Andfjord Salmon

Investor Presentation • Mar 11, 2025

MARCH 2025 STATUS AND PROGRESS

11 MARCH 2025

2025

Martin Rasmussen CEO

• ANDFJORD SALMON IN BRIEF
• Quarterly highlights and subsequent events
• Status Kvalnes build-out: Phase 1
• Kvalnes Phase 2: Plans and ambitions
• Financials
• Summary and outlook

AGENDA

Jostein Nilssen Project Director

NATURAL OPTIMAL WATER TEMPERATURES

OXYGEN-RICH AND CLEAN ARCTIC SEAWATER

LOW ENERGY COSTS. NO LIFTING, HEATING OR COOLING

THE BEST OF TWO WORLDS

3 BENEFITS OF SEA BASED NET PEN FARMING 3 BENEFITS OF LAND BASED FARMING

1

2

NO PROBLEMS WITH SALMON LICE AND POISONOUS ALGAE 1

NATURAL ESCAPE PREVENTION 2

COLLECTION AND RECYCLING BIOWASTE = COMMERCIAL VALUE 3

NATURAL FLOW – ANDFJORD

SALMON'S FLOW-THROUGH SYSTEM

JUNE 2023

KEY FIGURES – FIRST PRODUCTION CYCLE

1.05

LOW FEED CONVERSION RATE

STRONGER GROWTH

LOWER ENERGY COSTS

HIGH SURVIVAL RATE

Industry average = 1.27**

+1 kilo

Extra growth compared to Skretting's growth table

Energy use per kilo produced salmon

97.5%

Industry average = 83.3%*

Source: *Fish Health Report 2023 ** 2023 industry average

HIGH SUPERIOR SHARE

91.1%

Industry average = 85.1%**

2025

• Andfjord Salmon in brief
• QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS
• Status Kvalnes build-out: Phase 1
• Kvalnes Phase 2: Plans and ambitions
• Financials
• Summary and outlook

AGENDA

HIGHLIGHTS Q4 AND SUBSEQUENT PERIOD

2025

KVALNES PHASE 1 BUILD-OUT ON TRACK

Waterways near completion, solid progress on four next pools and other workstreams

OPTIMISING PRODUCTION LOGISTICS FOR +20% HIGHER VOLUMES

Increased water flow capacity and optimized fish logistics to enable 20% higher through-put to give 23,700 tonnes (HOG + post-smolt) production capacity from current Kvalnes license

INITIATING PHASE 2A CONSTRUCTION

Initiating phase 2a with additional production volume of 6,000 tonnes (HOG + post-smolt)

Through bank package, potential sale and leaseback agreement, plus successful private placement

DE-RISKING FOR POTENTIAL REGULATORY CHANGES

Future-proofing Andfjord Salmon through investments in redundancy for potential regulatory changes

2025

• Andfjord Salmon in brief
• Quarterly highlights and subsequent events
• STATUS KVALNES BUILD-OUT: PHASE 1
• Kvalnes Phase 2: Plans and ambitions
• Financials
• Summary and outlook

AGENDA

STATUS AND PROGRESS – WATERWAYS

2025

• o Capacity to support annual production of 48,100 tonnes (HOG + post-smolt) of salmon
• o Workstream on track
• o Total tunnel length 4.4 km:
  • o 6-7 m of outlet waterway remains
  • o 70 m of inlet waterway left
  • o Completed tunnel infrastructure below pools
  • o Concrete work in tunnels ongoing
• o Final breakthrough to sea (nearby Andfjorden) planned for Q2 2025

WATERWAYS ON TRACK

INFRASTRUCTURE FOR WATER-WAYS AND POOLS IN PLACE

TUNNEL INFRASTRUCTURE BELOW POOLS COMPLETED

• o 8 x vertical inlet shafts to provide pools with fresh seawater (most adjacent pools share one inlet)
• o 6 x vertical outlet shafts (adjacent pools share one outlet)
• o Completed sections from pools to tunnels

Illustration and photo: UHPC concrete elements and shafts

STATUS AND PROGRESS – POOLS

• o Workstream on track: 65% completion per 10 March 2025
• o UHPC concrete wall elements produced by factory on site
• o Columns, supports and preparations for wall elements completed for K1 and K3
• o UHPC wall elements being assembled in K1 – 80% complete

4 POOLS BEING CONSTRUCTED

STATUS AND PROGRESS – HARBOUR

• o Workstream on track
• o Temporary breakwater constructed to shield ongoing construction work from waves and currents originating from Andfjorden
• o Once harbour and port infrastructure are fully completed, temporary section of breakwater will be removed, allowing vessels to enter and operate within the protected harbour.

