Icelandic Salmon AS

Investor Presentation • Sep 28, 2023

Capital Market Days 28th September 2023 Chairman Leif Inge Nordhammer

ARNARLAX® PRIVATE AND CONFIDENTIAL

A new Saga

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Continuously development

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THE STORY OF ICELANDIC SALMON

From family-owned to dual-listing

AQUACULTURE BECOMING A SUBSTANTIAL SHARE OF TOTAL EXPORTS OF GOODS FROM ICELAND IN RECENT YEARS

Aquaculture share over total exports of goods from Iceland

Share of aquaculture over total value of seafood exports

Potential for growth

• Good biological conditions
• Huge coastline
• Seaborn people
• Invest in people and competence in the value chain
• Work closely with local and national regulators

Thank you for your attention

ARNARLAX® PRIVATE AND CONFIDENTIAL

28 September 2023

Kolbeinn Árnason

Future outlook for Iceland as a farming region

Icelandic Salmon Capital market day

Introduction

Increased funding for research and control enforcement

Traditional farming

Special taxes

Area management

Management measures related to licenses

Summary

Land based

Offshore farming

The road to a policy plan for Iceland as a farming region

Possible future scenarios

Efficiency of regulatory framework

Surveillance

"Surveillance of Icelandic aquaculture is too limited and too dependent on access to equipment and employees of aquaculture companies. Surveillance of Icelandic aquaculture needs to be considerably enhanced, but there is also a need for better coordination between the Food and Veterinary Authority and the Environment Agency"

The Icelandic National Audit Office

Increased funding for research and control & enforcement

Increased resources to research and monitoring

Increased funding to MFRI (m. ISK)

Research and monitoring projects

Carrying capacity

Monitoring of ecosystem

Risk assessment

Monitoring of rivers

Strengthening management of wild salmon

Sea lice

Installation of monitors – From 13 to 17

Increased resources to surveillance

Increased funding to the Food and Veterinary Authority (m. ISK)

Food and Veterinary Authority

Future personnel in aquaculture

General director aquaculture Senior Veterinarian for aquatic animals Veterinarian conventional fish farming* Veterinarian * roe production Veterinarian* Land based farming Specialist working on data analysis Team leader licences Specialist working on environmental matters Specialist on standards Legal expert Specialist working on IT matters Team leader surveillance Specialist on escape prevention Specialist on quality control Specialist on production Specialist working on data analysis 4 inspectors

Recruiting challenges will occur

*or fish health expert)

Introduction

Increased funding for research and control enforcement

Special taxes

Area management

Management measures related to licenses

Summary

Land based

Offshore farming

Special taxes

Production fee

• Calculation methodology is unchanged.

• Increased numbers of fee rates to detect sensitivity in world market prices
• Production fees are calculated each month, 4 payments pr. year
• Financial incentives for changed farming methods

Production fee and incentives

Q > X, Z og Y	Z X		Y
	Larger smolts	Sterile salmon /Rainbow trout	Closed cage system
Genetic mix	Impact of escapes is reduced	No risk of genetic mix	Low risk of escapes
Orangic load	Less organic load		Low impact on seabed
Animal welfare	Less time in pens, reduced risk of diseases and sea lice problems Longer periods of fallowing		Less risk of diseases. Reduced sea lice problems

Methods

Assessment period

Assessment period

Reducing risk factors related to aquaculture

2024 2028

Environmental fund

• No changes on fee rates
• 80% of the income will be allocated to MFRI
• 20% of the income will be allocated to competitive

projects

Area management

Legalisation of conservation areas

The Norwegian and the Faroes experience

The organisation in Iceland

Management measures related to licenses

Carrying capacity Ecosystem management

• Can increase or decrease based on organic load on seabed
• Responsibility of individual operators

	Traditional aquaculture (kT)
Current and potential farming sites	Carrying capacity	Risk assessment1	Active Licenses2
Patreks-, Tálknafjörður, Pareksfjarðaflói	20	20	20
Arnarfjörður	20	20	14
Dýrafjörður	10	10	10
Önundarfjörður	2.5	2.5	1
lsafjarðardjúp	30	12	12.8
Jökulfirðir Eyjafjörður Öxarfjörður		No assessment
Seyðisfjörður	10	6.5
Mjói- og Norðfjörður		No assessment
Reyðarfjörður	20	16	16
Fáskrúðsfjörður	15	12	11
Stöðvarfjörður	7	0	7
Berufjörður	10	7.5	9.8
Total	144.5	106.5	101.6

