Salmon Evolution ASA Annual report FISH, PEOPLE, OCEAN 2024

Content
01 Letter from the CEO
02 Key figures
03 Editorial team: Salmon Evolution Layout: Havnevik AS Photo: Kristin Støylen, Tony Hall, Fuglefjellet og Marius Finckenhagen
04 Sustainability and corporate responsibility
This is Salmon Evolution
Financials Statement and results
Board statements

2024 has been an inspiring year for Salmon Evolution. It marked a major milestone in our journey as we achieved profitability in the first half of the year — a testament to the dedication of our team and the strong demand for our sustainable, high-quality salmon.

2024: A Year of Growth, Learning, and Milestones

We have seen a lot of interest for our project so far, and we are eagerly looking forward to completion of our Phase Two. This next phase represents a major milestone not only for Salmon Evolution but also for the entire land-based salmon industry.

Building on a Strong Foundation

Phase One was a critical starting point, with an annual production capacity of 8,000 tons. Over the past 3 years, we’ve worked to optimize operations, refine our systems, and deepen our expertise. This learning curve has shaped a skilled team that understands every detail of our facility and the needs of our salmon. Today, we are operating from a highly stable foundation. By scaling production cautiously in Phase One, we’ve built the confidence to accelerate growth in Phase Two — where our annual capacity will more than double to 18,000 tons. This will enable us to harvest salmon weekly, ensuring consistent access to fresh, sustainable seafood for our customers.

Unlocking New Opportunities

The completion of Phase Two will not only increase capacity but also open new doors for collaboration. With harvest every week, we will strengthen our market presence, build strategic partnerships in retail, and collaborate with other key players in the industry. Economically, this phase is set to elevate Salmon Evolution’s position significantly. We project annual revenues of NOK 1.5–2 billion and a free cash flow of approximately NOK 500 million. These figures reflect the growing demand for sustainable seafood and our ability to deliver it efficiently at scale.

Pioneering the Future

As we set our sights on the road ahead, our commitment to delivering the most sustainable protein on the market remains steadfast. We are proud to lead innovation and growth in the land-based salmon industry, continuously advancing our technology, our team, and our product. Each milestone has reinforced our confidence in the strength of our vision and approach. Thank you for being an integral part of this journey as we continue shaping the future together.

Letter from the CEO

“ Each milestone has reinforced our confidence in the strength of our vision and approach.

Salmon Evolution Annual Report 2024 | 3

01 This is Salmon Evolution

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

Our Strategy 7
Our Technology 8
Management 9

- LETTER FROM THE CEO

Letter from the CEO 3

Key figures 4

	2024	2023
Operational
Standing biomass (tonnes, LW)	2 023	2 204
Net growth (tonnes, LW)	5 706	3 751
Harvest volumes (tonnes, HOG)	4 891	1 874
All-in price realization/kg (NOK)	93,4	82,0
Farming EBITDA/kg	23,0	NA
EBITDA farming cost/kg	69,4	NA
Financial (in thousand)
Operating revenues	471 573	168 424
Operational EBITDA	2 71 415	-83 950
Operational EBIT	2 -4 727	-130 680
Profit (loss) before tax	-47 405	-145 773
Cash flow from operations	43 331	-124 445
Operational EBITDA Farming Norway	2 112 425	-23 214
Capital structure (in thousand)
Cash flow from investment activities	-342 562	-338 436
Cash flow from financing activities	342 297	570 516
Cash and cash equivalents	429 462	386 396
Net interest-bearing debt (“NIBD”)	313 111	299 386
Equity ratio (%)	70 %	71 %
Profitability
Earnings per share (NOK)	-0,11	-0,37

1 Calculated on a back to farm basis and adjusted for transport cost to Norway border (Nasdaq equivalent)
2 Before fair value adjustment related to biological assets

Abbreviations: LW: Live weight, HOG: Head on gutted, HFS: Hybrid flow-through system, ESG: Environmental, Social and Governance, CAGR: Compounded Annual Growth Rate.

Salmon Evolution Annual Report 2024 | 4

01 This is Salmon Evolution

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

Our Strategy 7
Our Technology 8
Management 9

- KEY FIGURES

Letter from the CEO 3

Key figures 4

This is Salmon Evolution Read chapter 01 5

We need innovative technologies to increase supply and meet the growing global demand for sustainable seafood. Our approach is to transfer the best conditions offered by the sea to farm fish on land through our chosen hybrid flow-through system (HFS) technology. This secures a sustainable production process with controlled and optimal growth conditions and limiting operational and biological risk.

Vision
Extending the ocean potential

Our mission is to provide healthy and sustainable seafood by combining biology and innovative technology. Our salmon is raised in an optimal and closed environment ensuring excellent quality and the best fish welfare.

Mission
For people, fish and ocean

Our values reflect who we are, what we stand for, and how we work together to achieve our goals. These principles shape our culture, drive our success, and inspire us to deliver sustainable excellence every day.

Values
Team player, Responsible, Competent & Innovative

Salmon Evolution Annual Report 2024 | 6

THIS IS SALMON EVOLUTION - KEY FIGURES

Letter from the CEO 3

Key figures 4

Salmon Evolution is redefining aquaculture with its hybrid flow-through system, focusing on scalability, sustainability, and operational excellence.

Our Strategy for Sustainable Growth

Our strategy prioritizes delivering premium-quality salmon, expanding responsibly, and leveraging innovation to set new industry standards. Salmon Evolution has set an ambitious target of achieving a production capacity of 100,000 tonnes. The company has invested heavily in building a robust organization, implementing high-quality control systems, and establishing an advanced digital infrastructure. Together, these elements form a solid operational platform, equipping the company with deep expertise in managing hybrid flow-through salmon farms and laying the groundwork for future expansion.

Sustainability at the Core

Sustainability drives everything we do. Our hybrid flow-through system minimizes environmental impact, optimizes profitability and reduces emissions compared to traditional salmon farming. We are committed to creating an optimal environment for our salmon, thus maintaining the highest standards of fish welfare and biosecurity as we grow.

Operational Excellence

Operational excellence is the core DNA in our strategy. 2024 was another year with stable production with an industry leading superior-grade share, confirming the reliability of our technology and processes. As we scale, we will continue optimizing operations, cost and delivering consistent, high-quality salmon, solidifying our role as a leader in sustainable salmon farming.

The Road Ahead

The progress achieved in 2024 has laid a strong foundation for continued growth and innovation. As we enter 2025, our strategic focus is on scaling production capacity, driving cost-efficiency, and advancing sustainability initiatives. By optimizing conditions for salmon growth and maintaining disciplined cost management, we aim to enhance operational performance and long-term profitability. Guided by a clear strategy, we are confident in our ability to create lasting value for stakeholders and shape the future of aquaculture.

Our Strategy

Salmon Evolution Annual Report 2024 | 7

01 This is Salmon Evolution

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

Our Strategy 7
Our Technology 8
Management 9

THIS IS SALMON EVOLUTION - OUR STRATEGY

Letter from the CEO 3

Key figures 4

Salmon Evolution operates on the principle that optimal biological conditions drive economic performance. This core belief has guided the development of the Company’s innovative production method and technology for land-based salmon farming. The Company use a hybrid flow-through system (HFS) technology, which provides a steady supply of fresh, filtered seawater while reusing approximately 65% of the water. This reusage level represents what the Company considers the “sweet spot,” balancing cost efficiency with operational risk. Higher reuse levels require extensive filtration and water treatment, increasing the energy consumption as well as complexity and operational risk. Lower reuse levels will significantly complicate filtration and UV treatment of incoming water, as well as maintaining a stable temperature at the farm.

At the Indre Harøy facility, seawater intake is based on two inlet pipes located at depths of 25 meters and 95 meters. This allows the Company to access seawater with optimal temperatures year-round, thus reducing the energy consumption related to heating the water to maintain a stable temperature. The incoming water is filtered and treated with UV to minimize the impact from parasites, viruses and other particles, and eliminate the impact from sea lice, whilst ensuring a continuous flow of fresh, clean seawater. To maintain optimal conditions biological and growth conditions in the fish tanks, oxygen and CO 2 levels are continuously monitored and adjusted. Each tank operates as a separate biological zone, ensuring that water does not mix between tanks.# Salmon Evolution Annual Report 2024

01 This is Salmon Evolution

Letter from the CEO

Key figures

02 Sustainability and corporate responsibility

Sustainability and corporate responsibility

ESG in Brief

Salmon Evolution is focused on transferring the best preconditions offered by the sea to farm fish on land. Our hybrid flow-through system (HFS) technology secures a truly sustainable process with controlled and optimal growth conditions while limiting operational and biological risk. We are committed to ensure that we are a responsible business and that we are sustainable in our operations and in everything we do. This is enshrined in our vision: “Extending the ocean potential”

We build sustainability and social responsibility into the core of our business. Our commitment is integrated into every part of Salmon Evolution’s business model and implemented through our ethical guidelines. It is our firm belief that responsible and sustainable business behaviour contributes to better environmental, social, organisational, and financial results.

Salmon Evolution has a high potential to produce what the market demands: a fresh, healthy, and sustainable premium product. With the use of the HFS technology, we farm our salmon in a closed system with minimal impact on the environment, whilst providing the best conditions for optimal fish welfare. We have created a truly sustainable approach to producing the world’s best and healthiest protein.

ESG Reporting

This is our fifth annual report published and the fourth annual report with explicit Environmental, Social, and Governance (ESG) factors included. Our report is created with reference to the Global Reporting Initiative (GRI) Standards. We have committed to establish plans for ESG monitoring to allow for comprehensive ESG reporting. We are consistently striving to gather and transparently present our information at the highest level of quality possible, with principles of: Accuracy Balance Comprehension Timing Reliability

After almost three years of operations, we still have limited comparative information from previous year or reporting periods. Going forward, we will present our information in a manner that is comparative on a year-by-year basis for our operations, to track our progress and ensure accountability to our goals.

In 2024 Salmon Evolution initiated the process to meet the requirements from the Corporate Sustainability Reporting Directive (CSRD). Throughout the year we have, among other things, conducted a double materiality assessment to evaluate which standards and topics that are most material for our business.

ESG in Brief

Environment and technology 14
Social 20
Sustainability Indicators and GRI Index 103

Stakeholders and Material Topics

The Group ran the process by conducting a materiality assessment to map and determine our sustainability priority areas. We began by identifying our most important stakeholders (see page 24) as well as their primary areas of interest related to environmental, social, and governance factors. These stakeholders and sustainability priority areas have now been verified. We have examined these areas to learn where our potential impacts are, and from this process, we established benchmarks for how we should identify and manage our sustainability risks and opportunities. This also gave clarity on how we should provide our stakeholders with material disclosures through our ESG reporting.

The materiality assessment was conducted through discussions with internal employees who are in regular contact with our key stakeholders. It was carried out in accordance with GRI Standards and the Guidelines to Issuers for ESG Reporting by Oslo Stock Exchange (Euronext). To ensure the necessary independence and integrity of the process, this assessment was conducted by a third-party organisation.

Our materiality assessment resulted in the following material topics being defined as priority areas:

ENVIRONMENT AND TECHNOLOGY
* Greenhouse gas (GHG) emissions
* Energy usage
* Circular economy
* Biodiversity and nature

FISH AND WATER
* Fish health and welfare
* Sustainable food production
* Product certification and traceability (addressed in the Governance chapter)

PEOPLE AND SOCIETY
* Employee health and safety
* Local jobs, cooperation and value creation
* Regulatory compliance
* Responsible supply chain

Governance and ESG

Corporate responsibility is an integrated part of Salmon Evolution’s business practices. We strongly believe that we have a responsibility for the people, communities, and environment affected by our business. This is woven into our core values, responsible, competent, innovative and team player. It is the duty of the CEO to ensure that Salmon Evolution always operates according to these core values. The CEO must also ensure compliance with legislation and follow up on Salmon Evolution’s governing documents.

Our core values: Responsible, competent, innovative, team player

The Board of Directors shall ensure that Salmon Evolution has sound internal control and systems for risk management. They shall also supervise Salmon Evolution’s management and general activities. This includes ensuring compliance to company core values, ethical guidelines, and guidelines for corporate social responsibility.

Our governing codes, policies, and procedures ensure that all our employees carry out their activities in an ethical manner, in accordance with current legislation and Salmon Evolution standards. An overview of ESG topics covered by our governance system is presented here:

Fish health and fish welfare policy
Waste management policy
HSEQ policy
Supplier code of conduct
Code of conduct
Corporate governance policy
Corporate social responsibility policy
Anti-corruption compliance procedure

Our core values

Innovative
We are shaping the future of salmon farming, and creating enthusiasm and spin-offs for our local community, shareholders and consumers.

Team player
We create results together. How we come together as a team, combining our skills and knowledge, create synergies that propels us forward and enables us to overcome any challenge.

Competent
Our organisation is interdisciplinary and data-driven, with diverse and highly skilled employees. We approach our vision by continually upskilling our employees and organisation.

Responsible
We use sustainable solutions to provide the world with healthy food. We are trustworthy, honest and reliable.

03 Board statements

04 Financial statement and result

Environment and technology

There is a growing need for sustainably farmed salmon. The Food and Agriculture Organization (FAO) of the UN predicts that the world population will reach 9.7 billion by 2050. The demand for food is set to increase by 50% and meeting this demand will require a significant increase in protein production.

The design serves as a critical risk mitigation measure, as any potential disease outbreak is contained within the affected tank, preventing cross-contamination. Aligned with its commitment to sustainability and circular economy principles, Salmon Evolution filters wastewater and collects sludge, which is then transported to a recirculation plant for conversion into fertilizer, biogas, or similar products. Salmon Evolution use data and AI to continuously drive optimization and reduce risk, leveraging the benefits of land-based salmon farming The goal is to identify and replicate optimal conditions for fish growth. Every day over 40 million data points are logged at Indre Harøy, creating a vast pool of insights, that paired with deep operation expertise and know-how, provide actionable data for real-time decision making.

Our Technology

Making a home for the salmon to thrive Biology is our number one priority, leveraging abundant seawater resources, prioritizing impeccable water quality and temperature.

Management

Trond Håkon Schaug-Pettersen CEO
Trond Vadset Veibust CFO
Ingjarl Skarvøy COO
Kamilla Mordal Holo Chief Project Officer
Odd Frode Roaldsnes CCO
Henriette Nordstrand Technical Director
Vidar Aslaksen Skjørli HR Director

The company has a dedicated management team with extensive experience from the aquaculture industry, and a well-developed organisation with the necessary competence and execution capabilities.

Want to know more? Read about the management on salmonevolution.no

Read more on our website# Salmon Evolution Annual Report 2024

02 Sustainability and corporate responsibility

ESG in Brief

Environment and technology

Salmon Evolution Annual Report 2024
14 SUSTAINABILITY AND CORPORATE RESPONSIBILITY – ENVIRONMENT AND TECHNOLOGY

ESG in Brief 11
Environment and technology 14
Social 20
Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

03 Board statements

04 Financial statement and result

Our Commitment

Our vision is to be the globally leading producer of land-based Atlantic salmon by ensuring sustainability and extending the ocean potential. We aim to encourage the inclusive and prosperous development of the aquaculture industry, within a stable and resilient earth system. To achieve this, we commit to promoting a culture where sustainability and profitability reinforce each other.

We build sustainability into our core operations and through the use of the HFS technology, we transfer the best preconditions offered by the sea to the farming of fish on land. Through our business strategy, we are committed to the external environment and to setting a high standard for fish health and fish welfare.

Our objective is to monitor and reduce the environmental impact of our business, to ensure we produce a premium salmon product with a low environmental footprint. We therefore place an emphasis on three key environmental areas:

Climate change impacts
Circular economy, pollution, and waste
Biodiversity and nature

By reusing water, we optimise energy consumption related to pumping and heating, which reduces our CO 2 footprint. By filtering and treating wastewater, we reuse more marine resources. Fish sludge is also collected and recycled, contributing to a circular economy. By having a closed farming system, we also minimize the risk of escapes and thus the potential harm to local biodiversity and nature.

Our environmental efforts should never compromise the health of our fish or our product quality. We therefore also focus on:

Fish health and welfare
Sustainable inputs and outputs
Product certification and traceability

1 By using fresh seawater from the coast, we create optimal farming and environmental conditions for our fish, which result in better growth and a shorter production time. This enables a sustainable production process, with controlled and optimal growth conditions while limiting operational and biological risk. Each of our choices is weighed against alternatives to ensure that we carry out our operations responsibly.

Sustainability and fish welfare are at the core of our vision as well as our actions as a firm. They are essential to the identity of Salmon Evolution, and we commit to carry this forward as our operations grow and as we expand globally.

1 addressed in the Governance chapter

Salmon Evolution Annual Report 2024
15 SUSTAINABILITY AND CORPORATE RESPONSIBILITY – ENVIRONMENT AND TECHNOLOGY

ESG in Brief 11
Environment and technology 14
Social 20
Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

03 Board statements

04 Financial statement and result

Climate Change Impact

Salmon Evolution’s hybrid flow-through system (HFS) technology ensures rich access to fresh filtered seawater. At Indre Harøy, the seawater intake is based on two intake pipes at 25 meters and 95 meters, respectively, enabling us to tap into water at ideal temperatures. By combining supplies of clean and fresh seawater with reuse, we minimise overall energy consumption for pumping and heating of seawater in the facility.

Our energy plant has a very high output in relation to the energy used. The HFS technology reuses ~65% of the water, while the remaining ~35% is fresh seawater. This ratio is our “sweet spot”, balancing cost and operational risk while ensuring maximum production output. Higher reusage levels require more filtration and water treatment which again implies higher complexity and risk. On the other hand, a lower level of reusage will lead to significantly higher energy costs in connection with pumping and heating of water.

The Company has a green power supply agreement with Statkraft, Europe’s largest generator of renewable energy. Statkraft is fully owned by the Norwegian government and is Norway’s largest supplier of electricity to power-intensive industries. The partnership with Statkraft and location in the heart of Norwegian hydropower production, ensures sustainable electric power with low environmental impact.

The CEO of Salmon Evolution, Mr. Trond Håkon Schaug-Pettersen, sees this as a very positive step forward: “In Norway 90 percent of electricity production is hydropower. Our customers can be certain that our salmon is produced with the lowest possible environmental footprint, setting a new benchmark for sustainably produced salmon.”

Key Points – Climate Change Impacts

Salmon is already a lower environmental impact protein, but through the HFS technology, we further reduce our climate impacts.
We have a high performance and high output in relation to our energy consumption.
Located in Norway, most of the electricity consumed will be made of hydropower.
The energy efficient system at Indre Harøy was given a grant of up to NOK 96.8 million from Enova. Enova is owned by the Norwegian Ministry of Climate and Environment and functions to promote the environmentally friendly production and consumption of energy. This grant has allowed us to use even more resources to reduce greenhouse gas emissions, to develop energy-saving and climate-friendly technology, and to strengthen the security of the Norwegian food supply.

Seafood is quickly becoming an important contributor to meeting this demand. However, a growing demand for seafood will increase the pressure on already over-exploited wild fish stocks and ocean resources. To alleviate this pressure, aquaculture, including salmon farming, is required to efficiently manage and maintain both wild fish stocks and the ocean’s natural biodiversity.

Salmon are amongst the most efficient protein sources to produce. The feed conversion ratio (FCR) for salmon, or the amount of feed an animal needs to gain one kilogram of body weight, is well below other common protein sources. Salmon has a high harvest yield in percentage (after inedible parts are removed) compared to other farmed animals. This is shown in Table 1.

In the future when more data is available, Salmon Evolution intends to measure the efficiency on the production and believe that land-based salmon should be even more competitive.

The global increase in food demand, combined with stronger preferences for healthy and sustainably produced proteins, has led to a high growth in demand for salmon over the last few decades. This increase has mainly been met by a continuous expansion within conventional aquaculture. However, numerous challenges inhibit sustainable future growth for fish farming:

Climate change: producing salmon on land can require high energy output. In countries that do not rely on renewable energy this can lead to high a CO 2 footprint.
* Our response: located in Norway and through the hybrid flow-through technology, we optimise energy consumption, always using renewable energy.

Pollution and waste: the nature of conventional salmon net pens creates issues with the discharge of untreated waste and pollution, as well as diseases and parasites into coastal waters.
* Our response: minimizing pollution and treating water and waste.

Biodiversity and nature: escapes in sea-based salmon farming are expensive and potentially damaging to local wildlife.
* Our response: eliminating the risk of escape and protecting ocean biodiversity.

Fish health: diseases, parasites, and sea lice are widespread in conventional salmon Farming, causing considerable damage commercially. In addition, mortality and losses in production are a challenge for sea-based salmon farmers.
* Our response: through our technology, water intake is filtered and uv-treated, and separated biological zones reduce opportunity for cross-contamination.

Fish welfare: climate variability and increasing water temperatures can cause stress and reduce fish health and welfare.
* Our response: by controlling water temperature and by continuous monitoring, we ensure greater fish welfare.

