Gigante Salmon AS

Investor Presentation • Feb 14, 2023

14 February 2023

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 Q4 2022

• Construction has been on-going throughout the period. Excavation of production basin 3 is complete. All required blasting will be completed by the end of February
• Completed acquisitions and agreements: Skretting, Xylem, Infrakon
• Application in process for the establishment of a small rockfill that will enable the placement of risers to the west of Lille Indre Rosøy
• Our smolt partner, Grytåga Settefisk AS, has begun raising the first release of fish for the facility
• Agreements so far in 2023:
• ‐ Lovund Bedrifts Service for delivery of concrete
• ‐ Nordkontakt and Elektro for the establishment of electricity, automation, instrumentation, ICT / telecommunications and power transmission

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.

Two production basins will contain three raceways, while the third will contain four (A). The raceways are between 110 and 214 meters long and are fitted with a dividing wall (B) in the centre, which facilitates the circulation of water.

We are establishing three production basins (1, 2, 3) in the bedrock. Each will be about five metres deep and all four walls of the production basin, as well as the floor, will be lined with concrete. The concrete will itself be covered by a liner / membrane that will provide the fish with a healthy living environment, in accordance with the company's ambitions, as well as Food Safety Authority requirements. This set-up offers robust production units that are not affected by sea level, as well as simplified operation, maintenance and cleaning. The water enters the tank from a point at the centre of one of the short ends of the raceways (C). Flow distributors installed at selected positions in the circular-flow raceways will help maintain an optimal rate of flow inside the raceway.

The outlet from each raceway will also be centrally located and will lead to the basin's drainage channel (D), as required, as well as predefined discharge points, as stipulated by our discharge permit.

Perforated walls will divide the raceways from each other (E). This will ensure a continued flow of water to the fish in the entire production basin, should there be an unforeseen problem with the water supply.

PRODUCTION BASIN

We draw water from a depth of 20 meters (F) through 10 risers that are outfitted with pre-installed submersible pumps. Having multiple intake pipes allows us to collect the desired amount of water at all times, allowing us to maintain water flow in the event that an unforeseen incident occurs with one of the pumps.

Timeline towards 20,000 tons of yearly production

Income statement

• Investments in Gigante Salmon Rødøy progressing according to plan
• Net profit Q4 2022, +0.5 MNOK
• Net profit 2022, +5.5 MNOK

			Group
Income Statement	Note	Q4 2022	Q4 2021	2022	2021
Other income		23	1902	152	1902
Total income		23	1902	152	1902
Employee benefits expense		$\equiv$	851	360	2129
Depreciation and amortisation expenses	1	25	24	96	32
Other operating expenses		1170	$-308$	3408	1548
Total operating expenses		1194	568	3864	3709
Net income		$-1171$	1335	$-3713$	$-1806$
Interest income		1629	606	4662	848
Other finance income		$\equiv$	$\Omega$	$\equiv$	$\circ$
Interest expenses		$\equiv$	$-93$	29	$\circ$
Other financial expense		$\overline{2}$	$\circ$	$\overline{4}$	$\circ$
Net finances		1627	699	4629	848
Profit before income tax		456	2034	916	$-958$
Income tax expense	$\overline{4}$	$-53$	354	$-4667$	$-3698$
Net profit or loss for the period	$\overline{2}$	509	1680	5583	2739
To minority interests		$\equiv$	÷,	$\equiv$
To majority interests		509	1680	5583	2739
Disposal
Transferred from/to equity		509	1680	5583	2739

Balance sheet

(Amount in kNOK)

Group						Group
Assets	Note	31.12.2022	30.09.2022	31.12.2021	30.09.2021	Equity and liabilities	Note	31.12.2022	30.09.2022	31.12.2021	30.0
Research, development, licenses, goodwill		$\circ$	$\circ$	$\circ$	43	Share capital	$\mathbf{3}$	105556	105556	105556
Deferred tax asset	$\overline{4}$	6078	6025	3841	4 1 9 4	Share premium		165734	165734	165734
Total intangible assets		6078	6025	3841	4237	Other paid-in equity		114	114	114
Land, buildings and other property		108807	65327	20509	4006	Total paid-in equity	$\overline{2}$	271404	271404	271404
Ships		776	798	865	888	Other equity		8125	7616	2716
Fixtures/fittings, tools, office machinery and equipment		24	12 °	16 °	18	Total retained earnings	$\overline{2}$	8125	7616	2716
Total tangible assets		109606	66137	21390	4911	Minority interests		$\circ$	$\circ$	$\circ$
Total fixed assets		115684	72162	25 231	9149	Total equity	$\overline{2}$	279529	279020	274 120
Trade receivables		350	63	$\circ$	$\overline{0}$	Other non-current liabilities		$\circ$	$\circ$	$\circ$
Other receivables		19285	15995	6782	3695	Total other non-current liabilities		$\mathbf{o}$	$\mathbf{o}$	$\mathbf{o}$
Total receivables		19635	16058	6782	3695	Trade creditors		37069	2 2 0 1	15932
Cash and bank deposits		182097	198516	258704	261870	Public duties payable		189	280	280
Total current assets		201733	214574	265486	265565	Other short-term liabilities		630	5235	384
Total assets		317417	286736	290716	274713	Total current liabilities		37888	7716	16596
						Total liabilities		37888	7716	16596

• Strong, financial position with equity ratio at 88%
• Long term financing granted (204 MNOK)