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                                                                                                          Grieg Seafood   7        From the CEO         dear Shareholders: 2010 has been an         extraordinary year for Grieg Seafood. We         have delivered the best annual results         ever for the Group, which is largely the         result of record-high salmon prices in         combination with a 31.7% growth in         sales volume.         The salmon market started to develop very favourably in 2009, a   attracts signifcant media attention, and  has also made its way         situation that continued throughout 2010, with high and stable   higher onto the political agenda. The truth is not always measured         prices. These high prices have mainly been due to constraints on the   by the level of media attention received.  So it is in this case.  We         supply side, especially following the outbreak of the iSa disease in   will continue to make our own operations refect fact-based best         Chile.  demand has also proven to be robust, solid in both the large   practice.  That does not mean that we do not face challenges.         established salmon markets and in populous emerging markets.  Salmon farming like most human activity has an environmental                                                              footprint.  This we need to minimise, and we work to do so.   There         in addition to the favourable market balance, we have seen improved   are other challenges that raise concern with us, the industry, and         productivity and an improved biological situation in all our regions.  the general public: Sea lice levels, diseases in certain production                                                              areas, and escapes are among these.  yet from its beginnings, this         in the fall of 2010 Grieg Seafood and Bremnes Seashore established   industry has been through tremendous development in its continual         together a sales and marketing company in norway called Ocean   effort to deal with the challenges it has faced.  in norway we have         quality.  The purpose of the company is to facilitate the norwegian   the World’s strongest regulatory regime, the best global research         supply  of  our own products  to  different  markets internationally.   and knowledge institutions, as well as equipment, feed, and salmon         Ocean quality’s main offce is located in Bergen, while two regional   farming companies that are World leading.  i think we can be confdent         offces operate in alta in northern norway and Bømlo on the south   that again, now as in the past, with effort and determination we will         west coast of norway. Grieg Seafood ownes 60 % of Ocean quality   fnd the  right solutions for whatever challenges we might be facing,         aS, while Bremnes Seashore holds the remaining 40 %.  and that these solutions will both be fact based and sustainable.         Grieg Seafood´s operational performance continues its very   in addition to continually improving what we do, we must also         positive trend, indicating that the past three years of implementing   recognise that the salmon farming industry has been poor at         our growth plan have begun to pay off.  The performance was   conveying its great positive contribution to human life and to the         particularly positive in norway and Shetland.        broader society as a whole.  We produce food, and healthy food,                                                              for  an  ever  growing  global  population.  We  do  this  through  some         in times of high earnings, it is more important than ever to   of the most effcient production of proteins that are known, far         maintain focus on improved operational effciency. Our focus   better than chicken or beef. We utilize the natural temperature of         remains unchanged, with the priority being on implementing our   sea water; energy could hardly be more renewable than that. Finally,         improvement plans.  in 2010, the board of directors decided to   we create signifcant direct and indirect economic activity in rural         accelerate implementation of our smolt strategy, approving a 200   areas. This means jobs, schools, infrastructure, and opportunities         million nOk investment into new freshwater recirculation facilities   for growing service and supply industries: all the things that make         in all regions during 2011 and 2012. This strategy is the single   rural communities alive and thriving.  it is a long way from a coastal         most important improvement project in the Company, and will mean   community in northern norway to the urban lifestyle and priorities         direct  cost  savings  on  smolt,  higher  utilization  of  our  seawater   in the large cities in the South.  if we want these benefts and our         production capacity, and improved biological performance - all of   perspective to be appreciated, then we as industry players need to         which will reduce unit costs.                        be better at sharing this view and this information with the greater                                                              public.         Grieg Seafood has taken important steps to emphasise and optimise         our human capital. We understand that our ability to keep growing   Grieg Seafood is proud to represent fsh farming as an important         and improving our performance is dependent upon motivated and   business for providing jobs in rural areas of the  World. Our         high-performing personnel.  Therefore, we are implementing an   production is an important basis for stable income and continued         array of human resources initiatives across all locations.  settlement  in  many  coastal  communities.  These  are  the  World’s                                                              best locations for producing healthy, protein rich food for a growing         2010 has been an extraordinarily positive year in what may be   population. high quality seafood truly is made at the World’s end…         the best and longest business cycle for salmon farming ever.         Grieg Seafood will use this as an opportunity to focus on the         environment and our contribution to local jobs, economic activity,         rural development, human welfare and hope.                                                              morten vike         The past number of years has shown an increasing and vocal   CEO         opposition to salmon farming, in particular in norway. The opposition
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