New methods and technologies for addressing biological and environmental challenges are continually being developed, including a shift to more land-based farming practices. Land-based farming addresses a broad range of these industry challenges and represents a viable solution for sustainably expanding the ocean’s essential resources. Research and development are thus central to our value chain and help create efficient operations, drive innovation, and create improvements that ensure future sustainability. Our research is based on co-operation with several research communities and promotes knowledge transfer between internal and external stakeholders.

Protein production facts¹	Carbon footprint (kg CO 2 /40g edible meat)	Land use (m 2 /100g edible protein)	Feed conversion ratio	Edible yield	Water consumption (litres/kg)
Seafood is quickly becoming an important contributor to meeting this demand.	0.6	3.7	1.2-1.5	68 %	2,000
However, a growing demand for seafood will increase the pressure on already over-exploited wild fish stocks and ocean resources.	0.88	7.1	1.7-2.0	46 %	4,300
To alleviate this pressure, aquaculture, including salmon farming, is required to efficiently manage and maintain both wild fish stocks and the ocean’s natural biodiversity.	1.30	11.0	2.7-5.0	52 %	6,000
Salmon are amongst the most efficient protein sources to produce.	5.92	102.0	6.0-10.0	No data	15,400
The feed conver- sion ratio (FCR) for salmon, or the amount of feed an animal needs to gain one kilogram of body weight, is well below other common protein sources.
Salmon has a high harvest yield in per- centage (after inedible parts are removed) compared to other farmed animals. This is shown in Table 1.
In the future when more data is available, Salmon Evolution intends to measure the efficiency on the production and believe that land-based salmon should be even more competitive.
The global increase in food demand, com- bined with stronger preferences for healthy and sustainably produced proteins, has led to a high growth in demand for salmon over the last few decades.
This increase has mainly been met by a continuous expansion within conventional aquaculture.
However, numerous challeng- es inhibit sustainable future growth for fish farming:
Climate change: producing salmon on land can require high energy output. In countries that do not rely on renewable energy this can lead to high a CO 2 footprint.
Our response: located in Norway and through the hybrid flow-through technology, we optimise energy consumption, always using renewable energy.
Pollution and waste: the nature of conventional salmon net pens creates issues with the discharge of untreated waste and pollution, as well as diseases and parasites into coastal waters.
Our response: minimizing pollution and treating water and waste
Biodiversity and nature: escapes in sea-based salmon farming are expensive and potentially damaging to local wildlife.
Our response: eliminating the risk of escape and protecting ocean biodiversity
Fish health: diseases, parasites, and sea lice are widespread in conventional salmon Farming, causing considerable damage commercially. In addition, mortality and losses in production are a challenge for sea-based salmon farmers.
Our response: through our technology, water intake is filtered and uv-treated, and separated biological zones reduce opportunity for cross-contamination
Fish welfare: climate variability and increasing water temperatures can cause stress and reduce fish health and welfare.
Our response: by controlling water temperature and by continuous monitoring, we ensure greater fish welfare
New methods and technologies for address- ing biological and environmental challenges are continually being developed, including a shift to more land-based farming practic- es. Land-based farming addresses a broad range of these industry challenges and represents a viable solution for sustainably expanding the ocean’s essential resources.
Research and development are thus central to our value chain and help create efficient operations, drive innovation, and create improvements that ensure future sustaina- bility. Our research is based on co-operation with several research communities and pro- motes knowledge transfer between internal and external stakeholders.

(Source 1: Global salmon Initiative Organization, https://globalsalmoninitiative.org/en/our-progress/sustainability-report/ )# Salmon Evolution Annual Report 2024

01 This is Salmon Evolution

Letter from the CEO
Key figures

02 Sustainability and corporate responsibility

ESG in Brief

11 Environment and technology
14 Social
20 Sustainability Indicators and GRI Index
103

03 Board statements

04 Financial statement and result

Environment and technology

Circular Economy, Pollution and Waste

The HFS technology is built to take in and reuse large quantities of clean and fresh seawater from the ocean. We are able to create an ideal balance, where we use water with the same high quality as traditional Norwegian cage-based farming, but where we also have sufficient space and access to the necessary resources for large-scale production on land. This provides us the opportunity to commit to a truly sustainable production as well as to promote a circular economy. We plan to achieve this through collecting, treating, and filtering feed residue and wastewater. These are then transported to a recirculation plant where they are converted into short-travelled fertilizer, biogas, or similar. In addition to the ~65% of water being reused through the HFS technology, we also reuse the fish sludge as input for biogas or natural fertilizers. We are also conducting research for future usage areas. Our wastewater from Indre Harøy, is processed through a drum filter and dried up to 20-25 % TS using a de-watering system. The dried sludge is then delivered to Havila Biogass, which convert the sludge into electricity and fertilizer.

Key Points – Circular Economy, Pollution, and Waste

~65% of water is reused.
Wastewater and feed residue are collected, treated, and filtered.
We are continuing research and development to ensure the responsible reuse and recirculation of wastewater, residues, and sludge.
By reusing and treating wastewater, and reusing water and sludge, we minimise our environmental footprint.
Through our research, we aim to contribute to a circular economy by making these reuse solutions into feasible practices in the future.

Biodiversity and Nature

Our core business is about preserving and reusing marine resources and minimizing our environmental impact. The HFS technology operates in a land-based and enclosed system, which means that through greater production control, there is a close to zero risk of the salmon escaping from the farm. As a significant achievement towards responsible and sustainable salmon production we achieved the prestigious Aquaculture Stewardship Council («ASC») certification after only 18 months in operation. ASC is globally renowned for its stringent aquaculture standards focused on environmental sustainability and social responsibility. Further, we are committed to minimize negative impact to the local environment. To make sure that we reach this important goal we have established a plan for monitoring local biodiversity and nature. This is done by collaborating with an external advisor.

Key Points – Biodiversity & Nature

Our closed system ensures minimal escape risk.
Achieved ASC certification in 2023.
Continuously monitoring local biodiversity and nature.
All water replaced every 4 hours
~60–65% of water is reused
Wastewater – is processed through a drum filter to collect the sludge
Sludge – is dried up to ± 20–25% using a dryer delivered by Blue Ocean Technology
Delivered to local farmers – The dried sludge is delivered to local farmers with their own biogas plants
Biogass and fertilizer – The sludge is converted to electricity and fertilizer
R&D – Continued focus on ensuring the reuse and recirculation of wastewater, residues, and sludge

Watch the whole process

The circular economy in practice – our sludge becomes biogas and fertilizer

Fish and Water

Fish Health and Welfare

At Salmon Evolution, we believe that biology is key to ensure responsible practices in the aquaculture industry and ensuring fish health and welfare. We understand fish welfare as:

freedom from hunger, thirst, and malnutrition
freedom from extreme cold and heat
freedom from injuries and illnesses
freedom from anxiety, stress, and fear
freedom to practice normal behaviour

To ensure fish welfare, we focus on the following:

access to fresh seawater and good nutrition
access to optimal conditions, including space for protection and rest
preventing and/or quickly diagnosing and treating injuries and illnesses
providing sufficient area and excellent facilities aimed at recreating a living space for fish that is similar to their natural environment
ensuring good conditions and treatment so that fish avoid mental or physical suffering

The HFS technology and the arrangement of our facility enable us to define each tank as an isolated biological zone. This means that water in one tank never mixes with water in another tank. Such an arrangement gives us full control of water parameters and the production environment and allows us to ensure biosecurity. A potential biological outbreak in one tank will not impact or contaminate the fish swimming in another tank. To ensure excellent biosecurity in our operations, we have implemented a quality assurance system with dedicated personnel responsible for compliance and the training of staff. Our training program includes promoting general biosecurity knowledge and awareness, including the development of skills and the use of measures specifically relevant for Salmon Evolution’s facility. To ensure optimal biological and growth conditions in the fish tanks, oxygen and CO2 levels are constantly monitored and adjusted. The HFS technology engages in CO2 stripping and oxygenation to guarantee ideal environmental conditions for our fish. By drawing seawater from depths of 25 and 95 meters, the HFS water intake is further filtered and treated with ultraviolet (UV) rays to eliminate parasites, sea lice, viruses, infection, and additional particles. Filtering and disinfecting intake water creates a controlled environment, reducing the risk of illness, and ensuring a rich flow of fresh and clean seawater into the tanks. By optimizing water quality parameters with ideal and stable temperatures, we can reduce the time to harvesting for each batch from approximately 16 to 11 months with a 130g smolt insert weight. This increased growth creates the basis for greater production efficiency and optimal utilization of our licensed volume. Finally, our operations reduce the handling of fish, which create better growth conditions. Finally, our operations reduce the handling of fish, which provide better opportunities for optimal feeding and reduces loss and stress during the production cycle.

Key Points – Fish Health & Welfare

The HFS technology creates an optimal and stable growth environment, which is less stressful for our fish.
We ensure biosecurity through separate tanks and distinct biological zones.
Filtered seawater further minimises the risk of bacterial and viral pathogens; minimises risk of parasites; and limits threats of infection.
We engage in minimal handling of our fish.
By maintaining control over the production environment and stable water parameters, we generate conditions for increased growth and a shorter time to harvest.

Our approach

Estimated data for Phase 1 - full run rate:


Mortality	3-5 %
Density as measured in kg/m³:	Minimum 7 kg/m³
	Maximum 85 kg/m³
Oxygen consumption (biomass growth (LW)):	0.55 kg/tonnes

Estimated data for Phase 1 - full run rate: Electricity usage (MWh): ~60,000 Electricity usage (kWh/kg biomass (LW)): ~6.3-6.8 Renewable energy, Norwegian energy mix

Salmon Evolution Annual Report 2024 16
SUSTAINABILITY AND CORPORATE RESPONSIBILITY – ENVIRONMENT AND TECHNOLOGY
ESG in Brief
11 Environment and technology
14 Social
20 Sustainability Indicators and GRI Index
103
01 This is Salmon Evolution
Letter from the CEO
3
Key figures
4
02 Sustainability and corporate responsibility
03 Board statements
04 Financial statement and result

ensures better fish health and well-being, including reduced mortality and losses in production.

Sustainable Inputs and Outputs

At full run rate in phase 1, we estimate a harvest volume of approximately 7,900 tonnes (HOG, or head on gutted), with a strong focus on optimising our sustainable inputs while reducing negative impacts for our outputs for this volume. Our most dominating inputs consist of seawater, feed, power, smolt, and oxygen. Since 2021 Salmon Evolution has had a strategic feed partnership with Cargill. Salmon Evolution is Cargills global flagship customer for land-based full grow out production. Cargill has further committed to allocate significant resources and R&D capacity with the ambition to develop sustainable feed solutions tailored to our operational targets: securing high biological performance and premium product quality. Cargill also owns 2.0% of Salmon Evolution. When asked about the importance of the partnership with Cargill, the CEO of Salmon Evolution stated: “Having the best possible feed is essential for every salmon farmer. Particularly, in our HFS system where we create optimal and stable living conditions for the salmon, we see a strong and untapped potential in tailoring a feed focused on maximizing biological performance and product quality.” Another important input is smolt. Salmon Evolution has its own smolt production at Salmon Evolution Dale AS in Dalsfjorden in Volda municipality, Norway. The location has a documented track record as a high quality smolt producer and has been producing smolt since 1995.

Salmon Evolution Annual Report 2024 17
SUSTAINABILITY AND CORPORATE RESPONSIBILITY – ENVIRONMENT AND TECHNOLOGY
ESG in Brief
11 Environment and technology
14 Social
20 Sustainability Indicators and GRI Index
103
01 This is Salmon Evolution
Letter from the CEO
3
Key figures
4
02 Sustainability and corporate responsibility
03 Board statements
04 Financial statement and result# SUSTAINABILITY AND CORPORATE RESPONSIBILITY – ENVIRONMENT AND TECHNOLOGY

ESG in Brief

Environment and technology
Social
Sustainability Indicators and GRI Index

01 This is Salmon Evolution

Letter from the CEO

Key figures

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

One of the major advantages with Salmon Evolution Dale is its excellent freshwater supply. Salmon Evolution Dale has access to clean freshwater from the surrounding mountains and is guaranteed a consistent supply of freshwater from the local power station. This freshwater access enables Salmon Evolution Dale to utilize a similar production technology as Salmon Evolution uses at its grow-out facility, a hybrid flow-through system (HFS) with reuse of water, CO 2 stripping and oxygenation- making it a perfect fit for Salmon Evolution. Having an inhouse smolt production gives Salmon Evolution operational control over a critical part of the value chain. In addition to feed and smolt, another essential input is oxygen, which is supplied by Nippon Gases. We share many of the same values, making this an ideal partnership. During our selection process, one of the most important factors was the focus Nippon Gases has on sustainability. By prioritizing responsible suppliers, we can ensure that we use sustainable inputs, leading us to create a truly healthy and sustainable final product. Estimated data for Phase 1 - full run rate: 100 % local seawater intake 9,300 tonnes of feed, corresponding to GHG emissions of 14,500 tons CO2 eq. excluding land use change (GW_E_LUC) and 18,100 tons CO2 eq. including land use change (GW_I_LUC).

Salmon Evolution Annual Report 2024 19

SUSTAINABILITY AND CORPORATE RESPONSIBILITY – SOCIAL

ESG in Brief

Environment and technology
Social
Sustainability Indicators and GRI Index

01 This is Salmon Evolution

Letter from the CEO

Key figures

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

Salmon Evolution remains steadfast in our commitment to responsible business practices. Upholding human rights, ensuring labor standards, and fostering equality and non-discrimination are fundamental principles embedded in our operations. We aim to be a safe, inclusive, and stimulating workplace while minimizing any potential negative societal impacts of our activities. Through our investments, we have fostered positive ripple effects in local communities, contributing to social development and economic growth. To ensure accountability and transparency, we continue to implement and refine policies regarding health and safety, the working environment, stakeholder engagement, and the sustainable use of local resources. We look forward to advancing these efforts holistically to align with our long-term vision for sustainable development.

Salmon Evolution Annual Report 2024 20

SUSTAINABILITY AND CORPORATE RESPONSIBILITY – SOCIAL

ESG in Brief

Environment and technology
Social
Sustainability Indicators and GRI Index

01 This is Salmon Evolution

Letter from the CEO

Key figures

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

Employee Well-Being, Health & Safety

Safe and Secure Workplaces

We prioritize the highest standards of safety across our operations and expect our suppliers and partners to adhere to responsible labor practices. As part of our 2024 vision, we encourage all contractors and partners with operational activities to pursue ISO 45001 certification, the global standard for safe and healthy workplaces.

Parental Leave: One male and one female returned from parental leave started in 2023, one female and five male employees began and returned from leave, while one female and one male began their leave and had not returned by year-end.

The high activity and operational complexity at our Indre Harøy site in 2024 emphasized the importance of robust safety protocols. To mitigate risks and ensure safe working conditions, we maintained close collaboration with contractors and workers while enhancing safety routines. Our Health, Safety & Environment (HSE) Coordinator oversees on-site training, preventive HSE activities, and incident investigations. All new employees and contractors participate in HSE induction training, with additional courses provided in first aid and safety awareness. Additionally, Salmon Evolution has appointed a Safety Representative to monitor compliance with established protocols. All documentation related to incidents, investigations, and preventive actions is managed through third-party systems, TQM and Interaxo, ensuring transparency and accountability in all safety-related efforts.

Worker Organization and Collective Agreement

In 2024, our workers organized and joined a labor union, and Salmon Evolution signed an attachment agreement to the aquaculture collective agreement. This milestone highlights our commitment to fostering constructive dialogue with employees and ensuring fair and equitable working conditions.

Apprentices

In 2024 we welcomed three new apprentices, totaling seven apprentices during the year. One apprentice graduated and was hired permanently. Historically we have had two apprentices that have graduated and been offered a permanent position whereas two have accepted the offer. 100% of our apprentices have passed their exams with great results.

Engagement and Development

In 2024, we conducted four employee engagement surveys across the organization, achieving a 72% response rate and an average engagement score of 79, surpassing the external benchmark of 78. These results underscore the dedication and satisfaction of our workforce, as well as the effectiveness of our employee-centered initiatives. We plan to continue conducting quarterly surveys to gain real-time insights into the organizational culture and use this feedback to drive positive changes and inform strategic decisions.

100% (discounting employees on parental leave) of our employees had performance and development reviews in 2024. We will continue our regular performance and career development reviews, conducted semi-annually. To foster leadership within our organization, we established a leadership development program and sent five young leaders to participate in 2024. This program aims to cultivate future leaders, equipping them with the tools and knowledge necessary to drive both their personal growth and the company’s progress.

Safety Metrics: 2024

Metric	Salmon Evolution Employees	Contract Workers	Third Parties
Lost Time Injuries (LTI)	3	0	0
Total Recordable Injuries (TRI)	3	0	0
Accidents	0	0	0
Fatal Accidents	0	0	0
Sick leave (%)	2.7
Sick Leave Cases (<16 days)	98
Sick Leave Cases (>16 days)	8

To support employee well-being outside of work, Salmon Evolution has established a corporate sports team to encourage health and wellness after working hours. In 2024, 20% of our employees participated in the Stranda Fjord Trail Race, completing a challenging course of 25 kilometers and 1,850 vertical meters. This achievement reflects our commitment to promoting an active and healthy lifestyle among our workforce.

Diversity and Equal Opportunity

Salmon Evolution is committed to creating an inclusive workplace that attracts top talent and promotes equal opportunities. We continuously work to eliminate discrimination and harassment, ensuring fair treatment for all employees regardless of gender, ethnicity, nationality, religion, sexual orientation, or other personal attributes. Our recruitment, training, and advancement processes prioritize qualifications, skills, and performance. We maintain a zero-tolerance policy for discrimination and harassment, as outlined in our Code of Conduct and Personnel Handbook.

2024 Metrics:

One case related to personnel matters was reported and resolved in accordance with our established procedures.
In 2025, we will further strengthen our diversity, equity, and inclusion initiatives to ensure Salmon Evolution remains a workplace where everyone can thrive.
0 Accidents in 2024
3 Lost Time Injuries (LTI)
67% men
33% women: Gender ratio

Salmon Evolution Annual Report 2024 21

SUSTAINABILITY AND CORPORATE RESPONSIBILITY – SOCIAL

ESG in Brief

Environment and technology
Social
Sustainability Indicators and GRI Index

01 This is Salmon Evolution

Letter from the CEO

Key figures

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

Responsible Supply Chain

Our suppliers are important contributors to the success of our business. We believe that transparent and frequent communication with both our customers and suppliers is vital for our success. We work closely with our suppliers and customers to minimise negative impact from our supply chain and we will continue to develop partnerships focusing on sustainability.

Suppliers that are in breach of our basic standards for ethics and corporate social responsibilities can be disqualified for new tenders. However, if they do not comply with our standards, we first aim to work with the supplier to bring about improvements. If the supplier still does not comply, Salmon Evolution will seek to terminate the supplier relationship.

Salmon Evolution suppliers shall have standards for ethics and corporate social responsibility that follow the UN Global Compact principles. This shall apply to all suppliers as well as partnerships and employees.

Salmon Evolution Annual Report 2024 22

SUSTAINABILITY AND CORPORATE RESPONSIBILITY – SOCIAL

ESG in Brief

Environment and technology
Social
Sustainability Indicators and GRI Index

01 This is Salmon Evolution

Letter from the CEO

Key figures

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result# Salmon Evolution Annual Report 2024

SUSTAINABILITY AND CORPORATE RESPONSIBILITY – ENVIRONMENT AND TECHNOLOGY

ESG in Brief

11 Environment and technology
14 Social
20 Sustainability Indicators and GRI Index
103

01 This is Salmon Evolution

Letter from the CEO
Key figures

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

Stakeholder and Local Engagement

Local Value Creation

Given that our land-based facility is located on Indre Harøy in Hustadvika municipality, Norway, we decided in 2019 to move our head office from Molde municipality to Elnesvågen, Hustadvika. The physical relocation was done during the first two months of 2022. For the first phase of construction, our total investment on Indre Harøy was approx. NOK 1.7 billion. From this, we have seen a major ripple effect for both the Møre og Romsdal region and Hustadvika municipality, in the form of large contracts to local suppliers. This has led to comprehensive investments in their own companies. For example, food services are provided by local companies, many of whom have seen record growth, which has led to further investments in the municipality. Other investments our local suppliers have made include office premises and associated infrastructure, which have directly contributed to further local contracts and increased employment opportunities. We are now in the process of building second phase at Indre Harøy, with a total investment of above NOK 2 billion, which we also expect will have further major ripple effects in the region and municipality. In total, Indre Harøy has employed around 200 workers daily through these contracts. Many of the contractors are also temporarily housed at local hotels while working at the construction site. The communities we impact, from the municipality to local inhabitants, have reacted positively to these developments.

Stakeholder Engagement

Dialogue and engagement with our stakeholders help us understand what is expected of us, what is most important to our stakeholders, how they are impacted by our operations, and how we can work together in solving common challenges. In 2021, we reviewed our stakeholders and identified seven groups that we have the possibility to impact or be impacted by. These are listed below:
* Shareholders, investors, assets managers and analysts
* Employees and potential employees
* Local communities and municipalities
* Customers
* National authorities and regulators
* Financial institutions
* Suppliers and service providers

Throughout 2024 we have been in regular contact with our employees, the local community and municipality, our customers, and our suppliers and service providers as part of our daily operations. Quarterly reports and presentations, and the latest relevant news from our company, are presented on our website. Over the next year, we commit to have a continued focus on creating arenas for systematic and open dialogue with these groups to understand our impacts. We are committed to being a responsible business through interacting with our stakeholders in both an ethical and transparent manner.

