Gigante Salmon AS

Quarterly Report • Aug 20, 2024

Q2 REPORT 2024

20th August 2024

CEO Kjell Lorentsen CFO Rune Johansen

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About this presentation

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Forward looking information and statements

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Health, Security, Environmental & Quality HSE&Q

PROJECT EXECUTION

An overriding focus for all our activities is that the health of our colleagues and fish is crucial for our success: "If the fish are doing well, then we are doing well."

Important areas of responsibility for Gigante Salmon AS as the project's owner is undoubtedly health, environment, safety and quality.

None accidents with high potential of risk during Q2 2024.

Highlights Q2 2024

THE SECOND QUARTER OF 2024

• Kjell Lorentsen appointed CEO on 23 April
• Technical area and piping for production basin 2 completed
• New board elected by AGM on 15 May
• NOK 120m in long-term loan financing granted by SpareBank 1 Nord-Norge. Financing backed by Export Finance Norway (Eksfin)
• Private placement successfully completed on 13 June. Increased to NOK 225 million from NOK 200 million on the back of strong investor demand

EVENTS AFTER BALANCE SHEET DATE:

• Strengthened management through the employment of Tore Laugsand as deputy CEO
• Subsequent Offering completed on 9 July, resulting in gross proceeds of NOK 16.1 million

Biological update

• The facility is functioning well and as intended. Seawater is being pumped in as planned and the water chemistry is good.
• The fish are doing well in the longitudinal tanks, which are now operating with a water velocity of 20-50 cm/s.
• We are gaining valuable experience for future production.
• Biomass 30.06.24: Average weight 471 grams. Net biomass approx. 75.5 tonnes WFE.
• Biomass 19.08.24: Average weight 1005 grams. Net biomass approx. 160 tonnes WFE.

Project summary Rødøy

• Gigante Salmon is constructing a land-based salmon farming site on Lille Indre Rosøy which has a yearly production capacity of up to 16.000 tonnes HOG, based on a licensed MAB of 13,731 tonnes.
• Construction in two phases: Phase 1 covers a grow-out basin where smolt grows from 100 grams to 1 kg in 11 months. Phase 2 covers 2 production basins where salmon grows from 1 kg to harvest (4-7 kg). Phase 1 is completed Q1 2024 with subsequent smolt transfer.
• The design is basin walls/floor in concrete with liner, and water outlet in concrete channels. Extra area established by filling in sea. Increased automation and redundancy. High inflation on especially power supply/ distribution. Cost estimate for completion of production facility in Rødøy updated in March 2024. Total investment amount to approx. 995 MNOK.
• Financing round in Q2 2024 cover capital needs to complete construction and working capital up to full production.

THE PROJECT ECONOMICS REMAIN STRONG AND HIGHLY COMPETITIVE:

PROGRESS PLAN

On track to first harvest Q2 2025

Income statement - Group

• Income statement reflects project execution phase, with limited income and operating expenses

Income statement	Note	Q2 2024	YTD 2024	Q22023	YTD 2023	2023
Other income		-	-	28	168	60
Total income		-	-	28	168	eo
Employee benefits expense		157	376	155	582	746
Depreciation and amortisation expenses	1	25	50	25	50	100
Other operating expenses		885	1174	690	1581	2 538
Total operating expenses		1067	1600	870	2 213	3384
Net income		-1067	-1600	-842	-2045	-3324
Interest income		318	1180	1332	2620	5570
Other finance income		88	88	3	3	27
Interest expenses				46	46	24
Other financial expense		26	26	12	12	46
Stock exchange fees		901	1574	388	388	1207
Net finances		-521	-332	889	2177	4320
Profit before income tax		-1588	-1932	47	132	996
Income tax expense		-343	-405	24	54	267
Net profit or loss for the period	2	-1245	-1527	23	78	729
To minority interests
To majority interests		-1245	-1527	23	78	729
Disposal
Transferred from/to equity		-1245	-1527	23	78	729

