Andfjord Salmon

Investor Presentation • Sep 4, 2024

Q2 2024 STATUS AND PROGRESS

4 SEPTEMBER 2024

Q2 2024

Martin Rasmussen CEO

• ANDFJORD SALMON IN BRIEF
• Quarterly highlights and subsequent events
• Status Kvalnes build-out
• Private placement: Strategic investors
• Regulations
• Financials
• Summary and outlook

Bjarne Martinsen CFO

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

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%**

• Andfjord Salmon in brief
• QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS
• Status Kvalnes build-out
• Private placement: Strategic investors
• Regulations
• Financials
• Summary and outlook

HIGHLIGHTS Q2 AND SUBSEQUENT PERIOD

Q2 2024

BUILD-OUT PROGRESSING AS PLANNED

All workstreams on or ahead of schedule

INITIATED PRODUCTION OF POOL COMPONENTS

Preparations for pool production executed, initiated production of pool components

STRONG PROGRESS ON WATERWAYS

De-risks a challenging part of the build-out

SUCCESSFUL PRIVATE PLACEMENT

NOK 350 million from strategic investors

• Andfjord Salmon in brief
• Quarterly highlights and subsequent events
• STATUS KVALNES BUILD-OUT
• Private placement: Strategic investors
• Regulations
• Financials
• Summary and outlook

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

Q2 2024

• Gradual ramp-up to full capacity of 40,000 tonnes at Kvalnes, focusing on capital efficiency
• Next step at Kvalnes encompasses 4 new pools, bringing total production capacity to 8,000 tonnes, followed by further expansion
• Major 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 tonnes MAB at Kvalnes (total potential of 19,000 tonnes 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

1 2 3

Construction start 2023-2025: +18,000 tonnes +4,000 tonnes license expansion

In operation: 1,000 tonnes

First pool

Construction start in 2026: +5,000 tonnes

4

5

Construction start in 2027: +12,000 tonnes (exact location to be decided)

NOTE: ILLUSTRATIVE GRAPHICS

STATUS AND PROGRESS – POOLS

• Workstream on track
• Concrete elements produced by factory on site
• Foundation work for pools K1 and K3 is in the final stage
• Production of pool walls is in progress, with a planned significant increase in concrete production set for September 2024.

POOL CONSTRUCTION INITIATED

Foundation of pool floors. An on-site crane is placing concrete elements into the pool pits.

POOL CONSTRUCTION METHOD

• The 24-hour production of concrete elements ensures continuous progress.
• The on-site factory and crane for installing concrete elements have significantly improved progress efficiency.

CONSTRUCTION STEPS:

• Foundation of walls and floors
• Installation of walls with Ultra-High Performance Concrete (UHPC)
• Casting of floors

ON-SITE FACTORY AND CRANE

On-site factory On-site crane

Production of pool elements Foundation of floors and walls

SUSTAINABILITY AT CORE OF BUILD-OUT

• Utilizing masses from pool pits and tunnels as raw material in concrete reduces costs and enhances environmental sustainability.
• Avoiding approximately 23,300 tonnes (equivalent to 780 truckloads) of material being delivered to the facility.

EFFICIENT AND SMART BUILD-OUT PROCESS

Excavated masses from pool pits… …turned into concrete elements

… concrete walls covered with Ultra-High Performance Concrete (UHPC)

…and finally becoming part of harbour and concrete pools

STATUS AND PROGRESS – WATERWAYS

• Capacity to support annual production of 40,000 tonnes (HOG) of Salmon
• Workstream on track
• Quality of bedrock is in line with expectations.
• Strong progress in recent months (excluding summer vacation period in July)
• Total length of waterways is 4.4 km, current progress stands at approx. 3.2 km

WATERWAYS ON TRACK

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

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: 100% FINISHED –		AHEAD OF SCHEDULE
				PLAN: CONCRETE WORKS: POOLS K1-K4
			STATUS: 18% COMPLETION
	PLAN: WATERWAYS
	STATUS: 73% COMPLETION
						PLAN: INSTALL. OF TECHNICAL INFRASTRUCTURE
				STATUS: 5% COMPLETION
PLAN: HARBOUR AND PORT
STATUS: 48% COMPLETION

