Andfjord Salmon

Investor Presentation • Sep 14, 2023

Q2 2023 STATUS AND PROGRESS

14 SEPTEMBER 2023

Q2 PRESENTATION 2023

Martin Rasmussen CEO

AGENDA

Introduction Quarterly highlights and subsequent events First harvest Successful financing Next build-out phase Summary and outlook

Bjarne Martinsen

CFO

OPTIMAL WATER TEMPERATURES

OXYGEN-RICH AND CLEAN ARCTIC SEAWATER

LOW ENERGY COSTS. NO LIFTING, HEATING OR COOLING

ANDFJORD SALMON IN BRIEF: THE BEST OF TWO WORLDS

3 BENEFITS FROM SEA BASED NET–PEN FARMING 3 BENEFITS FROM LAND BASED FARMING

1

2

3

NO PROBLEMS WITH SALMON LICE AND POISONOUS ALGAE 1

COLLECTION AND RECYCLING BIO WASTE = COMMERCIAL VALUE 3

CONTENTS

• Introduction

• QUARTERLY HIGHLIGHTS
• First harvest
• Successful financing
• Next build-out phase
• Summary and outlook

HIGHLIGHTS Q2 AND SUBSEQUENT PERIOD

Q2 2023

Bank and equity financing secured to fund next build-out phase (8,000 t) at Kvalnes and shared infrastructure to enable production volume up to 40,000 t

Build-out plan revealed: Roadmap to 40,000 t at Kvalnes

Successful first production cycle completed with strong biological results and exceptional survival rate

June/July harvest chosen to mitigate project execution risks for Kvalnes expansion

Kvalnes expansion in full momentum

Salmon sold to strategically selected European distributors

Very positive customer feedback, with filet colour and yield highlighted

CONTENTS

• Introduction
• Quarterly highlights
• FIRST HARVEST
• Successful financing
• Next build-out phase
• Summary and outlook

SUPREME BIOLOGICAL PERFORMANCE

Salmon survival rate by county (conventional farming, 2022)

Excellent biology proven by industry leading survival rate in Andfjord's first pool

Source: Andfjord Salmon, The Norwegian Veterinary Institute's Fish Health Report 2022, Nofima

STEEP GROWTH RATES FROM FIRST PRODUCTION CYCLE

Q2 2023

• Fish growth 40% ahead of original schedule based on Skretting's growth table for ocean net pen
• Stopped feeding from June 20th in preparation for harvest
• Harvest in June/July 2023: 646 MT
• Average weight 3.4 kg
• Accumulated feed conversion ratio of 1.05
• Time of harvest chosen to mitigate project execution risks for Kvalnes expansion

Average weight per fish (grams)

40% ahead of expectations based on

benchmarking against conventional farming

SUCCESSFUL FIRST PRODUCTION CYCLE

An industry leading survival rate

Superior share of first harvest of salmon

Average weight per fish Total biomass

97.5% 91.1% 3.4 kg 646 t

Head-On Gutted (HOG)

530 t

Q2 2023

"Very satisfied with yield and colour. Willing to pay more for the next batch." Polish customer that produces fresh, smoked and frozen salmon products

"Very satisfied and would have liked to buy more if it was available". Dutch customer

POSITIVE RESPONSE FROM THE INTERNATIONAL MARKETS

"Very pleased, and positively surprised by the excellent colour". Irish customer

"So satisfied that they returned to purchase a lot more fish". Lithuanian customer that delivers fresh and smoked fish products

CONTENTS

• Introduction

• Quarterly highlights
• First harvest
• SUCCESSFUL FINANCING
• Next build-out phase
• Summary and outlook

