Brand Tasmania, page-81

From p.2 of the Tassal (TGR) market briefing today...

"Most pleasing was that even with the decrease in sales volume in 1H20 due to the lower
harvesting and sales undertaken, we were still able to grow operating EBITDA $/kg and
achieve a net profit similar to that achieved in 1H19. We strategically targeted reducing
sales revenue in the lower value export market and less profitable domestic product lines
and generated cost efficiencies.

Being able to flex our operating model to ensure we grew our operating EBITDA $/kg
reflects the strength of the platform we have built at Tassal.

How have you managed to deliver 1H20 operating NPAT earnings that were
only down 3.4% even though harvest and production volumes were down
significantly more?

Mark Ryan

Our operational decisions are focused on the longer-term performance of the business,
increasing operating EBITDA $/kg returns for both salmon and prawns by optimising
biomass growth and size to deliver cost efficiencies, while also optimising sales mix to
higher margin markets and products.

The operational strategy for 1H20 was to harvest less salmon to underpin strong harvest
biomass, sales, earnings and returns in 2H20 for FY20 and FY21. We strategically left
salmon in the water to grow over the key growing months of July to October 2019.

Salmon live biomass was up 15.5% to 23,151 tonnes at 31 December 2019 [vs 31
December 2018]. The lower volumes of salmon harvested was the reason that 1H20
revenue was down."

...

p.5

"ACSI recently awarded Tassal’s ESG reporting processes and frameworks the
highest rating possible – “Leading”. What is the significance of this to Tassal?

Mark Ryan

Since 2011, we have reported against the Global Reporting Initiative’s [GRI] framework
for sustainability reporting, widely considered to be world’s best practice.

Reporting on
our activities has provided us with a mechanism to track our sustainability performance
year on year and highlights our commitment to sustainable practices in the public
domain both as a company, and as individuals within Tassal.

ACSI exists to provide a strong, collective voice on ESG issues on behalf of 39 Australian
and international asset owners and institutional investors that collectively manage over
$2.2 trillion in assets and own on average 10 per cent of every ASX200 company."