Risk assessment Management of effects on wild salmon

• Can increase or decrease based on numbers of escapees
• Collective responsibility for operators in the area

Traffic light systems

Based on the performance of individual operators, the volume of licenses is subject to changes based on these parameters:

• Mortality
• Sea lice
• Escapees

Summary

Summary

• Increased funding for research and control enforcement
• Amendment of the production fee
• Organisation of licenses
• Management measures related to licenses

Review by 2028 based on performance of the industry

Introduction

Increased funding for research and control enforcement

Traditional farming

Special taxes

Area management

Management measures related to licenses

Summary

Offshore farming

Land based

Key points in the policymaking

• Licensing process
• Strengthening of surveillance
• Rules will be implemented that meet the special requirements of land-based farming

Introduction

Increased funding for research and control enforcement

Traditional farming

Special taxes

Area management

Management measures related to licenses

Summary

Land based

Offshore farming

Key points in the policymaking

• Research on suitable locations
• Conditions will be set for the participation of private parties in such research.
• Carrying capacity and risk assessment will be taken into account

1. September

CMD ICELANDIC SALMON

Building an industry

Runar Sivertsen Chief Strategy Officer SalMar ASA

Great potential

Favorable biological conditions

Long fjords create shelter while the wind, waves and current give salmon access to oxygen-rich seawater.

Iceland's coastline is over 6.500 km

On the salmon's terms

Marine Research Institute (MRI) raised MAB to 106 500 tonnes in 2020

Sustainable regulations

Close with local and national regulators

Regulatory framework that safeguards fish welfare and allows Iceland to take out its farming potential

Invest in people and local communities

Facilitates the 24h human

Invest in people and competence to continue sustainable development of the industry

Ensuring viable and vital coastal communities that make it attractive to settle and participate in developing an industry

When we have the Biological Conditions, the Regulatory Framework and the People we are in position to reach critical

Why reaching a critical mass is crucial for the industry

1	Fish every day	Having a bigger harvesting volume would allow the company to be in the market 365 days a year, entering into contracts with retailers, thereby reducing exposure to spot market, and making it more attractive for shipping companies to improve logistic infrastructure.
2	Invest in a modern and sustainable value chain	By achieving economies of scale associated with a bigger volumes, it would be worthwhile for the company to invest stronger in the value chain, increasing efficiency and further improving the sustainability profile.
3	Enable Value Added Production	Unlocking access to retailers and long-term contracts, the company could invest in VAP. Value-added production, e.g. fillets generate, 3-4x higher employment rates than pure farming operations.
4	Make room for newcomers and innovation	Having large companies operating across the full value chain opens the door to smaller players as the overall barrier of entry to the industry is lowered. Newcomers can focus on any step of the value chain as they can outsource / sell their products /services to the main operators.

Higher farming volumes will unlock access to retail contracts, which are key to compete in global markets

If we look to Norway: Positive impact of industry locomotives in the value chain

Norwegian salmon has gained a fantastic market worldwide, Iceland is to come

1 Iceland has great potential to further strengthen its position as a successful farming region

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Critical mass of salmon make us able to deliver fish every day, which is key to develop the local industry. This creates a broad array of jobs and further develops the coastal society

Industry locomotives can lead development of infrastructure and value chain to the benefit of all, enabling

access to smaller players

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If Icelandic companies are in the market every day, they can to a larger extent develop value-added production in Iceland

Salmon farming in Iceland is still a young industry but in rapid development, with the potential market size determined by a mix of issued licenses, open areas, investments and people / competence.

1. september

CMD ICELANDIC SALMON

Building an industry

Arnarlax Salmon in the Westfjords

Impacts of the fish farming industry in Westfjords

Guðrún Anna Finnbogadóttir Teamleader Vestfjarðastofu Sigríður Ó. Kristjánsdóttir General Director

Salmon production in Westfjords

Salary and pay slips in Westfjords

INFOGRAPHICS | TEMPLATE

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• Starting from 2014 servicing aqua culture industry in Westfjords
• The service has been increasing along with more growth in production capacity for aqua culture in Westfjords
• Approximately 40 employees
• They also focus on other services
  • To have diversified projects
  • To even out seasonal highs and lows in aquaculture sector

Arnarlax in the society Sustainable business

Aquaculture Research Center Vatneyrarbúð

Fish farming creates valuable income for municipalities

Fish farming requires technical and higher education with good salaries in the local area of fish farming

Looking at the whole industry in Westfjords How positive/ negative are you towards fish farming

Mindset Capital Market Access Framework Human resources

Vision for the Westfjords 2030

The Westfjords are an excellent area to live, work, visit and enjoy clean nature and tranquility. It is a strong, growing international knowledge community that is characterized by powerful creativity, strong self-image and environmental awareness. Infrastructures are good, the community services is excellent and there is a diverse economy, that is characterized out of respect for the environment, society and resources.