Note: Status per 3 September 2024

• Introduction
• Quarterly highlights and subsequent events
• Status Kvalnes build-out
• PRIVATE PLACEMENT: STRATEGIC INVESTORS
• Regulations
• Financials
• Summary and outlook

STRONG SUPPORT FROM LARGE INDUSTRIAL INVESTORS

• Lisbon-listed group with 230 years of know-how in the food business
• Revenue of EUR 30 billion in 2023
• More than 134,000 employees
• Andfjord Salmon's largest shareholder
• Pro-rata allocation of NOK 87 million
• North American processor and supplier of seafood
• Listed on the Toronto Stock Exchange, Canada
• Sales revenue of almost USD 1.1 billion in 2023
• Explore opportunity for distribution of Andfjord Salmon's fish to the North American market
• Subscribed for approximately NOK 107 million
• Part of Holmøy Maritime
• Produces around 25,000 tonnes 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
• Pro-rata allocation of NOK 15.9 million

1
I

SUCCESSFUL PRIVATE PLACEMENT

• Significantly oversubscribed
• Net proceeds used to expand production capacity at Kvalnes, ramping up biomass, and for general corporate purposes
• Provides added financial flexibility

RAISED NOK 350 MILLION

• Andfjord Salmon in brief
• Quarterly highlights and subsequent events
• Status Kvalnes build-out
• Private placement: Strategic investors
• REGULATIONS
• Financials
• Summary and outlook

KEY POINTS FROM THE PROPOSAL

PROPOSED NEW REGULATIONS FOR LAND-BASED AQUACULTURE

BACKGROUND

• After a two-year standstill period for considering license applications for land-based aquaculture, the Norwegian Ministry of Trade, Industry and Fisheries has issued proposed changes to the regulations to ensure the sustainable development of aquaculture production on land
• The proposal is now subject to a public hearing, with a deadline for input on 21 November 2024
• After reviewing the consultation input, the ministry will present new regulations for land-based aquaculture

• The proposals will not affect facilities that have already received permission for farming on land*

• The proposal removes confusion about which aquaculture facilities are defined as being "on land"

• Proposed requirement for disinfection of seawater at water inlet (Note: Andfjord Salmon has flexibility in design, to adapt to changes in functional requirements)

• Positive for the long-term development of land-based aquaculture industry that a revised regulatory framework is getting closer to completion

• Andfjord Salmon in brief
• Quarterly highlights and subsequent events
• Status Kvalnes build-out
• Private placement: Strategic investors
• Regulations
• FINANCIALS
• Summary and outlook

STATEMENT OF COMPREHENSIVE INCOME All amounts in 1,000 NOK

Q2 2024

Statement of comprehensive income	Q2 2024	Q2 2023	HY 2024	HY 2023	2023
	1.4 – 30.6 Unaudited	1.4 – 30.6 Unaudited	1.1 – 30.6 Unaudited	1.1 – 30.6 Unaudited	1.1 – 31.12
Operating income and expenses
Revenue from contracts with customers	78	9 625	135	9 625	37 279
Total operating income	78	9 625	135	9 625	37 279
Change in biological assets at cost and other inventories	-	-1 829	-	-1 864	-1 162
Cost of materials	-112	-17 512	-210	-22 047	-59 638
Fair value adjustments of biological assets	-	13 294	-	25 707	25 707
Employee benefit expenses	-5 636	-5 676	-10 446	-12 389	-25 208
Depreciation and amortisation expenses	-6 220	-6 165	-12 412	-12 317	-24 904
Other operating expenses	-7 249	-9 830	-13 233	-18 748	-31 707
Total operating expenses	-19 216	-27 717	-36 301	-41 657	-116 912
Operating profit/loss	-19 138	-18 092	-36 166	-32 032	-79 634
Financial income and expenses
Financial income	572	-	2 100	-	12 187
Net financial costs	-217	-143	-421	-283	-2 340
Net financial result	355	-143	1 679	-283	9 847
Profit/loss for the period	-18 783	-18 235	-34 487	-32 315	-69 787