Respectful Use of Land

The site of our land-based facility was originally a disused quarry. After over 30 years of operation, the quarry was emptied, and remained vacant. Because the land was left in this state, there was very limited need for intrusive activities in the nature to complete the construction of our facility for farming salmon. Converting the disused quarry has provided an opportunity for us to engage in value-creating activities in an area where there were limited opportunities for this. We made great efforts to create an optimal balance between generating value for local people and communities, while severely limiting land-conversion and our impact on the environment.

Going Forward

Salmon Evolution will continue to prioritise local suppliers for our contracts. We will develop good relationships with local communities through creating an open dialogue and expanding our engagement efforts. We believe that our operations should have as little negative impact as possible, and as we grow, we will develop new ways to monitor and assess our efforts.

Board statements

03 Read chapter

Board of directors report

2024 marked another year of progress for Salmon Evolution, reinforcing its position as the leading company in land-based salmon farming. During the year Salmon Evolution harvested a total of 4,891 tonnes HOG salmon and continued to deliver strong biological KPIs from its land-based salmon farm at Indre Harøy, exemplified by an industry leading superior grade share and minimal mortality. In June 2024 Salmon Evolution took the final investment decision to move ahead with the Indre Harøy phase 2 expansion, which upon completion in 2026 provide Salmon Evolution with an operational platform few – if none – in land-based salmon farming can rival. Indre Harøy phase 2 provides critical scale, and gives Salmon Evolution and strong cash generating platform to scale further on. Financially it was also a transformative year, with the Group reporting a positive EBITDA of 71.4 NOKm in addition to positive cash flow from operations. Salmon Evolution being the first land-based salmon farmer showing profitability at scale, a major milestone for both the Group and the industry. The Board takes pride in Salmon Evolution operating within its ambitious targets on mortality and superior grade share. With this in place, full focus can be given on taking out the full potential at Indre Harøy and increasing the harvest weights.

June 2024: Final investment decision Indre Harøy phase 2, successful equity raise and refinancing
Q4 2024: First post smolt delivery
2024: Harvested total 4,891 tonnes HOG salmon in 2024 with a superior grade share of 96 %
Q1 2024: Industry leading EBITDA/kg NOK 40.2 in farming segment

Important events in 2024

Operations in 2024

Through 2024 Salmon Evolution experienced continued stable operations with strong biological KPIs both at the smolt facility in Dale and at the grow-out facility on Indre Harøy. The biomass production increased by 52 %, from 3,751 tonnes LW in 2023 to 5,706 tonnes LW in 2024. Standing biomass ended at 2,023 tonnes LW compared to 2,092 tonnes LW in 2023. Salmon Evolution has demonstrated strong operational performance in 2024, achieving key biological targets at commercial scale. Several groups recorded feed conversion ratios (FCR) close to 1.0, survival rates above 95%, and the superior grade share ended above 96 % for 2024 as a whole. These results significantly outperform traditional farming methods and validate the company’s land-based farming model, underscoring its potential for cost-efficient, high-quality, and sustainable salmon production. During the first half of 2024 the Group had some challenges with smolt quality leading to the smolt developing ulcers shortly after stocking at Indre Harøy, this ultimately led to culling of one smolt insert in May 2024. The Company quickly identified the root cause and implemented changes in the smoltification process and procedures at the smolt facility, in addition to additional vaccination. Following the smolt quality issues the Company had high focus on securing smolt and restocking the facility to minimize the impact on production and harvest volumes, but nevertheless biomass production especially in Q2 and Q3 of 2024 was impacted by this event. Following this event and after restocking Indre Harøy, the Company has had a long period of stable operations with minimal mortality. Enabled by this, the Group has been fully focused on optimization and turning to take out the full growth potential in the farm with a wide range of optimization activities are ongoing, with different time frames and expected impact. This led to a steady improvement in daily growth rates during the second half of 2024 with biomass production accelerating towards the end of the year, highlighting the positive impact of these activities. The tuning and optimization are deeply rooted in data – everyday Salmon Evolution collect over 40 million datapoints at Indre Harøy, providing insights that is key in taking out the full potential and beyond. Salmon Evolution ended the year with a fully stocked farm at Indre Harøy setting the stage for a good start to 2025. At the smolt facility in Dale Salmon Evolution had a strong growing season, with biomass growth 36% above 2023. During 2024 several upgrades have been made to the Dale smolt facility, including installing additional heating capacity to ensure a better and more stable growth environment in the winter season.# Salmon Evolution Annual Report 2024

BOARD STATEMENTS - BOARD OF DIRECTORS REPORT

01 This is Salmon Evolution

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

Letter from the CEO

Key figures

Board of directors report

Operations in 2024

In 2024 the Group harvested 4,891 tonnes HOG salmon with an average weight of 3.5 kg HOG, an increase of 261 % from 2023. Average superior grade share during 2024 ended at 96 %, an indication of the strong fish health at Indre Harøy. Harvest weights in 2024 was impacted by low smolt stocking weights during 2023. In the first half of 2024 pricing in the salmon market was strong, driven especially by biological issues for the traditional net-pen farmers in Norway leading to significant downgrades and a lack of superior grade fish in the market. With strong biological results and a high superior grade share Salmon Evolution was able to capitalize on this. During 2024 Salmon Evolution consistently was outperforming the Sitagri salmon index (previously known as the Nasdaq salmon index).

Financial performance

Risk exposure and risk management

Responsible business practices

People

Outlook

Board of directors

Corporate governance

Indre Harøy phase 2

Indre Harøy phase 2 represents a potent platform with strong expected cash flow generation, supporting a substantial organic investment capacity for Salmon Evolution. Leading up to the investment decision taken in Q2-24, the Group had a thorough tender process together with the contractors on all major components to have visibility on cost and reduce the risk in the cost estimates. The Group also builds on its extensive experience, after close to three years in operation as well as having successfully completed a project of this scale and magnitude before.

The phase 2 project is planned to add 10,100 tonnes HOG of annual harvest. This will take Salmon Evolution from its current production capacity of 7,900 tonnes to 18,000 tonnes HOG in full run-rate. The additional 2,200 tonnes HOG released, on top of the original plan of 15,800 tonnes HOG, is achieved through adding additional tank capacity, by introducing pre-grow-out tanks. This represents a highly capital efficient way to increase output at the facility, leveraging infrastructure that is already in place.

Under the new program, by adding the pre-grow-out tanks, the Group will increase the stocking weight in the grow-out department from current ~130 grams to ~400 grams. At the same time the targeted harvest weight is reduced to approximately 5.2 kg LW. In sum this will reduce the production cycle to ~8-9 months and enable an increase in the number of smolt stockings from 6 to 8 per year per phase (i.e. 16 smolt stockings a year from phase 1 and 2 combined). Generally, this is a more conservative production plan with lower average harvest weight and peak densities through the production cycle, which also lower the operational risk through increased robustness and added operational flexibility.

The phase 2 grow-out project is split in two parts, with Artec Aqua having responsibility for design, construction, and commissioning of the process facility and HENT for civil design and construction. Phase 2 is an improved copy of phase 1, incorporating key learnings after almost three years in operation. The project has a total estimated investment cost of up to 2.5 NOKbn including contingencies, buffers and the additional tank capacity. This figure also includes 200 NOKm in project contingencies and a project buffer of 100 NOKm.

Project status – Indre Harøy phase 2

The project is developing according to plan, with targeted smolt release in Q1-26 and first harvest in Q4-26 as planned. In parallel Salmon Evolution is proceeding with the planning and engineering for the additional tank capacity with expected completion by 2026. Tank installation for the first four tanks is well underway and there is continued good progress on other concrete works both in the grow-out section and for the intake station. Towards the end of the year the intake manifold was delivered, a major milestone for the project. Preparations for the intake pipe installation are well underway. Activity at the building site is expected to gradually increase towards the summer of 2025, at the end of the year there were approximately 90-100 workers working on site. At 31 December 2024 the accumulated investment in the project amounted to 407 NOKm.

Salmon Evolution is also developing a plan to cover the smolt needs for phase 2 and beyond. One of the benefits of the new grow-out program, is that the Group will get better utilization of the smolt facility at Dale. Additionally, the Group is evaluating several options to increase smolt capacity, including temporary external sourcing, expansion opportunities at our existing smolt facility and other options.

Tank installations well underway (February 2025)

North America

Project overview and status

When assessing possible sites, the Group focuses around areas with an established salmon farming industry, mirroring the Group’s approach for Indre Harøy in Norway. Salmon Evolution sees a significant value in leveraging existing aquaculture infrastructure and value chains, enabling both scale and cost leadership, as well as reducing operational and biological risk. As previously communicated, the Group is in advanced negotiations for a high-potential site in North America. The initial site verification processes points to this being an ideal site for a hybrid flow-through system. The Group is monitoring the geopolitical situation closely and is currently assessing the impact from potentials tariffs in the North American market.

For a project in North America, it is expected that site verification and relevant regulatory approval processes will take two to three years, upon which the plan is to build a full scale 36kt HOG “Indre Harøy” facility drawing on the experiences learned from Norway. To facilitate this expansion, the Group has established a dedicated team of both in-house and external resources. The Group’s strategy of pursuing accretive partnerships in overseas markets remains unchanged. As a project develops, Salmon Evolution aims to engage in partnership structures leveraging the human capital in our Group and maximizing shareholder value.

Korea

Project overview and status

The Group has a joint venture with the South Korean seafood giant Dongwon Industries where the plan is to develop, construct and operate a 16,800 tonnes HOG land-based salmon farming facility in South Korea, leveraging Salmon Evolution’s human capital. The design and engineering activities for the grow-out facility at Yangyang is mostly completed. Permitting work is on track and not considered a material risk for the realization of the project.

The Group currently sees the overall project economics as challenging, primarily driven by site specific circumstances at the Yangyang grow-out site, in particular related to the intake and discharge water solution due to a relatively long and shallow shoreline at the grow-out site. Additionally, given that Korea has no existing salmon farming industry, certain other infrastructure items are impacting the project cost as well as operating cost. The project is currently working with authorities in South Korea on governmental financial support, further clarifications are expected during 2025. Meanwhile project activities have been scaled down and cash burn has been reduced to a minimum.

Financial performance

Going concern

The consolidated financial statement is prepared in accordance with International Financial Reporting Standards (IFRS). The Board confirms that it is appropriate to prepare the Annual Report based on a going concern assumption. The Group believes it is adequately funded and has access to additional capital if required.

Income statement

In 2024 the Group had operating revenues of 471.6 NOKm (168.4 NOKm), mostly related to harvest of 4,891 tonnes HOG salmon, including post smolt deliveries of 105 tonnes LW. The Group had some revenue from other sources, primarily government grants in relation to R&D projects. The 303 NOKm increase in revenues from 2023 reflects a 160 % increase in harvest volumes.

Operating expenses totalled 400.2 NOKm (204.7 NOKm). The increase from the same period last year is driven by the higher activity at the Group’s grow-out facility at Indre Harøy.

In 2024 Salmon Evolution had a positive EBITDA of 71.4 NOKm compared to a negative EBITDA of 84.0 NOKm in 2023. In the Farming segment EBITDA amounted to 112.4 NOKm (negative 23.2 NOKm).

For the year depreciations amounted to 76.1 NOKm (46.7), mostly related to the facility at Indre Harøy. Depreciations for the Indre Harøy facility commenced in May 2023. Additionally, depreciations of the upgrades undertaken at the smolt facility in Dale commenced in Q1-24.# BOARD STATEMENTS - BOARD OF DIRECTORS REPORT

01 This is Salmon Evolution

Letter from the CEO

Key figures

Board statements

Financial statement and result

Sustainability and corporate responsibility

Board of directors report

Operations in 2024

Financial performance

The fair value adjustment related to the biomass amounted to negative 10.5 NOKm, and the Group recorded an operating profit of negative 15.2 NOKm (loss of 110.5 NOKm) in 2024. Net financials amounted to negative 32.2 NOKm (negative 35.2 NOKm), primarily due to interest rate expenses, partly offset by interest income on bank deposits and gain on the interest rate hedge. The Group recorded no tax cost, and the loss ended at 47.4 NOKm (loss of 145.8 NOKm).

Cash flow

Cash flow from operating activities ended at 43.3 NOKm in 2024 (negative 124.4 NOKm), a significant improvement from the same period last year driven by the much higher harvest activity and strong financial results. With the Indre Harøy phase 2 expansion project the investments are ramping up. Net cash flow from investing activities were negative at 342.5 NOKm (negative 338.5 NOKm). Cash flow from financing activities in 2024 was driven by the successful equity raise that took place in June and ended at 342.3 NOKm (570.5 NOKm). Net change in cash and cash equivalents for 2024 was 43.1 NOKm (107.6 NOKm), and as of 31 December 2024 cash and cash equivalents amounted to 429.4 NOKm and total available liquidity of 684 NOKm including committed undrawn credit facilities.

Financial position

On 31 December 2024 the book value of the Group’s assets was 3,184.8 NOKm (2,709.6 NOKm per 31.12.2023). The main increase from previous periods is related to the ongoing Indre Harøy phase 2 expansion project. The fixed assets in the Group mostly relate to the facility at Indre Harøy, comprising land, buildings, and production equipment, as well as the Dale smolt facility and other smaller items. There are no significant movements from the previous quarter. The current assets in the Group are primarily biological assets, other current receivables, and cash & cash equivalents. Total equity amounted to 2,223.3 NOKm which corresponds to an equity ratio of 70%. Consolidated net interest-bearing liabilities totalled 313.1 NOKm at the end of the quarter. In relation to its long-term financing the Group have financial covenants. These are described in detail in note 22.

Financial Statement Item	2024	2023
Income statement
Other income	33.2 NOKm	29.4 NOKm
Profit before tax	71.4 NOKm	4.1 NOKm
Tax cost	0 NOKm	0 NOKm
Net cash flow	377.4 NOKm	-
Financial Position
Total assets	2,776.5 NOKm	2,350.4 NOKm
Total liabilities	190.4 NOKm	140.9 NOKm
Equity	2,586 NOKm	-
Equity ratio	93%	-

Note: The provided text for Salmon Evolution ASA's financial statement did not contain all comparative figures for all line items in the same structure as the Group's financials. The table above reflects the information available.

Risk exposure and risk management

Salmon Evolution’s activities entail exposure to various types of risks and uncertainty, that may prevent us from reaching our goals and deliver our strategy. Risk management is a key function of the management team, and Salmon Evolution has systems and routines in place to significant risk factors in all business areas. Through our risk management process we identify, quantify, and define actions to manage the risks we face. We split our defined risks into relevant subcategories, and efforts to reduce risk are addressed by our most capable people within each business area. Salmon Evolution has liability insurance which covering the Board of Directors, the CEO and executive management.

Salmon Evolution categorizes risk into five categories:

Operational risk
Project execution risk
Financial risk
Reporting risk
Regulatory risk

Operational risk

Salmon Evolutions most important operational risks relate to the biological development of the salmon, both at the hatchery and in the grow-out facility. It is the nature of salmon farming that inherent biological risks will always be present. Through our use of the hybrid flow-through technology at the grow-out facility Salmon Evolution seeks to reduce the biological risk by providing the salmon with an optimal and controlled growth environment. At the same time a hybrid-flow-through facility is a large and complex process operation, and Salmon Evolution is vulnerable to errors in technology, follow up of operating procedures and maintenance routines.

Salmon Evolutions operating procedures are designed to reduce biological risk and risk of errors in operating the facility. At the grow-out facility critical parameters for all fish groups are monitored real-time, providing deep insight into the performance of each group and enabling preventive risk reduction measures. Salmon Evolution has built up effective capabilities to deal with biological challenges. For instance, has the Group during 2024 installed vastly improved freshwater production capabilities at Indre Harøy (reverse osmosis plant). As a first mover utilizing the hybrid flow-through technology to produce salmon, Salmon Evolution has also built significant know-how in operating land-based salmon farms and turning know-how into risk reducing operation procedures are deeply rooted in the Company. Vaccination against various diseases is an integral part of the Groups operating procedures.

Access to sustainable feed materials is a vital part of risk management, as feed is the most important input factor for the salmon during the lifecycle. Salmon Evolution, through its cooperation with Cargill, are continuously evaluating and improving the feed ingredients to optimize the feed composition.

Project execution risk

Building a land-based salmon farm is a large and complex project. Successful execution and construction are critical for the Group’s business plan. The most important risks are related to design and execution errors, delays during the execution phase and cost overruns. Salmon Evolution has built up in-house capabilities on project execution, as well as employing subject matter experts in fields considered critical for the success of its farms. The vast amount of data and know-how Salmon Evolution possess on operating a hybrid flow-through facility, reduce the risk of design and execution errors.

Salmon Evolution has a defined contractor strategy, where the Company gradually takes on more responsibility, exemplified in the differences in contract structure between Indre Harøy phase 1 and 2; in phase 1 Salmon Evolution had one contractor, in phase 2 there are two contractors in addition to own deliverables. In the current contract structure for phase 2 there are moderate risk sharing elements to incentivise realization of the project at target price and on-time.

Financial risks

Through its activities Salmon Evolution is exposed to various kinds of financial risk, i.e. market risk, currency risk, interest rate risk and liquidity risk. Group management oversees the management of these risks and draws up guidelines for addressing them. Financial risk is managed by the Chief Financial Officer of Salmon Evolution.

Market/price risk

Salmon Evolutions entire business is related to the production and sale of salmon, and profitability and cash flow are closely linked to movements in the price of salmon. Historically salmon prices have been volatile with a clear seasonal pattern. Over a long period of time demand has grown steadily, whilst supply has varied more driven by fluctuations in sea temperatures and biological challenges for the net-pen farmers which in all material respect produce the salmon sold globally.

Salmon Evolution has not used fixed-price contracts to reduce the price risk but consider it likely that such hedging instruments will be used in the future as they are a good fit to the production model ensuring steady supply through the year. Furthermore, the Group is exposed to changes in market prices for the input factors used in the production process, in particular feed prices and electricity prices. As to the latter, the Group has hedged about half of its expected electricity needs for 2025-2027, with a gradually declining hedging profile.

Currency risk

The Group’s currency risk relates to the Group’s operating, investing, and financing activities denominated in a foreign currency. This includes the Group’s revenues, expenses, and capital expenditures. From time to time the group utilizes financial instruments to hedge its currency exposure. Salmon is predominantly sold in USD or EUR. The Group are using hedging instruments to hedge the currency exposure on its sales contracts in the period from sale to settlement. The Group did not have any material exposure in foreign currency contracts at the end of the year. The Group’s presentation currency is Norwegian Kroner (“NOK”).

Interest Rate risk

The Group’s interest rate risk relates primarily to borrowings from financial institutions with floating interest rates. The Group has a clear hedging policy and has entered into hedging programs to reduce this risk for parts of its current and planned borrowings in line with this policy. As of 31 December 2024, outstanding loans from credit institutions amounted to NOK 727.6 million (excluding financial leasing).

Responsible business practices

People

Outlook

Board of directors

Corporate governance# Salmon Evolution Annual Report 2024

BOARD STATEMENTS - BOARD OF DIRECTORS REPORT

01 This is Salmon Evolution

Letter from the CEO 3

Key figures 4

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

Board of directors report

27 Operations in 2024

28 Financial performance

31 Risk exposure and risk management

32 Responsible business practices

34 People

34 Outlook

35 Board of directors

36 Corporate governance

37

Risk exposure and risk management

The Group’s bank loans have an interest rate of NIBOR 3M plus an agreed margin. For further information see note 22.

Credit risk

With respect to credit risk arising from the financial assets of the Group, which comprise cash and cash equivalents, and other receivables, the Group’s exposure to credit risk arises from default of the relevant counterparty. The Group has procedures in place to ensure that products are only sold to customers with satisfactory creditworthiness, and in all material respect use credit insurance. This risk is not considered to be material on 31 December 2024.

Liquidity risk

A lack of liquidity will entail a risk that the Group will not be able to pay its obligations on maturity. Management monitors rolling forecasts of the Group’s liquidity reserve (comprising cash and cash equivalents) based on expected cash flows. The Group’s business plan and growth strategy is capital intensive, and the Group may be dependent upon future equity issues and/or debt financing to finance its current and long-term plans.

Reporting risk

Salmon Evolution are subject to Norwegian and European Union financial market regulations, as well as the rules of the Oslo Stock Exchange. The follow-up of internal controls related to financial is carried out through management’s day-to-day supervision, and follow-up and monitoring by the Group’s audit committee. Salmon Evolution has implemented a finance operating model and internal controls to address these risks, and have a continuous focus on improving the design and implementation of these.

