recurring event,
this is considered non-recurring.
●
Other: Other material transactions of either non-recurring nature or special in nature compared to
ordinary operational income or expenses.
As per the Group’s APM guidelines, the materiality level for recognizing a Special operating item is USD
1.0 million.
The following table reconciles Adjusted EBITDA to Operating profit and Net income (loss) in the
consolidated statements of Profit or loss. ‘Depreciation, amortization and impairment non-production
assets’ in the below table is derived directly from the Profit or loss line item ‘Depreciation, amortization
and impairment’. ‘Depreciation, amortization and impairment production assets’ in the below table can
be reconciled with information in Note 8 ‘Property, plant and equipment’ under line items ‘Depreciation
for the year’ and ‘Impairment’.
The following items are included in Special Operating Items over 2022 and 2021.
Year ended 31 December
USD Millions
2022
2021
Net loss
10.0
(8.0)
Tax expense
2.2
0.6
Financial income
(4.0)
(21.3)
Financial expenses
22.0
15.7
Net foreign exchange gain/loss
(8.1)
(0.7)
Operating profit
22.1
(13.7)
Depreciation, amortization and impairment
51.4
56.9
EBITDA
73.5
43.2
Special operating items
(4.5)
4.7
Consisting of:
La Manche operating costs and gain from sale
-
(0.4)
Restructuring costs
1.3
2.7
Legal expenses SG&A
-
1.4
Oslo Børs listing - 'Transaction related costs'
-
1.1
Aion transaction
(5.8)
-
Adjusted EBITDA
69.0
47.9
Alternative performance measures |
Annual Report – 2022 115
Improvement program (2022):
In Q4, the company initiated an improvement program to streamline operations, improve margins, cut
costs, and optimize cash conversion. As a result of this program, USD 1.2 million in external costs as well
as internal hours incurred by the project team has been recognized as APM.
Aion (2022):
As a result of the Aion transaction, the Group’s investment in the plastic circularity company has been
deconsolidated. The gain from the Aion transaction (fair value adjustment of the investment) of USD 2.8
million is a material transaction which is non-recurring in nature and special compared to ordinary
operational income or expenses.
La Manche operating cost and gain from sale (2021):
In October 2021, the Group sold the supply vessel La Manche with a resulting gain of USD 0.4 million.
Restructuring cost (2021):
As part of the Superba turnaround and other initiatives, the Group incurred restructuring and legal
related costs amounting to USD 2.7 million
3. Finance |
Annual Report – 2022 116
Appendix 1: EU Taxonomy report for Aker BioMarine
Reporting period: 2022
The EU Taxonomy Regulation (Regulation 2020/852) came into effect on 12 July 2020. Since then, the EU
has implemented Delegated Acts to further expand on the taxonomy framework. This includes the Climate
Delegated Act (Regulation 2021/2139), the Disclosures Delegated Act (Regulation 2021/2178), and the
Complementary Climate Delegated Act (Regulation 2022/1214). In addition, another delegated act, the
Environmental Delegated Act, is currently being drafted. As of now, under the taxonomy regulation, large,
public-interest undertakings are required to report on the proportion of their economic activities that
meet taxonomy technical screening criteria.
Scores per activity
Please note that the alignment ratio in each row applies only to their respective row. Company total can
be seen in the “Total” row
3. Finance |
Annual Report – 2022 117
Reporting requirements for Aker BioMarine
According to the Non-Financial Reporting Directive (NFRD) article 19(a) and 29(a), non-financial
undertakings which are public-interest entities (i.e., listed) with more than 500 employees, in the case of
a group on a consolidated basis, are required to report on the taxonomy. As of 2023, the undertakings
are required to report on the proportion of their taxonomy-eligible and taxonomy-aligned activities.
As a Norwegian company, Aker BioMarine is not covered by the taxonomy regulation, since the regulation
has not yet come into effect in Norway. This report is therefore Aker BioMarine's voluntary taxonomy
report.