QUAY AND BREAKWATER BEING CONSTRUCTED

BUILD-OUT OF PHASE 1 AT KVALNES NEARING COMPLETION

2025

2025

• Andfjord Salmon in brief
• Quarterly highlights and subsequent events
• Status Kvalnes build-out: Phase 1
• KVALNES PHASE 2: PLANS AND AMBITIONS
• Financials
• Summary and outlook

AGENDA

• Kvalnes construction plan follows a four-by-four pool expansion
• Construction of Phase 1 and shared operational infrastructure for all 12 pools to be finalized by Q2 2025, on time and budget
• Decision to start Phase 2a construction immediately, reaping construction synergies from continuous process across phases. Retaining personnel and equipment on-site, allowing for optimized resource usage and accelerated execution time
• Accretive investment opportunity to be further pursued now, prior to pool pits being cemented in:
  • ‒ This includes wall segment joining Phase 1 and Phase 2a, which will reinforce the pools to allow for optimized water flow and fish logistics, as well as preparations for adherence to potential regulatory changes (further described on subsequent pages)

1 ✓ 2b

2a

Phase 2a Dividing walls between pools already started

SPEED AND ACCURACY OF PHASE 1 ALLOWS FOR IMMEDIATE START OF PHASE 2 EXP.

2025

OLD

water flow and fish logistics

NEW

water flow and fish logistics

19,000 tons

Previous annual production estimate, Phases 1 & 2 (HOG)

New system for increased flexibility of moving fish

Reinforced concrete walls for increased water flow and levels

Previous capex/kg estimate, full Kvalnes site NOK 114/kg

Updated capex/kg estimate, full Kvalnes site NOK 105/kg

Note: Illustrative

DESIGN IMPROVEMENTS FOR OPTIMIZED POOL UTILISATION AND +20% OUTPUT

New fish logistics system developed in partnership with Cflow Key features of upgraded system

• Originally, Andfjord had planned for splitting between pools to utilize piping going over the walls, one time per life cycle

• Now, with a new design developed together with fish handling experts and core partner Cflow, the company will move fish using a network of piping below the ground

• This revised method imposes less stress on the fish

• Further, the revised logistics system enables more flexibility in splittings, meaning that pools will achieve significantly higher utilization (higher average number of fish across

• The method for moving fish entails having a lower water level in the 'receiving' pool versus the 'sending' pool, resulting in a natural flow of water and fish between pools

• This added water pressure means that walls need reinforcing

• For Kvalnes in total, the optimizations are expected to give approximately +20% production output

New fish logistics system allows for GENTLE AND LOW-RISK MOVING OF FISH

Note: Illustrative

NEW AND MORE GENTLE LOGISTICS SYSTEM REDUCES OPERATIONAL RISK

• New fish logistics system allowing for more flexibility in the relocation of fish between pools thanks to increased water flow, with up to 24 times water renewal per day, and new fish transport system
• Possible to stock more smolt when avoiding the illustrated drops in pool utilization, and thereby increasing production
• Improved MAB utilization of current license while maintaining optimal farming conditions
• Better water flow and fish management also means that the system can handle higher densities at the peaks

Expected license utilization through the year based on NEW fish logistics and water flow

ENSURING MORE STABLE, HIGH UTILISATION OF THE CURRENT LICENSE

+20% PRODUCTION VOLUME AT KVALNES

• The Norwegian Ministry of Trade, Industry and Fisheries has proposed changes to the regulations to ensure the sustainable development of aquaculture production on land:

• The proposals will not affect facilities that have already received permission for farming on land 1
• The proposal eliminates past confusion about which aquaculture facilities are defined as being "on land"
• Proposed requirement for disinfection of seawater at water inlet