Regulatory risk

The land-based aquaculture industry is exposed to changes in laws and regulations that could materially impact current facilities and future growth opportunities. Salmon Evolution continuously monitors the development and provides input to relevant committees and hearings.

Responsible business practices

Salmon Evolution is committed to responsible business practices with respect to human rights, labor standards, equality, social matters, anti-corruption and the environment. Salmon Evolution shall comply with the principles outlined with the UN Global Compact and OECD guidelines for multinational companies. Salmon Evolution complies fully with the Norwegian Transparency Act (“Åpenhetsloven”). The report is available at www.salmonevolution.no and will be updated by June 2025 as mandated by law. Salmon Evolution has a Code of Conduct that applies to all employees, contract workers, board members and other persons acting on behalf of Salmon Evolution. The Code of Conduct is available at www.salmonevolution.no. Salmon Evolution is committed to the Norwegian anti-discrimination act and strive to provide equal opportunities. For further information related to environmental conditions see chapter for “Sustainability and corporate responsibility”.

People

Health and safety

Salmon Evolution aims to have zero injuries amongst its staff, employee safety and a healthy working environment is high on the Board’s agenda. In 2024 the company had 3 injuries that resulted in time lost from work (LTI).

Diversity and equal rights

Salmon Evolution is committed to the Norwegian anti-discrimination act and strive to provide equal opportunities. The gender ratio in the Group is 33 % women and 67 % men at the end of 2024. The Group works actively in offering apprenticeships to young employees. For further information related to sick leave see chapter for “Sustainability and corporate responsibility”.

Outlook

2024 has been a transformative year, where Salmon Evolution has proven the concept of land-based salmon farming with a hybrid flow-through system, both technically and biologically. The technology and our highly skilled and motivated employees, coupled with a unique data driven growth environment, gives us insights and opportunities for further improvements of production, fish welfare and financial results.

To further improve operations and build Indre Harøy phase 2 – which upon completion more than doubles the production capacity at Indre Harøy – will be Salmon Evolution’s main priorities for the coming year. With the phase 2 expansion at Indre Harøy progressing as planned, investments accelerated in 2024. Phase 2 will be transformative for Salmon Evolution, ensuring critical scale and supporting a substantial organic investment capacity for Salmon Evolution.

Norway has many unique characteristics making it ideal for land-based salmon farming. The strong results achieved in 2024 further underscores this and the benefits of being in the hearth of the global aquaculture cluster, with easy access to the world’s most efficient salmon farming value chain. The Norwegian government also sent a suggestion rules for land-based aquaculture on public hearing during 2024. These rules are expected to become law in 2025, significantly reducing the regulatory risk. This further underlines the relative attractiveness of Norway and sets Norway apart from other countries as the most attractive place to invest in and grow the business.

What Salmon Evolution has built in Norway is truly unique and represents a strong platform for further growth in a world where the geopolitical uncertainty has increased. Looking ahead, Salmon Evolution enters 2025 with a solid foundation for continued growth. The company is well-positioned to benefit from a tight global salmon market, with supply growth expected to remain constrained. Industry forecasts indicate limited supply expansion, which, combined with strong demand, supports a positive pricing outlook for salmon in the coming years. The company remains fully committed to its long-term vision: to be a global leader in land-based salmon farming, delivering sustainable, high-quality salmon while continuously driving biological and operational excellence. With phase 1 at Indre Harøy in full operation and phase 2 well underway, Salmon Evolution is in a unique position to capitalize on future opportunities and further solidify its leadership in the industry.

Board of directors

Tore Tønseth Chairman of the board
Peder Stette Board Member
Anne Breiby Board Member
Ingvild Vartdal Board Member
Vibecke Bondø Board Member
Eunhong Min Board Member
Jan-Emil Johannessen Board Member

Regional and international entrenchment and industry-based expertise characterise our directors. Their common denominator and driving force are a belief in farming salmon sustainably on land, based on the board’s overall expertise and the choice of the right technology.

Want to know more? Read about them on salmonevolution.no

Corporate governance

Salmon Evolution follows the Norwegian Code of Practice for Corporate Governance (“NUES” or the “Norwegian Code”). A full description of the Norwegian Code is available at www.nues.no. In the following sections Salmon Evolution has addressed the adherence to the 15 issues covered by the Norwegian Code. Salmon Evolution is fully compliant, except for section 14 regarding lack of explicit guidelines for dealing with takeover bids and section. Salmon Evolution currently does not have a remuneration committee as this is not considered necessary in the light of the composition of the board of directors but will consider establishing a remuneration committee going forward.

1. Implementation and reporting on corporate governance principles.

The Board of Directors of Salmon Evolution (the “Board”) is aware of its responsibilities with regards to development and implementation of internal rules, procedures and regulations to ensure the Company at its subsidiaries complies with the principles for good corporate governance. The governance documents and practices are subject to annual review. Salmon Evolution’s overall vision is “Extending the Ocean Potential”, and closely linked to this is the Company’s values “Responsible”, “Competent”, “Innovative” and “Team Player”. Salmon Evolution is made up of individuals with different nationalities, cultures, and customs.# BOARD STATEMENTS - CORPORATE GOVERNANCE

01 This is Salmon Evolution

Letter from the CEO

Key figures

Board statements

Financial statement and result

Sustainability and corporate responsibility

Board of directors report

Operations in 2024

Financial performance

Risk exposure and risk management

Responsible business practices

People

Outlook

Board of directors

Corporate governance

The Code of Conduct sets standards for the expected behaviour between colleagues and defines what external parties can expect from employees and representatives of Salmon Evolution. The Code of Conduct was last updated in 2024. The Code of Conduct is available at www.salmonevolution.no.

The Norwegian Code of Practice for Corporate Governance Compliance
1. Implementation and Reporting of Corporate Governance Principles - Compliant
2. Business - Compliant
3. Equity and Dividends - Compliant
4. Equal Treatment of Shareholders and Transactions with Related Parties - Compliant
5. Freely Negotiable Shares - Compliant
6. General Meeting - Partly compliant
7. Nomination Committee - Compliant
8. Corporate Assembly and Board of Directors: Composition and Independence - Compliant
9. The Work of the Board of Directors - Compliant
10. Risk Management and Internal Control - Compliant
11. Remuneration of the Board of Directors - Compliant
12. Remuneration of Executive Management - Compliant
13. Information and communications - Compliant
14. Takeovers - Partly compliant
15. Auditor - Compliant

Salmon Evolution Annual Report 2024 37

BOARD STATEMENTS - CORPORATE GOVERNANCE

2. Business

Salmon Evolution is the world’s largest land-based salmon farmer. The Company’s objective is defined in the articles of association: “The company’s operations are investments and land-based salmon farming, both nationally and internationally, and investments in companies connected to the aquaculture industry.“ The articles of association is available at Salmon Evolution’s website www.salmonevolution.no.

Salmon Evolution’s board has defined clear objectives and strategies to secure optimal value creation for its shareholders and other stakeholders. The strategic priorities defined by the board are systematically assessed at regular intervals by the group management team. The company’s objectives and main strategies are shared in the annual report and can be found on the company’s website www.salmonevolution.no.

3. Equity and dividends

The shareholders equity as at December 31, 2024 was NOK 3,090 million (2,806 million) which represents 97.0 % (103.6 %) of the total assets. Since its inception Salmon Evolution has actively been using the debt and capital markets to fund its growth roadmap. The Company is continually optimizing its capital structure through strategic financial management, carefully balancing debt and equity to maintain financial stability whilst also funding expansion projects. By regularly evaluating and adjusting its capital structure, the company aims to reduce costs and improve returns on capital employed.

The board has defined a clear dividend policy for Salmon Evolution. The financial statements for the parent company show a net loss of NOK 47.4 million for the year. The Board of Directors proposes that the loss be covered by a transfer from other equity.

4. Equal treatment of shareholders and transactions with related parties

Salmon Evolution has one class of shares. All shares carry equal rights in the Company, and the Articles of Association do not contain any provisions restricting the exercise of voting rights. Any purchase or sale by of own shares will be through the Oslo Stock Exchange or at prices quoted on the Oslo Stock Exchange. Any transaction between the Company and a related party will be on arm’s length terms or, if relevant, will rest on a valuation obtained from an independent third party. In the event of capital increases based on authorisations issued by the general meeting of shareholders, where the existing shareholders’ rights are waived, the reason for this will be provided in a public announcement in connection with the capital increase.

5. Freely negotiable shares

All shares in the Company have equal rights and may be traded freely.

6. General meeting

The company’s highest decision-making body is the General Meeting of Shareholders, and the general meetings are open to participation by all shareholders. An invitation to attend the AGM or an EGM will be issued no later than 21 days prior to the date of the meeting. In accordance with the company’s articles of association, documents relating to matters to be addressed at a general meeting of shareholders may be made available on Salmon Evolution ASA’s website. The same applies to documents which by law must be included in or attached to the invitation to attend the general meeting. If the documents are made available in this way, the statutory requirement with respect to distribution to shareholders is not applicable. A shareholder may nevertheless ask to be sent documents relating to matters to be discussed at a general meeting by post. Case documents must contain all the documentation necessary to enable shareholders to take a standpoint on all matters to be addressed.

Pursuant to section 5-11 of the Public Limited Companies Act, shareholders are also entitled to table their own items for consideration by the general meeting. The deadline for notification of shareholders’ intention to attend a general meeting is stipulated by the Board of Directors in the invitation thereto, no less than five days prior to the date of the meeting. Shareholders may send notification of their attendance, using the form provided, by post or email to the company’s account manager DNB, or via the company’s website www.salmonevolution.no. Shareholders are entitled to make proposals and cast their votes either in person or through a proxy, including a proxy appointed by the company. The proxy form also enables shareholders to grant a proxy vote for each individual agenda item and in connection with the election of each board member. Shareholders are entitled to cast their votes on each individual item on the agenda, including each individual Director nominated to the Board or members for the Nomination Committee. The Board determines the agenda for the meeting, and the main issues to be dealt with by the AGM are regulated by Article 9 of the company’s articles of association and section 5-6 of the Public Limited Companies Act. The Board Chair and the company’s auditor will be represented at general meetings, which will normally be chaired by the Board Chair. Other members of the Board of Directors and members of the Nomination Committee may in addition be represented at general meetings.

Deviations from the code of practice: It is considered from time to time whether the entire Board of Directors and the Chair of the Nomination Committee will be present at the general meetings.

Salmon Evolution Annual Report 2024 38

BOARD STATEMENTS - CORPORATE GOVERNANCE

7. Nomination Committee

The General Meeting of Shareholders elects the company’s nomination committee (the “Nomination Committee”). The Nomination Committee consists of three members: Frode Håkon Kjølås (Chair), Berit Rogne and Trond Svinø. All members of the committee are independent of the Board and the company’s executive management. The Nomination Committee submits its recommendations to the General Meeting of Shareholders regarding the election of members to the Board and the Nomination Committee and their respective remuneration. The general meeting has approved a set of instructions defining the responsibilities of the Nomination Committee. These instructions are available at www.salmonevolution.com. All shareholders are invited to propose candidates to the Board and the Nomination Committee through the company’s website.

8. Corporate assembly and Board of Directors: composition and independence

The company does not have a corporate assembly. According to the company’s articles of association, the company shall have a Board consisting of a minimum of five and a maximum of nine members. The Chair of the Board is elected by the general meeting based on a proposal from the Nomination Committee, as are the other members representing the shareholders. Board members are elected for a period of two years at a time. To ensure continuity, not all seats on the Board come up for election in the same year. At present, the Board consists of seven members. All Board members are considered independent of the company’s executive management and material business partners. At present six out of seven board members own shares or are closely associated with large shareholders.

9. The work of the Board of Directors

According to the Norwegian Public Limited Liability Companies Act, the Board has overall responsibility to oversee the management of the company, while the CEO is responsible for day-to-day management. The Board is responsible for ensuring that the Group’s activities are soundly organised, and for approving all plans and budgets for the activities of the Group. The Board approves a statement of the CEO’s duties, responsibilities and authorisations. The Board keeps itself informed about the Company’s activities and financial situation and is under an obligation to ensure that its activities, financial statements, and asset management are subject to adequate control through the review and approval of the Company’s monthly and quarterly reports, and annual financial statements.# BOARD STATEMENTS - CORPORATE GOVERNANCE

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

03 Board statements

Board of directors report 27
Operations in 2024 28
Financial performance 31
Risk exposure and risk management 32
Responsible business practices 34
People 34
Outlook 35
Board of directors 36
Corporate governance 37

The Board shall also ensure that the Group has satisfactory internal control systems. The CEO is in charge of the day-to-day management of Salmon Evolution and is responsible for ensuring that the Company is organised in accordance with applicable laws, the company’s articles of association and the decisions adopted by the Board and the company’s general meeting. The CEO has particular responsibility for ensuring that the Board receives accurate, relevant and timely information in order to enable it to carry out its duties. The CEO shall also ensure that the Group’s financial statements comply with Norwegian legislation and regulations and that the assets of the company are soundly managed. The Board makes an annual assessment of its own work and competence.

The Board held nineteen meetings during 2024.

Name	Role	Elected	Independent of management and material business associates? (yes/no)	Independent of major shareholder? (yes/no)	Board meeting attendance 2024	Comment
Tore Tønseth	Chair	2026	Yes	Yes	19/19	Closely associated with Ronja Capital Investment AS
Anne Breiby	Director	2025	Yes	Yes	19/19
Peder Stette	Director	2025	Yes	Yes	18/19	Closely Associated with Stette Invest AS
Ingvild Vartdal	Director	2026	Yes	Yes	19/19
Vibecke Bondø	Director	2025	Yes	Yes	18/19	Closely Associated with Bondø Invest AS
Jan-Emil Johannessen	Director	2025	Yes	Yes	18/19	Closely Associated with Jawendel AS
Eunhong Min	Director	2026	No	Yes	11/19	Closely associated with Dongwon Industries

10. Risk management and internal control

The Board and Group management are responsible for establishing adequate risk management and internal control systems. The company’s systems and procedures for risk management and internal control are intended to ensure compliance with relevant legislation and regulations, efficient operations, as well as timely and correct financial reporting. The Board performs an annual review of the company’s risk management and corporate governance. The most important risk factors of Salmon Evolution are biological risks related to the operation of the smolt and grow-out facility, technical risks primarily related to the operation of the grow-out facility and financial risks. The financial risks are predominantly fluctuations in salmon price, currencies and interest rates. It is the CEO’s responsibility to ensure that the company operates in accordance with all relevant statutes and guidelines.

Internal control over financial reporting

The Board and Group management are responsible for establishing and maintaining adequate internal control over financial reporting, and the process for internal control is developed under the supervision of the Chief Financial Officer. The process is established to provide reasonable assurance of the reliability of financial reporting in the Company, as well as ensuring that the preparation of Salmon Evolution’s financial statements are in accordance with the applicable Financial Reporting Standards. The Audit Committee monitors financial reporting and its related internal controls, including application of accounting principles and informed judgements. The Chief Financial Officer and the Audit Committee have regular meetings with the external auditor present to discuss issues related to financial reporting.

Code of conduct and ethical guidelines

The Code of Conduct describes Salmon Evolution ASA’s commitment and requirements in connection with ethical issues relevant to business practice and personal conduct. The Code of Conduct has been communicated to employees, and each employee is expected to make a personal commitment to abide by the Code of Conduct. Salmon Evolution ASA’s whistle blowing procedure facilitates reporting concerns about potential violations of law and breaches of the Code of Conduct. On whistle blowing the Company had no reported cases in 2024.

11. Remuneration of the Board of Directors

Remuneration for the members of the Board is determined by the General Meeting of Shareholders. The remuneration reflects the Board’s responsibility, expertise, time and the complexity of the Company’s activities. The remuneration is not linked to the Company’s performance. All members of the Board, with the exception of the Chair, receives the same remuneration. The members of the Audit Committee receive separate, additional remuneration. The fee paid to the members of the Board is fixed for each 12-month period. The remuneration paid to members of the Board is disclosed in the Remuneration Report according to Allmennaksjeloven (The Public Limited Liability Companies Act) § 6-16 b.

12. Remuneration of Executive Management

The Board of Salmon Evolution ASA determines the principles applicable for compensation of senior executives. The Board is directly responsible for determining the CEO’s salary and other benefits. The CEO is, in consultation with the Chair of the Board, responsible for determining the salary and other benefits for the Group’s other senior executives. Remuneration of the company’s CEO and the executive management team is disclosed in the Remuneration Report according to Allmennaksjeloven (The Public Limited Liability Companies Act) § 6-16 b. In compliance with the Norwegian Public Limited Liability Companies Act, the Board prepares a statement regarding the remuneration of the executive management team for consideration by the General Meeting of Shareholders. The remuneration package for corporate executive staff consists of the following main elements:

Fixed salary
Pension
Benefits in kind
Termination payment
Incentive scheme

13. Information and communications

Each year the Company publishes its financial calendar detailing when it will present quarterly reports, the annual report and the date of the General Meeting of Shareholders. All information concerning major events is publicly disclosed in accordance with the regulations of the Oslo Stock Exchange and posted on the Company’s website. The Company holds physical presentations of its quarterly results (also available via webcast).

Investor relations policy

Salmon Evolution’s Investor Relations Policy sets the basic principles for our communication and dialogue with capital markets participants, including guidelines for contact with shareholders outside general meetings. We are committed to providing our shareholders with accurate, clear, relevant, and complete information on our performance and market position. Communication with stakeholders shall be based on the principles of equal treatment and transparency, and we aim to continually ensure trust and stakeholder confidence. The responsibility for Salmon Evolution’s investor relations activities lies with our Chief Financial Officer.

14. Takeovers

In the event the Company becomes the subject of a takeover bid, the board of directors shall seek to ensure that the Company’s shareholders are treated equally and that the Company’s activities are not unnecessarily interrupted. The board of directors shall also ensure that the shareholders have sufficient information and time to assess the offer. There are no defence mechanisms against takeover bids in the Company’s Articles of Association, nor have other measures been implemented to specifically hinder acquisitions of shares in the Company. The board of directors has not established written guiding principles for how it will act in the event of a takeover bid.

15. Auditor

EY is the Company’s elected auditor. The auditor is independent of Salmon Evolution ASA and is appointed by the General Meeting of Shareholders. The auditor’s fee is approved by the General Meeting of Shareholders. The auditor presents an audit plan to the Audit Committee and is present at Board meetings dealing with the preparation of the annual accounts where the audited financial statements and internal control procedures are reviewed and approved. The auditor participates in the General Meeting of Shareholders.

