Andfjord Salmon

Investor Presentation • Nov 30, 2023

Q3 2023 STATUS AND PROGRESS

30 NOVEMBER 2023

Andfjord Salmon tataki with ponzu sauce and pomegranate

Martin Rasmussen CEO

• INTRODUCTION
• Quarterly highlights and subsequent events
• Andfjord Salmon's production method: Benefits and potential
• Status Kvalnes build-out
• Financials
• Summary and outlook

Bjarne Martinsen CFO

Jostein Nilssen Project Director

AGENDA

Gravlax from Andfjord Salmon with roe and Norwegian aquavit

OPTIMAL WATER TEMPERATURES

OXYGEN-RICH AND CLEAN ARCTIC SEAWATER

LOW ENERGY COSTS. NO LIFTING, HEATING OR COOLING

THE BEST OF TWO WORLDS

3 BENEFITS FROM SEA BASED NET–PEN FARMING 3 BENEFITS FROM LAND BASED FARMING

1

2

NO PROBLEMS WITH SALMON LICE AND POISONOUS ALGAE 1

NATURAL ESCAPE PREVENTION 2

COLLECTION AND RECYCLING BIO WASTE = COMMERCIAL VALUE 3

• Introduction
• QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS
• Andfjord Salmon's production method: Benefits and potential
• Status Kvalnes build -out
• Financials
• Summary and outlook

Gravlax from Andfjord Salmon with roe and Norwegian aquavit

AGENDA

HIGHLIGHTS Q3 AND SUBSEQUENT PERIOD Q3 2023

Successful completion of first production cycle

Very positive customer feedback

Pool pit excavation at Kvalnes ahead of schedule

Harbour area workstream progressing as planned

Blasting of waterways started

• Introduction
• Quarterly highlights and subsequent events
• ANDFJORD SALMON'S PRODUCTION METHOD: BENEFITS AND POTENTIAL
• Status Kvalnes build-out
• Financials
• Summary and outlook

Gravlax from Andfjord Salmon with roe and Norwegian aquavit

AGENDA

First generation in first pool, Kvalnes

HOW DOES STRONG BIOLOGY TRANSLATE TO FINANCES?

FISH

Fish-related factors:

• Number of smolt
• Cost of smolt
• Survival rate
• Harvest weight
• Quality/superior share
• Price of salmon per kg

FEED

Feed-related factors:

• Amount of feed
• Cost of feed
• Feed conversion ratio (=amount of feed required to grow 1 kilogram of fish)

*Energy consumption, energy prices, fixed costs etc must also be accounted for

Two main parameters that affect revenue and profitability (Note: simplified*):

SURVIVAL RATE IMPACT ON SALES REVENUES

Assumptions*:

• 5 kg harwest weight / 84% yield
• Salmon price: NOK 80 per kg

2 MILL. SMOLT RELEASED = 5 POOLS IN OPERATION 4.8 MILL. SMOLT RELEASED = 13 POOLS IN OPERATION

FEED FACTOR IMPACT ON COST

Assumptions*:

• Feed price: NOK 20 per kg
• FCR: 1.27 (industry average), 1.10 (base case) and 1.05 (1st production cycle)

Feed conversion ratio

8,000 T (HOG) PRODUCTION VOLUME 19,000 T (HOG) PRODUCTION VOLUME

STRONG BIOLOGY IMPACT ON EBIT

Assumptions*:

• Feed price: NOK 20 per kg
• Smolt price: NOK 20 per individual
• Salmon price: NOK 80 per kg

EBIT NOK PER KG

• FCR: 1.27 (industry average), 1.10 (base case) and 1.05 (1st production cycle)

• Survival rate 85 %, 95 % and 97.5 %

• Introduction

• Quarterly highlights and subsequent events
• Andfjord Salmon's production method: Benefits and potential
• STATUS KVALNES BUILD -OUT
• Financials
• Summary and outlook