CAPITAL MARKETS DAY BILDUDALUR 28.09.2023 – Björn Hembre ARNARLAX

REPRESENTATIVES FROM ARNARLAX AT CMD

SUSTAINABILITY – IT'S IN OUR NATURE 71

THIS IS ICELANDIC SALMON

Icelandic Salmon AS is listed on the Euronext Growth market in Oslo. The company is the sole owner and parent company of Arnarlax ehf.

Four smolt facilities, Current capacity of 7-8 million smolt, depending on size of smolt

Farming in seven sites in three fjords

All production ASC** certified Total MAB 23,700 tonnes

All operational activities of the group are performed in Arnarlax ehf.

Harvesting plant in Bíldudalur.

BRCGS* certified 30,000 tonnes per year capacity

Sales by internal team Domestic and global markets

Arnarlax – Sustainable Icelandic Salmon is the common brand for all operational activities and products from Icelandic Salmon

Note: *BRCGS = Brand Reputation Compliance Global Standards | **ASC = Aquaculture Stewardship Council

EXECUTIVE MANAGEMENT TEAM

THE STORY OF ICELANDIC SALMON

From family-owned to dual-listing

^{1 2}

STEADILY IMPROVING OPERATIONS

1Represents harvest volume from Arnarlax and Fjarðalax (acquired in 2016) 2 Estimated volume for FY 2023

WHERE DO WE OPERATE? ICELANDIC SALMON

Fresh and sea water BIOLOGY

Rolf Örjan Nordli COO Biology

Silja Baldvinsdóttir

Quality Manager

Johnny Indergaard

Freshwater Manager

Valdimar B. Ottósson

Coordinator Seawater

FRESHWATER

Capacity to produce 26kt and potential to double within existing licenses and land

SMOLT FACILITIES

• Have today 3 facilities in operation, and a 4th under reconstruction
• Capacity of 7-8 mill smolts, depending on smolt size
• Have licences for 3.000 tonnes of MAB
• Have sufficient smolt capacity for existing licences in sea

SMOLT STRATEGY

• Implement best-practices
• Good smolt quality
• Increase smoltweight
• Have sufficient number of smolts

FRESHWATER

Overview existing facilities and potential capacity within exiting licenses and land

	Ownership	Location	Current capacity (# smolts)
Isthor	Arnarlax (100%)	Thorlakshofn	4 - 5m
Gileyri	Arnarlax (100%)	Talknafjordur	2m
Fjallalax & Laxabraut 5	Arnarlax (100%)	Thorlakshofn	1m

7 - 8m smolts

Potential (# smolts)
10m
2m
5m
17m smolts

SMOLT PRODUCTION - Isþor FRESHWATER

CURRENT CAPACITY

• Capacity of 4-5m smolts, depending on smolt size
• Tank capacity on seawater for post-smolt production 15.200 m3
• Tank capacity on fresh water for smolt production 6.250 m3
• Have licences for 1.800 tonnes of MAB

FUTURE POTENTIAL

• Own 24.000 m2 land that is not used yet
• Good access to Seawater at 8°
• Good access to Fresh water
• Can potentially have capacity of 10 mill post smolt within existing plot and licence

SMOLT PRODUCTION - Gileyri FRESHWATER

CURRENT CAPACITY

• Capacity of 2 mill smolts, 120 gr average weight
• Tank capacity on fresh water for smolt production 3.600 m3
• Have licences for 200 tonnes of MAB

FUTURE POTENTIAL

• Own 10.000 m2 land that is not used yet
• Potential extension will be RAS
• Can potentially have capacity of 2 million post smolt with new licence of 1.000 tonnes MAB

SMOLT PRODUCTION - Fjallalax FRESHWATER

CURRENT CAPACITY

• Capacity of 1,5 mill smolts, 90 gr avg weigth
• Tank capacity on fresh water for smolt production 1.780 m3
• Have licences for 100 tonnes of MAB
• Deliver smolts for post-smolt production in Laxabraut 5