04 Financial statements and results

Read chapter

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss (NOK thousands)

	Note	2024 Consolidated	2023 Consolidated
Sales revenues from farming	4 , 5	467 742	153 325
Other income	4 , 5	3 831	15 099
Total operating revenue and other income		471 573	168 424
Change in inventory	6 , 7	29 603	78 476
Cost of materials	7	-200 933	-126 180
Personnel Expenses	8 , 9	-68 046	-76 052
Other Operating expenses	8 , 10	-160 781	-128 619
Operational EBITDA		71 415	-83 950
Depreciations	11	-76 142	-46 730
Operational EBIT		-4 727	-130 680
Fair value adjustment of

01 This is Salmon Evolution

Letter from the CEO

Key figures

03 Board statements

04 Financial statement and result

Salmon Evolution Annual Report 2024

Sustainability and corporate responsibility

Consolidated statement of profit or loss (NOK thousands)

Note	2024 Consolidated	2023 Consolidated
Profit/loss for the period	-47 405	-145 773
Items that are or may be reclassified to profit or loss:
Currency translation differences	13 -178	-861
Total comprehensive income for the period, net of tax	-47 584	-146 634

Salmon Evolution Annual Report 2024 43

FINANCIAL STATEMENTS AND RESULTS – CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Group consolidated financial statements (IFRS)

43 Consolidated statement of profit or loss
43 Consolidated statement of comprehensive income
43 Consolidated statement of financial position
44 Consolidated statement of cash flows
45 Consolidated statement of changes in equity
46
Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in assosiated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

Consolidated statement of financial position (NOK thousands)

Note	31.12.2024 Consolidated	31.12.2023 Consolidated
Assets
Intangible assets	11 , 16 81 101	72 347
Deferred tax asset	14 0	415
Assets under construction	11 481 778	70 781
Assets in use, not allocated	11 0	54 019
Property, plant & equipment	11 1 824 284	1 848 190
Right-of-use assets	17 17 857	12 084
Investments in associated companies	13 10 689	18 676
Total non-current assets	2 415 709	2 076 513
Inventory	6 12 866	8 369
Biological assets	6 171 004	153 790
Trade receivables	3 90 522	40 496
Other current receivables	18 51 142	31 121
Financial derivatives	3 , 19 13 643	12 900
Cash and cash equivalents	3 , 20 429 462	386 396
Total current assets	768 639	633 072
Total assets	3 184 348	2 709 585

Consolidated statement of financial position (NOK thousands)

Note	31.12.2024 Consolidated	31.12.2023 Consolidated
Equity and liabilities
Share capital	21 23 130	20 697
Share premium	21 2 415 049	2 124 647
Other reserves	9 , 21 11 483	10 758
Other equity	0	0
Uncovered losses	-226 402	-235 408
Total equity	2 223 260	1 920 693
Long-term interest-bearing debt	3 , 22 569 100	569 969
Lease liabilities - long term	3 , 17 , 22 9 668	8 189
Other long term liabilites	22 3 643	8 702
Total non-current liabilities	582 411	586 859
Short-term interest-bearing debt	3 , 22 158 488	103 275
Trade payables	3 , 23 , 24 193 384	71 499
Social security and other taxes	23 7 080	8 273
Lease liabilities - short term	3 , 17 , 22 5 317	4 350
Other short-term liabilities	23 14 408	14 635
Total current liabilities	378 677	202 032
Total liabilities	961 088	788 892
Total equity and liabilities	3 184 348	2 709 585

The Board of Directors of Salmon Evolution ASA
Elnesvågen/Ålesund 10 April 2025

Tore A Tønseth CHAIR
Peder Stette DIRECTOR
Anne Breiby DIRECTOR
Ingvild Vartdal DIRECTOR
Vibecke Bondø DIRECTOR
Eunhong Min DIRECTOR
Jan-Emil Johannessen DIRECTOR
Trond Håkon Schaug-Pettersen CEO
Digital signature

Salmon Evolution Annual Report 2024 44

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Group consolidated financial statements (IFRS)

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

Consolidated statement of cash flows (NOK thousands)

Note	2024 Consolidated	2023 Consolidated
Cash flows from operating activities
Profit/loss for the period	-47 405	-145 773
Adjustments for:
Depreciation, amortisation and impairment loss	11 76 142	46 730
Net financials	12 32 180	35 241
Share based payment expenses	21 726	2 438
Changes in working capital:
Change in trade receivables	-50 026	-15 605
Change in other current receivables	16 -11 073	33 785
Change in inventory and biological assets	6 -32 209	-81 143
Change in fair value of biomass	6 10 498	-20 149
Change in trade payables	23 65 583	12 330
Change in social security and other taxes	23 -779	772
Change in other current liabilities	23 -306	6 928
Cash (outflow) from operating activities	43 331	-124 445
Cash flow from investment activities
Payments for fixed assets	11 , 16 -358 584	-375 739
Proceeds from government grants	11 , 16 764	24 123
Payments for intangible assets	11 -12 176	-7 201
Financial income received	12 27 434	20 381
Net cash (outflow) from investment activities	-342 562	-338 436
Proceeds from issue of equity	21 365 000	525 000
Transaction costs	21 -15 575	-24 017
Proceeds from new borrowings	3,22 50 185	104 875
Repayment of borrowings	3,22 -900	0
Payments of principal portion of lease liabilities	17 -5 354	0
Interest paid lease liabilities	17 -941	0
Change in lease liabilities	17 0	227
Financial expenses paid	12 -50 118	-35 568
Net cash (outflow) from financing activities	342 297	570 517
Net change in cash and cash equivalents	43 066	107 636
Cash and cash equivalents at the beginning of the period	20 386 396	278 759
Cash and cash equivalents at the end of the period	20 429 462	386 396

Salmon Evolution Annual Report 2024 45

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – CONSOLIDATED STATEMENT OF CASH FLOWS

Group consolidated financial statements (IFRS)

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

Consolidated statement of changes in equity (NOK thousands)

Note	2024 Consolidated	2023 Consolidated
Share capital	23 130	20 697
Share premium	2 415 049	2 124 647
Other reserves	11 483	10 758
Other equity	0	0
Uncovered losses	-226 402	-235 408
Total equity	2 223 260	1 920 693
Share Capital & Capital history	21	73
Other reserves	9, 21	60, 73

Notes to the Consolidated Financial Statements

Note	Description	Page
Note 1	Summary of significant accounting policies	47
Note 2	Critical estimates and judgments	51
Note 3	Financial risk and capital management	52
Note 4	Operating revenue and other income	55
Note 5	Segment	56
Note 6	Biological assets and inventory	57
Note 7	Cost of materials and change in inventory	58
Note 8	Personnel expenses, remuneration to the board and auditor's fee	59
Note 9	Share based payments	60
Note 10	Other operating expenses	61
Note 11	Property, plant, equipment and intangible asset	62
Note 12	Finance income & finance cost	65
Note 13	Investment in assosiated companies	66
Note 14	Taxes	67
Note 15	Earnings per share	68
Note 16	Government grants	69
Note 17	Leases	70
Note 18	Other current receivables and prepayments	71
Note 19	Derivative financial instruments	72
Note 20	Cash and restricted cash	72
Note 21	Share Capital & Capital history	73
Note 22	Interest bearing debt	75
Note 23	Trade and other current liabilities	76
Note 24	Related party balances and transactions	77
Note 25	Climate risk	78
Note 26	Events after the reporting date	78

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

02 Sustainability and corporate responsibility

01 This is Salmon Evolution

Letter from the CEO

Key figures

03 Board statements

04 Financial statement and result

Salmon Evolution Annual Report 2024

Consolidated statement of profit or loss (NOK thousands)

Note	2024 Consolidated	2023 Consolidated
Operating Profit (EBIT)	-15 225	-110 532
Financial income	12 28 239	21 481
Financial expense	12 -52 610	-49 624
Share of net income from associated companies	13 -7 809	-7 098
Net financial	-32 180	-35 241
Profit/loss before tax	-47 405	-145 773
Income tax expense	14 0	0
Profit/loss for the period	-47 405	-145 773
Basic earnings per share (NOK)	15 -0,11	-0,37
Diluted earnings per share (NOK)	15 -0,11	-0,37

Consolidated statement of comprehensive income (NOK thousands)

Note	2024 Consolidated	2023 Consolidated
Profit/loss for the period	-47 405	-145 773
Items that are or may be reclassified to profit or loss:
Currency translation differences	13 -178	-861
Total comprehensive income for the period, net of tax	-47 584	-146 634

Salmon Evolution Annual Report 2024 43

FINANCIAL STATEMENTS AND RESULTS – CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Group consolidated financial statements (IFRS)

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

Consolidated statement of financial position (NOK thousands)

Note	31.12.2024 Consolidated	31.12.2023 Consolidated
Assets
Intangible assets	11 , 16 81 101	72 347
Deferred tax asset	14 0	415
Assets under construction	11 481 778	70 781
Assets in use, not allocated	11 0	54 019
Property, plant & equipment	11 1 824 284	1 848 190
Right-of-use assets	17 17 857	12 084
Investments in associated companies	13 10 689	18 676
Total non-current assets	2 415 709	2 076 513
Inventory	6 12 866	8 369
Biological assets	6 171 004	153 790
Trade receivables	3 90 522	40 496
Other current receivables	18 51 142	31 121
Financial derivatives	3 , 19 13 643	12 900
Cash and cash equivalents	3 , 20 429 462	386 396
Total current assets	768 639	633 072
Total assets	3 184 348	2 709 585

Consolidated statement of financial position (NOK thousands)

Note	31.12.2024 Consolidated	31.12.2023 Consolidated
Equity and liabilities
Share capital	21 23 130	20 697
Share premium	21 2 415 049	2 124 647
Other reserves	9 , 21 11 483	10 758
Other equity	0	0
Uncovered losses	-226 402	-235 408
Total equity	2 223 260	1 920 693
Long-term interest-bearing debt	3 , 22 569 100	569 969
Lease liabilities - long term	3 , 17 , 22 9 668	8 189
Other long term liabilites	22 3 643	8 702
Total non-current liabilities	582 411	586 859
Short-term interest-bearing debt	3 , 22 158 488	103 275
Trade payables	3 , 23 , 24 193 384	71 499
Social security and other taxes	23 7 080	8 273
Lease liabilities - short term	3 , 17 , 22 5 317	4 350
Other short-term liabilities	23 14 408	14 635
Total current liabilities	378 677	202 032
Total liabilities	961 088	788 892
Total equity and liabilities	3 184 348	2 709 585

The Board of Directors of Salmon Evolution ASA
Elnesvågen/Ålesund 10 April 2025

Salmon Evolution Annual Report 2024 44

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Group consolidated financial statements (IFRS)

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

Consolidated statement of cash flows (NOK thousands)

Note	2024 Consolidated	2023 Consolidated
Cash flows from operating activities
Profit/loss for the period	-47 405	-145 773
Adjustments for:
Depreciation, amortisation and impairment loss	11 76 142	46 730
Net financials	12 32 180	35 241
Share based payment expenses	21 726	2 438
Changes in working capital:
Change in trade receivables	-50 026	-15 605
Change in other current receivables	16 -11 073	33 785
Change in inventory and biological assets	6 -32 209	-81 143
Change in fair value of biomass	6 10 498	-20 149
Change in trade payables	23 65 583	12 330
Change in social security and other taxes	23 -779	772
Change in other current liabilities	23 -306	6 928
Cash (outflow) from operating activities	43 331	-124 445
Cash flow from investment activities
Payments for fixed assets	11 , 16 -358 584	-375 739
Proceeds from government grants	11 , 16 764	24 123
Payments for intangible assets	11 -12 176	-7 201
Financial income received	12 27 434	20 381
Net cash (outflow) from investment activities	-342 562	-338 436
Proceeds from issue of equity	21 365 000	525 000
Transaction costs	21 -15 575	-24 017
Proceeds from new borrowings	3,22 50 185	104 875
Repayment of borrowings	3,22 -900	0
Payments of principal portion of lease liabilities	17 -5 354	0
Interest paid lease liabilities	17 -941	0
Change in lease liabilities	17 0	227
Financial expenses paid	12 -50 118	-35 568
Net cash (outflow) from financing activities	342 297	570 517
Net change in cash and cash equivalents	43 066	107 636
Cash and cash equivalents at the beginning of the period	20 386 396	278 759
Cash and cash equivalents at the end of the period	20 429 462	386 396

Salmon Evolution Annual Report 2024 45

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – CONSOLIDATED STATEMENT OF CASH FLOWS

Group consolidated financial statements (IFRS)

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

Consolidated statement of changes in equity (NOK thousands)

Note	2024 Consolidated	2023 Consolidated
Share capital	23 130	20 697
Share premium	2 415 049	2 124 647
Other reserves	11 483	10 758
Other equity	0	0
Uncovered losses	-226 402	-235 408
Total equity	2 223 260	1 920 693
Share Capital & Capital history	21	73
Other reserves	9, 21	60, 73

Notes to the Consolidated Financial Statements

Note	Description	Page
Note 1	Summary of significant accounting policies	47
Note 2	Critical estimates and judgments	51
Note 3	Financial risk and capital management	52
Note 4	Operating revenue and other income	55
Note 5	Segment	56
Note 6	Biological assets and inventory	57
Note 7	Cost of materials and change in inventory	58
Note 8	Personnel expenses, remuneration to the board and auditor's fee	59
Note 9	Share based payments	60
Note 10	Other operating expenses	61
Note 11	Property, plant, equipment and intangible asset	62
Note 12	Finance income & finance cost	65
Note 13	Investment in assosiated companies	66
Note 14	Taxes	67
Note 15	Earnings per share	68
Note 16	Government grants	69
Note 17	Leases	70
Note 18	Other current receivables and prepayments	71
Note 19	Derivative financial instruments	72
Note 20	Cash and restricted cash	72
Note 21	Share Capital & Capital history	73
Note 22	Interest bearing debt	75
Note 23	Trade and other current liabilities	76
Note 24	Related party balances and transactions	77
Note 25	Climate risk	78
Note 26	Events after the reporting date	78

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103# Salmon Evolution Annual Report 2024

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

03 Board statements 04

04 Financial statement and result

Salmon Evolution Annual Report 2024

02 Sustainability and corporate responsibility

Consolidated statement of changes in equity (NOK thousands)

	Share capital	Share premium	Other reserves	Other equity	Uncovered losses	Total equity
Balance at 1 January 2023	20	17 288	1 627 073	8 320	-88 774	1 563 906
Profit/loss for the period	0	0	0	0	-145 773	-145 773
Currency translation differences	0	0	0	0	-861	-861
Total comprehensive income	0	0	0	0	-146 634	-146 634
Private placement, April 2023	3 409 521	591	0	0	0	525 000
Private placement, transaction cost	0	-24 017	0	0	0	-24 017
Share options issued	21	0	0	2 438	0	2 438
Share options exercised	0	0	0	0	0	0
Transactions with owners	20	3 409 497	574	2 438	0	503 421
Balance at 31 December 2023	20	697 2 124	647 10 758	0	-235 408	1 920 693
Profit/loss for the period	0	0	0	0	-47 405	-47 405
Other comprehensive income	0	0	0	0	-178	-178
Total comprehensive income	0	0	0	0	-47 584	-47 584
Private placement June 2024	2 433 362	567	0	0	0	365 000
Private placement, transaction costs	0	-15 575	0	0	0	-15 575
Reclassification uncovered losses	0	-56 590	0	0	56 590	0
Share options issued	0	0	0	0	0	0
Share based payment expensed	0	0	726	0	0	726
Transactions with owners	2 433	290 402	726	0	56 590	350 151
Balance at 31 December 2024	10	23 130 2 415	049 11 483	0	-226 402	2 223 260

Salmon Evolution Annual Report 2024 46
Salmon Evolution Annual Report 2024
FINANCIAL STATEMENTS AND RESULTS – CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in assosiated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution
Letter from the CEO 3
Key figures 4
03 Board statements 04
Financial statement and result
Salmon Evolution Annual Report 2024
02 Sustainability and corporate responsibility

Note 1 - Summary of significant accounting policies

General information

Salmon Evolution ASA is a Norwegian public limited liability company listed on Oslo Stock Exchange. Salmon Evolution ASA and its subsidiaries, Salmon Evolution Norway AS, Salmon Evolution International AS, Salmon Evolution Dale AS and Salmon Evolution Sales AS (the “Company”, “SE” or “the Group”) is a Norwegian business headquartered in Hustadvika kommune in Møre og Romsdal. SE is building a land-based salmon farming facility at Indre Harøy, with a planned annual production of 31,500 tons HOG fully developed of which phase 1 has a planned annual production of 7,900 tons HOG. The build-out consists of three phases, with the first phase consisting of 12 large grow out tanks with corresponding infrastructure. SE will operate a hybrid flow-through (HFS) system, utilizing fresh seawater from the Norwegian coast. Construction start of phase I was in Q2 2020 and was completed mid April 2023. The first smolt batch was released at Indre Harøy late March 2022 as per original timeline, and the Group completed its first harvest in November 2022. Phase II consists of build out of an additional 12 grow out tanks with first smolt expected entered late Q1 2026. The last construction phase, phase III, consists of build-out of an additional 24 grow out tanks.

Consolidation

These consolidated statements for the period ended 31 December 2024 include Salmon Evolution ASA together with its subsidiaries Salmon Evolution Norway AS, Salmon Evolution International AS, Salmon Evolution Sales AS and Salmon Evolution Dale AS.

Consolidation principles

Subsidiaries are all entities over which the Group has control. The Group controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. The accompanying consolidated financial statements include the accounts of the subsidiaries mentioned above. When necessary, adjustments are made to the local financial statements of the Group subsidiaries to conform with the consolidated Group’s accounting policies presented under IFRS. All intercompany balances, transactions, and unrealized gains from intercompany transactions are eliminated upon consolidation. Unrealized losses from intercompany transactions are also eliminated upon consolidation unless the transaction provides evidence of an impairment of the transferred asset. The assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date in which the Group gains control until the date in which the Group ceases to control the subsidiary.

Basis of preparation

The consolidated financial statements of the Group for the year ended 31 December 2024 is prepared in accordance with IFRS® Accounting Standards as adopted by the EU. The consolidated financial statements ended 31 December 2024 comprise the income statement, statement of comprehensive income, statement of financial position, statement of cash flow, statement of changes in equity and note disclosures.

Going concern

The Group has prepared the consolidated financial statement on a going concern basis. When assessing this assumption, management has assessed all available information about the future. After making such assessments, management has a reasonable expectation that the Group has adequate resources to continue its operational existence for the foreseeable future.

Accounting policies

Adoption of new and revised standards

There are no new standards that have been applied in 2024 with significant effect on the financial statements. IFRS 18 Presentation and Disclosure in Finansiel Statements is effective for reporting periods beginning on or after 1 January 2027. The Group is currently working to identify all impacts the new requirements for presentation will have on the primary financial statements and notes to the financial statements.

Basis of measurement

The financial statements have been prepared under the historical cost basis, except for the following items:
- Financial derivatives, measured at fair value through profit or loss.
- Biological assets, measured at fair value through profit or loss.

Use of estimates
Critical accounting judgments and estimates are disclosed in note 2.

Functional and presentation currency

Items included in the financial statements are presented in the currency of the primary economic environment in which the entity operates (‘the functional currency’). The financial statements are presented in Norwegian kroner (NOK), which is the Parent company, and substantial subidiaries, functional and presentation currency.

Transactions and balances
Transactions in currencies other than the entity's functional currency (foreign currency) are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within other financial items. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are not subsequently revaluated.# Salmon Evolution Annual Report 2024 - 47

FINANCIAL STATEMENTS AND RESULTS – NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss - 43
Consolidated statement of comprehensive income - 43
Consolidated statement of financial position - 44
Consolidated statement of cash flows - 45
Consolidated statement of changes in equity - 46

Note 1 - Summary of significant accounting policies

Note 1 - Summary of significant accounting policies - 47
Note 2 - Critical estimates and judgments - 51
Note 3 - Financial risk and capital management - 52
Note 4 - Operating revenue and other income - 55
Note 5 - Segment - 56
Note 6 - Biological assets and inventory - 57
Note 7 - Cost of materials and change in inventory - 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee - 59
Note 9 - Share based payments - 60
Note 10 - Other operating expenses - 61
Note 11 - Property, plant, equipment and intangible asset - 62
Note 12 - Finance income & finance cost - 65
Note 13 - Investment in associated companies - 66
Note 14 - Taxes - 67
Note 15 - Earnings per share - 68
Note 16 - Government grants - 69
Note 17 - Leases - 70
Note 18 - Other current receivables and prepayments - 71
Note 19 - Derivative financial instruments - 72
Note 20 - Cash and restricted cash - 72
Note 21 - Share Capital & Capital history - 73
Note 22 - Interest bearing debt - 75
Note 23 - Trade and other current liabilities - 76
Note 24 - Related party balances and transactions - 77
Note 25 - Climate risk - 78
Note 26 - Events after the reporting date - 78

Salmon Evolution ASA Financial statements - 79

Directors responsibility statement - 98
Independent auditor’s report - 99
Alternative Performance Measures - 102
Sustainability Indicators and GRI Index - 103

01 This is Salmon Evolution

Letter from the CEO - 3
Key figures - 4

03 Board statements - 04

02 Sustainability and corporate responsibility

Financial statement and result

Revenue

Revenue from contracts with customers as defined in IFRS 15 is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the group expects to be entitled in exchange for those goods. Revenue for the Group derives both from the sale of smolt from contract with customer and sale of whole and processed salmon in the spot marked. It has not been made any forward sales contracts. The Group recognised revenue at the point in time when control of the goods is transferred to the customer at an amount that reflects the expected amount that the group is entitled to have for the goods. The sales price is based on available market price where the price will vary with both quality and size. Normal credit term of the sales transactions is 30 days. If the delivered products has discrepancies compared to the agreed sales contract, cash refunds are given to the customer. Up until now, refunds are not material.

Government grants

Government grants are recognized when there is reasonable assurance that the grant will be received and when the Group is compliant with all conditions attached. When the grant relates to an expense item, it is recognized as income over the period that the costs it is intended to compensate are expensed. When the grant relates to an asset, it is deducted from the carrying amount of the asset - the grant is then recognized in profit or loss over the useful life of a depreciable asset by way of a reduced depreciation charge. Government grants are presented in the accompanying statements of profit and loss as other income. See note 16 for further details.

Employee benefits

Liabilities for wages and salaries, including equity settled share based payments, non-monetary benefits, annual leave and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Share based payments

The fair value of options granted under the scheme is recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted:
* including any market performance conditions (eg the entity’s share price)
* excluding the impact of any service and non-market performance vesting conditions (eg profitability, sales growth targets and remaining an employee of the entity over a specified time period), and
* including the impact of any non-vesting conditions (eg the requirement for employees to save or holdings shares for a specific period of time).

Total fair value is expensed over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. Information relating to the Groups's employee stock option scheme is set out in note 9.

Current and change in deferred tax for the year

Income Tax

The tax expense represents the sum of the tax currently payable and change in deferred tax.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized.

Current tax and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Deferred tax benefit has not been recognised in the balance sheet as the Group is in its start-up phase and does no have any historical results to refer to when assessing whether future taxable profits will be sufficient to utilize the tax benefit.

