ARNARLAX CAPITAL MARKET DAY TROMSÖ 06.09.2023 - Björn Hembre
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
Farming in seven sites in three fjords
All production ASC** certified Total MAB 23,700 tonnes
All operational activities of the group are performed in Arnarlax ehf.
Harvesting plant in Bíldudalur.
BRCGS* certified 30,000 tonnes per year capacity
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
ICELANDIC SALMON WHERE DO WE OPERATE?
⋙ Icelandic Salmon
• Current operation
2 Licence application
All production ASC certified
SMOLT PRODUCTION ICELANDIC SALMON
SMOLT FACILITIES
- Have today 3 facilities in operation, and a 4th under reconstruction
- Capacity og 7-8 mill smolts, depending on smolt size
- Have licences for 3.000 tonnes of MAB
- Have sufficient smolt capacity for existing licences in sea
SMOLT STRATEGY
- Implement best-practice
- Good smolt quality
- Increase smoltweight,
- Have sufficient number of smolts
SEA FARMING ICELANDIC SALMON
SEA OPERATION
- 23.700 tonnes of MAB, in 3 fjords.
- 8 sites
- Split into 5 generation zones.
- All production is ASC certified
OPERATION CENTER – FEEDING
- Arnarlax operates a high class feeding center in land at Bíldudalur.
- Where people are constantly monitoring and feeding the salmon
HARVESTING ICELANDIC SALMON
HARVEST PLANT
- Located in Bíldudalur with short distance to sea-water operations
- Capacity 30.000 tonnes/year
- BRCGS certified
- Use super-chill to extend shelf life
SALES TEAM
- Located in Reykjavik
- Our internal sales team sell all of our salmon
- Working close with premium customers in US and Europe
- Focus on Quality, Sustainability and Origin
2% 76% 22% Asia Europe North America
Where are our customers in 2022?
SHIFT TO LOW-CARBON FOOTPRINT MARINE TRANSPORT STRATEGIC UPDATE
THE NEXT BIG REGION WITHIN SALMON FARMING ICELANDIC SALMON
The Marine Research Institute (MRI) recently carried out an updated Risk Assessment
186 144.5 142 98 81 31 20 16 Norway Chile UK Iceland (Potential) Canada Australia Faroe Islands Iceland (2020) USA Ireland — A figure of 106,500 tonnes of fertile salmon was set . Total of 10 fjords have a calculated carrying capacity biomass of 144,500 tonnes — Making Iceland, potentially, one of the largest Atlantic salmon producers in the world Potential for new areas: — Jökulfirðir, Mjóifjörður, and Eyjafjörður. 800 ICELAND TODAY VS POTENTIAL BASED ON MRI ASSESSMENT (000 MT) 71,000
MRI RAISED MAB TO 106,500 TONNES IN 2020
Source: Kontali Salmon World 2020, Arnarlax
1,363
A FRAMEWORK FOR FUTURE GROWTH
SUSTAINABILITY – IT'S IN OUR NATURE 11
FUTURE POSSIBILITIES ICELANDIC SALMON
Boston Consulting Group Report
- The minister asked BCG to investigate and make a report on the possibilities of aquaculture in Iceland
- Three possible goals in sea farming
- Unchanged – 94.000tons
- Base picture – 146.000tons
- Progressive – 234.000tons
Critical mass of Production
- Most industries are dependent on a critical produced volume to obtain large scale effects (to be able to compete)
- To be able to deliver salmon to the market every week
- Value added products
- Industry development in Iceland that will come with more production
- Feed producer in Iceland to provide the industry
- More the income for the government
- Supply education
COMPARISON WITH FAROE ISLAND ICELANDIC SALMON
- Faroe Islands produced with only 56% of the coastline of West Fjords
- —89.000 tonnes in 2022
- There are 3 companies operating in Faroe Island —Bakkafrost, Hiddenfjord and MOWI Faroe Islands
- Export value of DKK 4,68 billion (2022) — 45% of total export value of Faroe Island
- Direct jobs inside the aquaculture around 1.200
Note.: * Excluded islands and reef.
Source: Landmælingar Íslands, Faroese Fish Farmers Association https://www.faroeseseafood.com/fishery-aquaculture/stats/ https://hagstova.fo/en/news/exports-continue-rise-0
STRATEGIC STEPS OUTLOOK
Harvest volumes within existing licences
- 2023: 16.000 tonnes
- 26.000 tonnes within existing licences
Measures for organic growth
- Bigger and more smolt of good quality
- Best operational practice
- 2 more sites in Arnarfjörður
- Bigger farming areas on existing sites
Potential growth in addition to existing licenses
- New licenses of 10.000 tonnes MAB in Ísafjörður
- If Ministries proposal for new structure for the industry is decided
- New license of 4.500 tonnes in Arnarfjörður
- Total potential of 50.000 tonnes
STRATEGIC STEPS DUAL LISTING
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.
(354) 456 0100 465 Bíldudalur
[email protected]