Taxonomy assessment methodology
Aker BioMarine has performed the taxonomy assessment using Celsia Taxonomy software solution. The
methodology of taxonomy assessment has included the following steps:
1.Defining scope of assessment
Aker BioMarine has performed a taxonomy assessment for all activities in the company. This has been
done with a bottom-up approach, assessing the lowest level of reporting units and aggregated to the top
company level, enabling a taxonomy assessment for the company total, per activity and per business
division.
2.Defining eligibility and relevant activities
A taxonomy-eligible activity means an economic activity that is included in the taxonomy regulation. All
Aker BioMarine’s activities have been mapped out according to the activities defined in the Climate
Delegated Act and categorized as either eligible or non-eligible following the description stated in the
regulation. The eligible and non-eligible activities are listed in the table below:
Activity Comments
6.10. Sea and coastal freight water transport, vessels for port operations and auxiliary activities
Taxonomy-non-eligible activities No ready and approved criteria set that covers our fishing
vessels and production plant in Houston.
3.Defining relevant reporting units
To conduct the assessment as accurately as possible, Aker BioMarine ’s operations were split into
reporting units that correspond with the above-mentioned scope (see point 1). The areas identified were
fishery, transport and production. Assets identified as reporting units for the taxonomy reporting were
the fishing vessels, plant and transportation vessel for Aker BioMarine.
4.Assessment of criteria and defining alignment
Each of the activities listed under Aker BioMarine ’s defined reporting units have been assessed against
the technical screening criteria for the respective activities defined in the Climate Delegated Act. As the
taxonomy regulation is still in an early phase of adoption, the focus has been on transparency, best
intention, and providing explanation for choices made when interpreting the criteria. The interpretation
of the criteria is based on both the explicit information available and the understanding of the purpose
of the requirement.
The taxonomy regulation has not yet adopted explicit criteria for the minimum social safeguards beyond
the references to OECD guidelines and UN Guiding Principles. Still, Celsia’s understanding is that defined
requirements on minimum social safeguards need to be placed on the company and the activities in
question in order to assess activity-alignment. Aker BioMarine has therefore based compliance with
minimum social safeguards on an assessment of several requirements derived from the process of due
diligence on responsible business conduct as described in OECD’s Guidelines for Multinational
Companies and the UN Guiding Principles for Business and Human Rights. Please see Appendix 1 for the
actual criteria.
5.Adding financial data and calculating the three KPIs
Finally, by adding financial data to each activity in the reporting unit, the proportion of Aker BioMarine’s
taxonomy-eligible and taxonomy-aligned activities were calculated. This was done by calculating the
three key performance indicators (KPIs): turnover, capital expenditures (CapEx), and operational
expenditures (OpEx). The results were calculated for each reporting unit and activity and then aggregated
for the company level.
Taxonomy Accounting Policy
The proportion of taxonomy-eligible and taxonomy-aligned turnover, CapEx, and OpEx are calculated by
dividing a numerator by a denominator. The definitions of the turnover, Capex, and Opex KPIs are set out
in Annex I to the Disclosures Delegated Act. The following sections provide further information on how
the denominators and numerators were derived for each KPI for the reporting period 2022.
Turnover KPI
The net turnover equals the external revenue according to the financial consolidated statement.
CapEx KPI
Denominator:
The Capex KPI is calculated as all capitalized costs in the consolidated financial statement.
The Capex denominator includes all additions to the fixed and intangible assets within the reporting
period. Furthermore, capitalized cost from the relevant IFRS standards, IFRS 16 – Leases, IAS 16 – Property,
plant and equipment and IAS 38 – Intangible assets.
Numerator:
part of the Capex denominator that is related to assets and processes that are associated with taxonomy-
eligible activities. In addition, the numerator includes Capex which are a part of a Capex plan approved
by the EMT and Board of Directors.