Gravlax from Andfjord Salmon with roe and Norwegian aquavit

AGENDA

PRODUCTION VOLUME OF 40,000 TONS AT KVALNES WITH TOTAL POTENTIAL OF 90,000 TONS

Q3 2023

• Gradual ramp-up to full capacity of 40,000 tons at Kvalnes, focusing on capital efficiency
• Next step at Kvalnes encompasses 4 new pools, bringing total production capacity to 8,000 tons, followed by further expansion
• Larger interventions and blasting to be completed in this step,

meaning that the only required pause in production due to ground works will be in 2024

• Current production license of 10,000 tons MAB at Kvalnes (total potential of 19,000 tons HOG), with further license applications to be submitted in accordance with the original business plan

Kvalnes build-out plan

Comments

Tons HOG Stage, Kvalnes	Added production (HOG, est.)	Accum. production (HOG, est.)
First pool	+1,000t	1,000t
1	+7,000t	8,000t
2	+11,000t	19,000t
3 (license expansion)	+4,000t	23,000t
4	+5,000t	28,000t
5	+12,000 t	40,000t

In operation: 1,000 tons First pool 1 2 3 Construction start in 2026: +5,000 tons 4 Construction 2023-2025: +18,000 tons +4,000 tons license expansion

Q3 2023 Q3 2023

Pool pit excavation reached 80% completion.

Outlet and inlet waterways reached 5% completion.

tonnes relocated on

First pool – proven flow trough technology

farming

KVALNES EXPANSION IN FULL MOMENTUM Q2 2023 • Extensive preparation work carried out at Kvalnes • Concrete injected to stabilize the sections surrounding the 12 pools

• Excavated masses from

pool pits and waterways

Legg inn oppdatert bilde

Erstatte truck loads med

massebalanse.for å få frem

miljøbudskap

Mass balance approach: 2,100

tonnes relocated on-site every

utilised for port and quay development. 20% på port area (ikke 25)

day

Her kommer det ferske bilder

denne uken.

MR: Vi må ha bilder av at vi

også er i drift.

Endre navn på Pilot pool.

80 %

Fjerne logoer til leverandører

5% (ikke 05%)

KEY CONSTRUCTION MILESTONES FOR BUILD-OUT PHASE AT KVALNES (8,000 t)

STATUS: NOT STARTED	PLAN: INSTALL. OF TECHNICAL INFRASTRUCTURE
		SMOLT RELEASE

Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025
	PLAN: EXCAVATION OF POOL PITS K1-K12
STATUS: 80% FINISHED –		AHEAD OF SCHEDULE
			PLAN: CONCRETE WORKS: K1-K4
			STATUS: NOT STARTED
	PLAN: WATERWAYS
	STATUS: 5% FINISHED
					PLAN: INSTALL. OF TECHNICAL INFRASTRUCTURE
					STATUS: NOT STARTED
PLAN: HARBOUR AND PORT
STATUS: 20% FINISHED

STRONG PROGRESS – ROCK PITS AHEAD OF SCHEDULE

^% progress POC / 100%

Development progress per active workstream

• Introduction
• Quarterly highlights and subsequent events
• Andfjord Salmon's production method: Benefits and potential
• Status Kvalnes build -out
• FINANCIALS
• Summary and outlook

Gravlax from Andfjord Salmon with roe and Norwegian aquavit

AGENDA

STATEMENT OF COMPREHENSIVE INCOME All amounts in 1000 NOK

Statement of comprehensive income	Q3 2023	Q3 2022	YTD 2023	YTD 2022	2022
	1.7 – 30.9 Unaudited	1.7 – 30.9 Unaudited	1.1 – 30.9 Unaudited	1.1 – 30.9 Unaudited	1.1 – 31.12
Operating income and expenses
Revenue from contracts with customers	27 653	-	37 278	-	-
Other income	-	-	-	32	113
Total operating income	27 653	-	37 278	32	113
Change in biological assets at cost and other inventories	-165	401	-1 162	401	700
Cost of materials	-36 296	-661	-59 209	-7 335	-12 704
Fair value adjustments of biological assets	-	2 504	25 707	9 177	14 285
Employee benefit expenses	-7 395	-6 932	-19 784	-14 950	-23 211
Depreciation and amortisation expenses	-6 283	-5 964	-18 600	-7 564	-13 603
Other operating expenses	-5 676	-6 931	-24 424	-17 684	-21 691
Total operating expenses	-55 815	-17 584	-97 471	-37 955	-56 224
Operating profit/loss	-28 162	-17 584	-60 194	-37 923	-56 111
Financial income and expenses
Financial income	1	4	1	4	1 836
Net financial costs	-138	-150	-422	-454	-2 402
Net financial result	-137	-146	-421	-450	-566
Profit/loss for the period	-28 299	-17 730	-60 614	-38 373	-56 677

