Norcod — Investor Presentation 2024

Jan 18, 2024

Norcod company update, January 2024

Cod farming in a sustainable, global food system

Important information and disclaimer

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About this presentation

This presentation (the "presentation") has been produced by Norcod as ("Norcod" or the "company") is for information purposes only and does not in itself constitute an offer to sell or a solicitation of an offer to buy any financial instruments. By attending a meeting where this presentation is presented, or by reading this presentation, you (the "recipient") agree to be bound by the following terms, conditions and limitations.

Neither the delivery of this presentation nor any further discussions with the recipient or any other person shall, under any circumstances, create any implication that there has been no change in the affairs of the company since the date of this presentation. The company does not undertake any obligation to review or confirm, or to release publicly or otherwise to the recipient or any other person, any revisions to the information contained in this presentation to reflect events that occur or circumstances that arise after the date of this presentation. The company does not intend to update the information after its distribution, even in the event the information becomes materially inaccurate.

Forward looking information and statements

This presentation includes and is based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projections of the company or assumptions based on information available to the company. Such forward-looking information and statements are solely opinions and forecasts which reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. None of the company or any of its representatives provides any assurance that the assumptions underlying such forward-looking statements are free from errors, nor do any of them accept any responsibility for the future accuracy of the opinions expressed in this presentation.

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Agenda

• 1. Executive Summary
• 1. Introduction to Norcod
• 1. Production
• 1. Biology
• 1. ESG
• 1. Sales
• 1. Financials

Executive summary (Part 1 of 2)

Norcod's competitive advantages

Norcod proudly holds the title of the world's largest cod farmer, leveraging substantial firstmover advantages over its competitors. Pioneering the second wave of industrial cod farming, Norcod has dedicated five consecutive years to testing and continuous adaptation. The company has control of the biology, has made a scalable production, has the infrastructure in place, and has now reached the goal of becoming an all-year supplier of superior cod to the market. The time has come to mature the market, and further optimize the production to make sure that cod farming has a place in the future.

Biology

With each new generation of cod, Norcod achieves remarkable advancements. Notably, the Feed Conversion Rate (FCR) has seen a significant improvement, dropping from 1.16 to an impressive 1.05. This means that merely 1.05 kg of feed is now required to produce 1 kg of cod. With the combination of new light regime, production plans adapting to critical periods, and constructive dialogue with the authorities regarding maturation, the company has an ambition to produce 5,100 tons per location in a 2-3 years' time perspective. 95% of the cod in the current harvest is categorized as "Superior, and the market's response has been very positive.

Production

There was no cod farming in an industrial scale five years ago. The company has not only achieved its goal of becoming a year-round cod supplier but has also managed to produce cod at a cost that is more or less comparable to the production cost in the salmon farming industry.1,2. The company expects to produce 10.2k tons of cod in 2024 and 12k tons in 2025. As soon as the company is ready, it will increase the production to achieve the target of 26k tons cod.

Location Jamnungen – Weight Development

Generation 20 vs. Generation 22

27 30 33 36 39 42 45 48 51 2 5 8 11 14 17 20 23 26 29 32 35 38 41 44 47 50 week

Executive summary (Part 2 of 2)

The market

The decline in cod quotas in recent years, coupled with the projection of continued decreases in the years ahead, presents a challenging reality. This decline underscores the pressing need for the advancement of cod farming as an essential component of the future. At the same time, the ever-expanding global population places a heightened demand on protein sources. Notably, the Norwegian government has set a bold target to contribute 5 million tons of protein production by the year 2050. While salmon remains a primary contributor, diversifying protein sources to include species such as cod is crucial.

Introducing farmed cod to the market has been an endeavour, and as expected, it necessitates a gradual maturation process. However, Norcod has successfully navigated this landscape by securing valuable contracts, with plans to expand its footprint into new and promising markets like China, Japan, and the USA. It's worth noting that the involuntary acceleration in last year's harvest had an unintended consequence on sales prices. The company found itself compelled to sell cod in the spot market, a scenario for which the market was unprepared. Norcod is diligently working to rebuild the market, and this process is already well underway.