• Proactive upgrades made to all Phase 1 and 2 pools – highly accretive given that it also enables stronger MAB utilization

• Upgrades include treatment chambers for both inlet- and outlet water as well as significant reinforcements to pool concrete structures

• As such, Andfjord is fully prepared to retrofit water treatment equipment in case of future water cleansing requirements

OPTIMIZATIONS ALSO OPEN FOR ADHERENCE TO POTENTIAL REGULATORY CHANGES

2025

• Andfjord Salmon in brief
• Quarterly highlights and subsequent events
• Status Kvalnes build-out: Phase 1
• Kvalnes Phase 2: Plans and ambitions
• FINANCIALS
• Summary and outlook

AGENDA

Highly competitive blended capex for Kvalnes down from 114 NOK/kg^a to NOK 105/kg^a

Updated Kvalnes build-out plan increases production by +20%

Notes: 1) Stated capex numbers relate to investments (working capital/biomass, finance and operational costs not included). Estimates only; 2) Official Company guidance for human grade at full production, including energy costs; a) Included contingency buffer to investment plan of NOK 350m

Illustrative EBITDA sensitivity to salmon prices, Kvalnes Phase 1 & 2 (NOKm)

Previous capex1 (NOK, est.)	Previous accum. Production (HOG, est.)	Updated capex1 (NOK, est.)	Updated accum. production (HOG, est.)
~ 450m	1,000t	~ 450m	1,200t
Up to 1,650ma	8,000t	Up to 1,650ma	11,000t
~ 800m	13,000t	~ 1,150m	17,000t
~ 300m	19,000t	~ 400m	23,700t
~ 0m	23,000t	~ 0m	28,800t
~ 280m	28,000t	~ 280m	34,200t
~ 1,100m	40,000t	~ 1,100m	48,100t

TOTAL CAPEX FOR KVALNES DOWN TO AN ESTIMATED NOK 105/KG

Estimated annual production volumes Tons, HOG & post-smolt – Kvalnes Phase 1 & 2a

Estimated EBITDA¹ NOKm – Kvalnes Phase 1 & 2a

Estimated annual production volumes 1

Tons, HOG – Kvalnes Phase 1 & 2a

NOK ~350 million

optimization capex (Phase 2a additions)

NOK

~200 million enabled in additional EBITDA

~1.8 years

estimated period required for full payback on optimization investment

17,000 tons of annual production from Phase 1 and 2a, through a mix of volume for human consumption and previously announced post-smolt strategy. Full Phase 1 & 2 to give 23,700 tons (HOG + post-smolt) within current license

Production optimizations estimated to unlock an additional NOK ~200 million in annual EBITDA on Phases 1 and 2a

LESS THAN TWO YEARS IN EXP. PAYBACK PERIOD ON PRODUCTION OPTIMIZATIONS

Key terms of the bank facility

• Andfjord Salmon has received a term sheet signed by the banks for an additional commitment for a construction loan of up to NOK 400 million (up to 50% loan to Phase 2a construction capex), for a total debt package of NOK 1,100 million

• As shown on the next page, Andfjord is working on securing a 100% financing on the harbour area which implies a NOK 200 million

• The commitment comes with attractive terms from SpareBank 1 Nord-Norge, SpareBank 1 Sør-Norge and SpareBank 1 SMN, with

• The loan represents a major step in the further expansion of Andfjord Salmon and another strong signal from lending banks

• reduction of the existing bank package
• support from Export Finance Norway (NO: Eksfin)
• yet committed
• Flexibility on timing of full financing and construction start

• Overdraft facility of up to 60% of the value of borrowing base (standing biomass, inventories, accounts receivables) discussed, not

• Utilization of the construction loan is subject to customary conditions, including fully financed status

Leasing facility

• A leasing facility of NOK 175m is planned for certain equipment financing

Further financing plans

• Good dialogue with several banks regarding future financing
• Future expansions expected to be financed through debt

Debt funding plan for next expansion at Kvalnes

Main terms	Updated bank package
Lenders
Construction loan	Up to NOK 400m
Existing loana	Up to NOK 700mc
Construction loan converted to term loan	At first production
Total loan	Up to NOK 1,100mc
Amortization holiday	24 months after first term loan draw down
Repayment profile	12 years
Equity ratio covenantb	35% at year-end
Overdraft facility	60% of borrowing based