STATEMENT OF FINANCIAL POSITION

Assets	30.09.2023 - Unaudited	31.12.2022	30.09.2022 - Unaudited
Intangible assets	13 245	8 556	6 144
Property, plant & equipment	544 850	498 386	483 860
Right-of-use assets	18 743	22 539	22 829
Other non-current assets	62	89	97
Total non-current assets	576 900	529 570	512 930
Biological assets	-	14 285	9 177
Other inventories	2 031	1 162	401
Trade and other receivables	201	-	-
Other current assets	5 118	7 803	6 616
Cash and cash equivalents	526 279	82 911	117 121
Total current assets	533 629	106 161	133 315
Total assets	1 110 529	635 731	646 245

All amounts in 1000 NOK

STATEMENT OF FINANCIAL POSITION

Equity and liabilities	30.09.2023 - Unaudited	31.12.2022	30.09.2022 - Unaudited
Total equity	1 002 006	475 704	491 737
Borrowings	60 834	67 375	68 976
Lease liabilities	10 095	13 296	13 599
Total non-current liabilities	70 929	80 671	82 575
Borrowings	8 166	56 168	54 417
Lease liabilities	4 544	4 683	4 383
Trade payables	19 062	10 361	10 981
Other current liabilities	5 821	8 144	2 152
Total current liabilities	37 593	79 356	71 932
Total liabilities	108 522	160 027	154 508
Total equity and liabilities	1 110 529	635 731	646 245

All amounts in 1000 NOK

STATEMENT OF CASH FLOWS

Q3 2023

Statement of cash flows	Q3 2023	Q3 2022	YTD 2023	YTD 2022	2022
	1.7 – 30.9 Unaudited	1.7 – 30.9 Unaudited	1.1 – 30.9 Unaudited	1.1 – 30.9 Unaudited	1.1 – 31.12
Net cash flow from operating activities	15 510	-53 773	-26 102	-72 156	-88 443
Net cash flow from investing activities	-31 719	-11 779	-65 174	-75 365	-90 702
Net cash flow from financing activities	447 790	-8 518	534 643	249 725	247 139
Net change in cash and cash equivalents	431 581	-74 070	443 367	102 204	67 993

All amounts in 1000 NOK

SCALE-UP TAILORED FOR CAPITAL EFFICIENCY

• All future expansions (step 2 and out) expected to be financed by mix of debt and cash flow
• Significant shared infrastructure across stages
• Highly competitive blended capex for Kvalnes of NOK 114/kg (including substantial buffers)
• Large part of investments towards shared infrastructure for full Kvalnes site
  • Shared upside and downside: 60/40 between AF Hæhre-Contur and Andfjord Salmon

Note: Stated capex numbers relate to investments (working capital/biomass, finance and operational costs not included). Estimates only.

Kvalnes build-out plan Capital expenditure, Kvalnes phase 1

In this upcoming stage of construction, the company is planning to establish major infrastructure such as waterways and a port area to support 40,000 tons of production at Kvalnes. Together with highly reputable construction partners AF Hæhre-Contur and Cflow, a budget of NOK 1,300 million plus a buffer of NOK 350 million has been estimated for the next two years.