OpEx KPI
Denominator:
The OpEx KPI is presented in the financial consolidated statement and shall include all
maintenance material, cost of employees repairing a machine, cleaning the factory and IT dedicated
maintenance. It also includes projects related to research and development. However, general overhead
cost, raw material or other cost needed to operate a fixed asset as intended should not be included.
Numerator:
part of the OpEx denominator that is associated with taxonomy- eligible activities, research and
development cost non-capitalized.
General comments
Aker BioMarine has completed the taxonomy with the best intention and a focus on transparency and an
explanation of the interpretation of the taxonomy criteria. The interpretation of the criteria is based on
both the explicit information available at the time of the assessment and the understanding of the
purpose of the requirement.
The criteria related to minimum social safeguards are still not adopted by the EU. Still, Aker Biomarine
has mapped its operations against the process of due diligence on responsible business by the OECD
Guidelines for Multinational Enterprises. Through this assessment we have identified some areas of
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improvements where we have defined mitigating actions being implemented within 2023. Based on this,
we have concluded that we comply with the minimum social safeguards.
The taxonomy regulation is still in a phase of early adoption and Aker BioMarine is closely following any
clarifications from the EU Commission or any changes in industry best-practice when it comes to
interpreting the activity descriptions or technical screening criteria.
Appendix 1: Criteria related to minimum social safeguards
Please note: The taxonomy regulation has not yet adopted explicit criteria for the minimum social
safeguards beyond the references to OECD guidelines and UN Guiding Principles. Still, Celsia’s
understanding is that defined requirements on minimum social safeguards need to be placed on the
company and the activities in question in order to assess activity-alignment. Celsia has therefore based
compliance with minimum social safeguards on an assessment of several requirements derived from the
process of due diligence on responsible business conduct as described in OECD’s Guidelines for
Multinational Companies and the UN Guiding Principles for Business and Human Rights. Please see below
for the actual criteria.
All activities
Criteria:
1.Does your company have a policy commitment on social responsibility including human rights, labor
rights and anti-corruption - either as a stand-alone policy or integrated into other policies?
Yes, Aker BioMarine has a policy commitment on social responsibility which include human rights, labor
rights and anti-corruption integrated in our Code of Conduct and furthermore in a separate ESG-policy.
2.Does your policy or code of conduct contain social responsibility requirements and/or expectations
towards suppliers and other key business partners?
Yes, further detailed in our Code of Conduct, ESG-policy and Supplier Declaration.
3.Does your company have written procedures ensuring that you have an iterative process in line with
OECD’s due diligence process including mapping of risks for adverse negative impact on people,
implementation of ceasing or preventive measures, tracking and reporting?
Yes, through our annual risk review process, which includes ESG topics, in addition to policy and
procedures for carrying out supplier qualification, since this is considered to be the area where AKBM is
most likely to have a negative impact.
4.Have you identified and assessed the salient risks, potential or factual, related to your taxonomy
activity/activities, covering your value chain? Include also an explanation of why these are your
prioritized risks.
Yes, in our risk analysis we have identified the follow three material risks for Aker BioMarine;
Risk of negative impact on decent working conditions through sourcing from low-cost countries.
Aker BioMarine has more than 1,000 suppliers from all over the world and as wedepend on the quality
and consistent supply from many of these suppliers, it is vital for Aker BioMarine that the employees of
these suppliers can work in safe and good conditions. Most suppliers to Aker BioMarine are based in
Norway, Europe and USA, however, Aker BioMarine has selected suppliers based in low-cost countries
defined with high (A) and medium (B) risk of breaching basic human rights and decent working conditions
according to United Nations Environment Program.
In order to minimize risk of negative social impact, Aker BioMarine has implemented a rigorous supplier
qualification process in which all suppliers must confirm adherence to Aker BioMarine’s governing
documents and submit a thorough supplier self-assessment topics on Anti-Corruption and Integrity,
Human & Labor Rights and Health & Safety, and ultimately be subject to an audit if any information
deviates from Aker BioMarine’s standards for its suppliers.
