Gigante Salmon AS

Investor Presentation • Nov 15, 2022

15 November 2022

CFO Rune Johansen

24 March 2022

PROFITABILITY

• An increasing global focus on health and sustainability can be expected to drive up demand for salmon.
• 2021 • The location of the facility was identified as an ideal site to establish an operation that provides the best-possible living conditions for the fish, and can be run in an energy-efficient, cost-effective manner.
• CEO Helge E. W. Albertsen CFO Rune Johansen • A biomass-optimised, salmon-lice-free operation that utilises feed efficiently results in a low cost per kilogram of fish produced.

ANNUAL REPORT TECHNOLOGY

• The production technology is based on well-known aquaculture technology used in conventional fish farming.
• The facility is designed to be an efficient, stable operation that provides the best-possible living conditions for the fish.

ANNUAL REPORT FINANCE AND INVESTMENT

• Gigante Salmon has sufficient financing to fund its operations until full production commences, this includes financing for the construction phase and the first operational phase.
• 24 March 2022 • A great deal of research was carried out to find the most suitable location for an aquaculture plant that will become the industry leader in terms of production costs and mass of salmon produced.
• CEO Helge E. W. Albertsen CFO Rune Johansen • The project's founder and majority owner is also a coowner of operations at all stages of the salmon valuecreation chain. This ensures Gigante Salmon access to the necessary expertise in all areas.

RESPONSIBLE PRODUCTION

• Land-based salmon farming operations can control the parameters for water quality and wastewater.
• 2021 • Sludge is filtered from the water used in production, reducing the amount of wastewater released at sea by half compared with conventional salmon-farming operations.
• We hold regular public meetings, and we collaborate with the local committee to help strengthen the Rødøya community.

Gigante Salmon Rødøy (All figures in NOK 2020)

	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

Highlights Q3 2022

• Good progress towards completion of Gigante Salmon Rødøy facility. Project moving forward in accordance with prepared and approved plans and in line with planned and approved cost limits.
• Blasting resumed in September. Heavy construction activity, including blasting, must halted before 28 February 2023
• Establishment of the rockfill in the waters north-east of Lille Indre Rosøy is underway and expected to be completed during Q1 2023
• Contracts signed: land-based feeding facilities (Aquagroup), feed supply agreement (Skretting), in-let water pumps (Xylem)
• A decision about the landing of the submarine cable is expected in Q4

The journey has begun - the roe has arrived at Grytåga Settefisk, where it is now incubating

Development and operation of Gigante Salmon Rødøy AS

IMPLEMENTATION OF THE PROJECT

An overriding focus for all our activities is that the health of our 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.

Gigante Salmon Rødøy

Timeline towards 20,000 tons of yearly production

Financial review

Proposal for new tax rules for the aquaculture industry

• The rule, as proposed, would not affect Gigante Salmon, since it would only apply to conventional, at-sea production of salmon for consumption

Impact of the decision by the Tax Appeals Board

• The Tax Appeal Board (Skatteklagenemnda) has ruled in Gigante Salmon AS's favour in a matter relating to the 2009 fiscal year

	Effect on taxes	Effect on interest — non-taxable	Total effect
Tax reimbursement (2013)	2 377 033	199 768	2 576 801
Tax reimbursement (2014)	52 087	3 106	55 193
Increased deferred tax benefit	2 449 261	0	2 449 261
Total	4 878 381	202 874	5 081 255

Income statement

• Investments in Gigante Salmon Rødøy progressing according to plan
• Net profit Q3 2022, +5.6 MNOK

				Group
Income Statement	Note	Q3 2022	Q3 2021	YTD 2022	YTD 2021	2021
Other income		128 100	$\circ$	128100	$\circ$	$\circ$
Total income		128 100	$\mathbf{o}$	128100	$\mathbf{o}$	$\mathbf{o}$
Employee benefits expense		79553	844431	534050	1277319	226290
Depreciation and amortisation expenses	1	23886	7458	71658	7458	31848
Other operating expenses		603720	1189746	2238630	2300110	1548164
Total operating expenses		707159	2041635	2844338	3584887	1806302
Net income		$-579059$	$-2041635$	$-2716238$	$-3584887$	$-1806302$
Interest income		1496750	197402	3033476	241681	848011
Other finance income		$\circ$	$\Omega$	$\Omega$	$\circ$	194
Interest expenses		$\circ$	92969	29426	93042	73
Other financial expense		201	$\circ$	1684	$\circ$	92
Net finances		1496549	104433	3002366	148639	848040
Profit before income tax		917490	-1937202	286128	-3436248	$-958262$
Income tax expense	$\overline{4}$	$-4713013$	$-3721444$	$-4613473$	$-4051234$	$-3697669$
Net profit or loss for the period	$\overline{2}$	5630503	1784242	4899601	614986	2739407
To minority interests				$\circ$	$\circ$
To majority interests		5630503	1784242	4899601	614986	2739407
Disposal
Transferred from/to equity		5630503	1784242	4899601	614986	2739407

Balance sheet

				Group							Group
Assets	Note	30,09,2022	30.06.2022	31.12.2021	30,09,2021	30.06.2021	Equity and liabilities	Note	30,09,2022	30,06,2022	31,12,2021	30,09,20
Research, development, licenses, goodwill		$\circ$	$\circ$	$\circ$	42870	53588	Share capital	3	105 556 037	105 556 037	105 556 037	105 556 0
Deferred tax asset	$\overline{4}$	6025006	3741113	3840756	4 194 321	472877	Share premium		165734431	165734431	165734431	166 214 0
Total intangible assets		6025006	3741113	3840756	4 2 3 7 1 9 1	526465	Non-registered capital increase		$\circ$	$\circ$	$\circ$
Land, buildings and other property		65326920	45 358 099	20508663	4005671	3592263	Other paid-in equity		113935	113935	113935	$-9676$
Ships		798042	820417	865167	887542	$\circ$	Total paid-in equity	$\overline{2}$	271404403	271404403	271404403	270 802 4
"Fixtures/fittings, tools, office machinery and equipment"		11588	13099	16122	18137	$\circ$	Other equity		7615522	1985021	2715562	16729
Total tangible assets		66 136 550	46 191 615	21389952	4911350	3592263	Uncovered losses		$\Omega$	$\circ$	$\circ$
Total fixed assets		72161556	49932728	25 230 708	9148541	4 118 728	Total retained earnings	$\overline{2}$	7615522	1985021	2715562	16729
Trade receivables		63376	$\circ$	$\circ$	$\circ$	539	Minority interests		$\circ$	$\circ$	$\circ$
							Total equity	$\overline{2}$	279019925	273 389 424	274119965	27247540
Other receivables		15994963	11362731	6781507	3694516	224 983 144	Other non-current liabilities		$\circ$	$\circ$	$\circ$	17630
Total receivables		16058339	11362731	6781507	3694516	224983683	Total other non-current liabilities		$\mathbf{o}$	$\bullet$	$\mathbf{o}$	17630
Cash and bank deposits		198 515 711	215895049	258703997	261870147	61502793	Trade creditors		2200707	1127121	15932235	2081
Total current assets		214 574 050	227 257 780	265485504	265564663	286486476
Total assets		286735606	277190508	290 716 212	274 713 204	290 605 204	Public duties payable		280068	454881	280343	1218
							Other short-term liabilities		5234906	2219084	383667	14479

• Strong, financial position with equity ratio at 97%
• Long term financing granted (204 MNOK)