THE GLOBAL GOALS

The United Nations Global Sustainable Development Goals were adopted by representatives of all UN member states in September 2015. There are 17 Goals, which are valid for the period 2016-2030, with 169 sub-goals and cover both domestic matters and international co-operation during the period of validity. The hallmark of the Global Goals is that they are universal and therefore the member states have committed to working systematically towards the implementation of the Goals both domestically and abroad throughout their period of validity. Brim’s policies support many of the United Nations' Global Goals, such as:

• No. 3 - Good Health and Well-being
• No. 5 - Gender Equality
• No. 8 - Decent Work and Economic Growth
• No. 9 - Industry, Innovation and Infrastructure
• No. 12 - Responsible Consumption and Production
• No. 13 - Climate Action
• No.14 - Life Below Water
• No. 15 - Life on Land
• No. 16 - Peace and Justice Strong Institutions

ICELAND RESPONSIBLE FISHERIES

In 2011, Brim became a founding member of the non-profit organization Responsible Fisheries. The purpose of the company is to own and operate brands on responsible fishing, make and maintain agreements on certification of responsible fishing, dissemination of information on Icelandic fishing with special emphasis on buyers and consumers of Icelandic seafood and other related projects. The company's goal is to promote and maintain responsible fishing for the benefit of future generations. The company operates as a non-profit organization.

A catch rule or a similar methodology is required to apply to fisheries management in order for an IRF certification to be possible. Catches from the above-mentioned fish stocks are all regulated by a catch rule. The methodology for setting the catch rule is reviewed and confirmed by the International Council for the Exploration of the Sea, ICES.

All fishing by Brim within Icelandic jurisdiction from these stocks is covered by the certification of the stocks. The company's offices in Reykjavík and Vopnafjörður also have a traceability certificate which confirms that the products produced are traceable from fishing (chain of custody).

MARINE STEWARDSHIP COUNCIL

Brim is a shareholder in ISF (Icelandic Sustainable Fisheries), a company founded in 2012 by companies in fishing, production and sale of Icelandic seafood. The purpose of ISF is to obtain certificates for fishing gear and fish stocks utilized around Iceland. ISF seeks certification according to the Marine Stewardship Council (MSC) standard and the company's shareholders have access to the certification of the species caught in Icelandic jurisdiction.

All of the company's offices have a MSC (chain of custody) certification, which enables Brim to sell products made from MSC-certified stocks as such. The table shows the main fish species that have MSC certified fishing around Iceland.

PROCESSING ON LAND

Catch for processing in Norðurgarður was 14,692 tonnes, compared to 22,758 tonnes the year before. The over 8,000 tonnes reduction in quantity this year is explained by a halt to production for three months in the middle of the year when a major renovation of processing premises and equipment in the company's groundfish processing plant at Norðurgarður was undertaken.

The main changes from the old processing plant are water-jet trimming machines that cut the fillets into pieces and automatic packaging, finishing and stacking of fresh products as well as increased capacity for freezing. The entire process has been streamlined so that raw materials and products go through the entire processing process in the shortest time possible. The aim of these changes is to achieve a more balanced and better quality of products, increased utilization of more valuable products, increased productivity during man-hours and not least through improved working facilities for employees. Simultaneously, a new cleaning system was introduced, but the aim of the system is to reduce negative environmental impact by controlling the use of water and the use of cleaning products in a more targeted manner.

Kambur Seafood ehf., which is now part of the company's group, processed about 3,774 tonnes of gutted catch in the year 2020. Mostly cod but also haddock.

PROCESSING

The company's processing in Vopnafjörður went well in the year 2020, although a large part was missing from the processing due to capelin catch failure.

Efforts have been made to find profitable projects for the groundfish processing between pelagic seasons. The net boat Erling KE was leased for Greenland halibut fishing and the processing of the catch went very well, even though the vessel's operation did not live up to expectations.

Lumpfish was processed from March to the end of May, and experiments with the processing of other fish species gave excellent results.

Mackerel was processed from June to September and the processing went well and market conditions were favorable as in the previous year. Production of products from Norwegian-Icelandic herring then took over from mackerel in the autumn and following that, Icelandic herring was taken into processing at the end of the year. The herring market has grown even stronger since the previous year.

This year, Brim reached an agreement on the purchase of a one-third share in Iceland Pelagic ehf. from Ísfélag Vestmannaeyjar and Skinney-Þinganes. The company is a sales company that sells frozen pelagic products in foreign markets, mainly to Eastern Europe and Africa. The collaboration between Brim and Iceland Pelagic got off to a good start and there are expectations that it will increase further and add value to the business in the coming years.

Emphasis is placed on selling products directly to customers abroad. Extensive knowledge of the entire value chain, from fishing to markets, is important, so that a diverse product range can be harmonized with the requirements of buyers and consumers.

The company's customers are mostly distributors or manufacturing companies and consumer products are sold both in the restaurant market and in retail under the buyers’ or retailers’ brands. The development of long-term business relationships is an important part of the company's market approach, and when selecting customers, emphasis is placed on close cooperation and access to a market that is suitable for Brims' products. Emphasis is placed on making it easy to do business with Brim and that customers always experience good service. Customers' needs are regularly assessed along with their experience of Brims’ products and services. The results are used to improve the service in order to be able to serve customers in the best possible way and as an incentive for employees to maintain a high level of customer service.

