Andfjord Salmon

Investor Presentation • Nov 28, 2024

Q3 2024 STATUS AND PROGRESS

28 NOVEMBER 2024

Martin Rasmussen CEO

• ANDFJORD SALMON IN BRIEF
• Quarterly highlights and subsequent events
• Status Kvalnes build-out
• Proposed new land-based aquaculture regulations: Andfjord Salmon's response
• Financials
• Summary and outlook

Bjarne Martinsen CFO

AGENDA

Jostein Nilssen Project Director

NATURAL OPTIMAL WATER TEMPERATURES

OXYGEN-RICH AND CLEAN ARCTIC SEAWATER

LOW ENERGY COSTS. NO LIFTING, HEATING OR COOLING

THE BEST OF TWO WORLDS

3 BENEFITS OF SEA BASED NET PEN FARMING 3 BENEFITS OF LAND BASED FARMING

1

2

NO PROBLEMS WITH SALMON LICE AND POISONOUS ALGAE 1

NATURAL ESCAPE PREVENTION 2

COLLECTION AND RECYCLING BIOWASTE = COMMERCIAL VALUE 3

NATURAL FLOW – ANDFJORD

SALMON'S FLOW-THROUGH SYSTEM

JUNE 2023

KEY FIGURES – FIRST PRODUCTION CYCLE

1.05

LOW FEED CONVERSION RATE

STRONGER GROWTH

LOWER ENERGY COSTS

HIGH SURVIVAL RATE

Industry average = 1.27**

+1 kilo

Extra growth compared to Skretting's growth table

Energy use per kilo produced salmon

97.5%

Industry average = 83.3%*

Source: *Fish Health Report 2023 ** 2023 industry average

HIGH SUPERIOR SHARE

91.1%

Industry average = 85.1%**

Q3 2024

• Andfjord Salmon in brief
• QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS
• Status Kvalnes build-out
• Proposed new land-based aquaculture regulations: Andfjord Salmon's response
• Financials
• Summary and outlook

AGENDA

HIGHLIGHTS Q3 AND SUBSEQUENT PERIOD Q3 2024

KVALNES BUILD-OUT ON TRACK

All workstreams on or ahead of schedule

SOLID PROGRESS ON NEXT FOUR POOLS

Pool framework for all four pools close to completion, side-wall sections to be installed

WATERWAYS NEAR COMPLETION

De-risks a challenging part of the Kvalnes buildout

PROPOSED REGULATIONS

Response submitted as part of public consultation on new regulations for landbased aquaculture

• Andfjord Salmon in brief
• Quarterly highlights and subsequent events
• STATUS KVALNES BUILD-OUT
• Proposed new land-based aquaculture regulations: Andfjord Salmon's response
• Financials
• Summary and outlook

AGENDA

PRODUCTION VOLUME OF 40,000t AT KVALNES WITH TOTAL POTENTIAL OF 90,000t

Q3 2024

• Gradual ramp-up to full capacity of 40,000 tonnes at Kvalnes, focusing on capital efficiency
• Next stage at Kvalnes encompasses 4 new pools, bringing total production capacity to 8,000 tonnes, followed by further expansion
• Major interventions and blasting to be completed in this stage, meaning that the only required pause in production due to ground works will be in 2024
• Current production licence of 10,000 tonnes MAB at Kvalnes (total potential of 19,000 tonnes HOG), with further licence applications to be submitted in accordance with the original business plan

Kvalnes build-out plan

Comments

Tons HOG Stage, Kvalnes	Added production (HOG, est.)	Accum. production (HOG, est.)
First pool	+1,000t	1,000t
1	+7,000t	8,000t
2	+11,000t	19,000t
3 (licence expansion)	+4,000t	23,000t
4	+5,000t	28,000t
5	+12,000 t	40,000t

1 2 3

Construction start 2023-2025: +18,000 tonnes +4,000 tonnes licence expansion

In operation:

1,000 tonnes

First pool

Construction start in 2026: +5,000 tonnes

4

5

Construction start in 2027: +12,000 tonnes (exact location to be decided)

NOTE: ILLUSTRATIVE GRAPHICS

STATUS AND PROGRESS – WATERWAYS

• o Capacity to support annual production of 40,000 tonnes (HOG) of Salmon
• o Workstream on track
• o Strong progress in recent months: Reached 90% completion as of 27 November 2024
• o Total length 4.4 km:
  • o 20 m of outlet waterway remains
  • o 450 m of inlet waterway left
  • o Completed tunnel infrastructure below pools