Risk of exposing employees and contractors to unsafe working conditions. Our operation – especially
offshore – entails an inherent risk of negative social impact on the health and safety of our people if
sufficient safety considerations are not made. This risk relates to both our own employees and to the
hired crew. This risk is also present in our production plant in Houston, where there are manual processes
combined with heavy loads and/or handling of chemicals. To mitigate this, Aker BioMarine complies with
strict rules and standards and carries out trainings to promote a safety culture that ensures the safety
of all people carrying out work on Aker BioMarine’s behalf, including employees, business partners or
other suppliers.
Potential community impact. Aker BioMarine’s operations have the potential to cause harm to a sensitive
ecosystem should any of our vessel incur spills or breakdowns in the South Antarctic Ocean. Similarly,
with our production plant in Houston, there is an inherent risk of spills, waste, etc.
5.Can you provide information and documentation on the overall measures you have implemented to
reduce, cease or prevent the risks identified?
Our risk-mitigating actions related to supply chain management are described above. A more detailed
description is set out in Aker BioMarine’s 2022 Annual Report under the Transparency Act.
To mitigate risk of unhealthy working conditions, Aker BioMarine complies with strict rules and standards
and carries out trainings to promote a safety culture that ensures the safety of all people carrying out
work on Aker BioMarine’s behalf, including employees, business partners or other suppliers. A more
detailed description of the risks related to HSE-events and our preventive and mitigating actions can be
found in in Aker BioMarines Annual Report 2022, chapter 2.
To mitigate risks related to community impact, Aker BioMarine invests in its vessels and other assets both
financially as well as in terms of competency by always ensuring that people are given the best training
possible for proper handling and use. We furthermore invest in and implement technology where relevant
to decrease the risk of error.
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6.Do you have a whistle blower mechanism or similar in place, that is known and accessible for internal
and external stakeholders?
Yes, accessible through our webpage, with separate instructions and procedure for use.
7.Do you track whether your policies and identified risks are properly managed through optimal
implementation in your day-to-day business?
As part of our risk review process, we track Aker BioMarine’s salient risks. We report quarterly on KPIs
within ESG such as emissions, spill, HSE-events, breaches of Code of Conduct, etc. See also question 9
below.
8.Does your company report on how it addresses adverse impact on human rights, labor rights and anti-
corruption - where such risks exist - and the results of its actions taken?
Yes, as part of annual reporting and in line with the requirements of the Transparency Act.
9.Is the board and top management kept informed about risks, and progress and results reached in the
management of these?
Yes, through separate risk review in our Audit Committee, with risks reported on a quarterly basis in
addition to a more thorough review with the Board of Directors on annual basis.
10.Are the above-mentioned steps of policy commitment, risk assessment, implementation, tracking and
reporting performed on a regular and iterative basis in order to cover changes in risk exposure that can
trigger more in-depth assessment and enhanced mitigation?
Yes.
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Appendix 2: Aker BioMarine methodology statement climate accounts
The following company divisions and reporting frameworks have been used in Aker BioMarines ESG-reporting 2022
.
Introduction
The climate reporting is based on a climate monitoring and tracking system developed by Aker BioMarine
as it is crucial to have reliable and comprehensive data of our emissions that can be third party verified.
This statement demonstrates the criteria and standards used to report CO2e. Aker BioMarine use the
Greenhouse Gas Protocol Initiative (GHG protocol) as a framework to report on GHG emissions, to ensure
as much as possible a complete, consistent, transparent and accurate account of the company’s GHG
emissions. Aker BioMarine use operational control as the company has full authority to introduce and
implement its operating policies of the operation.
As part of this work Aker BioMarine has engaged DNV GL to identify, assess and document emission
factors to be used in our climate accounting for annual operations. DNV GL has provided the emissions
conversion factors based on publicly available sources (in 2021).
Reporting overview
The metrics used to report data of our climate impact was selected after an assessment of how we impact
the most. The company controls most of our value chain, and we have well identified emissions sources.