Incurred costs vs estimated budget cost, incl. buffer)

• Actual cost of NOK 71 million per 30 September 2023

SUPPORTIVE SHAREHOLDER BASE

Q3 2023

TOP 10 SHAREHOLDERS (PER NOVEMBER 2023)
Jerónimo Martins Agro-Alimentar, S.A.	25.12%
Andfjord Holding AS	11.45%
KG Investment Comp AS	5.68%
Eidsfjord Sjøfarm AS	4.54%
Skagerak Vekst AS	4.29%
OG Invest AS	3.94%
UFI AS	3.61%
Karstein Gjersvik	2.44%
Verdipapirfondet DNB SMB	2.26%
Traaseth Property AS	2.22%

JERÓNIMO MARTINS

Ranked the 18th largest food retailer in Europe 5,358 stores, 131,094 employees, and sales of EUR 25.4 billion (2022)

EIDSFJORD SJØFARM

Part of Holmøy Maritime, and produces around 25,000 tons of salmon annually (2023e) based on conventional licenses in Nordland and Troms

NUTRECO

Nutreco International (holds 505.050 shares / 0,89 %) Nutreco is a global leader in animal nutrition and aquafeed, and owner of Skretting.

• Introduction
• Quarterly highlights and subsequent events
• Andfjord Salmon's production method: Benefits and potential
• Status Kvalnes build -out
• Financials
• SUMMARY AND OUTLOOK

Gravlax from Andfjord Salmon with roe and Norwegian aquavit

AGENDA

SUMMARY AND OUTLOOK

Successful completion of first production cycle

Pool pit excavation ahead of schedule: creates flexibility and de-risks build-out

Estimated completion of pool pit excavation in Q1 2024

Concrete factory to be set up in Q1 2024, ready for construction of concrete pools

Blasting started on both inlet and outlet waterways, work on schedule

Harbour area progressing as planned

Andfjord Salmon burger with Americana dressing and cheddar

IMPORTANT INFORMATION

This presentation (the "Presentation") has been produced by Andfjord Salmon AS (the "Company") solely for information purposes. By reading the Presentation slides or by otherwise receiving this Presentation or the information contained herein, you agree to be bound by the following terms, conditions, and limitations:

This Presentation does not constitute an offer to sell or a solicitation of an offer to buy, or a recommendation regarding, any securities of the Company. Any failure to comply with the restrictions set out herein may constitute a violation of applicable securities laws or other regulations. No representation, warranty or undertaking, express or implied, is made by the Company, its affiliates or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein, for any purpose whatsoever. Neither the Company nor any of its affiliates or representatives shall have any responsibility or liability for any loss arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation.

This Presentation speaks as of the date hereof. All information in this Presentation is subject to updating, revision, verification, correction, completion, amendment and may change materially and without notice. None of the Company, its affiliates or representatives undertake any obligation to provide the recipient with access to any additional information or to update this Presentation or any information or to correct any inaccuracies in any such information. The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect developments that may occur after the date of this Presentation. These materials do not purport to contain a complete description of the Company or the market(s) in which the Company operates. The contents of this Presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should make its own independent assessment of the information in the Presentation and should take its own professional advice in relation thereto.

This Presentation contains forward-looking information and statements relating to the business, financial performance, and results of the Company and/or industry and markets in which it operates. Forwardlooking statements are statements that are not historical facts and may be identified by words such as "aims", "anticipates", "believes", "estimates", "expects", "foresees", "intends", "plans", "predicts", "projects", "targets", and similar expressions. Such forward-looking statements are based on current expectations, estimates and projections, reflect current views with respect to future events, and are subject to risks, uncertainties, and assumptions. Forward-looking statements are not guarantees of future performance and risks, uncertainties and other important factors could cause the actual results of operations, financial condition and liquidity of the Company or the industry to differ materially from the results expressed or implied in this Presentation by such forward-looking statements. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved, and you are cautioned not to place any undue influence on any forward-looking statement.

This Presentation, and the information contained herein, does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities of the Company and nothing contained herein shall form the basis of any contract or commitment whatsoever. This Presentation is not a prospectus and has not been reviewed or approved by any regulatory authority, stock exchange or market place. The distribution of this Presentation or other documentation into jurisdictions other than Norway may be restricted by law. Persons into whose possession this Presentation comes should inform themselves about and observe any such restrictions.

This Presentation is subject to and governed by Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo District Court as the exclusive legal venue.

DISCLAIMER

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