STATEMENT OF FINANCIAL POSITION

Assets	30.06.2024 - Unaudited	31.12.2023	30.06.2023 - Unaudited
Intangible assets	16 445	14 389	12 570
Property, plant & equipment	1 443 058	876 632	521 109
Right-of-use assets	15 376	17 640	19 496
Other non-current assets	35	113	71
Total non-current assets	1 474 914	908 774	553 246
Biological assets	-	-	29 836
Other inventories	1 487	1 697	-
Trade and other receivables	30	-	10 987
Other current assets	82 831	52 361	152 157
Cash and cash equivalents	228 038	250 032	94 698
Total current assets	312 385	304 090	287 678
Total assets	1 787 299	1 212 864	840 924

All amounts in 1,000 NOK

Figures do not include undrawn construction loan of NOK 660 million and an undrawn credit facility of NOK 20 million

STATEMENT OF FINANCIAL POSITION

Equity and liabilities	30.06.2024 - Unaudited	31.12.2023	30.06.2023 - Unaudited
Total equity	1 287 142	993 688	643 061
Borrowings	218 324	59 959	63 417
Lease liabilities	7 869	9 340	11 027
Total non-current liabilities	226 193	69 299	74 444
Borrowings	7 666	7 666	59 417
Lease liabilities	4 304	4 511	4 514
Trade payables	254 529	131 134	45 461
Other current liabilities	7 465	6 567	14 027
Total current liabilities	273 964	149 877	123 419
Total liabilities	500 157	219 176	197 863
Total equity and liabilities	1 787 299	1 212 864	840 924

All amounts in 1,000 NOK

STATEMENT OF CASH FLOWS

Q2 2024

Statement of cash flows	Q2 2024	Q2 2023	HY 2024	HY 2023	2023
	1.4-30.6 Unaudited	1.4-30.6 Unaudited	1.1 – 30.6 Unaudited	1.1 – 30.6 Unaudited	1.1 – 31.12
Net cash flow from operating activities	-11 141	-27 315	-31 730	-41 612	-29 148
Net cash flow from investing activities	-287 481	-20 142	-462 075	-33 455	-326 866
Net cash flow from financing activities	475 234	88 632	471 811	86 853	523 136
Net change in cash and cash equivalents	176 612	41 176	-21 995	11 787	167 121

All amounts in 1,000 NOK

SCALE-UP TAILORED FOR CAPITAL EFFICIENCY

• All future expansions (stage 2 and later) expected to be financed by a 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 investment towards shared infrastructure for full Kvalnes site
• Shared upside and downside: 60/40 between AF Hæhre-Contur and Andfjord Salmon

KVALNES BUILD-OUT PLAN CAPITAL EXPENDITURE, KVALNES PHASE 1

Stage, Kvalnes	Capex (NOK, est.)	Added production (HOG, est.)	Accum. production (HOG, est.)	Technical infrastructure (8,000t)
First pool	~ 450m	+1,000t	1,000t	~20%
1	Up to 1,650m	+7,000t	8,000t
2	~ 1,100m	+11,000t	19,000t
3 (license expansion)	~ 0m	+4,000t	23,000t	~25% Port area (40,000t)
4	~ 280m	+5,000t	28,000t	Contur
5	~ 1,100m	+12,000t	40,000t

INCURRED COSTS VS ESTIMATED BUDGET COST, INCL. BUFFER

• Actual cost of NOK 968 million per 30 June 2024

• Andfjord Salmon in brief
• Quarterly highlights and subsequent events
• Status Kvalnes build-out
• Private placement: Strategic investors
• Regulations
• Financials
• SUMMARY AND OUTLOOK

SUMMARY AND OUTLOOK

BUILD-OUT PROGRESSING AS PLANNED

All workstreams on or ahead of schedule

INITIATED POOL PRODUCTION

Foundation work for pools K1 and K3 at final stage, production of pool walls is in progress, momentum increase expected in September

STRONG PROGRESS ON WATERWAYS

De-risks a challenging part of the build-out

SUCCESSFUL PRIVATE PLACEMENT

Strategic investors supporting Andfjord Salmon's concept and plans

Q & A

Q2 2024

Q2 2024

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 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 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,

IMPORTANT INFORMATION NEXT QUARTERLY UPDATE:

Presentation or the information contained herein, you agree to be bound by the following terms, conditions, and limitations: Q3 Presentation 28. November 2024

assessment of the information in the Presentation and should take its own professional advice in relation thereto. Bjarne Martinsen, CFO Andfjord Salmon bjarne.martinsen@andfjord.no.

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

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