EBIT/kg.

EBIT/kg. is one of the most important metrics in cod farming. The production cost is coming down to a level that is comparable to that of the salmon industry. However, there is still significant room for further enhancements and cost-efficiency measures. The biology is improving for each cycle. Notable improvements include a more favourable FCR, enhanced mortality control, and improved control of the maturation process. The sales prices are currently the most critical factor. As the market further embraces farmed cod, we anticipate a positive shift in sales prices. Norcod projects a negative EBIT/kg in 2024. The long-term vision remains steadfast, with the EBIT/kg goal unchanged at 20 NOK/kg.

Target EBIT cost at avg. site in 2027 – 5 100 MAB per cyclus

(NOK/kg WFE)

Agenda

• 1. Executive Summary
• 1. Introduction to Norcod
• 1. Production
• 1. Biology
• 1. ESG
• 1. Sales
• 1. Financials

Norcod – a pioneer in the modern cod farming industry

Introduction to Norcod Harvest volume

Norcod is an innovative producer of premium Atlantic Cod positioned as the leader of cod farming

• Norcod is the market leader and dominant front-figure in the emerging cod farming industry
• Unlike wild-caught cod, Norcod delivers fresh products on a weekly basis throughout the year
• Partnerships with globally leading actors such as distributor Sirena Group makes Norcod's value chain highly integrated
• Norcod targets the premium segment with high quality, efficient distribution and certified sustainable production
• Norcod is geographically focused in central and northern part of Norway with optimal biological conditions

A Trondheim-based company, listed on Euronext Growth

Operates 6 farming sites

24 licenses for 17.5k tonnes MAB1 capacity granted giving a 26,000mt production capacity

Extensive R&D last 21 years have enabled quantum leaps in biologic development – 7th generation of fry is currently performing very well

'000 tonnes WFE 10,2 12,0 9,6 9,7 10,0 5,4 7,8 16,0 2024E 2025E 2026E 2027E 2028E

Current harvest volume Available capacity

Norcod – a pioneer in the modern cod farming industry

• As of year end 2023, Norcod's biomass at sea totaled 7 817 tons.
• Based on official statistics, the Company holds 52% of the total biomass volume, reaffirming Norcod's position as the major cod harvester.
• During the first eleven months of 2023, reported export volume according to officially reported statistics was 7 934 tons WFE.
• In the same period, Norcod harvested appx. 5 756 tons WFE, confirming Norcod's market share of appx. 71%.
• Norcod's main market during 2023 has been Central and Western Europe.
• During Q1-2024 Norcod has been granted a new contract with an Asian customer at favorable market prices, and the company has an ambition to strengthen its market position in the Asian market during 2024.

This is Norcod

Headquarters and feeding centre Trondheim

Harvest facility

Kråkøy Slakteri

Sites

Jamnungen	(3,600 tonnes MAB)
Skogsøya	(1,560 tonnes MAB)
Pålskjera	(1,560 tonnes MAB)
Bjørnvika	(3,600 tonnes MAB)
Labukta	(3,600 tonnes MAB)
Frosvika	(3,600 tonnes MAB)

Solid production planned year round delivery

Norcod's business model provides industrial scale cod farming in Norway

Harvested volumes are distributed across each cycle, providing year-round production and harvesting from fall 2023

Compared to the limited peak season for wild-catch, Norcod provides stable supply of cod Cooperation between production and market from day one

