Andfjord Salmon

Earnings Release • May 28, 2025

Andfjord Salmon: Q1 2025 results, smolt release plan, revised CAPEX budget, completed equity issue, and fixed income meetings

Andfjord Salmon: Q1 2025 results, smolt release plan, revised CAPEX budget, completed equity issue, and fixed income meetings

28.5.2025 07:00:01 CEST | Andfjord Salmon | Non-regulatory press releases

Andfjord Salmon Group AS ("Andfjord Salmon" or the "Company") reports continued

strong operational progress across all workstreams at its land-based aquaculture

facility at Kvalnes, Andøya, and reiterates plans to release smolt in this

year's third quarter. The Company also presents its financial results for the

first quarter of 2025.

Q1 2025 RESULTS

Due to the ongoing construction at Kvalnes, Andfjord Salmon did not produce

salmon in Q1 2025, resulting in zero revenue for the period (Q1 2024: NOK 0).

The Company reported a net loss of NOK 18 million for the quarter, compared to a

loss of NOK 15.7 million in Q1 2024.

PLANNED SMOLT RELEASE

The Company confirms its plan to initiate smolt release in September 2025,

pending successful testing of pools and technical infrastructure in July and

August. Smolt will be released starting with pools K0 and K1, with subsequent

splitting/transfers to pools K3, K2 and K4 as biomass density increases.

"The upcoming smolt release marks a significant milestone for Andfjord Salmon.

After more than two years of construction, we look forward to seeing fish in our

pools again," said Martin Rasmussen, CEO of Andfjord Salmon.

Following the initial release, Andfjord Salmon expects to continuously introduce

new batches to maintain consistent salmon production.

+20% INCREASE IN PRODUCTION CAPACITY

In Q1 2025, Andfjord Salmon announced an optimized build-out plan that increases

production capacity at the Kvalnes site by approximately 20%. Enhanced pool

utilization, improved fish logistics systems, and reinforced concrete

infrastructure have expanded expected capacity from 8,000 to 11,000 tonnes (HOG

+ post-smolt) for Phase 1. Under the Company's existing license, total expected

production output at Kvalnes will increase from 19,000 to 23,700 tonnes.

REVISED CAPEX BUDGET

While all ongoing workstreams at Kvalnes remain on schedule, updated projections

now show that the final construction costs will exceed initial projections. In

dialogue with the main contractor Hæhre, the total CAPEX for current and future

build-out phases has been revised upwards by NOK 500 million, of which NOK 400

million is related to ongoing construction workstreams. Cost increases are

primarily related to concrete production, additional mobilization of manpower

and equipment, design adjustments, and adverse weather impacts.

The additional CAPEX has been allocated across multiple phases: ~40% to Phase 1,

~45% to Phases 2A and 2B, and ~15% to future Phases 4 and 5. The Company has

chosen to front-load selected investments to preserve long-term development

momentum and generate future efficiencies.

Once fully scaled, the Kvalnes facility is expected to produce 48,100 tonnes.

Blended CAPEX is now estimated at NOK 115/kg.

COMPLETED EQUITY ISSUE

To finance part of the updated CAPEX for the Kvalnes facility, Andfjord Salmon

has today secured an equity injection of NOK 400 million through issuance of

10,869,565 new shares to certain existing shareholders, which includes Jerónimo

Martins Agro-Alimentar S.A., the Company's largest shareholder. The subscription

price per new share is NOK 36.80 per share.

The equity issue was conducted as direct private placement resolved by the board

pursuant to authorization granted by the Company's annual general meeting on 29

April 2025. The board has considered the structure of the equity raise in light

of relevant equal treatment obligations and guidelines, and is of the view that

the ability to efficiently secure the additional capital required at current

market price with no discount and without project or production interference is

in the common interest of the Company and all its shareholders.

Arctic Securities AS, DNB Carnegie, a part of DNB Bank ASA, Nordea Bank Abp,

filial i Norge and SpareBank 1 Markets AS have been appointed as financial

advisors to Andfjord Salmon in connection with the equity issue.

CONTEMPLATED BOND ISSUANCE

To further support the production ramp-up, the Company is considering additional

working capital financing through a potential new bond issue. The Company has

appointed Arctic Securities AS, Nordea Bank Abp, filial i Norge and SpareBank 1

Markets AS to explore such potential issue, and fixed income meetings is

expected to commence 30 May 2025.

PRESENTATION AT 08:00 (CEST) TODAY

Andfjord Salmon will provide an operational update and present the company's

first quarter 2025 results at 08:00 today. The webcast presentation can be

viewed from this URL:

https://channel.royalcast.com/landingpage/hegnarmedia/20250528_1/ -

https://protect.checkpoint.com/v2/___https:/channel.royalcast.com/landingpage/he

gnarmedia/20250528_1/___.YzJlOnNjaGpkdGFzOmM6bzoxNjViN2ExNTFkZTQ5NWY0NzM2NWFjMTU

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wNWY5YjdkNDA5ZmE2MWM5NWU1NTpwOlQ6Tg

The presentation material is enclosed to this announcement.

CONTACTS

* Investors: Bjarne Martinsen, CFO, Andfjord Salmon Group AS, +47 975 08 345,

bjarne.martinsen@andfjord.no

* Media: Martin Rasmussen, CEO, Andfjord Salmon Group AS, +47 975 08 665,

martin@andfjord.no

ABOUT ANDFJORD SALMON

Located at Andøya on the Arctic Archipelago of Vesterålen, Norway, Andfjord

Salmon is developing the world's most sustainable and fish-friendly aquaculture

facility of its kind. Through a proprietary flow-through system, Andfjord Salmon

combines the best from ocean and land-based salmon farming. In its first

production cycle, the company achieved an industry-leading survival rate of 97.5

percent, feed conversion ratio of 1.05, superior share of 91.1 percent, and

required 1 kWh to produce one kilo of salmon.

For more information, see www.andfjordsalmon.com -

https://protect.checkpoint.com/v2/___http:/www.andfjordsalmon.com___.YzJlOnNjaGp

kdGFzOmM6bzoxNjViN2ExNTFkZTQ5NWY0NzM2NWFjMTUwMDdjY2MzMjo2OjlkMmY6NjdhZjZhN2ZiMWY

yOWY1YjVkMjIxNzY2YzlkMWIyYTMwZmM3N2RmZGIwYzQ2MmI2YWNmNmMwMWU2ODhlOGQxMTpwOlQ6Tg.

ATTACHMENTS

Andfjord Salmon Q1 2025 presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847566/18544908/6139/Andfjord%20Salmon%2

0Q1%202025%20presentation.pdf