Gigante Salmon AS

Investor Presentation • Apr 23, 2024

Q1 REPORT 2024

23rd April 2024

CEO Kjell Lorentsen CFO Rune Johansen

Important information and disclaimer

This document is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into or from the united states of america, australia, canada, japan, hong kong or south africa or to any resident thereof or any other jurisdiction where such distribution is unlawful. This document is not an offer or an invitation to buy or sell securities.

About this presentation

This presentation (the "presentation") has been produced by gigante salmon as ("gigante salmon" or the "company") is for information purposes only and does not in itself constitute an offer to sell or a solicitation of an offer to buy any financial instruments. By attending a meeting where this presentation is presented, or by reading this presentation, you (the "recipient") agree to be bound by the following terms, conditions and limitations.

Neither the delivery of this presentation nor any further discussions with the recipient or any other person shall, under any circumstances, create any implication that there has been no change in the affairs of the company since the date of this presentation. The company does not undertake any obligation to review or confirm, or to release publicly or otherwise to the recipient or any other person, any revisions to the information contained in this presentation to reflect events that occur or circumstances that arise after the date of this presentation. The company does not intend to update the information after its distribution, even in the event the information becomes materially inaccurate.

Forward looking information and statements

This presentation includes and is based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projections of the company or assumptions based on information available to the company. Such forward-looking information and statements are solely opinions and forecasts which reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. None of the company or any of its representatives provides any assurance that the assumptions underlying such forward-looking statements are free from errors, nor do any of them accept any responsibility for the future accuracy of the opinions expressed in this presentation.

No representation or warranty

The information contained in this presentation is furnished by the company and has not been independently verified. No representation or warranty (express or implied) is made as to the accuracy or completeness of any information contained herein. None of the company, any representative acting on behalf of the company, or any of its respective parent or subsidiary undertakings or any such person's directors, officers, employees, advisors or representatives (collectively the "representatives") shall have any liability whatsoever arising directly or indirectly from the use of this presentation or otherwise arising in connection therewith, including but not limited to any liability for errors, inaccuracies, omissions or misleading statements in this presentation. The recipient acknowledges that it will be solely responsible for its own assessment of the company's business and the market, the market position and credit worthiness of the company. The recipient will be required to conduct its own analysis and accepts that it will be solely responsible for forming its own view of the potential future performance of the company, its business and the shares. The content of this presentation is not to be construed as legal, credit, business, investment or tax advice. The recipient should consult with its own legal, credit, business, investment and tax advisers as to legal, credit, business, investment and tax advice.

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 Q1 2024.

Highlights Q1 2024

THE FIRST QUARTER OF 2024

• Smolt delivery 21 January, production started in production basin nr. 3
• External construction management, including construction manager and HSEQ coordinator, hired
• Production basin 2 under construction and progressing according to plan
• CEO terminated after revision of plan and forecast
• Kjell Lorentsen acting CEO from 19 March

EVENTS AFTER BALANCE SHEET DATE:

• Kjell Lorentsen CEO from 23 April
• Liv Monica Stubholt recommended as new chairperson of the board by the company's nomination committee.
• Increased bank financing from SpareBank 1 Nord-Norge of MNOK 120 secured. The loan commitment is supported by Export Finance Norway (Eksfin).
• Affirmed support from main shareholder, Gigante Havbruk AS, with up to MNOK 130 in a new contemplated private placement to secure financing of increased CAPEX.
• Sparebank 1 Markets engaged to act as financial advisor in connection with the contemplated equity financing. Expected to be completed by end of Q2.

Financing

The CAPEX increase of MNOK 350 compared to the last outlined CAPEX budget will be financed by the following three sources:

• 1. New equity (MNOK 130), Gigante Havbruk AS will support an equity financing for a total subscription amount up to MNOK 130.
• 2. Bank loan (MNOK 120) from SpareBank 1 Nord-Norge, with support from Export Finance Norway
• 3. Excess capital (MNOK 100) beyond the then identified need raised in the previous issue

The private placement is expected to be completed by end of Q2 2024.

Kjell Lorentsen CEO

• Founder and long time CEO of Gigante Havbruk Group
• Has held leading positions in the fishery and aquaculture industry since the 70's.
• 6.5 years education in fishery and fishery economics.

Progress and milestones

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 about 20 cm/s.
• We are gaining valuable experience for future production.
• Biomass 15.04.24: Average weight 151 grams. Net biomass approx. 24.5 tonnes WFE.

Updated 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 will cover capital needs to complete construction and working capital up to full production.

UPDATED PROGRESS PLAN

Q1, 2024 Contruction of first basin complete 1. gen. smolt released Q4, 2025 1. gen. harvest starts Q4, 2024 2. gen. smolt released Q3, 2025 3. gen. smolt released, full production 2. gen. harvest starts Q2, 2024 Construction second basin complete Entire production plant completed Q2, 2025 1. generation harvest complete

The date for completion of construction and testing is pushed from originally August 2023 to January 2024. Expected time to first harvest Q2 2025.

THE PROJECT ECONOMICS REMAIN STRONG AND HIGHLY COMPETITIVE:

1 Includes financials costs

Updated timeline

*The company has an agreement with Grytåga Settefisk AS on crediting for smolt that die in a given period after production startup. Test production of about 0.15 mill smolt is the amount of smolt the company is financially responsible for.