SMOLT PRODUCTION – Laxabraut 5 FRESHWATER

CURRENT CAPACITY

• Capacity of 1 mill post-smolts, 400 gr avg weigth
• Smolts will be transported from Fjallalax in trucks
• Tank capacity on fresh water for smolt production 6.000 m3
• Have licenses for 900 tonnes of MAB

FUTURE POTENTIAL

• Own 21.000 m2 land that is not used yet
• Good access to Seawater at 8 degrees
• Good access to Fresh water
• Can potentially have capacity of 5 mill post-smolt within todays licence of 900 tonnes MAB

OVERVIEW SEAWATER

SITE LOCATION IN THE SOUTHERN PART OF THE WEST FJORDS

• 23.700 tonnes of MAB, in 3 fjords.
• 8 sites
  • Split into 5 generation zones.
• All production is ASC certified

OPERATION CENTER - FEEDING

• Arnarlax operates a high class feeding center in land at Bíldudalur.
  • Where people are constantly monitoring and feeding the salmon

Operational improvements

• Reduced density in cages during winter to 13 kg/m3
• Better smolt quality
• Increased size of smolts
• Decreased smolt output window to end mid-Sept.

Strategical improvements

• Built competence
• Put out more smolts on the sites high carrying capacity of sites
• Separate generations in sea
• Use only the best sites, have excluded smaller sites
• Feeding center
• More harvest capacity reduced risk
• Adapted equipment:
  • —Use more 200-cages
  • —Scale MIdgard system to reduce risk of escapes
  • —Bigger feed barges

Sites with applied extension in Arnarfjordur SEAWATER

Rationale for extended site areas:

• Gives oportunity to have more cages
• Makes it possible to move cages within the area if needed
• Gives flexibility to optimize position of cages towards current, depth and other local conditions
• Gives potential for further growth

Sites at sea SEAWATER

How is a typical site in the Westfjords?

• Good carrying capacity (>7.000 tonnes)
• Optimal temperature during summer and autum
• Low winter temperatures, that we are managing. Improve product quality

Constant current and flow of water:

Sites at sea SEAWATER

HARVESTING

Overview

Harvest plant in Bildudalur

• Located in Bíldudalur with short distance to sea-water operations
• Capacity 30.000 tonnes/year
• BRCGS certified
• Use super-chill to extend shelf life
• Certification:

Video Harvesting

SUSTAINABILITY – IT'S IN OUR NATURE 90

HARVESTING

Potential for growing harvest capacity

Status on new harvest capacity

• Have good dialogue with Municipality for land
• Have made a detailed plan for layout and capacity
• Filleting will be a part of future harvest plant

SALES AND LOGISTICS

Overview

Sales and logistics division

• Located in Reykjavik
• Our internal sales team sell all of our salmon
• Working close with premium customers in US and Europe
• Focus on Quality, Sustainability and Origin
• Filleting possibilities with local partner, Oðði

Where are our customers in 2022?

SALES AND LOGISTICS

Team

Supply growth slower than demand for the foreseeable future

0 100 200 300 400 500 600 700 Harvest vol (WFE kT) Growing supply share of Icelandic salmon in the global market (ex Norway & Chile) Other Canada UK Faroe Iceland

SALES AND LOGISTICS

Logistics out of Iceland: How does the salmon reach the markets?

SALES AND LOGISTICS

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Strategic shift to low carbon footprint transport to North America

BRAND POSITIONING AND REPUTATION IN THE MARKET

ICEFJORD BRAND IN OUR END-MARKETS

Launch in Japan

Instagram story from The Hermosa Inn, one of the most exclusive resorts in Arizona

Icelandic Salmon at AJ Fine Foods supermarket, Phoenix

SUSTAINABILITY

What do we do?

Steps taken to improve sustainability profile:

• 1. ASC certification in all production
• 1. Green loan: sustainability linked loan in new financing
• 1. Issue yearly sustainability report
• 1. Use of vessel transport to American market
• 1. 2 new hybrid barges in 2023
• 1. New hybrid service boat on chart
• 1. Use only green electricity
• 1. Only geothermal heating of water in the smolt plants
• 1. Monitor carrying capacity on sites
• 1. Have program for installing land power to barges at sea

Organizational development and competence building PEOPLE

Arnarlax academy

• All employees involved one time a year
• Managers involved twice a year
• Focusing on cooperate culture and goal achievement

Blue planet Academy

• Is a tool to educate and give employees information
• Everyone has to take the courses they are invited to
• Introduction will be given by your superior

Vocational training

• Cooperate with Fisktækniskoli in Grindavik
• Approximately same curriculum as "fagbrev" in Norway
• Total of 20 of our employees have got the diploma so far

Trainee program

• We try to recruit trainees every year
• 5 have so far followed the trainee program, 2 are working in new jobs within the company, the other 3 are still in the industry.