Key historical and targeted upcoming milestones

Trial sales of farmed cod with key accounts Test production run proving yield and fish benefits	Norcod AS incorporated by Sirena Group Fry agreements secured with Havlandet and Nofima	First batch received from Nofima Concessions secured for 3m cod Private placement of NOK 33m closed in September 1.8m fry from Havlandet into growth phase	Pilot batch moved to sea phase at Finnangerøya Private placement of NOK 107m successfully completed in February Start of sea phase for first main batch at Jamnungen JV agreement finalized with Havlandet Completed NOK 250m private placement and listed on Euronext Growth Average size of pilot batch fish over 2kg First trial production and delivery to markets	Start of next growth phase for Frosvika and Mausund New brand launched New location Frosvika in place Beginning of first full scale harvest Start building fry facility in Florø with Havlandet Entered into landmark agreement with major European supermarket chain	Completion of first full production cycle 3rd production cycle in both growth and sea phase Implementing first underwater feeding barge Completion of new fry facility Receiving first batch of fry from own production	Multiple production cycles First year with multiple production cycles being initiated	Year-round harvest Overlapping production cycles ensure continuous harvest	Production target of ~12.0k tonnes Ready to scale up
2017 2018		2019	2020	2021	2022	2023	2024	2025

Management team

Christian Riber

Chief Executive Officer

12 years experience as Commercial Director at Sirena

2 years experience as Account Manager at Experian

Education from Copenhagen Business School

Kia Zadegan

Chief Operating Officer

5 years experience as Accounting Manager at StoltSea Farms and Telenor

20+ years experience in senior positions in various companies

Education from London Business School and UCL

Hilde R. Storhaug

Chief Sustainability Officer

2 years as aquaculture analyst at Kontali Analyse

17 years experience from aquaculture operations

MBA from Nord Universitet

Bachelor in Aquaculture

Chief Production Officer

17 years operational aquaculture experience from NRS

Arne Kristian Hoset

Chief Financial Officer

13 years experience as CFO/Finance Manager and auditor in various companies, among other Q-Free, Toyota and EY.

Board of Directors

Renate Larsen

Chair of the Board

Extensive leadership experience from the seafood industry;

6 years as CEO at Norwegian Seafood Council

6 years as CEO and 11 years as CFO at Lerøy Aurora

Comprehensive experience from board positions in large Norwegian companies

Jan S. Sølbæk

Member of the Board

Adm. Director in Artha

+35 years experience from the financial sector, founder of several businesses and broad experience from board work, including as chairman of the board

Trine Danielsen

Member of the Board

CCO at Blue Planet Academy AS

Previous experience as State secretary in Norway's Ministry of Trade, Industry and Fisheries

Boe Spurré

Member of the Board

Group CEO at Sirena A/S

Previous experience as CFO at ISS Damage Control, CEO and CFO at Ketemyl as well as auditor at EY

Peter Buhl

Member of the Board

35 years as co-founder and president of Sirena Group

Co-founder of Whitecap International Seafood Exporters

Agenda

• 1. Executive Summary
• 1. Introduction to Norcod
• 1. Production
• 1. Biology
• 1. ESG
• 1. Sales
• 1. Financials

From broodstock to final product in only 26 months

Norcod is a part of every step of the value chain

Fry (Broodstock, Roe & Larvae)

The fry is the first step of the value chain and has been one of the bottlenecks to succeed in cod farming. Cod biology has developed vastly through 20 years of dedicated R&D and the current 8th generation of broodstock is a highly stable product with increased yield.

Norcod AS had until May 2023 a 50% ownership in the company Havlandet Norcod, which is the largest fry producer in the market. In collaboration with Havlandet Norcod, Norcod has constructed a new industrial fry facility that has the capacity to produce over 24 million fry per year, making it the largest and the only private fry facility in the market.

Since fry supply has been a bottleneck in cod farming, Norcod entered the joint ownership of Havlandet to secure an advantage. Norcod sold its shares in Havlandet Norcod, as it both released 75 million NOK and made it possible to obtain a long-term contract with Havlandet for the supply of cod fry.

The 30 year agreement with Havlandet Norcod secures stable prices for the fry.

Juvenile

The Juvenile Phase, which is the second stage in the value chain, involves transferring the newly hatched fish to a land-based facility, where they will spend approximately five months growing until they are large enough to be moved to the sea phase.

This phase is outsourced to external partners. It will be necessary to increase capacity as production grows. There are many growth facilities in Norway, and most of them can be used for the growth of cod fry, as these facilities can be used for salmon, trout, pollock, and cod. This also means there are good opportunities to find alternatives if partners disappoint or do not renew existing contracts.