We have documented processes to ensure a climate accounting system that is reliable. Aker BioMarine
strive to be transparent in our climate reporting. We have internal control systems to ensure correct data
and reporting.
We strive to be consistent over time in the use of emission factors for climate accounting. This makes it
possible to better understand the development in emissions.
Operational boundaries
This report includes the operations of Aker BioMarine such as vessel operations, land-based production
and land-based offices and warehouses. The report also includes scope 3 emissions like packaging, travel
and transport of goods to customers.
The reporting data in this report includes data to the year ending 31 December 2022.
Scope 1:
operations, and gas usage in our Houston plant.
Scope 2:
Emissions from electricity use for production, warehouse and office in our Houston plant, main
offices in Oslo, Houston, Ålesund, New Jersey and warehouses with cooling in Houston, Montevideo and
India.
Scope 3:
Emissions from packaging used, transport of goods and business and crewing travel.
We have not included most sales offices with less than 10 employees, or warehouses without cooling.
Emissions from these sources are deemed to be insignificant. The pilot plant in Ski is in the future scope
and will be included when operational.
Calculations
The calculations are based on various sources, coupled with a CO2e conversion factor which is described
in the next chapter. All data is gathered from sub-systems to our centralized data warehouse. The CO2-
calculations are made in the data warehouse.
Scope 1:
We measure, monitor, and report our emissions derived from our fuel usage on vessels, daily. We use
manual sounding to measure fuel usage on all vessels, except Antarctic Endurance which use sensor
reading of fuel level. The fuel use is registered manually in ShipAdmin, daily by the crew. Shipadmin is a
vessel management tool. It’s used on the ships to oversee all aspects of a ship operation. For
sustainability, it delivers data related to fuel usage by the main and auxiliary engines, boilers, and electric
energy generators. All vessels use the same fuel, MGO.
The amount of fuel is multiplied with a CO2e conversion factor described below, in our climate accounting
system.
We receive gas usage from our gas provider on a monthly basis.
Scope 2:
We pull data from our electricity providers on the electricity consumption, monthly. As required by the
GHG Protocol, we report our scope 2 emissions using both the location based and the marked based
approach. The location based method is considered our main reporting method.
Location- based CO2e emissions:
Aker BioMarines location based scope 2 emissions are calculated by multiplying electricity consumption
for each location with the average grid CO2e conversion for that location.
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Market- based C02 conversion factor:
Aker BioMarines market based scope 2 emissions are calculated by multiplying the electricity
consumption for each location, deducted for any purchased Guarantees of Origin (GOs), and multiplied
with the residual mix emission factor of that location. For locations where a residual mix factor is not
available, the location based emission factor is used. Aker BioMarine has not bought any Guarantees of
Origin (GOs). The company use residual mix CO2e conversion factor for Norway, and available CO2e
conversion factor for all other locations as we have not been able to find a differentiated location and
market-based CO2e conversion factor for any region besides Norway.
Scope 3:
Packaging: We base the calculation of the kg CO2 per meal bag. The number of packaging used is based
from produced meal with data from the ERP system, Jeeves, from the manufacturing orders. We have
been provided the weight and product mix from our vendors. The calculation is based on the factors per
material, product mix, weight and the conversion factor (BEIS, 2020), PP and PE . For the meal bags where
we find PA and EVOH we have calculated the conversion factor from input from the vendors, regarding
weight and product mix. The number of bags with PA and EVOH is used to a minimum
Transport of Goods
: We calculate the emissions based on order weight, shipment method (air, road, sea),
distance in straight line between warehouse to warehouse and use the associated CO2 conversion factor
seen below.
Transport at sea :
Based on the input from Aker BioMarine and their supplier, it is regarded that emission
factor for “average container ship” is the most relevant and accurate option for the vessels Aker
Biomarine charter for sea transport. Unit of measurement is in tonne.km, because Aker BioMarine’s
transported goods do not necessarily make up 100% of the cargo on the vessels. This calculation is based
on the distance (km) from our warehouse to the customer location in straight line. Tonne is based on
actual customer order that has been shipped with packaging.
