Gigante Salmon AS

Annual Report • Mar 30, 2023

ANNUAL REPORT 2022

30 March 2023

CEO Helge E. W. Albertsen CFO Rune Johansen

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.

Environmental, Social and Governance ESG

• Increased fish welfare, lower mortality rates
• Less sludge released to the sea
• Positive footprints, by contributing to regional development and positive growth
• Close cooperation with local authorities and people
• Low energy use, 2 kWh/kg

Highlights 2022

• Construction work has been on-going throughout 2022. Excavation of production basin 3 is complete and ready for required final installation work prior to start-up in September 2023.
• All critical detail engineering work and preparations for installation are finalized. Contracts for delivery and execution of concrete work are signed and work in progress.
• Our smolt partner, Grytåga Settefisk AS, has begun raising the first release of fish for the facility.
• Agreements for insurance, both project execution and operational phase are signed with the Norwegian insurance company "Gjensidige Forsikring".
• The long-term construction loan which originally was planned opened in 2022 was opened 20 March 2023.

Project development 2021 - 2022

Project development 2021 - 2022

FORTSETT

FORTSETT

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

• Investments in Gigante Salmon Rødøy progressing according to plan
• Net profit 2022, +5.5 MNOK

	Parent			Group
2022	2021		Note	2022	2021
3 535	2 290	Revenue	1	151	0
0	0	Other operating income		0	1902
3 535	2 290	Total revenue		151	1902
3592	2 114	Employee benefits expence	23	359	2129
7	2	Depreciation and amortisation expenses	4	96	32
2767	1904	Other operating expenses	2	3 408	1548
6366	4020	Total operating expenses		3864	3709
-2831	-1730	Operating profit		-3712	-1806
1835	175	Interest income		4662	848
0	0	Other finance income		0	0
29	0	Interest expenses		29	0
2	0	Other financial expense		4	0
-1027	-1555	Profit before income tax		917	-958
-5131	-3839	Income tax expense	5	-4667	-3698
4104	2284	Net profit og loss for the year	6	5584	2739
		To majority interests		5584	2739
		Dienneal

Balance sheet

• Strong, financial position with equity ratio at 88%
• Long term construction loan 204 MNOK opened 20 March 2023

• Working capital for biomass build-up 140 MNOK

Parent				Group
2022	2021	Assets	Note	2022	2021
6677	3976	Deferred tax asset	5	6078	3841
6677	3976	Total intangible assets		6078	3841
1343	1284	Land, buildings and other property		108 981	20509
0	0	Ships		776	865
24	16	Fixtures and fittings, tools, office machinery and equipment		24	16
1367	1300	Total tangible assets	4	109 781	21390
192 100	192 100	Investments in subsidiaries	7	0	0
192 100	192 100	Total financial fixed assets		0	0
200 144	197 376	Total fixed assets		115 859	25 231
0	1753	Trade receivables	8	350	0
49	102	Other receivables	8	19285	6782
49	1856	Total receivables		19635	6782
78 494	76 471	Cash and bank deposits	9	182 097	258704
78544	78327	Total current assets		201733	265 486
278688	275703	Total assets		317 592	290 716

	Faren			Ciroup
2022	2021	Equity and liabilities	Note	2022	2021
105 556	105 556	Share capital	10	105 556	105556
165734	165734	Share premium		165 734	165 734
114	114	Other paid-in equity		114	114
271404	271404	Total paid-in equity		271404	271404
6388	2284	Other equity		8299	2716
6388	2284	Total retained earnings		8299	2716
277 793	273689	Total equity	6	279704	274120
355	1424	Trade creditors	8	37 069	15932
35	280	Public duties payable		189	280
505	309	Other short-term liabilities	8	630	384
895	2014	Total current liabilities		37888	16596
895	2 014	Total liabilities		37888	16596
278688	275703	Total equity and liabilities		317 592	290 716

(Amount in kNOK)