The Growth Phase is not particularly costly, but it is crucial for the growth of cod. Better growth leads to less time in the growth phase and sea phase, resulting in lower costs. The right temperature can enhance the cod's ability to digest food favourably, which can lead to a faster market-ready product. During the growth period the juvenile receives a vaccination to prevent prominent diseases.

Havlandet Marine Fry has conducted experiments on cod's growth characteristics, where temperature was the variable factor. The results indicate that with the right temperature, cod can grow 100 percent larger in the same period. This could potentially shorten the sea phase by 4 months, optimizing production costs and time to market.

The graph on the right compares the growth development of cod from two different cycles. Growth plays a significant role in the profitability of cod, which is why positive development is crucial.

0 20 40 60 80 100 120 140 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2023 2022 2022 vs 2023 Juvenile Weight grams Week

Sea Phase

The sea phase is the largest phase of the cod's life and is Norcod's core operation.

Norcod is seeking to increase the permitted production capacity at its locations, allowing for more tons per location. This has the potential to reduce overhead costs per kilogram significantly. Other costs related to the sea phase include equipment, leasing of fish pens, personnel, boat expenses, etc.

The most significant cost in cod production is feed. To enhance focus on feed and feeding strategy, Norcod has established an operational feed centre that enables remote feeding for the company's farms through a sophisticated system of movable cameras, remote feeding controllers, and flow measurements. The company consolidates this expertise for all locations in one place, improving control and management.

Recurring business model

To date, Norcod has invested significantly in biomass. During 2023, biomass investments are more than doubled from previous years. The net growth during 2023 is 4 600 tonnes, amid heavy investments in biomass and a satisfactory feed conversion rate and stable and predictable mortality. The company is able to produce and deliver consistent volumes of cod throughout the whole year. The company is able to increase production capacity significantly, dependant on the market situation and company strategy.

Harvest (Part 1 of 2)

The harvest is a significant part of Norcod's value chain. The process includes transport by well boats to the harvesting facilities and the harvest itself. Until June 2023, Norcod used external partners for this process, but the company acquired the harvest facility, Kråkøy, at that time. Previously, the company faced issues with a lack of waiting pens, leading to high well boat costs, which have now been avoided. Additionally, the harvest facility offers several economic and strategic advantages, which is elaborated beneath.

• Central placement
• Will reduce harvesting and packaging cost significantly
• Lower logistics cost from harvesting facility to end client compared to harvesting in the Northern Norway
• Save one day in transport to Oslo compared to Northern Norway giving shorter delivery by plane and truck
• Possibilities of optimizing packaging and quality significantly
• Service the high-end markets and customers better due to certifications and stability

Harvest (Part 2 of 2)

Cost comparison before and after the acquisition

The cost comparison between before and after the acquisition it shown in the table beneath.

Process	2023 NOK/kg. WFE	2024 NOK/kg. WFE
Well boat	2.0	1.5
Well boat - direct delivery	3.5	0*
Processing	5.0	2.5
Packaging	2.2	2.0
Total direct cost	12.7 NOK/kg. WFE	6.0 NOK/kg. WFE
Indirect cost - Transport	5.0 NOK/kg. WFE	3.2 NOK/kg. WFE

*After the acquisition the company gained permanent waiting license

In a full-scale cycle of 4.3k tons cod, the savings potentially amount to 28.8 million NOK plus an additional saving of 7.7 million NOK in transport costs compared to Northern Norway. The cost savings with the new harvest facility is one of many examples of actioned savings in the future.

Kråkøy capacities

The capacities of Kråkøy as it is today is shown below.

I	Services	Capacity
1	Salmon & broodstock	100 ton per day - one shift
2	Cod	40 ton per day - one shift
3	Cod liver	Utilization of cod liver to maximize income
4	Freezing & storage	Separate unit available on demand
II	Possible future services
5	Cod liver canning line	5 tons per day

Agenda

• 1. Executive Summary
• 1. Introduction to Norcod
• 1. Production
• 1. Biology
• 1. ESG
• 1. Sales
• 1. Financials

Improved Growth and Lower Feed Usage

We have been working hard on continuously improving our feeding strategy and control. Our 22 generation on Frøya was the first location, where our feed centre was operational from day one. By gathering our feed experts in one place, we accumulate knowledge and experience. The results of this strategy and investment speak for itself.