Transport by road :
For transport by road Aker BioMarine mostly use heavy goods vehicles (HGV) for
transporting their goods. An average HGV CO2 emissions factor based on km travelled for 100% laden
trucks have been proposed to account for their CO2 emissions related to this activity. BEIS (2020) is the
recommended source for the emission factor due to its applicability for use in several countries.
DNV GL have also included CO2 factors for average HGV on empty hauls (0% laden). As well as factor for
average HGV based on CO2 emissions per tonne per kilometre. This to account for cases were Aker
BioMarine’s goods do not make up the total tonnage of the haul.
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Transport by air :
Unit of measurement is given in kgCO2/tonne.km due to Aker BioMarine’s goods not
necessarily making up 100% of the total cargo.
Emission source
Emission source
CO2e conversion factor
Reference
Transport of goods -
Transport by sea
Average Container
ship
0,01614 kgCO
2
e/tonne.km
BEIS, 2020
Transport of goods –
by road
Average HGV (diesel)
100% laden
1,00229 kgCO
2
e/km
BEIS, 2020
Transport by road
Average HGV (diesel)
0% laden
0,65811 kgCO
2
e/km
BEIS, 2020
Transport by road
Average HGV (diesel,
tonnage-based)
0,10065 kgCO
2
e/tonne.km
BEIS, 2020
Transport of goods -
Transport by air
International (one
way)
0,59943 kgCO
2
e/tonne.km
BEIS, 2020
Business and crewing travel:
booked with distance travelled and ticket class (economy/business).
Business travel by
air (one way)
Economy class
0,073615 kgCO
2
e/pax.km
BEIS, 2020
Premium economy class
0,11778 kgCO
2
e/pax.km
BEIS, 2020
Business class
0,21348 kgCO
2
e/pax.km
BEIS, 2020
First class
0,29445 kgCO
2
e/pax.km
BEIS, 2020
Average passenger
0.09612 kgCO
2
e/pax.km
References
BEIS, 2020. UK Government GHG Conversion Factors for Company Reporting.
[https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2020].
Energy Star, 2020. Portfolio Manager – Technical Reference – Greenhouse Gas Emissions.
[https://portfoliomanager.energystar.gov/pdf/reference/Emissions.pdf].
EY, 2014. Life Cycle Assessment of Newly Manufactured and Reconditioned Industrial Packing.
[https://www.reusablepackaging.org/wp-content/uploads/Life-Cycle-Analysis-Report-2014.pdf]
International Maritime Organization (IMO). 2018. Annex 5: 2018 Guidelines on the method of calculation
of the attained energy efficiency design index (EEDI) for new ships.
https://wwwcdn.imo.org/localresources/en/OurWork/Environment/Documents/Air%20pollution/MEPC.
308(73).pdf
Norwegian Environmental Agency (NEA), 2020. Greenhouse Gas Emissions 1990-2018, National Inventory
Report. [https://www.miljodirektoratet.no/globalassets/publikasjoner/m1643/m1643.pdf].
NVE. 2019a. Varedeklerasjon for strømleverandører.
https://www.nve.no/energiforsyning/opprinnelsesgarantier/varedeklarasjon-for-stromleverandorer/
(Norwegian)
NVE. 2019b. Hvor kommer strømmen fra?. https://www.nve.no/energiforsyning/kraftproduksjon/hvor-
kommer-strommen-fra/ (Norwegian).
