Andfjord Salmon

Earnings Release • Jun 13, 2023

Andfjord Salmon: Commitment for NOK 700 million bank financing secured. Roadmap to 40,000t at Kvalnes.

Andfjord Salmon: Commitment for NOK 700 million bank financing secured. Roadmap to 40,000t at Kvalnes.

13.6.2023 06:00:00 CEST | Andfjord Salmon | Inside information

At today's capital market's update, Andfjord Salmon AS ("Andfjord Salmon" or the

"Company") will share details of the Company's build-out plan to reach a total

production volume of 40,000 tonnes (HOG) at Kvalnes, Andøya. Further, the

Company has secured commitment for a NOK 700 million bank loan for its expansion

at Kvalnes.

"Our plan has always been to utilise the first pool to prove the value of our

flow-through technology and the excellent biological performance it enables,

before financing and progressing with the next build-out stage. We are very

excited to deliver on this strategy," says Martin Rasmussen, CEO of Andfjord

Salmon.

The backdrop to today's capital markets update from Andfjord Salmon is a

successful first production cycle with good fish welfare and health, strong

growth, low energy consumption of 1 kwh/kg salmon produced, industry-leading

survival rate of 97.8% and accumulated feed conversion ratio of 0.96. The first

harvest of up to approximately 700 tonnes HOG will be conducted at the turn of

June/July 2023.

40,000 TONNES AT KVALNES

Andfjord Salmon is today announcing its plans for a production volume at full

capacity of 40,000 tonnes (HOG) at Kvalnes, Andøya, Norway. The new production

capacity will gradually be added between 2025 and 2030, with 8,000 tonnes (HOG)

of production capacity expected to be added as early as 2025.

For the build-out to 40,000 tonnes at Kvalnes, Andfjord Salmon is targeting a

blended capex of NOK 114 per kg (including substantial buffers) and operating

expenditures of NOK 40 per kilo salmon produced (including depreciation).

The Company's two other locations, Breivik and Fiskenes, represent additional

potential production capacity estimated to 50,000 tonnes combined. Considerable

preparatory work has been conducted to this end.

COMMITMENT FOR BANK FINANCING SECURED

Andfjord Salmon has secured commitment for a NOK 700 million bank loan from

SpareBank 1 Nord-Norge and bank alliance partners, including Eksfin, for the

construction of the next expansion step at Kvalnes. The margin on the bank loan

is set to 3.9% + NIBOR. The bank loan includes a 24-month amortization holiday

following the estimated start of production. Further, Andfjord Salmon's current

outstanding NOK ~75 million bank loan is to be refinanced and replaced.

The loan agreement will include an allowance for a financial lease facility to

fund equipment of up to NOK 125 million. Financing of working capital is also

separately included in the debt package and is intended to be sized and timed in

accordance with the next production cycle.

"The bank financing represents a major step in the further expansion of Andfjord

Salmon and is based on excellent biological and operational results from our

first pool. We are delighted to have secured such competitive financing," says

Martin Rasmussen.

In this upcoming construction stage, the Company is planning to establish major

infrastructure such as waterways and port area to support 40,000 tonnes of

production at Kvalnes. Together with highly reputable construction partners

Hæhre Kruse-Smith and Cflow, a budget of NOK 1,300 million plus a buffer of NOK

350 million has been estimated for the next two years.

Andfjord Salmon is currently finalizing key construction contracts and is

maintaining flexibility in terms of timing and further refinement of the capital

structure. Having followed Andfjord Salmon over time, key shareholders Jeronimo

Martins (multinational food distribution major) and Eidsfjord Sjøfarm

(conventional salmon farmer), both represented on the Company's board, have

signaled that they intend to significantly increase ownership and are expected

to cover the majority of a potential equity component.

All future expansions (from 8,000 tonnes and upwards) are expected to be

financed by a combination of debt and cash flow?.

CAPITAL MARKET'S UPDATE

Andfjord Salmon will today host its capital market's update at Felix Conference

Center, Bryggetorget 3, 0250 Oslo, Norway.

The session from 08:00 to 09:00 will be presented in English and can be viewed

from this URL: https://channel.royalcast.com/landingpage/hegnarmedia/20230613_1/

See the stock exchange announcement dated 12 June 2023 for the complete

schedule.

The presentation material is enclosed to this announcement.

ADVISORS

Arctic Securities, ABG Sundal Collier and SpareBank 1 Markets are acting as

financial advisors to Andfjord Salmon.

DISCLOSURE REGULATION

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and was published by Bjarne Martinsen, CFO, on 13 June

2023 at 06.00 (CEST).

CONTACTS

* Investors: Bjarne Martinsen, CFO, Andfjord Salmon AS, +47 975 08 345,

bjarne.martinsen@andfjord.no

* Media: Martin Rasmussen, CEO, Andfjord Salmon AS, +47 975 08 665,

martin@andfjord.no

ABOUT ANDFJORD SALMON

Located at Kvalnes on the island of Andøya on the Arctic Archipelago of

Vesterålen, Norway, Andfjord Salmon has developed an innovative and sustainable

aquaculture concept for land-based farming of Atlantic salmon, based on a

flow-through technology solution. The company's ambition is to build the world's

most sustainable and fish-friendly aquaculture facility of its kind.

Andfjord Salmon AS is listed on Euronext Growth under the ticker ANDF.

www.andfjordsalmon.com - http://www.andfjordsalmon.com/

ATTACHMENTS

Andfjord Salmon_CMU_13_June_2023.pdf -

https://kommunikasjon.ntb.no/ir-files/17847566/2432/3375/Andfjord%20Salmon_CMU_1

3_June_2023.pdf