23% better growth with 10% less feed usage!

10% Improved feed conversion rate (amount of kg. cod you gain be feeding the fish with 1 kg. of feed).

• Generation 20: FCR 1.16
• Generation 22: FCR 1.05

23% Improved growth within an 18 months production cycle.

• G20: from 115gr to 2920gr
• G22: from 114gr to 3745gr

What have we done different

• Next generation of broodstock! G20 (6th generation) vs. G22 (7th generation)
• Optimized feeding control where the feeding is controlled from the feed centre throughout the full cycle
• Improved production protocols based on previous experience

Jamnungen

Generation 20 vs. Generation 22

27 30 33 36 39 42 45 48 51 2 5 8 11 14 17 20 23 26 29 32 35 38 41 44 47 50 Week

Feed Usage and Harvest Volume in Balance

With our current site build up we are in the position to deliver fresh cod all year round, and thus being in a steady state production

• Fish to market all year round
• Feed usage is in balance with harvest volumes

Feed development

Together with our feed producers we are developing new feed recipes, balancing health, growth, environment and growth. Tailormade recipes for the next generation Cod with high growth potential. To summarize:

• Development of feed recipes in collaboration with our feed suppliers
  • Secure and improve our FCR and fish health
• Optimization and customization of feeding strategy
  • Volume and cost control
  • Fish health digestion and intestines
• Our efforts have paid off the feed price has increased by 23% over the last three years, but production cost is the same!

Feed usage vs harvest volumes

Fish Health

Improved production protocols and enhanced control over the entire production chain have resulted in better fish health, leading to a reduction in overall annual mortality rates.

The use of effective vaccines not only eliminates the need for antibiotics but also eliminates the necessity for any other forms of treatment. Particularly during the harsh winter months in the northern regions, the prevalence of sores and subsequent infections caused by Moritella Viscosa bacteria has been a major contributor to mortality. In 2023, Norcod introduced Moritella Viscosa into their vaccine regimen to combat this issue.

Gastrointestinal issues remain the primary cause of mortality among the fish. Norcod plays a significant role in the Fôrcod project, a government-funded R&D initiative with a budget of 10 million NOK, dedicated to improving gut health and optimizing feeding practices for cod.

Maturation (Part 1 of 2)

Change in light regime based on …

Norcod is constantly striving to enhance its production protocols, drawing from both research and hands-on experience. One of the pivotal factors contributing to our success is the management of maturation through light control. In the course of 2023, Norcod introduced new light regimes that promise to further enhance our ability to manage maturation effectively.

Risk based approach to production plans

Our production plans are inherently linked to the natural cycle, but we have adapted them to ensure lower biomass levels during critical periods. This strategic adjustment, coupled with the acquisition of Kråkøy, has significantly bolstered our harvest capacity and overall flexibility.

Dialog with authorities

Throughout 2023, Norcod, in collaboration with other cod farming companies, engaged in a constructive dialogue with regulatory authorities. This dialogue led to a mutual understanding of the challenges associated with maturation. By the end of 2023, new legislation was also enacted, providing a clearer regulatory framework for our operations.

Maturation (Part 2 of 2)

Norcod remains committed to exploring innovative avenues for maturation control through the initiation and active participation in several development projects.

Gender separation

In collaboration with Greenfox Marine AS, we are actively involved in the development of a machine and process for sorting juvenile cod before they are transferred to sea sites. This pioneering effort allows us to create dedicated all-male or all-female cages or sites, thereby preventing any unintended fertilization of eggs in the event of spawning. Greenfox has already successfully developed and commercialized gender separation technology for salmon, employing ultrasound scanning in conjunction with AI-driven image assessment. We are now working together to adapt this technology for use with cod.