NEW BANK PACKAGE TO COMPLETE PHASE 2 EXPANSION

Key terms of the sale leaseback to Asset Buyout Partners AS ("ABP")

• Andfjord Salmon signed a term sheet for the sale of the harbour area to ABP based on estimated cost of ~NOK 400m which, if such transaction is duly agreed and completed, will give ~NOK +200m in immediate

• positive cash effect to Andfjord
• for CPI

• Upon completion, the harbour is leased back to the company on an 80-year contract at 7.5% yield adjusted

• The transaction is conditional upon the parties agreeing on a share purchase agreement, lease agreement and due diligence, with estimated signing of the share purchase agreement in March 2025

Harbour area

• The harbour is a key asset for Andfjord and its operations for the transportation of feedstock, product and

- waste to and from the site

• Contract design and length will ensure full right of use

ABP¹

• ABP is a leading Norwegian industrial real estate company with a dedicated investment strategy focusing on mission critical real estate and infrastructure located in major Norwegian energy and maritime clusters

Cash effect for Andfjord	~NOK +200m
Repayment of bank loan linked to harbour area	NOK -200m
Harbour sales value	~NOK 400m
ABP sale leaseback	Total value

Note: 1) ABP is owned by Fastighets AB Balder, the largest listed real estate company in the Nordics, listed on Nasdaq Stockholm with a balance sheet of around SEK 220 billion. For more info on ABP, go to www.abpre.no

~NOK 400M SALE OF INFRASTRUCTURE ASSET

• Phase 2a construction, optimizations across the system and buffer to amount to approximately NOK 1,375 million
• Construction capex for Phase 2a to be 50% debt financed
• Fish transportation system of NOK ~100m and water flow enhancements of NOK 250 million to increase production output by ~20% (accretive optimization capex-per-kg of NOK 88)
• Preparing pools to be able to accommodate potential changes in regulations
• Lease financing of NOK ~175 million on certain technical equipment
• Immediate cash effect of NOK +200m from harbour sale and leaseback agreement
• NOK 600 million of new equity through private placement of new shares
• Working capital financing planned upon production start

1600 CONSTRUCTING GROWTH AND ENABLING PRODUCTION BOOST

Sources and uses

About Jerónimo Martins:

• Portugal-based international industry group that operates in food distribution, retail and agribusiness
• 19th largest food retailer in Europe and 47th largest retailer in the world, regardless of sector (Deloitte, 2023)
• Listed in Lisbon with market cap of EUR ~12 billion per January 2025
• Consolidated group sales of EUR 33.5 billion (2024)
• Allocated shares for NOK 226 million in private placement

28.0% ownership

About High Liner Foods:

• North American processor and supplier of seafood
• Established in 1899 with significant network in their region
• Sales revenue of close to USD 1.1 billion in 2023
• Exploring opportunity for distribution of Andfjord Salmon's fish to the North American market
• Allocated shares for NOK 114 million in private placement

About Eidsfjord Sjøfarm (Holmøy Havbruk):

• Conventional salmon farmer based in Northern Norway
• Eidsfjord Sjøfarm/Holmøy Havbruk produces around 30,000 tons of salmon annually based on conventional licenses in Nordland and Troms
• Off-taker of post-smolt from Andfjord Salmon for nearby ocean-based farming locations
• Allocated shares for NOK 15 million in private placement

4.5% ownership

5.4% ownership

HIGHLY SUPPORTIVE SHAREHOLDER GROUP

2025

• Andfjord Salmon in brief
• Quarterly highlights and subsequent events
• Status Kvalnes build-out: Phase 1
• Kvalnes Phase 2: Plans and ambitions
• Financials
• SUMMARY AND OUTLOOK

AGENDA

SUMMARY AND OUTLOOK

KVALNES PHASE 1 BUILD-OUT ON TRACK

Waterways near completion, solid progress on four next pools and other workstreams

OPTIMISING PRODUCTION LOGISTICS FOR +20% HIGHER VOLUMES

Increased water flow capacity and optimized fish logistics to enable 20% higher through-put to give 23,700t (HOG + post-smolt) production capacity from current Kvalnes license