Oslofjord Varme. 2018. Miljørapport 2018 – Nøkkeltall for miljøregnskap og BREEAM-sertifisering.
https://www.oslofjordvarme.no/wp-content/uploads/Milj%C3%B8rapport-2018.pdf. (Norwegian)
Solid, gaseous, liquid and biomass fuels: Federal Register (2009) EPA; 40 CFR Parts 86, 87, 89 et al;
Mandatory Reporting of Greenhouse Gases; Final Rule, 30Oct09, 261 pp. Tables C-1 and C-2 at FR pp. 56409-
56410. Revised emission factors for selected fuels: Federal Register (2010) EPA; 40 CFR Part 98; Mandatory
Reporting of Greenhouse Gases; Final Rule, 17Dec10, 81 pp. With Amendments from Memo: Table of Final
2013 Revisions to the Greenhouse Gas Reporting Rule (PDF) to 40 CFR part 98, subpart C: Table C–1 to
Subpart C—Default CO2 Emission Factors and High Heat Values for Various Types of Fuel and Table C–2
to Subpart C—Default CH4 and N2O Emission Factors for Various Types of Fuel.
U.S. EPA. 2016. Documentation for Greenhouse Gas Emission and Energy Factors Used in the Wate
Reduction Model (WARM) – Containers, Packaging, and Non-Durable Good Materials Chapters.
https://www.epa.gov/sites/production/files/2016-
03/documents/warm_v14_containers_packaging_non-durable_goods_materials.pdf
U.S. EPA's Emissions & Generation Resource Integrated Database (eGRID). eGRID2018 (released 1/30/2023)
contains the complete release of year 2021 data. https://www.epa.gov/energy/egrid.
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Appendix 3:
GRI Index
Statement of use
Aker BioMarine has reported the information cited in this GRI content index for the period 01.01.22 to 31.12.22 with reference to the GRI Standards.
GRI 1 used
GRI 1: Foundation 2021
GRI STANDARD
DISCLOSURE
LOCATION
GRI 2: General Disclosures 2021
2-1 Organizational details
p. 52, 54 and 61
2-2 Entities included in the organization’s sustainability reporting
p. 22
2-3 Reporting period, frequency and contact point
https://newsweb.oslobors.no/
2-5 External assurance
p. 21, 25 and 46-47, 104.113
2-6 Activities, value chain and other business relationships
p. 42-43, 51
2-7 Employees
p. 37-38 and 42, 56, 65
Governance
2-9 Governance structure and composition
p. 45-47, 50 and 54
2-10 Nomination and selection of the highest governance body
p. 45-47, 54
2-11 Chair of the highest governance body
p. 50
2-12 Role of the highest governance body in overseeing the management of impacts
p. 45
2-13 Delegation of responsibility for managing impacts
p. 25, 46
2-14 Role of the highest governance body in sustainability reporting
p. 25 and 113
2-15 Conflicts of interest
p. 9-10 in Code of conduct
2-16 Communication of critical concerns
p. 17- 19, 25
2-17 Collective knowledge of the highest governance body
p. 25
2-19 Remuneration policies
p 88, Aker BioMarine Policy on Remuneration to the Executive
Management
Management remuneration report
2-20 Process to determine remuneration
p. 46,47
2-21 Annual total compensation ratio
p. 88
Strategy, policies and practices
2-22 Statement on sustainable development strategy
p. 4 and 53
2-23 Policy commitments
AKBM Code of Conduct
https://www.akerbiomarine.com/corporate-social-responsibility
2-24 Embedding policy commitments
Code of conduct
2-25 Processes to remediate negative impacts
p. 17-18, 26
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Annual Report – 2022 124
2-26 Mechanisms for seeking advice and raising concerns
p. 46 in annual report
+ p. 18 in Code of conduct
2-27 Compliance with laws and regulations
p. 41
2-28 Membership associations
https://www.akerbiomarine.com/sustainability/partnerships
p. 27 in annual report
2-29 Approach to stakeholder engagement
p. 16, 20-47, 53 & 54
2-30 Collective bargaining agreements
p. 37
GRI 3: Material Topics 2021
3-1 Process to determine material topics
P. 20-47 in annual report
3-2 List of material topics
P. 20-47 in annual report
3-3 Management of material topics
p. 17-19, 20-47, and 53
GRI 201: Economic Performance 2016
201-2 Financial implications and other risks and opportunities due to climate change
p. 17-18 and 25
GRI 205: Anti-corruption 2016
205-1 Operations assessed for risks related to corruption
Code of conduct from p. 14.
