Gigante Salmon AS

Quarterly Report • Aug 8, 2023

Q2 REPORT 2023

8th August 2023

CEO Helge E. W. Albertsen CFO Rune Johansen

The majority owner Gigante Havbruk is also a co-owner of operations at all stages of the salmon value creation chain. This ensures Gigante Salmon access to the necessary expertise in all areas.

ACT

Juli

$\frac{1}{2}$ P

Gigante Salmon Rødøy

	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 (All figures in NOK 2020)

Health, Security, Environmental & Quality HSE&Q

PROJECT EXECUTION

An overriding focus for all our activities is that the health of our colleagues and 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.

No serious accidents during Q2 2023.

Highlights Q2 2023

THE SECOND QUARTER OF 2023

• Rockfill that forms foundation for risers completed
• Concrete walls in production basin 3 close to completion. Columns in basin finished, and PE liners for installation on walls and floors delivered and expected to be completed well in advance of production start
• Electrical and automation: First of four containers containing power-distribution panels fabricated and delivered on site. Delivery of second container expected in early August; installation necessary prior to start-up
• In the technical area, pipelaying of intake pipes ongoing and work on electrical conduit has begun
• Oxygen system for start of production completed and delivered
• Ready for planned production start late September/beginning of October

Snapshot from Building Information Model

Timeline towards 20,000 tons of yearly production

Income statement - Group

• Investments in Gigante Salmon Rødøy progressing according to plan

Income statement	Note	Q22023	YTD 2023	Q22022	YTD 2022	2022
Other income		28	168	$\overline{\phantom{a}}$		151
Total income		28	168	٠	٠	151
Employee benefits expense		155	582	$\blacksquare$	454	359
Depreciation and amortisation expenses	1	25	50	24	48	96
Other operating expenses		690	1581	774	1635	3408
Total operating expenses		870	2213	798	2137	3864
Net income		$-842$	$-2045$	$-798$	$-2137$	$-3712$
Interest income		1332	2620	952	1537	4662
Other finance income		3	3	$\overline{\phantom{a}}$
Interest expenses		46	46		29	29
Other financial expense		12	12	$\mathbf{1}$	1	4
Stock exchange fees		388	388	٠
Net finances		889	2177	951	1507	4629
Profit before income tax		47	132	152	$-631$	917
Income tax expense		24	54	264	100	$-4667$
Net profit or loss for the period	$\overline{2}$	23	78	$-111$	$-730$	5584
To minority interests		$\overline{a}$	÷	$\overline{a}$	÷
To majority interests		23	78	$-111$	$-730$	5584
Disposal			٠		٠
Transferred from/to equity		23	78	$-111$	$-730$	5584

Balance sheet - Group

Assets	Note	Q22023	Q22022	2022
Deferred tax asset		6024	3741	6078
Total intangible assets		6024	3741	6078
Land, buildings and other property		259325	45 3 58	108981
Ships		731	820	776
"Fixtures/fittings, tools, office machinery and equipment"		18	13	24
Total tangible assets	1	260074	46 191	109781
Investments in shares		100
Total fixed assets		266198	49933	115859
Trade receivables		121		350
Other receivables		33133	11363	19 2 8 5
Total receivables		33254	11363	19635
Cash and bank deposits		155331	215895	182097
Total current assets		188585	227 258	201733
Total assets		454783	277191	317592

• Strong, financial position with equity ratio at 61%

Equity and liabilities	Note	Q2 2023	Q22022	2022
Share capital	3	105556	105556	105556
Share premium		165734	165734	165734
Other paid-in equity		٠	114	114
Total paid-in equity	$\overline{\mathbf{2}}$	271290	271404	271404
Other equity		8363	1985	8299
Total retained earnings	$\overline{2}$	8363	1985	8299
Minority interests		٠	٠
Total equity	$\overline{2}$	279653	273389	279704
Building loan		147644
Total other non-current liabilities		147644	٠
Trade creditors		17523	1127	37069
Public duties payable		433	455	189
Other short-term liabilities		9530	2219	630
Total current liabilities		27486	3801	37888
Total liabilities		175130	3801	37888
Total equity and liabilities		454783	277 191	317592

Income statement – GS Rødøy

• Total investments in the group in the second quarter rose 260 074 kNOK, compared to 165 567 kNOK in Q1

Income statement	Note	Q2 2023	YTD 2023	Q2 2022	YTD 2022	2022
Other income		٠	140			11
Total income		٠	140	٠	٠	11
Depreciation and amortisation expenses	1	22	44	22	44	90
Other operating expenses		54	210	105	141	641
Total operating expenses		76	254	127	185	730
Net income		$-76$	$-114$	$-127$	$-185$	$-720$
Interest income		560	1188	526	1049	2827
Other financial income		3	3		٠
Interest expenses		23	23			$\circ$
Other financial expense		11	11	$\overline{\phantom{a}}$	٠	$\overline{2}$
Net finances		529	1157	526	1049	2825
Profit before income tax		453	1042	399	863	2105
Income tax expense		101	232	88	190	464
Net profit or loss for the period		352	810	311	673	1641
To minority interests		٠	٠	٠	٠
To majority interests		352	810	311	673	1641
Disposal					$\overline{\phantom{a}}$
Transferred from/to equity		352	810	311	673	1641

Balance sheet – GS Rødøy

Assets	Note	Q2 2023	Q22022	2022
Land, buildings and other property		258145	45099	107800
Ships		731	820	776
Total tangible assets		258876	45920	108576
Total fixed assets		258876	45920	108576
Trade receivables		-	٠	350
Other receivables		32859	11155	19 2 36
Total receivables		32859	11155	19586
Cash and bank deposits		78248	140836	103603
Total current assets		111 107	151991	123189
Total assets		369983	197 911	231765

Equity and liabilities	Note	Q2 2023	Q2 2022	2022
Share capital		19230	19230	19230
Share premium		172870	172870	172870
Total paid-in equity		192100	192100	192100
Other equity		2883	1105	2072
Total retained earnings		2883	1105	2072
Total equity		194983	193205	194 172
Deferred tax		831	325	599
Other non-current liabilities		147644
Total other non-current liabilities		147644	٠	۰
Trade creditors		16985	779	36507
Public duties payable		270	103	153
Other short-term liabilities		9270	3499	332
Total current liabilities		26525	4381	36993
Total liabilities		175000	4706	37592
Total equity and liabilities		369983	197911	231765