Leases

The Group assesses whether a legally enforceable contract is or contains a lease at the inception date of the contract. The assessment includes several criteria to be determined based on judgment that includes whether there is an identifiable asset in connection to the lease, whether the Group has the right to control the use of the identifiable asset, and whether the Group can obtain substantially all economic benefits from the identifiable asset. The Group recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. The lease liability is calculated based on the present value of the contractual minimum lease payments using the incremental interest rate of the lease. The contractual minimum lease payments consist of fixed payments based on contractual amount at the time of conclusion of the agreement. The lease liability is subsequently measured at amortized cost under the effective interest rate during the Salmon Evolution Annual Report 2024 48 Salmon Evolution Annual Report 2024 FINANCIAL STATEMENTS AND RESULTS – NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Group consolidated financial statements (IFRS) 43 Consolidated statement of profit or loss 43 Consolidated statement of comprehensive income 43 Consolidated statement of financial position 44 Consolidated statement of cash flows 45 Consolidated statement of changes in equity 46 Note 1 - Summary of significant accounting policies 47 Note 2 - Critical estimates and judgments 51 Note 3 - Financial risk and capital management 52 Note 4 - Operating revenue and other income 55 Note 5 - Segment 56 Note 6 - Biological assets and inventory 57 Note 7 - Cost of materials and change in inventory 58 Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59 Note 9 - Share based payments 60 Note 10 - Other operating expenses 61 Note 11 - Property, plant, equipment and intangible asset 62 Note 12 - Finance income & finance cost 65 Note 13 - Investment in assosiated companies 66 Note 14 - Taxes 67 Note 15 - Earnings per share 68 Note 16 - Government grants 69 Note 17 - Leases 70 Note 18 - Other current receivables and prepayments 71 Note 19 - Derivative financial instruments 72 Note 20 - Cash and restricted cash 72 Note 21 - Share Capital & Capital history 73 Note 22 - Interest bearing debt 75 Note 23 - Trade and other current liabilities 76 Note 24 - Related party balances and transactions 77 Note 25 - Climate risk 78 Note 26 - Events after the reporting date 78 Salmon Evolution ASA Financial statements 79 Directors responsibility statement 98 Independent auditor’s report 99 Alternative Performance Measures 102 Sustainability Indicators and GRI Index 103 01 This is Salmon Evolution Letter from the CEO 3 Key figures 4 03 Board statements 04 Financial statement and result 02 Sustainability and corporate responsibility lease term and may also be adjusted to management’s reassessment of future lease payments based on options exercised renegotiations, or changes of an index rate. The ROU asset is calculated based on the lease liability, plus initial direct costs towards the lease, and less any incentives granted by the lessor.# The ROU asset is subsequently amortized under the straight-line method under the shorter of the lease term or the useful life of the underlying asset and is included as part of depreciation and amortization in the accompanying statements of other comprehensive income. Leases that fall under the IFRS 16 short-term exception are recognized on a straight-line basis over the lease term.

Financial instruments

A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.

Interest rate swap

The Group has entered into interest rate swap to hedge its risk exposure to interest-bearing debt. Changes in fair value of those derivatives is recognized as unrealized profit/loss under financial income/loss and allocated to, an unrealized profit/loss as other current receivables in the balance sheet.

Currency hedging

Salmon Evolution Sales AS make use of forward currency contracts to hedge against fluctuations in exchange rates that arise during the period between when Salmon Evolution Sales enters into a sales contract and when the product is paid for. Changes in fair value of those contracts is recognized as unrealized profit/loss under financial income/loss and to other current receivables in the balance sheet.

Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand and deposits held at call with financial institutions.

Trade receivables, loans and other receivables

Trade receivables, loans and other receivables are recognized at invoiced amount and subsequently measured at amortized cost using the effective interest method, less provision for impairment. See note 3, 17 and 18 for further information about the Group’s accounting for trade receivables, loans, other receivables and credit risk.

Property, plant & equipment

Property, plant, and equipment is measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and costs include expenditures that are directly attributable to the acquisition and placement of fixed assets in service. Costs of major replacements and renewals that substantially extend the economic life and functionality of fixed asset are capitalized. Costs associated with normal maintenance and repairs are expensed as incurred. Assets are normally considered property, plant, and equipment if the useful economic life exceeds one year. Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset’s historical cost. If a substantial part of an asset has an individual and different useful life, that portion is depreciated separately. The asset’s residual value and useful life are evaluated annually. Gains or losses arising from the disposal or retirement of an asset are determined as the difference between the sales proceeds and the carrying amount of the asset and recognized as part of other income in the accompanying statements of profit and loss. Depreciation is charged to expense when the property, plant or equipment is ready for intended use. The group considered the test- and verification phase for first phase of its Indre Harøy facility ready for intended use from April 2023, and started depreciations from that time. For the second phase build out, which expected to be ready for intended use during 2026, assets under construction are not depreciated.

Intangible assets

Expenses related to research activities are expensed as incurred. Expenses related to development activities are capitalized if the product or process is technically and commercially feasible, and the Group has adequate resources to complete the development. Patents are capitalized and measured at cost less accumulated amortization and any accumulated impairment losses, if any.

Goodwill

When the Group assumes control over a separate business entity for a consideration that exceeds the fair value of the individual assets and liabilities assumed, the difference is entered as goodwill in the statement of financial position. Goodwill is not depreciated but is tested for impairment annually if there are indications that its value is lower than the carrying amount. See note 11 for further information.

Impairment

Management reviews long-lived assets for impairment annually, or more frequently, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. When such assets are identified, with certain indicators, an impairment test will be carried out. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying value to determine if an adjustment for impairment to such asset is necessary. The effect of any impairment would be to expense the difference between the fair value of such asset and it’s carrying value. Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. See note 11 for further description.

Biological assets

Classification of current and non-current items

Assets are classified as current when it is expected to be realized or sold, or to be used in the Group's normal operating cycle, or falls due or is expected to be realized within 12 months after the end of the reporting date. Assets that do not fall under this definition is classified as non-current. Liabilities are classified as current when they are expected to be settled in the normal operating cycle of the Group or are expected to be settled within 12 months after the reporting date, or if the Group does not have an unconditional right to postpone settlement for at least 12 months after the reporting date. Liabilities that do not fall under this definition are classified as non-current.

Salmon Evolution Annual Report 2024 49

Salmon Evolution Annual Report 2024 FINANCIAL STATEMENTS AND RESULTS – NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Group consolidated financial statements (IFRS)

43 Consolidated statement of profit or loss
43 Consolidated statement of comprehensive income
44 Consolidated statement of financial position
45 Consolidated statement of cash flows
46 Consolidated statement of changes in equity
47 Note 1 - Summary of significant accounting policies
51 Note 2 - Critical estimates and judgments
52 Note 3 - Financial risk and capital management
55 Note 4 - Operating revenue and other income
56 Note 5 - Segment
57 Note 6 - Biological assets and inventory
58 Note 7 - Cost of materials and change in inventory
59 Note 8 - Personnel expenses, remuneration to the board and auditor's fee
60 Note 9 - Share based payments
61 Note 10 - Other operating expenses
62 Note 11 - Property, plant, equipment and intangible asset
65 Note 12 - Finance income & finance cost
66 Note 13 - Investment in associated companies
67 Note 14 - Taxes
68 Note 15 - Earnings per share
69 Note 16 - Government grants
70 Note 17 - Leases
71 Note 18 - Other current receivables and prepayments
72 Note 19 - Derivative financial instruments
72 Note 20 - Cash and restricted cash
73 Note 21 - Share Capital & Capital history
75 Note 22 - Interest bearing debt
76 Note 23 - Trade and other current liabilities
77 Note 24 - Related party balances and transactions
78 Note 25 - Climate risk
78 Note 26 - Events after the reporting date

Salmon Evolution ASA Financial statements 79

Directors responsibility statement 98

Independent auditor’s report 99

Alternative Performance Measures 102

Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

Trade and Other Receivables

Trade receivables are initially recognized at amortized cost, less a provision for expected credit losses. Credit loss provisions are based on individual customer assessments over each reporting period and not on a 12-month period. The Group has procedures to ensure that products are only sold to customers with satisfactory creditworthiness, where credit insurance is used when deemed necessary. This risk is, per 31.12.2024, not considered to be material. In 2024 all produced fish was mainly sold to Salmon Evolution Sales AS, which in turn sold it to external customers. The sales company secures the bulk of its sales through credit insurance.

Borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Borrowings are derecognized when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in the consolidated statement of profit or loss within the line other financial items, net. Borrowings are classified as current liabilities unless the Group has a right to defer settlement of the liability for at least 12 months after the reporting period.# Salmon Evolution Annual Report 2024

01 This is Salmon Evolution

Letter from the CEO
Key figures

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flows
Consolidated statement of changes in equity

Note 1 - Summary of significant accounting policies

Borrowings cost

In accordance with IAS 23, the Group’s loan agreements are subject to the following principles relating to borrowing costs:

General and specific borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred.

Trade and Other Payables

Trade and other payables represent unpaid liabilities for goods and services provided to the Group prior to the end of the financial year and are presented as current liabilities unless payment is not due within 12 months after the reporting period. Trade and other payables are recognized initially at their fair value and are subsequently measured at amortized cost using the effective interest method.

Pensions

The Group offers a defined contribution plan to its employees and pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual, or voluntary basis. The Group has no further payment obligations once the contributions have been paid. Contributions are recognized as employee benefit expense when they are due and are included as part of salary and personnel costs in the statement of profit and loss. Prepaid contributions are recognized as an asset to the extent in which a cash refund or a reduction in the future payments is available.

Statement of cash flows

The accompanying statements of cash flows are prepared in accordance with the indirect method.

Note 1 - Summary of significant accounting policies (Page 47)
Note 2 - Critical estimates and judgments (Page 51)
Note 3 - Financial risk and capital management (Page 52)
Note 4 - Operating revenue and other income (Page 55)
Note 5 - Segment (Page 56)
Note 6 - Biological assets and inventory (Page 57)
Note 7 - Cost of materials and change in inventory (Page 58)
Note 8 - Personnel expenses, remuneration to the board and auditor's fee (Page 59)
Note 9 - Share based payments (Page 60)
Note 10 - Other operating expenses (Page 61)
Note 11 - Property, plant, equipment and intangible asset (Page 62)
Note 12 - Finance income & finance cost (Page 65)
Note 13 - Investment in associated companies (Page 66)
Note 14 - Taxes (Page 67)
Note 15 - Earnings per share (Page 68)
Note 16 - Government grants (Page 69)
Note 17 - Leases (Page 70)
Note 18 - Other current receivables and prepayments (Page 71)
Note 19 - Derivative financial instruments (Page 72)
Note 20 - Cash and restricted cash (Page 72)
Note 21 - Share Capital & Capital history (Page 73)
Note 22 - Interest bearing debt (Page 75)
Note 23 - Trade and other current liabilities (Page 76)
Note 24 - Related party balances and transactions (Page 77)
Note 25 - Climate risk (Page 78)
Note 26 - Events after the reporting date (Page 78)

Salmon Evolution ASA Financial statements

Directors responsibility statement (Page 98)
Independent auditor’s report (Page 99)
Alternative Performance Measures (Page 102)
Sustainability Indicators and GRI Index (Page 103)

Note 2 - Critical estimates and judgments

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Group’s accounting policies. In the process of applying the Group’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the Group’s financial statements:

1) Biological assets
Biological assets comprise of eggs, smolt and live fish in each tank at the grow-out facility at Indre Harøy. These assets are accounted for in accordance with IAS 41, and measured at fair value unless the fair value cannot be measured reliably. The estimation of the fair value relies on a series of uncertain assumptions, e.g., biomass volume, quality, size, market prices, expected future costs, remaining time to harvest. All deviations in biomass volume compared to estimates, is measured when a tank is harvested out. The deviations are normally relatively minor. Similarly, the quality if the fish can normally be estimated with a relatively high degree of certainty, based on historic data and regular controls, given that the fish is kept in a controlled environment in each tank. Categorization of quality is set at facility level. Given that Salmon Evolution split and grade each batch two times in each production cycle, the size distribution in each batch harvested out is normally minor. The accumulated production cost of is based on an allocation of cost to each batch at tank level. The accumulated production cost per kg will normally only deviate from the estimate if the biomass volume is different from the estimate. For estimation of future production costs, there is uncertainty with regards to feed prices, other input costs and biological development. Salmon Evolution tracks and measures cost development vs. expectation for all batches as part of the normal monthly financial closing process. The estimation of future production costs influences the biomass value through the fair value adjustment. A key estimate in the estimation of fair value is the assumed market price, which is the price that Salmon Evolution expect to receive at a future date when the live fish is harvested. Given that Salmon Evolution harvest salmon in Norway, Sisalmoni is used with relevant adjustments (see note 6 for more information). See note 6 for sensitivity analysis of biomass.

2) Capitalised costs as assets under construction
As part of the construction of the Group's production facilities, the Group has capitalized certain costs (such as personnel expenses, rent of premises and equipment and other project related costs), as "assets under construction" in accordance with IAS 16 based on an allocation key. The allocation key is employee-based and has been calculated based on the employees that are directly involved in the assets under construction's share of the total salary in the Group. Reference is made to note 11 for details of additions to "assets under construction".

3) Financial derivatives
The purpose of the Group’s risk management activities is to establish an overview of financial risks that exists at any given time. As of this date the Group has chosen to employ both interest rate swap agreements to create interest rate stability and power hedging contracts to create stable power supply prices. The derivative financial assets relate to hedging contracts for the Company’s interest rate exposure and consist of an interest rate swap contract of NOK 50 million in Sparebanken Vest and a similar contract of NOK 150 million in Nordea. Both contracts are due January 2028, and has to a swap fixed interest of 1.79 %. Changes in Market Value is registered as unrealized profit/loss under financial income and allocated to, an unrealized profit/loss as other current receivables and debt in the balance sheet. See note 19 for more information on classes of financial instruments measured at fair value.

Salmon Evolution Annual Report 2024 51

Salmon Evolution Annual Report 2024 FINANCIAL STATEMENTS AND RESULTS – NOTE 2 - CRITICAL ESTIMATES AND JUDGMENTS

Group consolidated financial statements (IFRS)
Consolidated statement of profit or loss
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flows
Consolidated statement of changes in equity
Note 1 - Summary of significant accounting policies
Note 2 - Critical estimates and judgments
Note 3 - Financial risk and capital management
Note 4 - Operating revenue and other income
Note 5 - Segment
Note 6 - Biological assets and inventory
Note 7 - Cost of materials and change in inventory
Note 8 - Personnel expenses, remuneration to the board and auditor's fee
Note 9 - Share based payments
Note 10 - Other operating expenses
Note 11 - Property, plant, equipment and intangible asset
Note 12 - Finance income & finance cost
Note 13 - Investment in associated companies
Note 14 - Taxes
Note 15 - Earnings per share
Note 16 - Government grants
Note 17 - Leases
Note 18 - Other current receivables and prepayments
Note 19 - Derivative financial instruments
Note 20 - Cash and restricted cash
Note 21 - Share Capital & Capital history
Note 22 - Interest bearing debt
Note 23 - Trade and other current liabilities
Note 24 - Related party balances and transactions
Note 25 - Climate risk
Note 26 - Events after the reporting date

Salmon Evolution ASA Financial statements

Directors responsibility statement
Independent auditor’s report
Alternative Performance Measures
Sustainability Indicators and GRI Index

Note 3 - Financial risk and capital management

The Group’s financial assets and liabilities include trade and other receivables, trade and other payables, cash, and borrowings necessary for its operations. The Group’s risk management is carried out by the Group’s finance department. The Group is exposed to market risk, credit risk, and liquidity risk.# Market risk

Market risk is linked to both Interest Rate- and Currency fluctuations.

Interest Rate

The Group’s interest rate risk relates primarily to borrowings from financial institutions with variable interest rates. Currently, the Company does not have any fixed-interest loans nor hedge programs to reduce this risk, thus the Company is exposed to changes in the interest rate.

As at 31 December 2024, outstanding long term loans from credit instituions amounted to NOK 525.0 million and is subject to an interest rate of NIBOR 3M plus an agreed margin. The company also have drawn NOK 145.0 million of the overdraft facility. This loan is part of of a financing package consisting of the following:

NOK 525 million non-amortizing Term Loan Facility which will refinance the Company’s existing NOK 525 million construction loan relating to phase 1 (the “Term Loan”)
NOK 250 million RCF Capex Facility available for general corporate purposes including Indre Harøy phase 2 capex (the “RCF Facility”)
NOK 1,450 million Construction Facility available for financing of capex relating to phase 2 at Indre Harøy (the “Construction Facility”)

Additionally, the Group has a NOK 150 million Overdraft Facility with Nordea. The loans are floating interest rate loans denominated in NOK with an interest charge based on NIBOR 3M plus an agreed margin. Incurred interest expenses and establishing fees during construction period are capitalized as part of assets under construction, see note 11 for further details.

In addition, the Group has a debt financing package of NOK 60 million in relation to Salmon Evolution Dale. As per 31 December 2024 NOK 58 million of the NOK 60 million debt financing package was drawn.

The financial reporting does not include any other compehensive income (OCI) effects, as the Group do not hold financial instruments measured at fair value through OCI, nor do we apply hedge accounting that would require recognition of gains or losses in OCI. All relevant financial instruments are either recognized through profit or loss or directly in equity as applicable.

Interest rate sensitivity (NOK thousands)	2024	2023
Interest expense effect of a 1% increase on floating interest rate	7 280	6 730

Foreign Currency

The Group’s foreign currency risk relates to the Group’s operating, investing, and financing activities denominated in a foreign currency. This includes the Group’s revenues, expenses and capital expenditures. As of 31 December 2024 the Group had made some currency forward contracts to hedge the effect of fluctations in currency from the sales contracts. Besides these contracts the Group have no exposure to foreign exchange risk, and therefor not exposed to fluctuation in currencies. Value changes in forward contracts affect profit and loss. The Group’s presentation currency is Norwegian Kroner (“NOK”).

Credit risk

With respect to credit risk arising from the financial assets of the Group, which comprise cash and cash equivalents, and other receivables, the Group’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. The Group has procedures to ensure that products are only sold to customers with satisfactory creditworthiness, where credit insurance is used when deemed necessary. This risk is, per 31.12.2024, not considered to be material.

In 2024 the majority of produced fish was sold to Salmon Evolution Sales AS, which in turn sold it to external customers. The sales company secures the bulk of its sales through credit insurance. In addition, the Group also sold part of one group of post smolt to an external customer from Salmon Evolution Norway AS.

Trade receivables (NOK thousands)	2024	2023
Trade receivables	90 637	40 763
Provision for loss on claims	-115	-267
Total financial liabilities	90 522	40 496

Credit-insured share of trade receivables as of 31.12.2024 was TNOK 64,001

Liquidity risk

A lack of liquidity will entail a risk that the Group will not be able to pay its obligations on maturity. Management monitors rolling forecasts of the Group’s liquidity reserve (comprising cash and cash equivalents) on the basis of expected cash flows. The Group’s business plan and growth strategy is capital intensive and the Group may be dependant upon future equity issues and/or debt financing in order to finance its current long-term plans.

