Icelandic Salmon AS

Earnings Release • Aug 24, 2023

SUMMARY PRESENTATION Q2 2023

THIS IS ICELANDIC SALMON

Icelandic Salmon AS is listed on the Euronext Growth market in Oslo. The company is the sole owner and parent company of Arnarlax ehf.

Four smolt facilities, Current capacity of 7-8 million smolt, depending on size of smolt

Harvesting plant in Bíldudalur. BRCGS* certified 30,000 tonnes per year capacity

All operational activities of the group are performed in Arnarlax ehf.

Farming in seven sites in three fjords All production ASC** certified

Total MAB 23,700 tonnes

Sales by internal team Domestic and global markets

Arnarlax – Sustainable Icelandic Salmon is the common brand for all operational activities and products from Icelandic Salmon

Note: *BRCGS = Brand Reputation Compliance Global Standards | **ASC = Aquaculture Stewardship Council

A QUARTER FOCUSED ON BUILDING BIOMASS IN SEA

Q2 SUMMARY

• Quarterly harvest volume of 88 tonnes compared to Q2-22 at 2,957 tonnes.
• Finalized the harvest of spring 2021 generation. Will continue on autumn 2021 generation in Q3
• Harvest volume low due to building biomass
• EBIT for the quarter negative of EUR 3.1 million.
• Fixed cost related to stop in harvesting for 3 months
• Smolt output for 2023 started in June
• Average size of smolts put out so far is 332g, biggest groups were over 700g
• Very high survival rate experienced after output in sea
• Start to see effect of recent years smolt investments

KEY RESULTS	Q2 2023	Q2 2022	H1 2023	H1 2022
Operating income ('000 EUR)	2,679	34,979	71,583	72,085
Operational EBIT ('000 EUR)	(3,063)	13,530	15,305	23,044
Operational EBIT (%)		39%	21%	32%
Harvest volume ('000 tgw)	0.1	3.0	6.7	6.3
Operational EBIT/kg.		4.57	2.30	3.64

LICENSE STATUS FOR SEA-WATER

STRATEGIC UPDATE

APPLICATIONS

10.000 tonnes MAB in Ísafjörður

4.500 tonnes MAB in Arnarfjörður

2 new sites in Arnarfjörður

The exact timeline is still undetermined.

MINISTRY OF FOOD, AGRICULTURE AND FISHERIES STRATEGY AND LAWS

Ministry have started the process with new strategy for aquaculture in Iceland.

Growth built around sustainable measures.

Expecting Proposal in September 2023 and a new law in 2024.

Arnarlax now holds licenses of 23,700 tonnes MAB in the Icelandic Westfjords (Arnarfjörður, Patreksfjörður and Tálknafjörður).

FINALIZING SMOLT STRATEGY STRATEGIC UPDATE

FINALIZING INVESTMENTS IN SMOLT STRATEGY

Investments to optimize production and finalize capacity increase, up to 7-8 mill smolts.

See increase in number of 30% from 2022 to 2023.

See increase in average weight of 35% from 2022 to 2023.

Historically high survival rate on smolts put out so far in 2023.

Still some biological challenges to be solved in smolt production.

Will have full effect of investments on harvest volumes from 2025/26.

STRATEGIC UPDATE STRATEGIC IMPORTANT CAPEX INVESTMENTS

MORE 200-M CAGES

Experience so far with 200-m cages are good on 2022 generation in Hringsdalur.

Implement now 200-m cages on another site, Steinanes.

Provides good biological results and effective operations.

2 NEW 900 TONNES FEEDBARGES DELIVERED IN JUNE

They are important to simplify, and reduce cost, of feed logistics.

Hybrid technology that gives a significant reduction in use of fossil fuel.

FINANCIAL HIGHLIGHTS GROUP BALANCE

KEY ITEMS FOR SECOND QUARTER 2023

• PPE increase by EUR 5.5 million,
• driven by investments in SeaWater equipments and smolt facilities.
• Increase in Biological assets by EUR 19.9 million.
• as from result of biomass buildup in the period.
• Trade receivables decrease EUR 22.9 million.
• Reflecting limited sales during the quarter.

FINANCIAL POSITION

• NIBD increase EUR 2.1 million.
• Classification of the groups interest bearing debts classified as current liability due to it maturity on 30 June 2024.
• Re-financing process in place.
• Equity ratio as of 30 June 2023 is 68%.

H1 2023 Condensed Consolidated interim financial statement issued on Arnarlax homepage.

NET INTEREST-BEARING DEBT NIBD H1 2023

• Net interest bearing debts incl. leasing decreased in first half 2023 by EUR 18.8 million.
• Positive change in working capital EUR 16.7 million.
• High account receivable balance at end of 2022 and good operational performance in first quarter 2023.

Net investments at EUR 16.1 million

— mainly in SeaWater equipment and smolt facilities.

RE-FINANCING UPDATES

STRONG SUPPORT FOR SUSTAINABLE GROWTH

NEW SUSTAINABLE LINKED FINANCIAL AGREEMENT

• Commitment letter signed with DNB and Danske bank.
• Term loan and revolving facilities.
• Arion bank.
• Overdraft facility.
• Role of Security agent.
• Total EUR 100 million expected to be in place within Q3 2023.

SECURE FURTHER SUSTAINABLE GROWTH

New Sustainable linked financing will strengthen the financial position of the Group further and push for sustainable growth.

FIRST NORTH - DUAL LISTING

STRATEGIC STEPS

DUAL LISTING ON FIRST NORHT

• Group has engaged in advisory service agreement with Arion Bank, with the objective of preparing for listing of the Group's shares on the First North stock exchange in Iceland.
• Depository notes .
• No new shares issued.
• Expected to be open for trading in second half 2023.
• Purpose to increase access for Icelandic investors.

STRATEGIC STEPS OUTLOOK

• See a good demand for Sustainable Icelandic Salmon
• Expect a contract share in 2023 of 10%
• Guidance for harvest volume in 2023 is 16.000 tonnes
• Still see a potential for growth within existing licenses

Strandgata 1 465 Bíldudalur Iceland (354) 456 0100

arnarlax.is arnarlax@arnarlax.is