Standardised non-invasive testing and prediction

Norcod, in partnership with industry peers, is engaged in a project aimed at creating standardized non-invasive tests to verify and predict the onset of maturation at an early stage. This endeavour not only contributes to a deeper understanding of the maturation process but also provides us with the ability to plan and respond proactively in the early stages.

Agenda

• 1. Executive Summary
• 1. Introduction to Norcod
• 1. Production
• 1. Biology
• 1. ESG
• 1. Sales
• 1. Financials

Our Sustainability Approach

Norcod is devoted to provide healthy, high-quality cod; One of the planet's most sustainably produced proteins. Through our continuous focus on innovation and devotion to people, cod and nature we create profitability

Research & development Year-round harvest Market development

Nature

The ocean Local and global environment Biodiversity Responsible producer Fish feed Climate action

A green vision for a blue future

Production methods with major environmental gains

Sustainably sourced and certified feed ingredients

No antibiotics

Minimal contamination on local environment

Aiming for a fish utilisation of up to 98%

Hybrid vessels and feed barges using electricity

Healthy, high-quality cod a source to sustainable protein

Highly scalable - can supply the growing population with food

Excellent source of high-quality protein and amino acids

The cod is rated as «Green Fish» with FCR rating of 1.1

Sustainably produced with no harm to wild stock

Innovative collaboration across industries and countries

Certified ESG friendly production

Certified responsible farmer

In process regarding certification

Working towards Organic & Bio certification for part of future production

Norcod Walks the Talk

Advantages of hybrid electric systems in boats and feed barges:

• Lower direct emissions
• Improved working conditions (less noise, no exhaust)
• Lower maintenance cost
• Same flexibility as with fossil fuel power systems

Advantages of waterborne feeding:

• Energy efficient
• Feed at desired depth and avoid the impact of wind and surface currents
• Possibility for more intensive feeding (kg/min)
• Less breakage, able to feed with bigger pellet-size

Energy cost per hour by use of various feeding principles

• Avoid challenges regarding microplastics from the feed hoses, as the hoses do not erode

Hybrid vessels and feed barges provided with onshore power

Excellent Seabed Conditions

In accordance with the national surveillance program, Norcod undergoes assessments regarding the seabed conditions of our production sites.

We are pleased to report that all of Norcod's sites are currently in excellent condition, a testament to our conscientious approach to operations. Our commitment to minimal contamination and the preservation of the local environment not only ensures the safeguarding of biodiversity but also demonstrates our dedication to responsible aquaculture practices.

Score 1

The scoring system employs a scale from 1 to 4, with 1 indicating the best possible condition.

Production sites and seabed conditions score

•	Jamnungen	(3,600 tonnes MAB)
• Skogsøya		(1,560 tonnes MAB)
• Pålskjera		(1,560 tonnes MAB)
• Bjørnvika		(3,600 tonnes MAB)
• Labukta		(3,600 tonnes MAB)
• Frosvika		(3,600 tonnes MAB)

Carbon Footprint

Environmentally Friendly Protein Production

Farm raised cod is competitive with farmed salmon in terms of climate footprint, despite currently significantly lower production volume and lower MAB utilization.

Smolt / Juvenile fish Operation sea phase Feed Processing and packaging Transportation

Agenda

• 1. Executive Summary
• 1. Introduction to Norcod
• 1. Production
• 1. Biology
• 1. ESG
• 1. Sales
• 1. Financials

Providing stable deliveries of fresh cod

Avoiding seasonal dependency… … utilizing the whole cod… … and delivering in 48-72 hours

A guaranteed supply of top-quality North Atlantic Cod all year-round

Available in fixed volumes and delivered within 48 hours for unapparelled freshness

Sold at stable prices – contracts at fixed prices for longer periods

8% higher fillet yield on farmed compared to wild-caught Cod

With the added peace of mind that it is sustainable on an entirely new level

Gradually implementing VAP sales to increase margins

98% of the cod used for human consumption Compared to ~65% utilization for salmon

Loins Portion & Tail Off-cuts

Norcod has a logistical setup that enables the delivery of Cod to European customers in northern, eastern and western Europe within 2 days from it leaving water

Customers in southern Europe will receive Norcod's products within 3-4 days. This will ensure a much fresher Cod upon arrival compared to what is currently possible in most instances

Norcod is supported by macro trends

Cod quota is declining

The supply of cod is drastically decreasing due to lower fishing quotas, while the demand for sustainable protein sources is on the rise. Agreements have been made to reduce the cod population in the northern Atlantic Ocean by approximately 20%. Although such changes are regrettable, they underscore the importance of farmed cod in ensuring a fresh supply of cod in the market without negatively impacting wild stocks.