WATERWAYS ON TRACK

WATERWAYS: INFRASTRUCTURE IN PLACE Q3 20234

TUNNEL INFRASTRUCTURE BELOW POOLS COMPLETED

• o 8 x vertical inlet shafts to provide pools with fresh seawater (most adjacent pools share one inlet)
• o 6 x vertical outlet shafts (adjacent pools share one outlet)
• o Completed horizontal sections from pools to outlet tunnel

Illustration and photo: Waterways and shafts

STATUS AND PROGRESS – POOLS

• o Workstream on track
• o Concrete wall elements produced by factory on site
• o Columns, supports and preparations for wall elements completed for K1 and in progress for K3

o CONSTRUCTION STEPS:

• o Installation of walls with Ultra-High Performance Concrete (UHPC)
• o Preparing technical installations

4 POOLS BEING CONSTRUCTED

STATUS AND PROGRESS – HARBOUR

• o Workstream on track
• o Excavated masses from the tunnels and pool pits being moved into place to complete the breakwater
• o Digging underway to make the harbour deeper

QUAY AND BREAKWATER BEING CONSTRUCTED

SUSTAINABILITY AT CORE OF BUILD-OUT

• o Utilising masses from pool pits and tunnels as raw material in concrete reduces costs and enhances environmental sustainability.
• o Saves approximately 23,300 tonnes (equivalent to 780 truckloads) of concrete material being delivered to site.
• o Masses from pool pits and tunnels also being utilised to create harbour – resulting in mass balance for the prosject

EFFICIENT AND SMART BUILD-OUT PROCESS

Excavated masses from pool pits… …turned into concrete elements

… concrete walls covered with Ultra-High Performing Concrete (UHPC)

…and finally becoming part of concrete pools and harbour

KEY CONSTRUCTION MILESTONES FOR BUILD-OUT PHASE AT KVALNES (8,000 t)

PLAN: INSTALL. OF TECHNICAL INFRASTRUCTURE
	SMOLT
	RELEASE

Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025
	PLAN: EXCAVATION OF POOL PITS K1-K12
STATUS: 100% FINISHED –		AHEAD OF SCHEDULE
				PLAN: CONCRETE WORKS: POOLS K1-K4
			STATUS: 51% COMPLETION
	PLAN: WATERWAYS
	STATUS: 90% COMPLETION
						PLAN: INSTALL. OF TECHNICAL INFRASTRUCTURE
				STATUS: 9% COMPLETION
PLAN: HARBOUR AND PORT
STATUS: 61% COMPLETION

Note: Status per 27 November 2024

• Introduction
• Quarterly highlights and subsequent events
• Status Kvalnes build-out
• PROPOSED NEW LAND-BASED AQUACULTURE REGULATIONS: ANDFJORD SALMON'S RESPONSE
• Financials
• Summary and outlook

AGENDA

PROPOSED NEW REGULATIONS FOR LAND-BASED AQUACULTURE

BACKGROUND

o	After a two-year standstill period for administering licence applications for land based aquaculture, the Norwegian Ministry of Trade, Industry and Fisheries has issued proposed changes to the regulations to ensure the sustainable
	development of aquaculture production on land
o	Public consultation deadline: 21 November 2024
o	Andfjord Salmon submitted its response to the proposal on 20 November 2024
o	After reviewing the consultation input, the ministry will present new regulations
	for land-based aquaculture

o The proposals will not affect facilities that have already received permission for farming on land*

o The proposal removes confusion about which aquaculture facilities are defined as being "on land"

o Proposed requirement for disinfection of seawater at water inlet (Note: Andfjord Salmon has flexibility in design to adapt to changes in functional requirements)

o Positive for the long-term development of land-based aquaculture industry that a revised regulatory framework is reaching completion

KEY POINTS FROM THE PROPOSAL

Q3 2024

RESPONSE TO PROPOSAL

MAIN COMMENTS FROM ANDFJORD SALMON

o	No need for universal disinfection requirement.
o	Unwise to establish framework conditions that limit the meaning of "sustainable production" to solely a contamination topic, which in practice will come at the expense of other vital sustainability parameters.
o	Such a "one size fits all" approach can result in negative consequences for: o The the ability of fish to develop basic robust health o Energy consumption levels o The Norwegian fish farming industry's international competitiveness
o	A knowledge gap exists regarding the connection between fish welfare,
	biosecurity and the seawater's natural microbiological composition. This void must be addressed before the authorities implement functional requirements that will significantly influence how fish is produced on land.

