Atlantic Sapphire

Investor Presentation • Aug 24, 2023

First Half 2023 Presentation and Operational Update

August 24, 2023

IMPORTANT INFORMATION

IMPORTANT INFORMATION

This presentation (the "Presentation") has been produced by Atlantic Sapphire ASA (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. This Presentation is not a prospectus and does not contain the same level of information as a prospectus. This Presentation is strictly confidential and may not be disclosed, in whole or in part, or summarized or otherwise reproduced, distributed or referred to, in whole or in part, without prior written consent of the Company. To the best of the knowledge of the Company and its Board of Directors, the information contained in this Presentation is in all material respect in accordance with the facts as of the date hereof, and contains no material omissions likely to affect its import.

This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates or intends to operate. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its subsidiary undertakings or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation to update any forward-looking statements or to conform these forward-looking statements to our actual results. Furthermore, information about past performance given in this Presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its parent or subsidiary undertakings or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. Actual experience may differ, and those differences can be material.

By reviewing this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the businesses of the Company. This Presentation must be read in conjunction with the recent financial reports of the Company and the disclosures therein, as well as other public disclosures made by the Company. The distribution of this Presentation may in certain jurisdictions be restricted by law. Persons in possession of this Presentation are required to inform themselves about, and to observe, any such restrictions. No action has been taken or will be taken in any jurisdiction by the Company that would permit the possession or distribution of this Presentation in any country or jurisdiction where specific action for that purpose is required.

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This Presentation speaks as of August 24, 2023. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not intend, and does not assume any obligation, to update or correct any information included in this Presentation. This Presentation shall be governed by Norwegian law, and any disputes relating to hereto is subject to the sole and exclusive jurisdiction of Norwegian courts, with Oslo District Court as legal venue.

H1 2023 Highlights Operational Update – August '23

• Focus on heavy infrastructure upgrades and operational improvements
• Approximately 2,100t RLW of gross biomass gain and harvest volume of 870t HOG
• Decrease in revenue driven by lower volume, partially offset by higher sales prices
• Consistent price achievement of ~USD 12/kg HOG on premium fish
• Increase in overall cost per kg of biomass produced compared to H1 2022
• Internal reorganization of the company initiated to streamline the organization and strengthen operational resources
• US Phase 2 construction currently focused on design and optimizing quality and cost of the project, limiting actual capital expenditures for the project to a minimum
• Extension of the debt facilities with DNB to April 2025 and a USD 55m Private Placement successfully completed

Infrastructure Upgrades and Operational Improvements In Focus

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2023 Timeline Operational Update – August '23

Q3 2023 Temperature Challenges Operational Update – August '23

• Higher-than-anticipated downtime for maintenance and repairs of the rental chillers resulted in water temperature increases
• High water temperatures may lead to higher maturation, reduced SFR, increased FCR, higher risk of anaerobic conditions, higher O2 consumption, higher caustic consumption, higher turbidity, higher ammonia toxicity (NH3)
• Five additional chillers will be installed in September, adding 44% more capacity, resulting in more redundancy and a large over-capacity.
  • Opportunity to reduce the average electricity price by cooling more during off-peak hours
• A recently installed heat exchanger (pre-cooler) is estimated to take the intake water from 26°C to 12°C, allowing distribution of large volumes of cold water across the farm once the new chiller capacity is online
• Fish sampling does not indicate a spike in maturation levels, but the status of the biomass will be monitored closely given the recent temperature situation

Temperature Issue Expected To Resolved With Additional Chiller Capacity

Significant Upside on Price Achievement

Operational Update – August '23

US price achievement – premium fish (superior) and fresh average – USD/kg RTF¹

• Good development of branded sales and programs for superior quality product
• Focus on new value-added and convenience product lines, such as smoked salmon
• Stable number of retail locations (~2,000)²
• As expected, price achievement in Q2 2023 was affected by high share of downgrades harvested
• Expect lower share of downgrades from Q4 2023
• Long-term under stable conditions, ~80-90% of total harvest is expected to be sold at the Bluehouse premium price, raising the average price achievement considerably
• Targeting ~USD 12/kg in average price achievement once in steady state production

Improved Biological Performance Is Expected To Increase Price Achievement Over Time

1: Atlantic Sapphire 'Bluehouse premium' is fresh, superior salmon on Return To Farm basis (excluding freight costs). Average price achievement does not include revenues from the sale of frozen inventory and certain by-products.

2: For details, see bluehousesalmon.com/where-to-buy/

Phase 2 Status

Operational Update – August '23

Phase 2 capex status as of June 30, 2023

• Phase 2 is estimated to take the total run-rate production volume to 25,000t HOG annually
• ~USD 104m¹ invested, cash conservation currently in focus
• Approx. USD 7m in capex planned to be invested in H2 2023 (H1 2023: USD14.6m)
• Initial estimate for total Phase 2 capex is USD 275-300m²
• Focus on value engineering and working with contractors to optimize cost and quality for outstanding Phase 2 capex items

Estimated project completion

• Focus on finalizing the design and Phase 2 budget
• The Company decides when and how funds should be deployed towards Phase 2

Phase 2 Construction Spending Will Be Kept At A Minimum Until Phase 1 "Break-Even" Is Accomplished