MARKET COUNTRIES

In 2020, products were sold to 31 countries, but sales to the 10 largest amounted to 85% of the sales value. The most important markets in 2020 were the United Kingdom, France, Norway, Poland and the United States. About 63% of the company's total sales value in 2020 is due to sales to these five markets. The Russian market, which has been an important market for the company's products, has been closed since August 2015 due to a ban on food imports from Iceland.

MARKETING COMMUNICATION

Brims' website regularly publishes news about the company's operations, in Icelandic and English, and that information is also shared through the company’s social media. The company publishes various brochures where its products are promoted, as well as news of the company's operations, both in Icelandic and English. Every year, Brim has had a large booth at the Seafood Expo Global exhibition in Brussels, which is the largest of its kind in the world. The company also participates in other important exhibitions, such as the Seafood Expo exhibitions in Boston and Qingdao. In 2020, all exhibitions in the world were cancelled due to Covid-19.

BRANDS

Brim manufactures and markets its products in its own packaging, under its own brand and under the brands of the subsidiaries.

As provided for by law, food and feed safety systems are the basis for the operation of all the operating units of the company. Such systems assess all the raw materials and each step of the production in light of the risks involved. These are then systematically minimised. All the products of the company are produced in accordance with these quality systems.

All the operating units are subject to the official monitoring of the Icelandic Food and Veterinary Authority (Matvælastofnun,MAST), which makes sure that laws and regulations are complied with. MAST’s monitoring operations are based on inspections, which in some cases are carried out without any notice.

In land-based units, these systems are based on international standards. The company’s operations in the production plants in Reykjavík and Vopnafjörður are certified in accordance with the IFS standard (International Featured Standard). This is an internationally recognised standard and one of the most used in the field of food safety. These main standards of food safety are co-ordinated under the banner of the Global Food Safety Initiative (GFSI).

The fish meal and oil plant in Akranes and in Vopnafjörður are certified according to the FEMAS standard (Feed Materials Assurance Scheme). FEMAS is an international feed safety standard for products produced for animal feed.

In 2020, the proportion of the company’s food products produced with certification from a third party with respect to international food safety standards was 65%.

There were no recalls during the year, neither due to labelling nor for other reasons. During the period covered by the report, there were no documented deviations from the company’s rules as regard the provision of information and labelling of the products of the company.

The company's certified quality systems include assessing customer satisfaction. The procedure provides for the assessment reaching customers representing at least 80% of the company’s turnover. This assessment is performed annually and was last performed in January 2021, for the year 2020. Brim has established a product quality policy that can be accessed here, Quality Policy.pdf

TRACEABILITY

Brim’s fishing operations rely solely on wild stock, and the company’s products consist, in all cases, of pure and naturally healthy marine produce. Product traceability is an important part of food production. The food and feed safety system of Brim is based on being able to trace the product from its origins all the way to the customer. Detailed information on catches are recorded, such as fishing areas, fishing gear, the composition of the catch, volumes, etc. The origin of the raw materials being processed is recorded and linked to the finished product. In addition, all information on the end destination of all products is maintained. Thus, all products are traceable from the recipient back to the raw material. This traceability is tested on a regular basis by the company’s internal controls as well as by external audits of the systems of the company, including in audits relating to certifications of origin.

The products of the company are in all cases labelled in accordance with rules on the labelling of marine products. This means that it is always clear what species of fish and fishing area is involved, as well as what type of fishing gear was used.

Vignir G. Jónsson ehf.

Vignir G. Jónsson ehf. specializes in the processing of roe and is one of the largest single buyers of lumpfish and cod roe in the country.

Operating revenue for the year was €12.4 million. Operating profit was €0.4 million. Total assets at the end of the year amounted to €14.8 million, while equity was €11.1 million or 76%.

Brim owns a 100% share in Vignir G. Jónsson ehf. and the book value of the holding was €17.0 million at the end of 2020.

KAMBUR SEAFOOD EHF.

processing plant in Hafnarfjörður. The subsidiaries of the company are Grunnur ehf. and Stapavík hf. The company is part of the Brim Group since 1 May 2020.

Operating revenue for the period May to December was €12.9 million. Operating profit was €3.0 million. Total assets at the end of the year amounted to €26.3 million, while equity was €4.1 million or 16%.

Brim owns a 100% share in Kambur Seafood ehf. and the book value of the holding was €17.4 million.

Seafood Services ehf.

Seafood Services ehf. is a service company that specializes in various services to the fishing industry.

Operating revenue for the year was €2.1 million. Operating profit was €0.3 million. Total assets at the end of the year amounted to €1.3 million, while equity was €1.0 million or 84%.

Brim owns a 100% share in Seafood Services ehf. and the book value of the holding was €1.8 million.

Gjörvi ehf.

Gjörvi ehf. specializes in comprehensive maintenance services for vessels and machinery and construction work, as well as related services, both for domestic and foreign parties.

Operating revenue for the year was €0.8 million. Operating loss was €0.2 million. Total assets at the end of the year amounted to €0.2 million, while equity was a negative €0.3 million.

Brim owns a 100% share in Gjörvi ehf. and the book value of the holding was €0.1 million.

SALES COMPANIES IN ASIA

Brim owns all shares in three sales companies in Asia: Icelandic Japan KK, Icelandic China Trading Co. Ltd. and Icelandic Hong Kong Ltd.

The companies' total operating revenue during the year amounted to €107.5 million. Operating profit was €2.0 million. Total assets at the end of the year amounted to €48.4 million, while equity was €15.3 million.

Brim owns a 100% share in the companies and the book value of the holdings was €30.6 million.