The table below presents the maturities on the Group’s financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

31 December 2024 (NOK thousands)

	Less than 3 months	3-12 months	1-5 years	> 5 years
Borrowings	300 159	388 571	543 0	0
Interest (Long term debt)	15 325	45 974	245 194	0
Lease liabilities	1 329	4 087	9 043	797
Trade payables	193 384	0	0	0
Total financial liabilities	210 338	209 448	825 780	797

31 December 2023 (NOK thousands)

	Less than 3 months	3-12months	1-5 years	> 5 years
Borrowings	0	103 275	569 969	0
Interest (Long term debt)	13 005	40 017	213 426	0
Lease liabilities	1 088	3 263	8 189	491
Trade payables	71 499	0	0	0
Total financial liabilities	85 592	146 554	791 584	491

Financial instruments – assessment of fair value

The table below shows financial instruments at fair value according to valuation method. The different levels are defined as follows:

Level 1: Price listed in an active market for identical assets or liabilities
Level 2: Valuation is based on other observable inputs either directly or indirectly than listed price (used in level 1) for the asset or liability
Level 3: Valuation based on inputs not derived from observable markets (non-observable assumptions)

31 December 2024 (NOK thousands)

	FVPL*	Amortized cost	Fair value	Carrying amount	Level 1	Level 2	Level 3
Financial assets:
Trade receivables	0	0	0	90 522	90 522	90 522	90 522
Financial derivatives	0	13 643	0	0	13 643	13 643	13 643
Energy contract	0	0	0	0	0	0	0
Other current receivables	0	0	0	51 142	51 142	51 142	51 142
Cash and cash equivalents	0	0	0	429 462	429 462	429 462	429 462
Total financial assets	0	13 643	0	571 126	584 769	584 769	584 769
Financial liabilities:
Deferred tax	0	0	0	0	0	0	0
Long-term interets bearing debt	0	0	0	569 100	569 100	569 100	569 100
Other long term liabilites	0	0	0	3 643	3 643	3 643	3 643
Short-term interest bearing debt	0	0	0	158 488	158 488	158 488	158 488
Trade payables	0	0	0	193 384	193 384	193 384	193 384
Social security and other taxes	0	0	0	7 495	7 495	7 495	7 495
Other current liabilities	0	0	0	14 408	14 408	14 408	14 408
Total financial liabilities	0	0	0	946 518	946 518	946 518	946 518

01 This is Salmon Evolution

Letter from the CEO 3

Key figures 4

02 Sustainability and corporate responsibility

Board statements 04

Financial statement and result 31 December 2023 (NOK thousands)

	FVPL*	Amortized cost	Fair value	Carrying amount	Level 1	Level 2	Level 3
Financial assets:
Trade receivables	0	0	0	40,496	40,496	40,496	40,496
Financial derivatives	0	12,900	0	0	12,900	12,900	12,900
Energy contract	0	0	0	0	0	0	0
Other current receivables	0	0	0	31,121	31,121	31,121	31,121
Cash and cash equivalents	0	0	0	386,396	386,396	386,396	386,396
Total financial assets	0	12,900	0	458,013	470,913	470,913	470,913
Financial liabilities:
Deferred tax	0	0	0	0	0	0	0
Long-term interests bearing debt	0	0	0	569,969	569,969	569,969	569,969
Other long-term liabilities	0	0	0	8,702	8,702	8,702	8,702
Short-term interest bearing debt	0	0	0	103,275	103,275	103,275	103,275
Trade payables	0	0	0	71,499	71,499	71,499	71,499
Social security and other taxes	0	0	0	8,273	8,273	8,273	8,273
Other current liabilities	0	0	0	14,635	14,635	14,635	14,635
Total financial liabilities	0	0	0	776,353	776,353	776,353	776,353

*FVPL: Fair value through profit or loss

FINANCIAL STATEMENTS AND RESULTS – NOTE 3 - FINANCIAL RISK AND CAPITAL MANAGEMENT

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss 43
Consolidated statement of comprehensive income 43
Consolidated statement of financial position 44
Consolidated statement of cash flows 45
Consolidated statement of changes in equity 46
Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in associated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Salmon Evolution ASA Financial statements

Directors responsibility statement 98

Independent auditor’s report 99

Alternative Performance Measures 102

Sustainability Indicators and GRI Index 103

Note 4 - Operating revenue and other income

Operating revenue and other income (NOK thousands)

	2024	2023
Sales revenues from farming	467,742	153,325
Smolt	0	0
Postsmolt	11,305	0
Atlantic Salmon (hog)	451,398	152,767
Atlantic Salmon (trimmed)	5,039	558
Other income	3,831	15,099
Total operating revenue and other income	471,573	168,424

Operating revenue in the Group for 2024 mainly derives sales of farmed salmon from Salmon Evolution Sales AS (who bought the salmon from Salmon Evolution Norway AS). Salmon Evolution Sales AS has in 2024 sold 4,803 tonnes Atlantic Salmon, and the distribution is as illustrated below. Additionally, 104 tonnes postsmolt were sold directly from Salmon Evolution Norway AS. Other income in 2024 was mostly related services to K Smart Farming Co., Ltd. in South Korea.

Sales quantity (tonnes)	%	Sales quantity (tonnes)	%
Destination
Norway	2,642	55 %	1,306
EU ex. Norway	2,107	44 %	557
Asia	54	1 %	2
Total	4,803	100 %	1,865

Sales revenue Atlantic salmon (NOK thousands)

	2024	2023
Norway	245,786	105,743
EU ex. Norway	204,057	47,379
Asia	6,594	203
Total	456,437	153,325

Our land-based salmon have been distributed through Salmon Evolution Sales to a vast number of customers, across different segments and channels. The initial batch has been launched locally, nationally in Norway and internationally, in close collaboration with our partners, and has proven to be meet the highest standards, for both raw, heated and smoked products.

FINANCIAL STATEMENTS AND RESULTS – NOTE 4 - OPERATING REVENUE AND OTHER INCOME

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss 43
Consolidated statement of comprehensive income 43
Consolidated statement of financial position 44
Consolidated statement of cash flows 45
Consolidated statement of changes in equity 46
Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in associated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Note 5 - Segment

Operating segments are reported in a manner consistent with internal reporting to the chief operating decision-maker, which is responsible for allocating resources and assessing performance. The chief operating decision-maker has been identified as the Group management. The Group has implemented segment reporting which consists of production of farmed salmon in Norway (Farming Norway), other activities (Other), and eliminations. The segment performance is monitored to assess performance and profitability at a strategic level. Farming Norway consists of Salmon Evolution Norway AS (grow-out facility), Salmon Evolution Dale AS (smolt facility) and Salmon Evolution Sales AS. Additionally a portion of the Group overhead costs is allocated to the segment. Other consist of both revenue and costs not attributable to the farming segment. The same accounting principles as described in Note 1 have been applied for the segment reporting, where internal transactions are entered into under normal commercial terms and conditions. Sales revenue from contracts with customers comes from both Continental Europe, UK, USA, Asia and other markets.

FY 2024 (NOK thousands)

	Farming Norway	Other	Eliminations	Group
External revenue	467,742	3,831	0	471,573
Internal revenue	0	24,329	-24,329	0
Operating revenue	467,742	28,160	-24,329	471,573
Operational EBITDA	112,425	-41,010	0	71,415
Operational EBIT	37,884	-44,509	1,898	-4,727
Fair value adjustment of biomass	-10,498
Net financial	-32,180
Profit/loss before tax	-47,405
Harvested volume (tonnes, HOG)	4,891			4,891
Operational EBITDA/kg (NOK)	23.0	14.6
Operational EBIT/kg (NOK)	7.7	-1.0
Total assets	2,371,935	33,086	0	2,405,021

FY 2023 (NOK thousands)

	Farming Norway	Other	Eliminations	Group
External revenue	158,248	10,176	0	168,424
Internal revenue	0	17,388	-17,388	0
Operating revenue	158,248	27,564	-17,388	168,424
Operational EBITDA	-23,214	-60,737	0	-83,950
Operational EBIT	-67,932	-63,855	1,107	-130,680
Fair value adjustment of biomass	20,149
Net financial	-35,241
Profit/loss before tax	-145,773
Harvested volume (tonnes, HOG)	1,874			1,874
Operational EBITDA/kg (NOK)	N/A	N/A
Operational EBIT/kg (NOK)	N/A	N/A
Total assets	2,044,341	14,980	-1,899	2,057,422

FINANCIAL STATEMENTS AND RESULTS – NOTE 5 - SEGMENT

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss 43
Consolidated statement of comprehensive income 43
Consolidated statement of financial position 44
Consolidated statement of cash flows 45
Consolidated statement of changes in equity 46
Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in associated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share# Salmon Evolution Annual Report 2024

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

Note 6 - Biological assets and inventory

Biological assets are, in accordance with IAS 41, measured at fair value. For salmon in the grow-out facility, a present value model is applied to estimate the fair value. For roe, fry and smolt, historical cost is deemed to provide the best estimate of fair value, and hence applied. The fair value of fish in the grow-out facility is calculated by multiplying the estimated biomass at the time of harvest with the estimated sales price at the same time and deducted for estimated costs to sell. For fish not ready for harvest, remaining production costs to grow the fish to harvest weight are deducted. The cash flow is further discounted by a discount rate considering both risk adjustment and time value. The Group considers that fish greater than 4.6 kg is ready for harvest (about 3.8 kg gutted weight), and such fish is thus classified as harvestable fish. Fish that have not achieved this weight are classified as non-harvestable. In the event of incident-based mortality, all costs allocated to fish affected by incident-based mortality will be deducted from the book value of the inventory.

BOOK VALUE OF INVENTORY (NOK thousands)

	FY 2024	FY 2023
Equipment	6 245	2 667
Raw materials	6 621	4 433
Biological assets	171 004	153 790
Finished goods	0	1 270
Total	183 870	162 159

Biomass volume

BIOLOGICAL ASSETS (Tonnes)

	FY 2024	FY 2023
Biological assets beginning of period	2 204	733
Biological assets end of period	2 027	2 204

BIOLOGICAL ASSETS (NOK thousands)

	FY 2024	FY 2023
Biological assets beginning of period	153 790	58 927
Increase due to production	371 472	218 496
Reduction due to harvest/sale	-334 727	-130 880
Reduction due to incident based mortality	-9 473	-12 901
Fair value adjustment beginning of period	-31 889	-11 740
Fair value adjustment end of period	21 391	31 889
Biological assets end of period	171 004	153 790

The estimated biomass volume is based on the actual number of individuals in the grow-out departments on the balance sheet date, adjusted for projected mortality up to harvest time and multiplied with the estimated harvest weight per individual at harvest time. The estimated sales price for the fish in the grow-out facility is based on forward prices from Sisalmoni with relevant adjustments. The net sales value is adjusted for expected quality differences and harvesting, logistics and sales expenses. The Group is still in a ramp-up phase for the grow-out facility at Indre Harøy, and hence the facility’s production capacity is not fully utilized. Cost of production is therefore adjusted for unutilized production capacity. Year-to-date 2024 this adjustment amounted to NOK 28.6 million (compared to NOK 41.3 million in 2023) which has been expensed directly in the profit and loss statement.

Sensitivity analysis of biomass
This sensitivity analysis evaluates the impact of changes in key estimates on the fair value. It highlights how variations in factors such as sales prices, biomass volume, discount rate and superior share could affect the fair value measurement, providing a clearer understanding of potential financial impacts.

Sensitivity analysis of biomass (NOK thousands)

	2024	2023
Change in sales price +1 NOK/kg	3 645	4 400
Change in sales price -1 NOK/kg	-3 645	-4 400
Changes in biomass volume -1% kg	-2 295	-3 500
Changes in biomass volume +1% kg	2 295	3 500
Change in discount rate +1%	-400	-300
Change in discount rate -1%	400	300
Change in superior share +1%	545	655
Change in superior share -1%	-545	-655

Note 7 - Cost of materials and change in inventory

Cost of materials and change in inventory (NOK thousands)

	2024	2023
Cost of materials and change in inventory	-171 330	-47 704

Composition COGS: (NOK thousands)

	2024	2023
Raw material cost	-200 933	-126 180
Inventory change	29 603	78 476
Sum	-171 330	-47 704

Composition inventory change: (NOK thousands)

	2024	2023
Change due to production	371 472	218 496
Change due to harvest/sale	-336 093	-130 880
Change due to incident based mortality	-6 167	-12 901
Change inventory raw material	391	3 762
Sum	29 603	78 476

Composition - change due to production: (NOK thousands)

	2024	2023
Raw material cost	200 542	122 419
Salaries	34 340	17 670
Energy cost	48 330	29 567
Depreciations	55 758	22 778
Other operating expenses	32 503	26 062
Sum	371 472	218 496

Inventory (NOK thousands)

	Feed	Smolt	Salmon	Frozen products	Total at cost	Fair value adjustment	Value
Value 31.12.2023	4 433	16 018	105 882	1 270	127 603	31 889	159 492
Change	2 188	7 413	20 300	-1 270	28 631	-10 498	18 133
Value 31.12.2024	6 621	23 431	126 182	0	156 234	21 391	177 625

Note 8 - Personnel expenses, remuneration to the board and auditor's fee

Personnel expenses (NOK thousands)

	2024	2023
Salaries	76 550	67 102
Social security	12 256	11 054
Pensions	4 350	3 458
Other benefits	1 593	5 507
Share-based payments	726	2 441
Gross personnel expenses	95 475	89 562
Capitalized costs	-27 428	-13 511
Total personnel expenses recognized in P&L	68 046	76 052

Number of full-time employment equivalents

	2024	2023
81	69

During the ordinary course of business, the Group capitalizes portions of total salary and personnel costs towards assets under construction. In addition, a portion of the salaries related to the production are recognised as part of the biomass value in the balance sheet. Salary allocated to biomass in 2024 was NOK 34.4 million (NOK 17,7 million in 2023). Norwegian entities are obligated to establish a mandatory company pension. This obligation is fulfilled under the current pension plan. No loans or guarantees have been given to the members of the board of directors or executive management.

Financial statements and result (IFRS)

Consolidated statement of profit or loss 43
Consolidated statement of comprehensive income 43
Consolidated statement of financial position 44
Consolidated statement of cash flows 45
Consolidated statement of changes in equity 46

Notes to the Financial Statements

Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in associated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Salmon Evolution ASA Financial statements 79

Directors responsibility statement 98

Independent auditor’s report 99

Alternative Performance Measures 102

Sustainability Indicators and GRI Index 103# Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 8 - PERSONNEL EXPENSES, REMUNERATION TO THE BOARD AND AUDITOR'S FEE

Group consolidated financial statements (IFRS) 43
Consolidated statement of profit or loss 43
Consolidated statement of comprehensive income 43
Consolidated statement of financial position 44
Consolidated statement of cash flows 45
Consolidated statement of changes in equity 46
Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in assosiated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

Remuneration and compensation to executive management and board of directors (NOK thousands)

	2024	2023
Salaries and other short-term employee benefits	14 276	10 804
Share-based payments	313	2 210
Remuneration and compensation to members of the board	2 725	2 696

For personnel expenses and remuneration to the board see our remuneration report for 2024, published on our website salmonevolution.no.

Auditor’s remuneration (NOK thousands)

	2024	2023
Statutory audit	1423	1052
Service in relation to tax return	0	17
Tax advise	0	0
Service in relation to annual accounts	0	0
Other services	316	87
Total	1 739	1 156

Note 9 - Share based payments

In 2023 the Board of directors granted a tranche of stock options. Each option gives the holder the right to subscribe or purchase shares in Salmon Evolution at an average agreed exercise price of NOK 8.30. The issued options vest 50% after year one, and 50% after year two. The options were granted on 1 June for executive management and 7 July for key employees. 50% of the options can be exercised at earliest, 12 months after the grant date. The remaining 50% of the options can be exercised at earliest, 24 months after the grant date. To account for this, an adjusted Black & Scholes option-pricing model is used by applying a weighted expected average life of 18 months. Furthermore, in 2024 the Board of directors granted another tranche of stock options. Each option gives the holder the right to subscribe or purchase shares in Salmon Evolution at an average agreed exercise price of NOK 7.50. The options were granted on 18 September for both executive management and key employees. The issued options vest 1/3 after year one, 1/3 after year two and 1/3 after year three. Further, 1/3 of the options can be exercised at earliest 12 months, 1/3 of the options can be exercised after 24 month, and 1/3 of the options can be exercised after 36 months, after the grant date. To account for this, an adjusted Black & Scholes option-pricing model is used by applying a weighted expected average life of 18 months. The fair value of the options is set on the grant date and is expensed over its lifetime. The fair value of the options has been calculated using the adjusted Black & Scholes option-pricing model, which takes into account the exercise price, the term of the option, the share price at the grant date, expected price volatility of the underlying share, expected dividend and risk-free rates. Given the recent listing and lack of historical price and volatility data, the expected volatility is based on historical volatility for a selection of comparable companies listed on Oslo Stock Exchange (“Oslo Børs”). The risk-free interest rate is set to equal the interest on Norwegian government bonds with the same maturity as the option. Average key assumptions are listed below.

Outstanding options (NOK thousands)

	2024	2023
Outstanding options 1 January	7 060	5 150
Options granted	3 880	1 910
Options exercised	0	0
Options forfeited	0	0
Outstanding options at end of period	10 940	7 060

	2024	2023
Charges to income statement	696	2 438
Charges to Asset under Construction	28	0
Total charges	725	2 438

Key assumptions

	2024	2023
Average fair value (NOK)	1,10	0,83
Average exercise price (NOK)	7,50	8,30
Weighted expected average life (in years)	5,00	3,21
Estimated dividend per share (NOK)	0,00	0,00
Expected average volatility	26,9 %	19,6 %
Risk-free rate	3,62 %	3,31 %

Group management have the following holdings (NOK thousands)

	Holding 01.01	Awarded	Holding 31.12
Trond Håkon Schaug-Pettersen (CEO)	2 600	1 000	3 600
Ingjarl Skarvøy (COO)	750	300	1 050
Kamilla Mordal Holo (Project Director)	750	300	1 050
Odd Frode Roaldsnes (CCO)	750	300	1 050
Trond Vadset Veibust (CFO)	500	500	1 000
Henriette Nordstrand (Technical Director)	125	150	275
Tore-Jacob Reite (Director Strategic Projects)	125	100	225
Total	5 600	2 650	8 250

Note 10 - Other operating expenses

Other operating expenses (NOK thousands)

	2024	2023
Cost of premises (not defined as RoU)	5 968	3 506
Rented equipment	6 900	5 565
Insurance	5 533	5 425
Consultancy fees	10 920	24 859
Electricity	48 287	29 428
Other operating expenses	41 329	26 201
Other administrative expenses	41 845	33 635
Total other operating expenses	160 781	128 619

Property, plant, equipment, intangibles & RoU assets (NOK thousands)

	Intangible assets	Assets under construction	Assets in use, not allocated	Buildings	Fixtures and fittings	Right-of-use assets	Total
Cost
1 January 2023	65 149	0	7 607	26 419	18 562	1 831 228
Additions	7 201	269	490	0	2 157	438 3 601	282 887
Completed constructions	0	-1 912	199	54 019	1 573 232	284 031	0
Cost 31 December 2023	72 350	70 781	54 019	1 582 996	310 888	22 163	2 113 198

Accumulated depreciation
1 January 2023	0	0	0	-951	-2 534	-5 561	-9 046
Depreciation for the period	-3 0	0	0	-26 760	-15 450	-4 518	-46 731
Net book value 31 December 2023	72 347	70 781	54 019	1 555 286	292 904	12 084	2 057 422

Property, plant, equipment, intangibles & RoU assets (NOK thousands)

	Intangible assets	Assets under construction	Assets in use, not allocated	Buildings	Fixtures and fittings	Right-of-use assets	Total
Cost
1 January 2024	72 350	70 781	54 019	1 582 996	310 888	22 163	2 113 198
Additions	12 184	391	137	0	7 987	9 502	7 623
Reclassified constructions	0	19 859	-54 019	7 756	26 404	0	0
Reclassification according to IFRS 16*	0	0	0	0	-4 692	0	-4 692
Other reclassifications	-3 398	0	0	0	0	3 398	0
Cost 31 December 2024	81 136	481 778	0	1 598 740	342 102	33 185	2 536 939

Acc. depreciation
1 January 2024	-3 0	0	0	-27 711	-17 984	-10 079	-55 776
Depreciation for the period	-32 0	0	0	-40 366	-30 496	-5 249	-76 143
Net book value 31 December 2024	81 101	481 778	0	1 530 664	293 622	17 857	2 405 020

*The previously capitalised value of leased land has been reclassified in accordance with IFRS 16 due to the fact that the lease payments are a variable cost based on a percentage of sales.

Intangible Assets

Intangible Assets (NOK thousands)

	01.01.2024	Reclassifications	Additions	Grants	Depreciations	31.12.2024
Development projects*	8 137	0	13 466	-1 596	0	20 008
Trademark	3 349	0	55	0	-32	3 372
Water rights	16 597	-3 398	289	0	0	13 487
Goodwill	44 235	0	0	0	0	44 235
Total	72 318	-3 398	13 810	-1 596	-32	81 102

*See note 16for more information

Intangible Assets (NOK thousands)

	01.01.2023	Additions	Grants	Depreciations	31.12.2023
Development projects*	1 250	7 681	-794	0	8 137
Trademark	3 068	283	0	-3	3 349
Water rights	16 597	0	0	0	16 597
Goodwill	44 235	0	0	0	44 235
Total	65 149	7 965	-794	-3	72 318

*See note 16for more information

Capitalized internal cost (NOK thousands)

	01.01.2024	Additions	31.12.2024
Salary	60 359	13 552	73 911
Rental/equipment	7 618	-	7 618
Interest	55 780	25 087	80 867
Total	123 757	38 639	162 396

Capitalized internal cost (NOK thousands)

	01.01.2023	Additions	31.12.2023
Salary	51 127	9 232	60 359
Rental/equipment	-7 884	266	7 618
Interest	30 561	25 219	55 780
Total	89 306	34 717	123 757

01 This is Salmon Evolution

Letter from the CEO
Key figures

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

Group consolidated financial statements (IFRS)

43 Consolidated statement of profit or loss
43 Consolidated statement of comprehensive income
44 Consolidated statement of financial position
45 Consolidated statement of cash flows
46 Consolidated statement of changes in equity
47 Note 1 - Summary of significant accounting policies
51 Note 2 - Critical estimates and judgments
52 Note 3 - Financial risk and capital management
55 Note 4 - Operating revenue and other income
56 Note 5 - Segment
57 Note 6 - Biological assets and inventory
58 Note 7 - Cost of materials and change in inventory
59 Note 8 - Personnel expenses, remuneration to the board and auditor's fee
60 Note 9 - Share based payments
61 Note 10 - Other operating expenses
62 Note 11 - Property, plant, equipment and intangible asset
65 Note 12 - Finance income & finance cost
66 Note 13 - Investment in assosiated companies
67 Note 14 - Taxes
68 Note 15 - Earnings per share
69 Note 16 - Government grants
70 Note 17 - Leases
71 Note 18 - Other current receivables and prepayments
72 Note 19 - Derivative financial instruments
72 Note 20 - Cash and restricted cash
73 Note 21 - Share Capital & Capital history
75 Note 22 - Interest bearing debt
76 Note 23 - Trade and other current liabilities
77 Note 24 - Related party balances and transactions
78 Note 25 - Climate risk
78 Note 26 - Events after the reporting date

Salmon Evolution ASA Financial statements

79 Directors responsibility statement
98 Independent auditor’s report
102 Alternative Performance Measures
103 Sustainability Indicators and GRI Index

The impairment is done using the Groups rolling projections which is based on financial budgets where cash generating activities forms the basis of the valuation. This is done over a five-year period. The key assumptions for the analysis are EBITDA, EBITDA development within the company, and WACC. Budgeted EBITDA margin is calculated using a forward salmon price in line with marked expectations, and an expected cost of production that is somewhat declining over the coming years (in line with scalling of operations). Further, the annual reinvestment is assumed to be equal to annual depreciations. Cash flow forecasts are estimated after tax, and weighted average cost of capital is set to be 8%. The cost of capital is calculated using a WACC model where market expecations in regards to risk free rate and risk premiums (both marked and debt risk), and the beta is calculated using the average beta of several peers. It is not expected that using a before tax rate would have given any value adjustments. Terminal value is calculated using Gordons Growth Model and a growth rate of 2%. As a result of the impairment testing, no need for impairment has been identified.