1: Management estimate, including capitalized operational expenses

2: Phase 2 timeline and funding plan will be determined once Phase 2 design and budget is complete

H1 2023 – Key Figures Operational Update – August '23

Unaudited (USD 1,000)	30 June 2023	30 June 2022	31 Dec 2022
Operating revenue	8,058	9,678	18,954
EBIT	(43 , 703 )	(12,344)	(62,259)
EBIT %	-542.36%	-127.55%	-328.47%
EBITDA	(36,375)	(5,726)	(48,042)
Net loss	(48,377)	(14,472)	(65,006)
Earnings per share:
Retrospectively adjusted basic earnings per share	(0.22)	(0.13)	(0.47)
Retrospectively adjusted diluted earnings per share	(0.22)	(0.13)	(0.47)
Non-IFRS measures
EBIT	(43 , 703 )	(12,344)	(62,259)
Add back:
Depreciation and amortization	7,328	6,618	14,217
Fair value adjustment on biological assets	2,917	(1,917)	( 95 )
EBITDA, pre-fair value adjustment on biological assets	(33,458)	(7,643)	(48,137)
Add back:
Denmark insurance proceeds		( 25 , 289 )	(25,322)
EBITDA, adjusted *	(33,458)	(32,932)	(73,459)
Total assets	365,654	363 , 421	357,551
Capital expenditures	14,551	33,642	52,447
Net interest bearing debt	20,991	41,395	23,154
Equity share	83.29%	71.92%	82.89%

H1 2023 Consolidated Statement of Operations

• Harvest volume: 870t HOG in H1 2023 (H1 2022: 1,217t HOG)
• Cost of Good Sold in H1 2023 up by USD4.3m Y/Y, despite lower harvest volume
  • Mortality cost of USD7.2m (H1 2022: USD1.3m)
  • USD13.4m of indirect production costs expensed through cost of materials for underutilized capacity (H1 2022: USD8.2m)
• Approx. USD5m in extraordinary costs tied to infrastructure upgrades in H1 2023 (outsourced labor costs and maintenance), expected to return to normal in H2 2023
• SG&A: USD2.2m in temporary chiller rental costs now classified as cost of production / COGS (H1 2022: USD2.7m classified under SG&A)

H2 2023 Cost Outlook

• Cost inflation has eased across most key production inputs
  • Q3 2023 feed price stable: USD2.3/kg (incl. USD0.3/kg in transportation)
• Chillers: Five additional rental chillers from mid-September 2023 will add around USD0.1m in additional monthly rental costs (cost of production)

Unaudited (USD 1,000)	30 June 2023	30 June 2022
Revenue	8.058	9.678
Expenses
Cost of goods sold	36,432	32,084
Fair value adjustment on biological assets	2,917	(1,917)
Salary and personnel costs	2,551	3.437
Selling, general, and administrative costs	4,303	7,476
Other income, net	(1,770)	(25,676)
Depreciation and amortization	7,328	6.618
Total expenses	51,761	22,022
Operating loss	(43,703)	(12,344)
Finance income	747	627
Finance expense	(5,421)	(2,755)
Loss before income tax	(48,377)	(14,472)
Income tax
Net loss	(48,377)	(14,472)
Earnings per share:
Retrospectively adjusted basic earnings per share	(0.22)	(0.13)
Retrospectively adjusted diluted earnings per share	(0.22)	(0.13)

Lower fixed costs expected in H2 2023 as the infrastructure upgrades are finalized

H1 2023 – Financial Statements

Operational Update – August '23

H1 2023

Consolidated Statement of Financial Position

• Cash: USD23.6m
• NIBD: USD 21.0m in H1 2023 (H1 2022: USD 41.4m)
• Capex: USD13.4m invested in phase 2 capex and USD1.2m invested in other capex

udited (USD 1,000)	30 June 2023	30 June 2022	Unaudi
SETS			EQUIT
-current assets			Equity
operty, plant, and equipment, net	310.740	291.323	Shar
ght of use asset	2,187	2.462	Shar
ecurity deposits	1.448	1.167	Emp
ther investments	6	િ	Acci
ade and other receivables (non-current)	1.146	375	Acci
al non-current assets	315,527	295,333	Total
rent assets			Non-c
epaid and other current assets	708	1,188	Borr
ventories, net	4.955	4.599	Leas
ological assets	18.623	21,336	Total
ade and other receivables, net	1.617	1.455
stricted cash	615	427	Currer
ash	23,609	39.083	Borr
al current assets	50,127	68,088	Leas
			Trad
AL ASSETS	365,654	363,421	Total
			Total I

audited (USD 1,000)	30 June 2023	30 June 2022
QUITY AND LIABILITIES
quity
Share capital	3.123	1.246
Share premium	633.909	490.177
Employee stock options	4.500	4.079
Accumulated deficit	(328,786)	(229,875)
Accumulated translation differences	(8.185)	(4.272)
tal equity	304.561	261,355
on-current liabilities
Borrowings (non-current)	44.600
ease liability (non-current)	1.955	2,286
tal non-current liabilities	46.555	2.286
urrent liabilities
Borrowings (current)		80.478
ease liability (current)	433	248
Trade and other payables	14.105	19.054
tal current liabilities	14.538	99.780
tal liabilitiac	61 002	100 0GG

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