o A "one size fits all" approach to disinfection of inlet water is unnecessary, because prevention of infection to surrounding aquaculture facilities is already safeguarded by current distance requirements between the land-based facility's discharge point and surrounding facilities.

o More knowledge about effects and impacts must be obtained before a general disinfection requirement is introduced. This applies to the treatment of both inlet and outlet water.

o The disinfection requirement is, in practice, not technology-agnostic.

o A consequence of a potential functional requirement is increased energy consumption, which will be counterproductive in relation to the stated ambition that the regulations should "ensure profitable employment and activity along the coastline", because land-based aquaculture facilities are often established in coastal areas that often have a poorly developed power supply network.

• Andfjord Salmon in brief
• Quarterly highlights and subsequent events
• Status Kvalnes build-out
• Proposed new land-based aquaculture regulations: Andfjord Salmon's response
• FINANCIALS
• Summary and outlook

AGENDA

STATEMENT OF COMPREHENSIVE INCOME All amounts in NOK 1,000

Q3 2024

Statement of comprehensive income	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
	1.7 – 30.9 Unaudited	1.7 – 30.9 Unaudited	1.1 – 30.9 Unaudited	1.1 – 30.9 Unaudited	1.1 – 31.12
Operating income and expenses
Revenue from contracts with customers	46	27 653	181	37 278	37 279
Total operating income	46	27 653	181	37 278	37 279
Change in biological assets at cost and other inventories	-	-165	-	-1 162	-1 162
Cost of materials	-64	-36 296	-274	-59 209	-59 638
Fair value adjustments of biological assets	-	-	-	25 707	25 707
Employee benefit expenses	-5 859	-7 395	-16 306	-19 784	-25 208
Depreciation and amortisation expenses	-6 127	-6 283	-18 539	-18 600	-24 904
Other operating expenses	-4 537	-5 676	-17 770	-24 424	-31 707
Total operating expenses	-16 587	-55 815	-52 889	-97 471	-116 912
Operating profit/loss	-16 541	-28 162	-52 707	-60 194	-79 634
Financial income and expenses
Financial income	1 443	1	3 543	1	12 187
Net financial costs	-200	-138	-622	-422	-2 340
Net financial result	1 243	-137	2 921	-421	9 847
Profit/loss for the period	-15 298	-28 299	-49 786	-60 614	-69 787

STATEMENT OF FINANCIAL POSITION

Assets	30.09.2024 - Unaudited	31.12.2023	30.09.2023 - Unaudited
Intangible assets	16 259	14 389	13 245
Property, plant & equipment	1 825 558	876 632	544 850
Right-of-use assets	14 068	17 640	18 743
Other non-current assets	27	113	62
Total non-current assets	1 855 911	908 774	576 900
Biological assets	-	-	-
Other inventories	1 423	1 697	2 031
Trade and other receivables	23	-	201
Other current assets	37 967	52 361	5 118
Cash and cash equivalents	162 178	250 032	526 279
Total current assets	201 591	304 090	533 629
Total assets	2 057 503	1 212 864	1 110 529

All amounts in NOK 1,000

Figures do not include an undrawn construction loan of NOK 270 million and an undrawn credit facility of NOK 20 million

STATEMENT OF FINANCIAL POSITION

Equity and liabilities	30.09.2024 - Unaudited	31.12.2023	30.09.2023 - Unaudited
Total equity	1 272 107	993 688	1 002 006
Borrowings	607 899	59 959	60 834
Lease liabilities	7 005	9 340	10 095
Total non-current liabilities	614 904	69 299	70 929
Borrowings	-	7 666	8 166
Lease liabilities	4 156	4 511	4 544
Trade payables	163 566	131 134	19 062
Other current liabilities	2 769	6 567	5 821
Total current liabilities	170 491	149 877	37 593
Total liabilities	785 396	219 176	108 522
Total equity and liabilities	2 057 503	1 212 864	1 110 529