STATEMENT OF COMPREHENSIVE INCOME All amounts in 1000 NOK

Statement of comprehensive income	Q2 2023	Q2 2022	HY 2023	HY 2022	2022
	1.4 – 30.6 Unaudited	1.4 – 30.6 Unaudited	1.1 – 30.6 Unaudited	1.1 – 30.6 Unaudited	1.1 – 31.12
Operating income and expenses
Revenue from contracts with customers	9 625	-	9 625	-	-
Other income	-	-	-	32	113
Total operating income	9 625	-	9 625	32	113
Change in biological assets at cost and other inventories	-1 829	-	-1 864	-	700
Cost of materials	-17 512	-	-22 047	-	-12 704
Fair value adjustments of biological assets	13 294	-	25 707	-	14 285
Employee benefit expenses	-5 676	-2 954	-12 389	-8 018	-23 211
Depreciation and amortisation expenses	-6 165	-763	-12 317	-1 600	-13 603
Other operating expenses	-9 830	-6 699	-18 748	-10 753	-21 691
Total operating expenses	-27 717	-10 416	-41 657	-20 371	-56 224
Operating profit/loss	-18 092	-10 416	-32 032	-20 340	-56 111
Financial income and expenses
Financial income	-	-	-	-	1 836
Net financial costs	-143	-302	-283	-304	-2 402
Net financial result	-143	-302	-283	-304	-566
Profit/loss for the period	-18 235	-10 718	-32 315	-20 644	-56 677

STATEMENT OF FINANCIAL POSITION

Assets	30.06.2023 - Unaudited	31.12.2022	30.06.2022 - Unaudited
Intangible assets	12 570	8 556	3 599
Property, plant & equipment	521 109	498 386	481 911
Right-of-use assets	19 496	22 539	24 104
Other non-current assets	71	89	106
Total non-current assets	553 246	529 570	509 720
Biological assets	29 836	14 285	6 673
Other inventories	-	1 162	-
Trade and other receivables	10 987	-	-
Other current assets	152 157	7 803	8 922
Cash and cash equivalents	94 698	82 911	191 191
Total current assets	287 678	106 161	206 787
Total assets	840 924	635 731	716 507

All amounts in 1000 NOK

STATEMENT OF FINANCIAL POSITION

Equity and liabilities	30.06.2023 - Unaudited	31.12.2022	30.06.2022 - Unaudited
Total equity	643 061	475 704	515 300
Borrowings	63 417	67 375	122 562
Lease liabilities	11 027	13 296	14 517
Total non-current liabilities	74 444	80 671	137 079
Borrowings	59 417	56 168	3 166
Lease liabilities	4 514	4 683	3 520
Trade payables	45 461	10 361	56 023
Other current liabilities	14 027	8 144	1 419
Total current liabilities	123 419	79 356	64 128
Total liabilities	197 863	160 027	201 207
Total equity and liabilities	840 924	635 731	716 507

All amounts in 1000 NOK

STATEMENT OF CASH FLOWS

Q2 2023

Statement of cash flows	Q2 2023	Q2 2022	HY 2023	HY 2022	2022
	1.4 – 30.6 Unaudited	1.4 – 30.6 Unaudited	1.1 – 30.6 Unaudited	1.1 – 30.6 Unaudited	1.1 – 31.12
Net cash flow from operating activities	-27 315	-2 520	-41 612	-18 383	-88 443
Net cash flow from investing activities	-20 142	-45 300	-33 455	-63 586	-90 702
Net cash flow from financing activities	88 632	220 140	86 853	258 243	247 139
Net change in cash and cash equivalents	41 176	172 319	11 787	176 273	67 993

All amounts in 1000 NOK

NOK 825 MILLION BANK LOAN COMMITMENT

• SpareBank 1 Nord-Norge, SpareBank 1 SR-bank, SpareBank 1 SMN, with support from Eksfin. Bank loan for 50 % of the investment
• In addition previously outstanding NOK ~75m loan to be refinanced and replaced
• Overdraft facility related to working capital financing of NOK 20m which can be increased up to NOK 120m (uncommitted at this stage)
• Attractive terms including 24 months amortization holiday after estimated production start
• Construction loan combined with the NOK 75m existing financing to be converted into a term loan of NOK 900m upon production start in 2025