205-2 Communication and training about anti-corruption policies and procedures
Code of conduct from p. 14.
GRI 303: Water and Effluents 2018
303-1 Interactions with water as a shared resource
p. 5, 11, 19, 26-29 and 53, appendix 2
303-2 Management of water discharge-related impacts
p.34
303-3 Water withdrawal
p.34
303-5 Water consumption
p.34
GRI 304: Biodiversity 2016
304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and
areas of high biodiversity value outside protected areas
p. 28 and 53
MSC Certification
304-2 Significant impacts of activities, products and services on biodiversity
p. 17, 26- 29 and 53
MSC Certification
304-3 Habitats protected or restored
p. 10, 17, 24, 26-27 and 53
MSC Certification
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions
p. 33, 22, appendix 2
305-2 Energy indirect (Scope 2) GHG emissions
p.22, 33, appendix 2
305-3 Other indirect (Scope 3) GHG emissions
p. 22, 33, appendix 2
305-4 GHG emissions intensity
p. 21,32, appendix 2
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305-5 Reduction of GHG emissions
p. 33, appendix 2
GRI 306: Waste 2020
306-1 Waste generation and significant waste-related impacts
p. 34
306-2 Management of significant waste-related impacts
p. 21 and 34
306-4 Waste diverted from disposal
p. 5 and 34
GRI 401: Employment 2016
401-1 New employee hires and employee turnover
p 43
401-3 Parental leave
p. 43
GRI 403: Occupational Health and Safety 2018
403-1 Occupational health and safety management system
p. 40 and 53
403-2 Hazard identification, risk assessment, and incident investigation
p. 40 and 53
403-3 Occupational health services
p. 37-39
p. 9
403-5 Worker training on occupational health and safety
p. 53
403-6 Promotion of worker health
p. 37 and 39
403-7 Prevention and mitigation of occupational health and safety impacts directly linked
by business relationships
p. 40 and 53
403-8 Workers covered by an occupational health and safety management system
p. 40 and 53
403-9 Work-related injuries
p. 40 and 53
403-10 Work-related ill health
p. 39, 53
GRI 404: Training and Education 2016
404-3 Percentage of employees receiving regular performance and career development
reviews
p.43
GRI 405: Diversity and Equal Opportunity 2016
405-1 Diversity of governance bodies and employees
p. 37, 50
405-2 Ratio of basic salary and remuneration of women to men
p 38
GRI 406: Non-discrimination 2016
406-1 Incidents of discrimination and corrective actions taken
p. 37, 41
GRI 407: Freedom of Association and Collective Bargaining 2016
407-1 Operations and suppliers in which the right to freedom of association and collective
bargaining may be at risk
p.52
GRI 408: Child Labor 2016
408-1 Operations and suppliers at significant risk for incidents of child labor
2022 TRANSPARENCY ACT REPORT
FOR AKER BIOMARINE ASA, published on company website
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory
labor
2022 TRANSPARENCY ACT REPORT
FOR AKER BIOMARINE ASA, published on company website
GRI 411: Rights of Indigenous Peoples 2016
411-1 Incidents of violations involving rights of indigenous peoples
2022 TRANSPARENCY ACT REPORT
FOR AKER BIOMARINE ASA, published on company website
413-2 Operations with significant actual and potential negative impacts on local
communities
2022 TRANSPARENCY ACT REPORT
FOR AKER BIOMARINE ASA, published on company website
414-1 New suppliers that were screened using social criteria
2022 TRANSPARENCY ACT REPORT
FOR AKER BIOMARINE ASA, published on company website
414-2 Negative social impacts in the supply chain and actions taken
2022 TRANSPARENCY ACT REPORT
FOR AKER BIOMARINE ASA, published on company website
415-1 Political contributions
AKBM Code of Conduct