All amounts in NOK 1,000

STATEMENT OF CASH FLOWS

Q3 2024

Statement of cash flows	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
	1.7-30.9 Unaudited	1.7-30.9 Unaudited	1.1 – 30.9 Unaudited	1.1 – 30.9 Unaudited	1.1 – 31.12
Net cash flow from operating activities	-9 408	15 510	-41 138	-26 102	-29 148
Net cash flow from investing activities	-443 041	-31 719	-905 116	-65 174	-326 866
Net cash flow from financing activities	386 588	447 790	858 399	534 643	523 136
Net change in cash and cash equivalents	-65 860	431 581	-87 855	443 367	167 121

All amounts in NOK 1,000

SCALE-UP TAILORED FOR CAPITAL EFFICIENCY

• All future expansions (stage 2 and later) expected to be financed by a mix of debt and cash flow
• Significant shared infrastructure across stages
• Highly competitive blended capex for Kvalnes of NOK 114/kg (including buffers)
• Large part of investment towards shared infrastructure for full Kvalnes site
• Hæhre-Contur and Andfjord Salmon

• Shared upside and downside: 60/40 between AF

KVALNES BUILD-OUT PLAN

CAPITAL EXPENDITURE, KVALNES PHASE 1

Stage, Kvalnes	Capex (NOK, est.)	Added production (HOG, est.)	Accum. production (HOG, est.)	Technical infrastructure (8,000t)
First pool	~ 450m	+1,000t	1,000t	~20%
1	Up to 1,650m	+7,000t	8,000t
2	~ 1,100m	+11,000t	19,000t
3 (licence expansion)	~ 0m	+4,000t	23,000t	~25% Port area (40,000t)
4	~ 280m	+5,000t	28,000t	Contur
5	~ 1,100m	+12,000t	40,000t

INCURRED COSTS VS ESTIMATED BUDGET COST, INCL. BUFFER

• Actual cost of NOK 1.346 million per 30 September 2024

STRONG SUPPORT FROM LARGE INDUSTRIAL INVESTORS

• Lisbon-listed group with 230 years of know-how in the food business

• Revenue of EUR 30 billion in 2023
• More than 134,000 employees
• Andfjord Salmon's largest shareholder
• North American processor and supplier of seafood
• Listed on the Toronto Stock Exchange, Canada
• Sales revenue of almost USD 1.1 billion in 2023
• Exploring opportunity for distribution of Andfjord Salmon's fish to the North American market
• Part of Holmøy Maritime
• Produces around 25,000 tonnes of salmon annually, based on conventional licences in Nordland and Troms
• Off-taker of "post smolt" from Andfjord Salmon for nearby ocean-based farming locations

10 LARGEST INVESTORS	SHARES	%
Jerónimo Martins Agro-Alimentar S.A	18,958,855	28.04%
Andfjord Holding AS	4,858,680	7.19%
High Liner Foods	3,634,970	5.38%
KG Investement Comp AS	3,583,419	5.30%
Eidsfjord Sjøfarm	3,071,759	4.54%
OG Invest AS	2,250,991	3.33%
Skagerak Vekst AS	2,045,064	3.02%
Heggelund Jan	1,928,865	2.85%
DNB Bank ASA	1,344,357	1.99%
Gjersvik Karstein	1,291,384	1.91%

SUPPORTIVE SHAREHOLDER GROUP

• Andfjord Salmon in brief
• Quarterly highlights and subsequent events
• Status Kvalnes build-out
• Proposed new land-based aquaculture regulations: Andfjord Salmon's response
• Financials
• SUMMARY AND OUTLOOK

AGENDA

HIGHLIGHTS Q3 AND SUBSEQUENT PERIOD

Q3 2024

KVALNES BUILD-OUT ON TRACK

All workstreams on or ahead of schedule

SOLID PROGRESS ON FOUR NEXT POOLS

Pool framework for all four pools close to completion, final wall sections to be installed

WATERWAYS NEAR COMPLETION

De-risks a challenging part of the Kvalnes buildout

PROPOSED REGULATIONS

Response submitted as part of public consultation for new regulations for landbased aquaculture

Q & A

Q3 2024

NEXT QUARTERLY UPDATE:

Q4 2024 presentation – 18 February 2025

For more information on this presentation and its contents, please contact:

Bjarne Martinsen, CFO Andfjord Salmon bjarne.martinsen@andfjord.no.