Income statement - Group

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

Income statement	Note	Q12024	Q12023	2023
Other income		-	140	60
Total income			140	60
Employee benefits expense		219	427	746
Depreciation and amortisation expenses	1	25	25	100
Other operating expenses		289	891	2538
Total operating expenses		533	1343	3 384
Net income		-533	-1203	-3324
Interest income		862	1288	5 570
Other finance income				27
Interest expenses				24
Other financial expense				46
Stock exchange fees		673		1207
Net finances		189	1288	4 319
Profit before income tax		-344	85	බිමි විසින් මිතිවර්තිය හිමිය මිතිය මිතිය මෙම ප්‍රධාන අධිකරණය හිටි මෙම ප්‍රධාන අධිකරණය හිටි මෙම ප්‍රධාන අධිකරණය හිටි මෙම ප්‍රධාන අධික කිරීම සිට මධ්‍යා මිත කිරීම සිට මධ්‍යා මි
Income tax expense		-62	30	267
Net profit or loss for the period	2	-282	55	728
To minority interests
To majority interests		-282	55	728
Disposal
Transferred from/to equity		-282	55	728

Balance sheet - Group

Assets	Note	Q12024	Q12023	2023
Deferred tax asset		7275	6048	7 213
Total intangible assets		7275	6048	7 213
Land, buildings and other property		530 962	165 567	514 079
Ships		664	753	686
Right of use asset		110043		-
Fixtures/fittings, tools, office machinery and equipment		10	21	13
Total tangible assets	1	641679	166 341	514778
Investments in shares		100		100
Total financial fixed assets		100		100
Total fixed assets		649 054	172389	522 091
Inventory		2852		-
Trade receivables		31 412	175	-
Other receivables		29753	20647	20 595
Total receivables		61165	20822	20595
Cash and bank deposits		33072	129755	114 967
Total current assets		97 089	150 577	135562
Total assets		746143	322966	657 653

Equity and liabilities	Note	Q12024	Q12023	2023
Share capital	3	134 174	105556	134 174
Share premium		338 200	165 734	338 200
Total paid-in equity	2	472 374	271290	472 374
Other equity		8860	8 469	9141
Total retained earnings	2	8860	8469	9141
Minority interests
Total equity	2	481 234	279759	481515
Building loan		155 858	542	130 436
Lease liabilities		81 408
Total other non-current liabilities		237 266	542	130 436
Trade creditors		18631	25069	33720
Public duties payable		639	260	766
Other short-term liabilities		8373	17334	11216
Total current liabilities		27 643	42663	45702
Total liabilities		264909	43205	176138
Total equity and liabilities		746143	322966	657 653

Income statement – GS Rødøy

• Total investments in the group in the first quarter rose 641 679 kNOK, compared to 514 778 kNOK in Q4

Income statement	Note	Q12024	Q12023	2023
Other income			140	140
Total income			140	140
Depreciation and amortisation expenses	1	22	22	90
Other operating expenses		8	156	248
Total operating expenses		31	178	337
Net income		-31	-38	-197
Interest income		408	628	2814
Other financial income				27
Interest expenses		659		890
Other financial expense				24
Net finances		-251	628	1927
Profit before income tax		-281	589	1730
Income tax expense		-62	131	383
Net profit or loss for the period		-220	458	1347
To minority interests			-
To majority interests		-220	458	1347
Disposal
Transferred from/to equity		-220	458	1347

Balance sheet – GS Rødøy

Assets	Note	Q12024	Q12023	31.12.2023
Land, buildings and other property		529873	164335	504190
Ships		664	753	686
Right-of-use assets		110043
Total tangible assets	1	640 580	165 088	504 877
Total fixed assets		640 580	165 088	504 877
Inventory		2852
Trade receivables		34400	175
Other receivables		26522	20302	29 207
Total receivables		60 922	20 477	29 207
Cash and bank deposits		283333	52 492	68 353
Total current assets		92 107	72969	97 560
Total assets		732687	238 057	602436

Equity and liabilities	Note	Q12024	Q12023	31.12.2023
Share capital		35730	19230	35730
Share premium		321370	172 870	321370
Total paid-in equity		357 100	192100	357 100
Other equity		3200	2531	3419
Total retained earnings		3200	2531	3419
Total equity		360 300	194 631	360 519
Deferred tax		920	730	982
Liabilities to financial institutions		155858	542	130 436
Liabilities to group companies		106525		65867
Lease liabilities		81 408
Total other non-current liabilities		343 791	542	196 303
Trade creditors		19421	25 079	33200
Public duties payable		429	104	542
Other short-term liabilities		7826	16971	108891
Total current liabilities		27676	42 154	44633
Total liabilities		372387	43 426	241918
Total equity and liabilities		732687	238 057	602 436

LIV MONICA STUBHOLT

Recommended as new chairperson of the board by the company's nomination committee

• Former CEO and President of Aker Seafoods ASA
• Solicitor and partner in Advokatfirmaet Selmer AS
• Leads the firm's ESG and Compliance team
• Sits on the boards of several companies in the energy and seafood industries
• Stubholt has been a member of the non-executive board of directors in Gigante Salmon since 2022