INITIATING PHASE 2A CONSTRUCTION

Initiating phase 2a with additional production volume of 6,000 t (HOG + post-smolt)

RAISED FUNDS OF NOK 1.4 BN

Through bank package, potential sale and leaseback agreement, plus successful private placement

SMOLT RELEASE IN Q3

On track for smolt release in Q3 2025

Q & A

2025

APPENDIX

STATEMENT OF COMPREHENSIVE INCOME All amounts in NOK 1,000

Statement of comprehensive income	Q4 2024	Q4 2023	2024	2023
	1.10 – 31.12 Unaudited	1.10 – 31.12 Unaudited	1.1 – 31.12 Unaudited	1.1 – 31.12
Operating income and expenses
Revenue from contracts with customers	8	1	190	37 279
Other operating income	134	-	134	-
Total operating income	142	1	324	37 279
Change in biological assets at cost and other inventories	-	-	-	-1 162
Cost of materials	-101	-429	-375	-59 638
Fair value adjustments of biological assets	-	-	-	25 707
Employee benefit expenses	-5 377	-5 424	-21 683	-25 208
Depreciation and amortisation expenses	-6 217	-6 305	-24 756	-24 904
Other operating expenses	-7 679	-7 283	-25 450	-31 707
Total operating expenses	-19 375	-19 441	-72 264	-116 902
Operating profit/loss	-19 232	-19 440	-71 940	-79 634
Financial income and expenses
Financial income	1 371	5 229	4 914	12 187
Net financial costs	-215	-137	-837	-2 340
Net financial result	1 156	5 092	4 077	9 847
Profit/loss for the period	-18 076	-14 348	-67 862	-69 787

STATEMENT OF FINANCIAL POSITION

Assets	31.12.2024 - Unaudited	31.12.2023
Intangible assets	16 420	14 389
Property, plant & equipment	2 230 854	876 632
Right-of-use assets	13 060	17 640
Other non-current assets	139	113
Total non-current assets	2 260 473	908 774
Biological assets	-	-
Other inventories	1 340	1 697
Trade and other receivables	44	-
Other current assets	76 443	52 361
Cash and cash equivalents	59 196	250 032
Total current assets	137 023	304 090
Total assets	2 397 496	1 212 864

All amounts in NOK 1,000

31.12.2024 - Unaudited	31.12.2023
16 420	14 389
2 230 854	876 632
13 060	17 640
139	113
2 260 473	908 774
1 340	1 697
44
76 443	52 361
59 196	250 032
137 023	304 090
2 397 496	1 212 864

Figures do not include an undrawn construction loan of NOK 40 million and an undrawn credit facility of NOK 20 million

STATEMENT OF FINANCIAL POSITION

Equity and liabilities	31.12.2024 - Unaudited	31.12.2023
Total equity	1 254 355	993 688
Borrowings	832 309	59 959
Lease liabilities	6 163	9 340
Total non-current liabilities	838 472	69 299
Borrowings	-	7 666
Lease liabilities	4 276	4 511
Trade payables	295 506	131 134
Other current liabilities	4 887	6 567
Total current liabilities	304 669	149 877
Total liabilities	1 143 141	219 176
Total equity and liabilities	2 397 496	1 212 864

All amounts in NOK 1,000

STATEMENT OF CASH FLOWS

Q4 2024

Statement of cash flows	Q4 2024	Q4 2023	2024	2023
	1.10-31.12 Unaudited	1.10-31.12 Unaudited	1.1 – 31.12 Unaudited	1.1 – 31.12
Net cash flow from operating activities	-22 089	-17 247	-63 227	-29 148
Net cash flow from investing activities	-300 057	-256 776	-1 205 173	-326 866
Net cash flow from financing activities	219 165	-2 164	1 077 564	523 136
Net change in cash and cash equivalents	-102 982	-276 186	-190 836	167 121

All amounts in NOK 1,000

NEXT QUARTERLY UPDATE:

Q1 2025 presentation – 28 May 2025

2025

For more information on this presentation and its contents, please contact:

Bjarne Martinsen, CFO Andfjord Salmon bjarne.martinsen@andfjord.no.