Gigante Salmon AS

Quarterly Report • Apr 26, 2023

Q1 REPORT 2023

26 April 2023

CEO Helge E. W. Albertsen CFO Rune Johansen

The majority owner Gigante Havbruk is also a co-owner of operations at all stages of the salmon value creation chain. This ensures Gigante Salmon access to the necessary expertise in all areas.

Gigante Salmon Rødøy

	PHASE 1	FULL PRODUCTION
Investment	445 MNOK	No additional investments required
Smolt released	1 100 000	3 300 000
Harvest (tons, WFE)	6 350	19 050
Harvest (tons, HOG)	5 300	16 000
Utilisation MAB	0.5x	1.4x
Prod. costNOK/kg HOG	38	31
CAPEX/kg HOG	71	24
	2023	2025 2027 (All figures in NOK 2020)

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.

We are proud to report no serious accidents during 2022.

Highlights Q1 2023

THE FIRST QUARTER OF 2023

• Insurance agreement with Gjensidige Forsikring. Covers project implementation, facilities and biomass during the operational phase
• Initial disbursement from long-term construction loan granted by Sparebank1 Nord-Norge and guaranteed by Eksfin
• Pouring of concrete for walls and floor of production basin 3 underway
• Delivery of fiberglass water intake pipes

Two production basins will contain three raceways, while the third will contain four (A). The raceways are between 110 and 214 meters long and are fitted with a dividing wall (B) in the centre, which facilitates the circulation of water.

We are establishing three production basins (1, 2, 3) in the bedrock. Each will be about five metres deep and all four walls of the production basin, as well as the floor, will be lined with concrete. The concrete will itself be covered by a liner / membrane that will provide the fish with a healthy living environment, in accordance with the company's ambitions, as well as Food Safety Authority requirements. This set-up offers robust production units that are not affected by sea level, as well as simplified operation, maintenance and cleaning.

The water enters the tank from a point at the centre of one of the short ends of the raceways (C). Flow distributors installed at selected positions in the circular-flow raceways will help maintain an optimal rate of flow inside the raceway.

The outlet from each raceway will also be centrally located and will lead to the basin's drainage channel (D), as required, as well as predefined discharge points, as stipulated by our discharge permit.

Perforated walls will divide the raceways from each other (E). This will ensure a continued flow of water to the fish in the entire production basin, should there be an unforeseen problem with the water supply.

PRODUCTION BASIN

We draw water from a depth of 20 meters (F) through 10 risers that are outfitted with pre-installed submersible pumps. Having multiple intake pipes allows us to collect the desired amount of water at all times, allowing us to maintain water flow in the event that an unforeseen incident occurs with one of the pumps.

Timeline towards 20,000 tons of yearly production

Income statement - Group

• Investments in Gigante Salmon Rødøy progressing according to plan
• Net profit Q1 2023, +0.1 MNOK

Income statement	Note	Q12023	Q12022	2022
Other income		140		151
Total income		140		151
Employee benefits expense		427	454	359
Depreciation and amortisation expenses	1	25	24	96
Other operating expenses		891	861	3408
Total operating expenses		1343	1339	3864
Net income		-1203	-1339	-3712
Interest income		1288	585	4662
Interest expenses			29	29
Other financial expense				4
Net finances		1288	556	4629
Profit before income tax		85	-783	917
Income tax expense		30	-164	-4667
Net profit or loss for the period	2	55	-619	5 584
To minority interests
To majority interests		55	-619	5 584
Disposal
Transferred from/to equity		રક	-619	5584

Balance sheet - Group

Q12023	Q12022	2022
6048	4005	6078
6048	4005	6078
165 567	33 114	108 981
753	843	776
21	15	24
166 341	33972	109781
172 389	37 977
175
20 647	13216
20822	13 216
129755	232 707
150 577	245 922	115 859 350 19 285 19635 182 097 201733

• Strong, financial position with equity ratio at 87%
• Initial disbursement from long-term construction loan (204 MNOK) granted by Sparebank1 Nord-Norge and guaranteed by Eksfin

Equity and liabilities	Note	Q12023	Q12022	2022
Share capital	3	105556	105 556	105556
Share premium		165 734	165 734	165 734
Other paid-in equity			114	114
Total paid-in equity	2	271290	271404	271404
Other equity		8469	2096	8299
Total retained earnings	2	8469	2096	8299
Minority interests			-	-
Total equity	2	279 759	273501	279 704
Other non-current liabilities		542
Total other non-current liabilities		542
Trade creditors		25069	6438	37 069
Public duties payable		260	143	189
Other short-term liabilities		17 334	3817	630
Total current liabilities		42663	10 398	37888
Total liabilities		43205	10 398	37888
Total equity and liabilities		322 966	283 899	317 592

Income statement – GS Rødøy

• Investments in Gigante Salmon Rødøy progressing according to plan

Income statement	Note	Q12023	Q12022	2022
Other income		140		11
Total income		140	-	11
Depreciation and amortisation expenses	1	22	22	90
Other operating expenses		156	36	641
Total operating expenses		178	28	730
Net income		-38	-58	-720
Interest income		628	523	2827
Interest expenses				0
Other financial expense				2
Net finances		628	523	2825
Profit before income tax		589	464	2105
Income tax expense		131	102	464
Net profit or loss for the period		458	362	1641
To minority interests		-
To majority interests		458	362	1641
Disposal
Transferred from/to equity		458	362	1641

Balance sheet – GS Rødøy

Assets	Note	Q12023	Q12022	2022
Land, buildings and other property		164 335	31831	107 800
Ships		753	843	776
Total tangible assets	1	165 088	32 673	108 576
Total fixed assets		165 088	32673	108 576
Trade receivables		175		350
Other receivables		20302	13 009	19236
Total receivables		20477	13 009	19586
Cash and bank deposits		52492	156 462	103 603
Total current assets		72 968	169 471	123 189
Total assets		238 057	202144	231765

Equity and liabilities	Note	Q12023	Q12022	2022
Share capital		19230	19230	19230
Share premium		172870	172870	172 870
Total paid-in equity		192 100	192 100	192 100
Other equity		2531	793	2072
Total retained earnings		2531	793	2072
Total equity		194 631	192 893	194 172
Deferred tax		730	237	599
Other non-current liabilities		542
Total other non-current liabilities		542		-
Trade creditors		25079	5814	36507
Public duties payable		104		153
Other short-term liabilities		16971	3200	332
Total current liabilities		42154	9014	36 993
Total liabilities		43426	9251	37592
Total equity and liabilities		238057	202144	231765

• Initial disbursement from long-term construction loan (204 MNOK) granted by Sparebank1 Nord-Norge and guaranteed by Eksfin

REMINDER:

Gigante Salmon AS Annual meeting will be held in Bodø, May 31st 2023 at 9:00 AM.