The Food and Agriculture Organization of the United Nations estimates that the demand for fish will increase by 18% from 2020 to 2030 due to population growth. This highlights both the rationale for the business model and the environmental considerations that were taken into account when Norcod was established. There is, therefore, a significant unmet need that Norcod is striving to address. Compared to wild-caught cod, Norcod can provide a fresh product with consistently high quality year-round. As a result, Norcod can differentiate itself from the highly volatile market for wild-caught cod.

Norwegian protein production ambitions

The world is projected to have an increasing need for protein, with an expected demand of 200 million tons of production per year by 2050. Norway has set ambitious goals to contribute 5 million tons per year to this global protein demand. While the majority of this contribution is expected to come from salmon production, there is also a focus on utilizing other fish species.

Although the growth in salmon farming is slowing down, and there are declining catch quotas for other species such as cod, cod farming is one of the options that the Norwegian authorities are considering to achieve this ambitious goal. This demonstrates Norway's commitment to developing and providing sustainable sources of protein to a growing global population.

Cod quota development in Norway, Iceland and Russia

(Ktons WFE)

Cod quota development in Norway, Iceland and Russia and the expected development. Source: Kontali, Report of the Joint Russian-Norwegian Working Group on Arctic Fisheries (JRN-AFWG) 2023.

Introduction to the cod market

Despite significant quota cuts the 6.000mt of Norcod produced in 2023 only constituted a mere 1% of the total Northern Atlantic cod quota, while wild-catch production constitute the remaining 99%.

It is key to differentiate Norcod's farmed cod from wild-caught cod with its superior quality, sustainability, and year-round freshness.

Norcod has already proven that it is possible to differentiate and create an independent market for farmed cod demonstrated by entered retail contract running through wild peak seasons.

Seasonality characterises the market for wild-caught cod with peak season between February and April – a non-existing issue for Norcod's farmed cod which can be produced and distributed fresh throughout the year and on long-term fixed contracts.

Key markets include the whole fish market in Southern- and Western Europe, and the filet market in North America and Western Europe. Future markets will also be fresh high-end markets in Asia.

Norcod, with its current ~6k tonnes capacity, has 1% of total Atlantic Cod quota and will target high-end and niche markets.

Norcod market update

Europe: Spain continues to be the main market for he Norcod products. The Spanish retailers have shown consistent demand and continue to promote and sell the products of Norcod. The French market, which is the largest fresh cod market in the world has also started to market the Norcod products on a steady basis in leading retail chains. Other key European markets includes Benelux, Germany and Italy. The UK is also a key target and premium retailers are in dialogue to take on Norcod cod.

Asia: China will become a major market for the Norcod products. A contract have been signed with a leading distributor who has initiated promotion activities. The price level for China is substantially higher than that of European countries. Other Asian markets in Asia that holds potential are Japan and Korea.

North America: North America also holds great potential. Several trials have been executed and it is expected to see sales grow during 2024.

Brand positioning. The products of Norcod will in selected markets be branded and sold as Snow Cod. This brand shall help position the product as a distinct and premium seafood product. The name brings many references to the unique selling points of Snow Cod. Firstly, it gives reference to the snow and pristine crisp environment of Norway. Secondly it references the snow white meat of the cod from Norcod. It is also a reference to the cleanness of the meat, as it is considered parasite free and hence sashimi grade. Furthermore it gives associations to freshness to help communicate that the Norcod cod has superior freshness as it goes direct from the ocean to the harvest facility.