FINANCING SECURED FOR KVALNES BUILD-OUT

Q2 2023

NOK 615 MILLION PRIVATE PLACEMENT

Strong support from main shareholders, including:

• Jerónimo Martins Agro-Alimentar, S.A.
• Eidsfjord Sjøfarm AS
• Andfjord Holding AS
• UFI AS
• Skagerak Vekst AS

TOP 10 SHAREHOLDERS (PER 4 SEPTEMBER 2023)
Jerónimo Martins Agro-Alimentar, S.A.	25.12%	Ranked the 18th largest food retailer in Europe
Andfjord Holding AS	11.45%	5,358 stores, 131,094 employees, and sales of EUR 25.4 billion (2022)
KG Investment Comp AS	5.68%	Founded in 1792, listed on Euronext Lisbon with a
Eidsfjord Sjøfarm AS	4.54%	market cap of EUR 14.4 billion2
Skagerak Vekst AS	3.96%
OG Invest AS	3.89%
UFI AS	3.56%	Eidsfjord Sjøfarm (part of
Karstein Gjersvik	2.44%	Holmøy Maritime) produces around 25,000
Verdipapirfondet DNB SMB	2.26%	tons of salmon annually (2023e) based on conventional licenses in
Traaseth Property AS	2.22%	Nordland and Troms

SCALE-UP TAILORED FOR CAPITAL EFFICIENCY

Q2 2023

• All future expansions (step 2 and out) expected to be financed by mix of debt and cash flow
• Significant shared infrastructure across stages
• Highly competitive blended capex for Kvalnes of NOK 114/kg (including substantial buffers)
• Large part of investments towards shared infrastructure for full Kvalnes site
• Terms agreed and aligned with reputable construction partners
• Shared upside and downside: 60/40 between AF Hæhre-Contur and Andfjord Salmon

Note: Stated capex numbers relate to investments (working capital/biomass, finance and operational costs not included). Estimates only.

Kvalnes build-out plan Uses of capital, Kvalnes phase 1

Stage, Kvalnes	Capex (NOK, est.)	Added production (HOG, est.)	Accum. production (HOG, est.)
Pilot	~ 450m	+1,000t	1,000t
1	Up to 1,650m	+7,000t	8,000t
2	~ 1,100m	+11,000t	19,000t
3 (license expansion)	~ 0m	+4,000t	23,000t
4	~ 280m	+5,000t	28,000t
5	~ 1,100m	+12,000 t	40,000t

In this upcoming step of construction, the Company is planning to establish major infrastructure such as waterways and port area to support 40,000 tons of production at Kvalnes. Together with highly reputable construction partners AF Hæhre-Contur and Cflow, a budget of NOK 1,300 million plus a buffer of NOK 350 million has been estimated for the next two years.

PROGRESS AS PLANNED

Q2 2023

Note: Stated capex numbers relate to investments (working capital/biomass, finance and operational costs not included). Estimates only.

Uses of capital, Kvalnes phase 1

In this upcoming step of construction, the Company is planning to establish major infrastructure such as waterways and port area to support 40,000 tons of production at Kvalnes. Together with highly reputable construction partners AF Hæhre-Contur and Cflow, a budget of NOK 1,300 million plus a buffer of NOK 350 million has been estimated for the next two years.