Our top priorities: PEOPLE

1. Everyone safe home

2. Keep the salmon in the tanks and cages 2

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1. Provide good fish welfare

2. Production

CAGR of +30% since 2015 SALMON FARMING GROWING RAPIDLY IN RECENT YEARS

Salmon farming has been the main driver behind aquaculture expansion in Iceland

• In recent years salmon farming production in Iceland has increased very rapidly
• Iceland has become one of the fastest growing regions for traditional farming
• Aquaculture in Iceland benefits from a strong fishing heritage with a highly developed local seafood industry, in particular with regards to seafood processing equipment

Open areas SEAWATER

Comments:

• Only 10 fjords have been analyzed in Iceland for potential used in fish farming with a total biomass allowed of 144,500t.
• There are fjords that are not closed to farming but have not yet been studied. The Company believes the aggregated volume that could potentially be auctioned will reach 66,000t – 102,000t.
• The fjords that are closed to fertile salmon could potentially be used for sterile production.

GROWTH - VOLUME SCENARIOS

Boston Consulting Group (BCG) report for the Ministry of Fisheries

BCG identifies 3 potentialscenarios, with growth depending on regulatory framework

• BCG foresee a potential for a volume between 94.000 – 234.000 ton
• Base case and Progressive case assume the use of bigger smolt and better utilization of MAB (1x and 1.3x respectively)
• According to BCG, the economic value of the revenue of the base case could represent 6% of Iceland GDP
• Icelandic Salmon are in position to continue to be an industry leader in Iceland

THE NEXT BIG REGION WITHIN SALMON FARMING ICELANDIC SALMON

186 144.5 142 ^{98 81} 31 20 16 Norway Chile UK Iceland (Potential) Canada Australia Faroe Islands Iceland (2020) USA Ireland — A figure of 106,500 tonnes of fertile salmon was set . Total of 10 fjords have a calculated carrying capacity biomass of 144,500 tonnes — Making Iceland, potentially, one of the largest Atlantic salmon producers in the world Potential for new areas: — Jökulfirðir, Mjóifjörður, and Eyjafjörður. 800 ICELAND TODAY VS POTENTIAL BASED ON MRI ASSESSMENT (000 MT) 71,000

The Marine Research Institute (MRI) recently carried out an updated Risk Assessment

MRI RAISED MAB TO 106,500 TONNES IN 2020

Source: Kontali Salmon World 2020, Arnarlax

1,363

A FRAMEWORK FOR FUTURE GROWTH

SUSTAINABILITY – IT'S IN OUR NATURE 105

COMPARISON WITH FAROE ISLAND ICELANDIC SALMON

• Faroe Islands produced with only 56% of the coastline of West Fjords
  • —89.000 tonnes in 2022
• There are 3 companies operating in Faroe Island —Bakkafrost, Hiddenfjord and MOWI Faroe Islands
• Export value of DKK 4,68 billion (2022) — 45% of total export value of Faroe Island
• Direct jobs inside the aquaculture around 1.200

Note.: * Excluded islands and reef.

Source: Landmælingar Íslands, Faroese Fish Farmers Association https://www.faroeseseafood.com/fishery-aquaculture/stats/ https://hagstova.fo/en/news/exports-continue-rise-0

DUAL LISTING AT FIRST NORTH

Icelandic Salmon AS first day of trading will be 29.09.2023

Increasing access for Icelandic investors and social acceptance

POSITION IN THE ICELANDIC STOCK MARKET

Market Cap comparison – NASDAQ Iceland

OUTLOOK

Growth within existing licenses and significant potential beyond

Harvest volumes within existing licences

• 2023: 16.000 tonnes
• 26.000 tonnes within existing licences

Measures for organic growth

• Bigger and more smolt of good quality
• Best operational practice
• 2 more sites in Arnarfjörður
• Bigger farming areas on existing sites
• Very limited CAPEX

Potential growth in addition to existing licenses

• If Ministries proposal for new structure for the industry is decided potential for 30.000 tonnes
• New licenses of 10.000 tonnes MAB in Ísafjörður
• New license of 4.500 tonnes in Arnarfjörður
• Total potential of 50.000 tonnes