Andfjord Salmon

Investor Presentation • Mar 16, 2023

Q4 2022 STATUS AND PROGRESS

16 MARCH 2023

69°N ANDØYA VESTERÅLEN NORWAY

FARMED WITH A CLEAR CONSCIENCE

Q4 PRESENTATION 2022

Martin Rasmussen CEO

AGENDA

Introduction

Quarterly highlights and subsequent events

Operational update

Key financial figures

Summary and outlook Bjarne Martinsen CFO

FOUNDED: 2014 LOCATION: ANDØYA, NORWAY EURONEXT GROWTH: ANDF

FLOW-THROUGH – NATURAL FLOW

Uses a closed flow-through system, which combines the benefits of both traditional and land based aquaculture while solving a number of traditional farming issues.

FIRST LOCATION

Andfjord Salmon has been granted a licence for 10,000 tonnes MAB with potential production volume of 19,000 tonnes HOG at Kvalnes, Andøya.

GULF STREAM

Strategically located at Andøya – with unique access to oxygen-rich seawater at stable temperatures.

~90,000 TONNES IN TOTAL

Andfjord Salmon has acquired three locations, with a clear roadmap towards achieving a total capacity of ~90,000 tonnes (HOG).

LOW ENERGY USE

No need to lift the water above the surface. No need to heat or cool the seawater, or other costly operations.

FISH-FRIENDLY & SUSTAINABLE

Andfjord Salmon aims to build the world's most fish-friendly and environmentally friendly facility for salmon, with the lowest possible energy consumption and cost.

ANDFJORD SALMON AT A GLANCE

• Andfjord Salmon has secured, by purchase or purchase options, land on Andøya enabling an increase in total annual production volume to ~90,000t (HOG)
• License for Kvalnes I secured, licensing process for the expansion initiated
• Support from local authorities for project and expansion plans

FISKENES BREIVIK

EXPANSION POTENTIAL TO A TOTAL CAPACITY OF ~90,000T (HOG)

KEY FINANCIALS

AGENDA

2

OPERATIONAL UPDATE

QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS

4

SUMMARY AND OUTLOOK

CONTINUED HIGH SURVIVAL RATE

EXCELLENT GROWTH AND FEED CONVERSION RATE

HIGHLIGHTS Q4 AND SUBSEQUENT PERIOD

INDEPENDENT REPORT CONFIRMS STRONG BIOLOGICAL CONDITIONS

CONTINUED LOW ENERGY CONSUMPTION AND COSTS

Survival rate of 98.4 % per 31 December 2022, after 6+ months in the pool

High growth rate during Q4: from 560 to 1,434 grams (average) – ~40% higher than estimated

Accumulated feed conversion rate of 0.94*

Industry-leading energy efficiency: Run-rate of 1 kWh per kilo produced

salmon.

Research report by Nofima (Norwegian Institute of Food, Fisheries and Aquaculture Research) confirms favourable pool conditions and good fish welfare

KEY FINANCIALS

AGENDA

2

OPERATIONAL UPDATE

QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS

4

SUMMARY AND OUTLOOK

FISH GROWTH AHEAD OF SCHEDULE

FISH THRIVING IN POOL

• Continued healthy appetite and natural behaviour
• Slightly lower growth rate in dark season and in colder water
• Growth still ahead of Andfjord Salmon's original schedule (~40%)

AVERAGE WEIGHT PER FISH (GRAMS)

HIGH SURVIVAL RATE

CONTINUED HIGH SURVIVAL RATE (%)

SALMON THRIVING IN POOL

• Low mortality proves that fish thrives in pool
• Good biological conditions
• Slightly higher mortality rate in October due to ROV lighting incident that caused a brief period of stress to fish
• Constantly looking for ways to further improve fish safety: Safety pads installed along pool wall during Q4 to reduce risk of trauma injuries