Incurred costs vs estimated budget cost, incl. buffer (per 30 June 2023)

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

Kvalnes build-out plan

• Comments
• Targeting first harvest of up to 700 tons (HOG) in June/July 2023
• Gradual ramp-up to full capacity of 40,000 tons at Kvalnes, focusing on capital efficiency
• Next step at Kvalnes encompasses 4 new pools, bringing total production capacity to 8,000 tons, followed by further expansion
• Larger interventions and blasting to be taken in this step, meaning that the only required pause in production due to ground works will be in 2024
• Current production license of 19,000 tons (10,000 tons MAB) at Kvalnes, with further license applications to be submitted in accordance with original business plan

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

Expected total production profile by stages (HOG)

CONTENTS

• Introduction

• Quarterly highlights
• First harvest
• Successful financing
• NEXT BUILD-OUT PHASE
• Summary and outlook

KVALNES 1, PHASE TWO

KVALNES 1 – PHASE TWO

Q2 2023

In operation: 1,000 tons

Pilot

1 2 3

Construction start in 2026: +5,000 tons

4

+18,000 tons

Q2 2023

• Extensive preparation work carried out at Kvalnes

• Concrete injected to stabilize the sections surrounding the 12 pools

• Excavated masses from pool pits and waterways utilised for port and quay development.

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

INSTALLATION OF TECHNICAL INFRASTRUCTURE
	SMOLT RELEASE

CONTENTS

• Introduction

• Quarterly highlights
• First harvest
• Successful financing
• Next build-out phase
• SUMMARY AND OUTLOOK

SUMMARY AND OUTLOOK

Q2 2023

Bank and equity financing secured to fund next build-out phase (8,000 t) at Kvalnes and shared infrastructure to enable production volume up to 40,000 t

Build-out plan revealed: Roadmap to 40,000 t at Kvalnes

Successful first production cycle completed with strong biological results and exceptional survival rate

Kvalnes expansion in full momentum

Excavation of pool pits + development of harbour area main focus next 10 months

Waterway excavation commenced early September as planned

Salmon sold to various European distributors

Very positive customer feedback, with filet colour and yield highlighted

IMPORTANT INFORMATION

This presentation (the "Presentation") has been produced by Andfjord Salmon AS (the "Company") solely for information purposes. By reading the Presentation slides or by otherwise receiving this Presentation or the information contained herein, you agree to be bound by the following terms, conditions, and limitations:

This Presentation does not constitute an offer to sell or a solicitation of an offer to buy, or a recommendation regarding, any securities of the Company. Any failure to comply with the restrictions set out herein may constitute a violation of applicable securities laws or other regulations. No representation, warranty or undertaking, express or implied, is made by the Company, its affiliates or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein, for any purpose whatsoever. Neither the Company nor any of its affiliates or representatives shall have any responsibility or liability for any loss arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation.

This Presentation speaks as of the date hereof. All information in this Presentation is subject to updating, revision, verification, correction, completion, amendment and may change materially and without notice. None of the Company, its affiliates or representatives undertake any obligation to provide the recipient with access to any additional information or to update this Presentation or any information or to correct any inaccuracies in any such information. The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect developments that may occur after the date of this Presentation. These materials do not purport to contain a complete description of the Company or the market(s) in which the Company operates. The contents of this Presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should make its own independent assessment of the information in the Presentation and should take its own professional advice in relation thereto.

This Presentation contains forward-looking information and statements relating to the business, financial performance, and results of the Company and/or industry and markets in which it operates. Forwardlooking statements are statements that are not historical facts and may be identified by words such as "aims", "anticipates", "believes", "estimates", "expects", "foresees", "intends", "plans", "predicts", "projects", "targets", and similar expressions. Such forward-looking statements are based on current expectations, estimates and projections, reflect current views with respect to future events, and are subject to risks, uncertainties, and assumptions. Forward-looking statements are not guarantees of future performance and risks, uncertainties and other important factors could cause the actual results of operations, financial condition and liquidity of the Company or the industry to differ materially from the results expressed or implied in this Presentation by such forward-looking statements. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved, and you are cautioned not to place any undue influence on any forward-looking statement.

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This Presentation is subject to and governed by Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo District Court as exclusive legal venue.

DISCLAIMER

ANDFJORD SALMON AS KVALNES, ANDØYA, NORWAY

ANDFJORDSALMON.COM ANDFJORD.NO

POST@ANDFJORD.NO

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