Gigante Salmon AS

Quarterly Report • Aug 26, 2022

26 August 2022

CEO Helge E. W. Albertsen 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 Q2 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.
• The application to establish a rockfill in the water east of Lille Indre Rosøy island has been approved.
• Obtained insurance policies: builder's liability and environmental insurance during the implementation phase
• Contracts signed: quality system (Landax), treatment plant (Blue Ocean Technology), oxygen production (Norluft), detailed engineering of pipelines (Bystøl)

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

Income statement

• Investments in Gigante Salmon Rødøy progressing according to plan
• Net profit Q2 2022, -0.8 MNOK

				Group
ncome statement	Note	Q2 2022	Q2 2021	YID 2022	Y D 2021	2021
Employee benefits expense		0	293176	454 031	432888	226 290
Depreciation and amortisation expenses	1	23886	0	47772	O	31848
Other operating expenses		773675	1023266	1634910	1110 364	1548 164
Total operating expenses		797 561	1316442	2136 713	1543 252	1806 302
Operating profit		-797 561	-1316 442	-2136 713	-1543 252	-1806302
Interest income		951 711	44279	1536726	44279	848 011
Other finance income		0	0	0	0	194
Interest expenses		189	-66 111	29426	73	73
Other financial expense		1483	0	1483	0	92
Net finances		950 039	110 390	1505 817	44 206	848 040
Profit before income tax		152 478	1206052	-630 896	-1499 046	-958 262
Income tax expense	4	263 953	-265 331	99540	-329790	-3697 669
Net profit or loss for the period	2	-111 475	-940 721	-730 436	-1169 256	2739407
To minority interests
To majority interests		-111 475	-940 721	-730 436	-1169 256	2739407
Disposal
Transferred from/to equity		-111475	-940 721	-730 436	-1169 256	2739407

Balance sheet

			Group
Note	30.06.2022	31,03,2022	31.12.2021	30,06,2021	31,03,202
	0	0	0	535888
4	3741113	4 005 066	3840756	472877	20754
	3741113	4005 066	3840756	526 465	207 54
	45 358 099	33 114 469	20 508 663	3592263	276636
	820 417	842792	865 167	0
	13 099	14 611	16 122	0
1	46 191 615	33 971872	21389952	3 592 263	276636
	49 932 728	37 976 938	25 230 708	4118728	297391
	0	0	0	539
	11362 731	13 215 602	6781507	224 983 144	301666
	11362731	13 215 602	6781507	224 983 683	301666
	215 895 049	232 706 630	258703997	61502793	60 942 72
	227 257 780	245 922 232	265 485 504	286 486 476	63 959 39
	277 190 508	283 899 170	290 716 212	290 605 204	66 933 30

• Strong, financial position with equity ratio at 98%
• Long term financing granted (204 MNOK)

				Group
Equity and liabilities	Note	30.06.2022	31.03.2022	31.12.2021	30,06,2021	31.03.2021
Share capital	3	105 556 037	105 556 037	105 556 037	65 192 400	65 192 400
Share premium		165 734 431	165 734 431	165 734 431	0	0
Non-registered capital increase		0	0	0	222000004	0
Other paid-in equity		113 935	113 935	113 935	-967 664	0
Total paid-in equity	2	271404403	271404403	271 404 403	286 224 740	65 192 400
Other equity		1985 021	2 096 497	2715 562	0	0
Uncovered losses		0	0	0	-111303	-138 246
Total retained earnings	2	1985 021	2 096 497	2715 562	-111303	-138 246
Minority interests		0	0	O	0	O
Total equity	2	273 389 424	273 500 900	274 119 965	286 113 437	65 054 154
Other non-current liabilities		0	0	0	3763 018	1737 433
Total other non-current liabi- lities		0	0	0	3763018	1737 433
Trade creditors		1127 121	6438470	15 932 235	463677	73633
Public duties payable		454 881	142 959	280 343	43138	11200
Other short-term liabilities		2219 084	3816841	383667	221934	56885
Total current liabilities		3801086	10 398 270	16 596 245	728749	141 718
Total liabilities		3801086	10 398 270	16 596 245	4 491767	1879 151
Total equity and liabilities		277 190 508	283 899 170	290 716 212	290 605 204	66 933 305