				%
99,8	99,7
		99,5	99,3	98,9	98,7
						98,4	98,3	98,2	98,1

30 Jun 31 Jul 31 Aug 30 Sep 31 Oct 30 Nov 31 Dec 31 Jan 28 Feb 15 Mar

FLOW–TROUGH DESIGNED FOR LOW ENERGY USE

ENERGY CONSUMPTION EXACTLY AS ESTIMATED

PROOF OF CONCEPT: LOW ENERGY CONSUMPTION

INDUSTRY-LEADING ENERGY EFFICIENCY

RESEARCH REPORT

• Research report written by the Norwegian food research institute Nofima
• Based on first six months of operation of first pool

FOCUS AREAS

• Fish welfare
• Production performance
• Fish health (Åkerblå)

NOFIMA REPORT CONFIRMS HEALTHY BIOLOGICAL CONDITIONS

Input-based OWIs*

• Oxygen
• Temperature
• Salinity
• Water velocity
• Light
• Stocking density
• Total suspended solids
• Turbidity
• Carbon dioxide
• pH

EXTENSIVE EXAMINATION OF PHYSICAL AND BIOLOGICAL FACTORS

Group-based OWIs

• Appetite
• Growth
• Mortality
• Behaviour
• Emaciated fish
• Disease/health status

Individual-based OWIs according to Laksvel**

• First impression
• Vertebral deformities
• Emaciation state
• Maturation state
• Scale loss
• Skin haemorrhaging
• Lesion/wounds
• Snout damage
• Jaw deformities
• Eye opacity and damage
• Opercular damage
• Gill status
• Fin damage

NOFIMA REPORT UNDERLINES BENEFITS

"Water current speeds, whilst low, have not manifested in poor water quality and seems to be increased by fish presence in system."

"Water temperature is somewhat more stable than what would be expected at corresponding depths in open cages."

"The low natural water temperatures the fish have been subjected to over the autumn/early winter have currently not manifested in any welfare or performance risks, or risks for e.g. winter ulcers."

"Mortalities have been very low in the rearing system."

"Appetite has generally been good in the first six months of the project and growth performance and condition factor have been good."

"The injury status of the fish has generally been good with the majority of injury-based OWIs being scored as absent or mild."

"The growth…has been higher throughout the period than that indicated for fish in this weight and temperature range (4 to 14°C) by reference growth tables. It is also in the upper range of values reported in several previous studies, overall."

Pool conditions Fish health and welfare Growth

"Overall, the welfare of the fish in the system for the first six months of the documentation project has been good in relation to e.g. the Laksvel scoring scheme for input and outcome based indicators for salmon."

KVALNES I PHASE TWO PROGRESSING AS PLANNED

PROJECT PLANNING:

• In final stages of contract discussions with suppliers regarding the most efficient plan for further development
• Capital markets update during spring 2023 to present plans for next build-out phase,

BREIVIK ZONING PLAN APPROVED 13 JUNE 2022

• Plan to build land-based fish farming facility, targeting production volume of 25,000 tonnes HOG

FISKENES ZONING PLAN APPLICATION:

• Process managed by Andøy municipal council.
• Plan to build land-based fish farming facility, targeting production volume of 25,000 tonnes HOG

BREIVIK APPROVED, FISKENES IN PIPELINE

• Positive for the industry: Andfjord Salmon has requested clarity and more up-to-date regulations that consider the latest technology development within landbased fish farming
• Up-to-date regulations will provide increased predictability for fish farmers

Andfjord Salmon is not directly impacted:

• Kvalnes production license (10,000 t MAB) in place since 2018 (see photo)
• Deliberately held back license applications for Breivik and Fiskenes in expectation of the new regulations