Adding additional value: Working with partners that can help further distinguish the product in terms of usages where its superior flavour, texture, freshness and sashimi grade are taken advantage of, is also part of the market strategy. As an example a partnership with a Danish smokehouse have shown how Snow Cod can have distinct usages that aren't applicable for the wild-caught cod. This cold-smoked Snow Cod product shows great potential for further expansion. Sushi, Sashimi and portioned processing and packaging for retail displays are other ways that can provide higher pricing for the product.

Sales and market outlook

The key to Norcod's future success lies in its sales prices. The company has now reached a point where it can supply cod year-round, clearly differentiating it from wild-caught cod, which is only available seasonally. At the same time, macroeconomic trends indicate a declining supply of cod, further emphasizing the importance of Norcod's existence.

Norcod is yet to show profit despite opportunities in early 2023. This was exacerbated by the accelerated harvesting last winter. The maturation incident and the forced harvest had harmful impact on the price level and customer contracts made, as could be seen in the financials of Norcod. This has meant that Norcod lost its preferred position and important contracts with some retailers. As Norcod continues to show consistent production this position is however getting retaken. Therefore, Norcod was pleased to announce on January 11th a contract with a distribution chain from China, where the company, for the first time, is making a profit per kilogram of cod sold. The contract represents only about 10% of Norcod's total sales for 2024, but it is an important step towards a profitable and healthy business.

As the market develops, it is expected that prices will also rise. Exporting to China is a significant milestone and paves the way for other new and exciting markets that Norcod can enter. Norcod's goal is to eventually earn 20 NOK/kg. WFE (Weighted Fish Equivalent).

EBIT/kg.

Norcod anticipates a negative EBIT/kg in 2024, despite achieving profitability on some of its production. The company foresees a breakeven point in 2025, followed by a shift to positive EBIT/kg from 2026 onwards. Nevertheless, Norcod remains committed to its ambition of attaining a 20 NOK/kg WFE in the future. The expectations and ambitions heavily rely on assumptions regarding the development of sales prices, which are currently challenging to predict. Therefore, these expectations and ambitions should be viewed with significant uncertainty until the market matures further. However, the existing contracts and macroeconomic trends do provide some direction for the trajectory of the sales price development.

Agenda

• 1. Executive Summary
• 1. Introduction to Norcod
• 1. Production
• 1. Biology
• 1. ESG
• 1. Sales
• 1. Financials

Financial Update - Highlights

Biomass at sea (tons) Revenues (MNOK)

Cost saving initiatives – key to our strategy

The bridge – from 2023 cost levels to our 2027 ambition

• Economies of scale from increasing MTB
  • From 3 650 MAB to 5 100 MAB per site
  • Land and sea phase WFE cost reduced from NOK 44.15 to NOK 38.31 per kg WFE
  • Cost of admin reduced from NOK 7.54 to NOK 5.70 per kg WFE
• Standardized harvesting, packing and distribution processes - Reduced from NOK 18.00 to NOK 14.92 per kg WFE
• Expecting further biological advancements on new generations of cod - Documented biology advancements expecting to improve as we move forward – in 2024 we will launch the 8th generation of cod!

EBIT cost per kg today1 – 3 600 MAB per cyclus

(NOK/kg WFE)

Target EBIT cost at avg. site in 2027 – 5 100 MAB per cyclus

(NOK/kg WFE)

Capital invested - value adding fleet of technical infrastructure and licenses

Significant discount to invested capital

1) Based on closing value the last three trading days (15.01.24-17.01.24), averaging a share price of 15,63. Enterprise value consist of market cap and net interest-bearing debt. Invested capital consisting of equity and loan injections.

Value adding fleet of technical infrastructure and licenses

In the current macroeconomic environment with increasing cost of capital, Norcod capitalizes on its fleet of technical infrastructure

• Technical infrastructure already in place
• Well-functioning equipment and sites
• Heavy investments significantly depreciated

Excess value composition

Historical equity issues

Total investment of NOK 1 billion.

• Total equity investment: NOKm 879

• Total loan finance: NOKm 125

COD above the rest!

Contact Info: Christian Riber CEO Phone: +47 905 37 990

Email: cr@norcod.no