Balance sheet - Group

Assets	Note	Q2 2024	Q2 2023	31.12.2023
Deferred tax asset		8624	6024	7213
Total intangible assets		8624	6 024	7 213
Land, buildings and other property		613 026	259325	514 079
Ships		641	731	686
Right of use asset		179103
Fixtures/fittings, tools, office machinery and equipment		8	18	13
Total tangible assets	1	792778	260 074	514778
Investments in shares		100	100	100
Total financial fixed assets		100	100	100
Total fixed assets		801502	266198	522 091
Inventory		5200
Trade receivables		10 192	121
Other receivables		29848	33133	20 595
Total receivables		40040	33254	20 595
Cash and bank deposits		152 077	155 331	114 967
Total current assets		197 317	188 585	135 562
Total assets		998 819	454783	657 653

Equity and liabilities	Note	Q2 2024	Q2 2023	31.12.2023
Share capital	3	168790	105556	134 174
Share premium		525 016	165 734	338 200
Total paid-in equity	2	693 806	271290	472 374
Other equity		7614	8363	9141
Total retained earnings	2	7 614	8 363	9141
Minority interests			-	-
Total equity	2	701420	279653	481 515
Building loan		116 911	147 644	130 436
Lease liabilities		108 419
Total other non-current liabilities		225 330	147 644	130 436
Trade creditors		59082	17523	33720
Public duties payable		758	433	766
Other short-term liabilities		12229	9530	11 216
Total current liabilities		72069	27 486	45702
Total liabilities		297 399	175 130	176138
Total equity and liabilities		998 819	454783	657 653

• Equity ratio 70%, approx. 700 MNOK.

Income statement – GS Rødøy

• Total investments in the group in the first quarter rose 792 778 kNOK, compared to 641 679 kNOK in Q1

Income statement	Note	Q2 2024	YTD 2024	Q2 2023	YTD 2023	2023
Other income					140	140
Total income					140	140
Depreciation and amortisation expenses	1	22	44	22	44	90
Other operating expenses		34	42	54	210	248
Total operating expenses		57	87	77	255	338
Net income		-57	-87	-77	-115	-198
Interest income		188	596	560	1188	2814
Other financial income		83	83	3	3	27
Interest expenses		944	1603	23	23	890
Other financial expense		26	26	11	11	24
Net finances		-699	-950	529	1157	1927
Profit before income tax		-755	-1036	453	1043	1730
Income tax expense		-166	-228	101	232	383
Net profit or loss for the period		-589	-808	352	811	1347
To minority interests
To majority interests		-589	-808	352	811	1347
Disposal
Transferred from/to equity		-589	-808	352	811	1347

Balance sheet – GS Rødøy

Assets	Note	Q22024	Q2 2023	31.12.2023
Land, buildings and other property		611 962	258145	504 190
Ships		641	731	686
Right-of-use assets		179 103
Total tangible assets	1	791706	258876	504877
Total fixed assets		791706	258876	504 877
Inventory		5200
Trade receivables		1526
Other receivables		38 179	32 859	29207
Total receivables		39705	32859	29207
Cash and bank deposits		54 138	78248	683553
Total current assets		99043	111 107	97 560
Total assets		890 750	369 983	602436

Equity and liabilities	Note	Q2 2024	Q2 2023	31.12.2023
Share capital		35730	19 230	35730
Unregistered capital increase		23000
Share premium		528 371	172870	321370
Total paid-in equity		587101	192100	357100
Other equity		2611	2883	3419
Total retained earnings		2611	2883	3419
Total equity		589 712	194 983	360 519
Deferred tax		754	831	982
Liabilities to financial institutions		116911	147 644	130 436
Liabilities to group companies		2469		65867
Lease liabilities		108 419
Total other non-current liabilities		227799	147644	196303
Trade creditors		59849	16985	33200
Public duties payable		557	270	542
Other short-term liabilities		12078	9270	10891
Total current liabilities		72484	26525	44633
Total liabilities		301038	175 000	241918
Total equity and liabilities		890 750	369 983	602 436