TEMPORARY HALT IN LICENSE APPLICATIONS FOR LAND-BASED AQUACULTURE

KEY FINANCIALS

AGENDA

2

OPERATIONAL UPDATE

QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS

4

SUMMARY AND OUTLOOK

INVEST WITH A CLEAR CONSCIENCE

INCOME STATEMENT

ANDFJORD SALMON AS

All amounts in NOK

	Q4 2022	Q4 2021	2022	2021
	1.10 – 31.12	1.10– 31.12	1.1 – 31.12	1.1 – 31.12
	Unaudited	Unaudited	Unaudited
Operating income and expenses
Other income	81 770	0	113 270	0
Total operating income	81 770	0	113 270	0
Change in biomass and inventory	74 409	0	-2 361 907	0
Salary and personnel expenses	9 732 908	5 848 526	23 338 021	17 402 069
Depreciation of tangible and intangible fixed assets	4 546 056	610 732	10 538 694	1 229 217
Other operating expenses	6 809 003	2 895 587	22 662 106	15 829 035
Total operating expenses	21 162 376	9 354 845	54 176 914	34 460 322
Operating profit/loss	-21 080 606	-9 354 845	-54 063 644	-34 460 322
Financial income and expenses
Other financial income	898 884	80 918	1 845 488	282 983
Other financial expenses	1 793 236	799 556	5 198 141	1 358 912
Net financial income/expenses	-894 352	-718 638	-3 352 653	-1 075 929
Profit/loss before tax	-21 974 958	-10 073 484	-57 416 297	-35 536 250
Net profit/loss for the period	-21 974 958	-10 073 484	-57 416 297	-35 536 250

Assets

Total intangible assets

Total property, plant & equipment

Total long-term fixed assets

Total fixed assets

Biomass

Other inventories

Total current receivables

Cash and deposits

Total current assets

Total assets

31.12.2021	31.12.2022 Unaudited
2 664 757	8 555 993
428 987 851	514 502 126
123 970	88 550
431 776 578	523 146 669
0	14 285 013
0	1 162 388
33 673 118	20 580 848
14 918 370	82 911 053
48 591 488	118 939 301
480 368 067	642 085 970

BALANCE SHEET

ANDFJORD SALMON AS

All amounts in NOK

Figures do not include a remaining loan facility of NOK 5 million from Sparebank 1 Nord Norge and a NOK 20 million undrawn credit facility with Sparebank 1 Nord Norge.

Total equity

Liabilities

Non-current liabilities Liabilities to financial institutions Other non-current liabilities Total non-current liabilities

Current liabilities Trade payables Current tax liabilities Other current liabilities Total current liabilities

Total liabilities

Total equity and liabilities

31.12.2022 Unaudited	31.12.2021
473 975 588	323 273 127
85 498 408	39 478 187
64 079 192	59 191 509
149 577 600	98 669 696
10 360 515	49 689 856
1 450 670	1 246 151
6 721 597	7 489 236
18 532 782	58 425 243
168 110 382	157 094 939
642 085 970	480 368 067

BALANCE SHEET

ANDFJORD SALMON AS

All amounts in NOK

CASH FLOW STATEMENT

ANDFJORD SALMON AS

All amounts in NOK

	Q4 2022 1.10 – 31.12 Unaudited	Q4 2021 1.10 – 31.12 Unaudited	2022 1.1 – 31.12 Unaudited	2021 1.1 – 31.12
Net cash flow from operating activities	-18 179 737	5 691 802	-85 568 992	-20 620 952
Net cash flow from investing activities	-20 582 755	-58 745 810	-100 714 987	-207 820 439
Net cash flow from financing activities	4 552 590	31 546 770	254 276 661	94 513 693
Net change in cash and cash equivalents	-34 209 902	-21 507 237	67 992 682	-133 927 697

KEY FINANCIALS

AGENDA

2

OPERATIONAL UPDATE

QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS

4

SUMMARY AND OUTLOOK

OUR SALMON SUSTAINABLE OPERATIONS

SUMMARY AND OUTLOOK

CAPITAL MARKETS UPDATE FIRST HARVEST

• Healthy fish
• Growing faster than expected
• Maintains very high survival rate

• Nofima report confirms salmon's welfare status

• Industry-leading energy consumption: run-rate of 1 kWh per kilo salmon produced

• Energy cost of NOK 0.42 per kilo salmon produced
• Feed conversion rate of 0.94

• Ambitions and plans for next buildout phase at Kvalnes during spring

2023

• Targeting first harvest mid-2023

69 ° N

ON TRACK TO BUILD THE THE WORLD'S MOST FISH -FRIENDLY AND SUSTAINABLE FACILITY

^N Q4 2022

69 ° ANDØYA VESTERÅLEN NORWAY

Q & A

ANDFJORD SALMON AS KVALNES, ANDØYA, NORWAY

ANDFJORDSALMON.COM ANDFJORD.NO

POST@ANDFJORD.NO

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