Note 12 - Finance income & finance cost

The group consolidated financial statements (IFRS) are on page 43.

Finance income (NOK thousands)

	2024	2023
Interest income	21 250	15 591
Net change in value of financial derivatives	977	947
Foreign exchange gains	5 338	4 937
Other finance income	674	6
Financial income	28 239	21 481
Share of net income from associated companies	-7 809	-7 098
Total financial income	20 430	14 383

Finance expenses (NOK thousands)

	2024	2023
Interest on debts and borrowings	53 232	33 914
Realized loss/-gain on interest derivative	-5 966	-3 027
Foreign exchange losses	4 460	4 195
Reduced value of contract related to power supply	0	13 903
Other finance expenses	884	640
Total financial expenses	52 610	49 624

Net financial income/- expenses -32 180 -35 241

Fair value adjustments - financial assets (NOK thousands)

	2024	2023
Unrealised changes in the value of interest rate swap	977	947
Unrealised changes in the value of contract related to power supply	0	-13 903
Realised profit (loss) related to power supply contract	0	0
Fair value adjustments recognised in profit and loss	977	-12 956

Interest income is mainly related to interest on cash deposits held with Norwegian financial institutions. Incurred interest expenses and establishing fees are capitalized as part of assets under construction in accordance with IAS 23. The negative impact from share of net income from associated companies are related to a loss at K Smart Farming. The Group did not have any fair value adjustments of financial liabilities in 2024, nor in 2023.

Note 13 - Investment in assosiated companies

The group has the following investments in associated companies:

	Location and place of business	Ownership	Voting share
K Smart Farming Co., Ltd	Gangwangnak-ro, South Korea	49 %	49 %

	31 December 2022	2023	2024
Net book value	26 635	18 676	10 689
Share of net income		-7 098	-7 809
Foreign currency translation gain/(loss) YTD		-861	-178

Investments in associated companies are recognized using the equity method. K Smart Farming Co., Ltd is a joint venture between Salmon Evolution and the south Korean seafood firm Dongwon Industries, with Dongwon Industries holding 51 % ownership and voting rights. The JV agreement includes several elements that is in place to balance the controll. The Company currently sees the overall project economics as challenging, primarily driven by site specific circumstances at the Yangyang grow-out site, in particular related to the intake and discharge water solution due to a relatively long and shallow shoreline at the grow-out site. Additionally, given that Korea has no existing salmon farming industry, certain other infrastructure items are impacting the project cost as well as operating cost. The project is currently working with authorities in South Korea on governmental financial support, further clarifications are expected during 2025. Meanwhile project activities have been scaled down and cash burn has been reduced to a minimum.

Note 14 - Taxes

Calculation of current and deferred# FINANCIAL STATEMENTS AND RESULTS – NOTE 14 - TAXES

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss 43
Consolidated statement of comprehensive income 43
Consolidated statement of financial position 44
Consolidated statement of cash flows 45
Consolidated statement of changes in equity 46
Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in assosiated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Salmon Evolution ASA Financial statements

Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

Basis for deferred tax (deferred tax asset)

tax/deferred tax benefit (NOK thousands)	2024	2023
Intangible assets	57,722	57,722
Fixed assets	230,277	145,389
Accounts receivable	-115,267
Inventories	171,004	153,790
Right-of-use assets	17,857	19,886
Lease liabilities	-18,629	-21,240
Other current liabilities	0	0
Net temporary differences	458,117	355,280
Tax losses carried forward	-805,166	-642,780
Change due to unrealized financial instruments	12,666	12,900
Basis for deferred tax (deferred tax asset)	-334,383	-274,600
Deferred tax (22%)	-73,564	-60,412
Deferred tax benefit not recognized in the balance sheet*	73,564	59,997
Deferred tax in the balance sheet	0	-415

*Deferred tax benefit has historically not been recognized in the balance sheet as the Group is in its start-up phase and does not have any historical results to refer to when assessing whether future taxable profits will be sufficient to utilize the tax benefit. As of 31.12.2024 there is a basis for payable tax in the subsidiary Salmon Evolution Sales AS. This will be offset with a group contribution from Salmon Evolution ASA. The tax effect of the group contribution is recognized as a deferred tax asset.

Basis for income tax expense, changes in deferred tax and tax payable (NOK thousands)

	2024	2023
Result before taxes	-47,405	-145,773
Permanent differences in relation to skattefunn	-2,258	-2,037
Other permanent differences	-8,121	-1,244
Basis for the tax expense	-57,784	-149,054
Change in temporary differences	-103,874	-219,880
Change due to equity transactions	0	0
Change in tax losses carried forward	-161,658	-368,934
Basis for payable taxes in the income statement	0	1,887

Components of the tax expense (NOK thousands)

	2024	2023
Payable tax on this year's result	0	415
Total payable tax	0	415
Change in deferred tax	-13,152	-33,878
Change in deferred tax due to previous year group contribution	-415	-2,077
Change in deferred tax not capitalized in the balance sheet	13,567	35,539
Tax expense	0	0

Reconciliation of the tax expense with the nominal tax rate (NOK thousands)

	2024	2023
Result before taxes	-47,405	-145,773
Calculated tax (22%)	-10,429	-32,070
Tax expense	0	0
Difference	10,429	32,070
The difference consists of:
Tax on permanent differences	-2,283	-722
Change in tax rate	0	0
Change in deferred tax	0	0
Change in deferred tax due to change in tax rate	0	0
Change in deferred tax not shown in the balance sheet	13,567	35,539
Change in defferred tax due to acquisition	0	0
Change due to unrealized financial instruments	-855	-2,747
Sum explained differences	10,429	32,070

Salmon Evolution Annual Report 2024 67

FINANCIAL STATEMENTS AND RESULTS – NOTE 15 - EARNINGS PER SHARE

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss 43
Consolidated statement of comprehensive income 43
Consolidated statement of financial position 44
Consolidated statement of cash flows 45
Consolidated statement of changes in equity 46
Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in assosiated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Salmon Evolution ASA Financial statements

Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

Earnings per share (NOK thousands)

	2024	2023
Loss attributable to the equity owners of the Parent company	-47,405	-145,773
Loss for calculation of diluted earnings per share	-47,405	-145,773
Weighted average number of shares outstanding	440,297,748	391,209,367
Dilutive options	0	0
Average number of shares and options used in calculation for diluted EPS	440,297,748	391,209,367
Basic earnings per share (NOK)	-0.11	-0.37
Diluted earnings per share (NOK)	-0.11	-0.37

Basic earnings per share are based on the weighted average number of common shares outstanding during the period.

FY 2024: The Company had 413,936,640 until mid June 2024. In June the Company made an issue of 48,666,660 new shares in a capital raise. Therefor the weighted average number of shares outstanding in 2024 has been calculated by applying a weight of 5.5/12 of the number of shares before the capital raise, and 6.5/12 of the total number of shares after the capital raise (462,603,300 shares).

FY 2023: The Company had 345,754,822 shares for the first four months of the year. In April the Company made an issue of 68,181,818 new shares in a capital raise. Therefor the weighted average number of shares outstanding in 2023 has been calculated by applying a weight of 4/12 of the number of shares before the capital raise, and 8/12 of the total number of shares after the capital raise (413,936,640 shares).

Salmon Evolution Annual Report 2024 68

FINANCIAL STATEMENTS AND RESULTS – NOTE 16 - GOVERNMENT GRANTS

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss 43
Consolidated statement of comprehensive income 43
Consolidated statement of financial position 44
Consolidated statement of cash flows 45
Consolidated statement of changes in equity 46
Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in assosiated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Salmon Evolution ASA Financial statements

Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

The Group has received a commitment from the The Norwegian Research Council (Norsk Forskningsråd) for two projects started in 2023. The grant is given for one period of three years and is related to the tax incentive scheme SkatteFUNN which is a government program designed to stimulate research and development (R&D) in Norwegian trade and industry. The receivable is accounted for as a short-term receivable from the tax authorities. In the financial accounts the receivable related to the grant is netted partly against the related asset’s acquisition cost, partly against expenses recognised in the income statement. Grants for 2024 amounted to NOK 2,258 thousand (NOK 2,037 thousands in 2023).

SkatteFUNN (NOK thousands)

	Expense	Capitalized	Total
FY 2024
Systems for data input, handling and analytics	839	6,107	6,946
Grants	-159	-1,160	-1,320
Landbased Salmon	1,828	1,822	3,650
Grants	-347	-346	-694
Light in the fry phase	817	469	1,286
Grants	-155	-89	-244
Total SkatteFUNN project costs	2,823	6,803	9,624

SkatteFUNN (NOK thousands)

	Expense	Capitalized	Total
FY 2024
Systems for data input, handling and analytics	2,514	4,378	6,892
Grants	-768	-542	-1,310
Landbased Salmon	2,278	1,551	3,829
Grants	-505	-222	-727
Total SkatteFUNN project costs	3,519	5,165	8,684

Further, the Group has received a comittment from Fisheries and Aquaculture Industry Research Funding (FHF) for the project “ Realization of the potential sensor data for improved efficiency and fish welfare. In the financial accounts, these grants are recognised as income in the P&L. Grants for 2024 amounted to NOK 1,673 million.# Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 16 - GOVERNMENT GRANTS

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss 43
Consolidated statement of comprehensive income 43
Consolidated statement of financial position 44
Consolidated statement of cash flows 45
Consolidated statement of changes in equity 46
Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in associated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Salmon Evolution ASA Financial statements 79

Directors responsibility statement 98

Independent auditor’s report 99

Alternative Performance Measures 102

Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

Note 17 - Leases

Amounts recognised in the balance sheet (NOK thousands)

	31 Dec 2024	31 Dec 2023
Right-of-use assets
Water rights (reclassified from intangibles as of 31.12.2024)*	3 398	0
Rent of premises	4 630	6 153
Car	1 911	2 639
Other equipment	7 918	3 292
Total right-of-use assets	17 857	12 084
Lease liabilities
Current	5 317	4 350
Non-current	13 311	8 189
Total lease liabilities	18 629	12 539

Leased water rights at Dale have previously been classified as intangible assets, but have been reclassified to ROU from 31.12.2024 in accordance with IFRS 16. See note 11.

Amounts recognised in the statement of profit or loss (NOK thousands)

	31 Dec 2024	31 Dec 2023
Depreciation right-of-use assets
Rent of premises	2 149	2 058
Car	764	988
Other equipment	2 336	1 472
Gross depreciation	5 249	4 518
- Capitalized as assets under construction	0	0
Net depreciation	5 249	4 518
Interest expense lease liability	690	633

The total cash outflow for leases in 2024 was NOK 5,390 thousand.

2023 (NOK thousands)

	Rent of premises	Vechicles	Equipment
01.01.2023	8 211	1 079	3 711
Additions	0	2 548	1 053
Depreciations	-2 058	-988	-1 472
Right-of-use assets 31.12.2023	6 153	2 639	3 292
Lease liabilities 01.01.2023	8 175	1 119	3 934
Additions	0	2 548	1 053
Repayments	-1 782	-1 674	-835
Lease liabilities 31.12.2023	6 393	1 993	4 152

2024 (NOK thousands)

	Water rights	Rent of premises	Vechicles	Equipment
01.01.2024	0	6 153	2 639	3 292
Reclassifications	3 398	0	0	0
Additions	0	626	36	6 962
Depreciations	0	-2 149	-764	-2 336
Right-of-use assets 31.12.2024	3 398	4 630	1 911	7 918
Lease liabilities 01.01.2024	0	6 393	2 792	3 353
Additions	3 643	626	36	6 962
Repayments	0	-2 097	-323	-2 756
Lease liabilities 31.12.2024	3 643	4 922	2 505	7 559

Leasing period	Infinite	3-5 years	3-10 years	3-8 years

The Group has entered into several lease agreements that are considered to qualify as short-term and/or low-value in accordance with IFRS 16. Payments associated with such short-term and low-value leases are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture. The total cost of renting equipment not categorized as ROU amounted to 6,9 MNOK in 2024.

Salmon Evolution Annual Report 2024 70

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 17 - LEASES

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss 43
Consolidated statement of comprehensive income 43
Consolidated statement of financial position 44
Consolidated statement of cash flows 45
Consolidated statement of changes in equity 46
Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in associated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Salmon Evolution ASA Financial statements 79

Directors responsibility statement 98

Independent auditor’s report 99

Alternative Performance Measures 102

Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

Note 18 - Other current receivables and prepayments

Other current receivables (NOK thousands)

	31 Dec 2024	31 Dec 2023
Other current prepayments	22 745	24 684
VAT receivable	26 129	0
Other receivables	10	4 400
Tax incentive scheme ("Skattefunn")	2 258	2 037
Total other current receivables and prepayments	51 142	31 121

Current receivables pr 31.12.24 (NOK thousands)

	0-3 months	4-12 months	Total
VAT receivables	26 129	0	26 129
Other receivables	10	0	10
Tax incentive scheme ("Skattefunn")	0	2 258	2 258
Total other current receivables	26 139	2 258	28 397

As of 31 December 2024 all of the Group’s other current receivables were due within one year and considered fully collectible. Accordingly, the fair value of the Group’s other current receivables was equal to nominal value, no bad debt was recognized for the years then ended, and management did not consider a provision for uncollectible accounts necessary. As of 31 December 2024 the Group did not have any current receivables in foreign currencies, nor in 2023.

Salmon Evolution Annual Report 2024 71

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 18 - OTHER CURRENT RECEIVABLES AND PREPAYMENTS

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss 43
Consolidated statement of comprehensive income 43
Consolidated statement of financial position 44
Consolidated statement of cash flows 45
Consolidated statement of changes in equity 46
Note 1 - Summary of significant accounting policies 47
Note 2 - Critical estimates and judgments 51
Note 3 - Financial risk and capital management 52
Note 4 - Operating revenue and other income 55
Note 5 - Segment 56
Note 6 - Biological assets and inventory 57
Note 7 - Cost of materials and change in inventory 58
Note 8 - Personnel expenses, remuneration to the board and auditor's fee 59
Note 9 - Share based payments 60
Note 10 - Other operating expenses 61
Note 11 - Property, plant, equipment and intangible asset 62
Note 12 - Finance income & finance cost 65
Note 13 - Investment in associated companies 66
Note 14 - Taxes 67
Note 15 - Earnings per share 68
Note 16 - Government grants 69
Note 17 - Leases 70
Note 18 - Other current receivables and prepayments 71
Note 19 - Derivative financial instruments 72
Note 20 - Cash and restricted cash 72
Note 21 - Share Capital & Capital history 73
Note 22 - Interest bearing debt 75
Note 23 - Trade and other current liabilities 76
Note 24 - Related party balances and transactions 77
Note 25 - Climate risk 78
Note 26 - Events after the reporting date 78

Salmon Evolution ASA Financial statements 79

Directors responsibility statement 98

Independent auditor’s report 99

Alternative Performance Measures 102

Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

Note 19 - Derivative financial instruments

Financial assets (NOK thousands)

	31 Dec 2024	31 Dec 2023
Derivative financial assets
Derivatives not designated as hedging instruments
Interest rate swaps	13 643	12 666
Currency hedging	0	234
Total derivative financial assets	13 643	12 900

The derivative financial assets relate to hedging contracts for the Company’s interest rate exposure and consist of an interest rate swap contract of NOK 50 million in Sparebanken Vest and a similar contract of NOK 150 million in Nordea. Both contracts are due in January 2028 and have a fixed interest swap of 1.79%. Changes in market value are registered as unrealized profit/loss under financial income and allocated as unrealized profit/loss under other current receivables in the balance sheet.# Note 20 - Cash and restricted cash

Cash and cash equivalents (NOK thousands)

	31 Dec 2024	31 Dec 2023
Cash in bank	425,818	382,826
Restricted bank deposits	3,644	3,570
Total cash and cash equivalents	429,462	386,396

Restricted cash are related to tax withholdings for employees (NOK 3,644 thousand).

Salmon Evolution Annual Report 2024 72
Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 19 - DERIVATIVE FINANCIAL INSTRUMENTS

Group consolidated financial statements (IFRS)
43 Consolidated statement of profit or loss
43 Consolidated statement of comprehensive income
43 Consolidated statement of financial position
44 Consolidated statement of cash flows
45 Consolidated statement of changes in equity
46 Note 1 - Summary of significant accounting policies
47 Note 2 - Critical estimates and judgments
51 Note 3 - Financial risk and capital management
52 Note 4 - Operating revenue and other income
55 Note 5 - Segment
56 Note 6 - Biological assets and inventory
57 Note 7 - Cost of materials and change in inventory
58 Note 8 - Personnel expenses, remuneration to the board and auditor's fee
59 Note 9 - Share based payments
60 Note 10 - Other operating expenses
61 Note 11 - Property, plant, equipment and intangible asset
62 Note 12 - Finance income & finance cost
65 Note 13 - Investment in associated companies
66 Note 14 - Taxes
67 Note 15 - Earnings per share
68 Note 16 - Government grants
69 Note 17 - Leases
70 Note 18 - Other current receivables and prepayments
71 Note 19 - Derivative financial instruments
72 Note 20 - Cash and restricted cash
72 Note 21 - Share Capital & Capital history
73 Note 22 - Interest bearing debt
75 Note 23 - Trade and other current liabilities
76 Note 24 - Related party balances and transactions
77 Note 25 - Climate risk
78 Note 26 - Events after the reporting date
78

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution
Letter from the CEO 3
Key figures 4
03 Board statements 04
Financial statement and result 02
Sustainability and corporate responsibility

Note 21 - Share Capital & Capital history

(NOK thousands)

Nominal value	31 Dec 2024	31 Dec 2023
Ordinary shares	0.05	462,603,306
Average number of shares	0.05	440,297,748
Share capital		23,130
Share premium		2,415,049
Total		2,438,179

The number of shares issued in the company at 31 December 2024 was 462,603,306 with a nominal value of NOK 0.05 each. All shares carry equal voting rights.

20 largest shareholders as of 31.12.24

No of shares	Percentage share
32,407,311	7.0 %
30,181,466	6.5 %
24,569,080	5.3 %
22,931,481	5.0 %
21,168,366	4.6 %
17,932,838	3.9 %
16,702,022	3.6 %
15,204,563	3.3 %
13,173,105	2.8 %
12,410,954	2.7 %
9,790,519	2.1 %
9,480,984	2.0 %
9,074,474	2.0 %
8,449,252	1.8 %
7,569,330	1.6 %
4,614,718	1.0 %
4,136,666	0.9 %
3,624,094	0.8 %
3,349,404	0.7 %
3,300,000	0.7 %
270,070,627	58.4 %
192,532,679	41.6 %
462,603,306	100.0 %

As of 31 December 2024, shares directly held by members of the Board of Directors, Chief Executive officer, and Executive Management consisted of the following:

No of shares	Percentage share
12,410,954	2.8 %
4,614,718	0.5 %
1,800,150	0.4 %
500,000	0.1 %
275,000	0.1 %
173,333	0.0 %
168,935	0.0 %
160,060	0.0 %
90,000	0.0 %
50,000	0.0 %
1,250	0.0 %
20,244,400	4.0 %

Salmon Evolution Annual Report 2024 73
Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 21 - SHARE CAPITAL & CAPITAL HISTORY

Group consolidated financial statements (IFRS)
43 Consolidated statement of profit or loss
43 Consolidated statement of comprehensive income
43 Consolidated statement of financial position
44 Consolidated statement of cash flows
45 Consolidated statement of changes in equity
46 Note 1 - Summary of significant accounting policies
47 Note 2 - Critical estimates and judgments
51 Note 3 - Financial risk and capital management
52 Note 4 - Operating revenue and other income
55 Note 5 - Segment
56 Note 6 - Biological assets and inventory
57 Note 7 - Cost of materials and change in inventory
58 Note 8 - Personnel expenses, remuneration to the board and auditor's fee
59 Note 9 - Share based payments
60 Note 10 - Other operating expenses
61 Note 11 - Property, plant, equipment and intangible asset
62 Note 12 - Finance income & finance cost
65 Note 13 - Investment in associated companies
66 Note 14 - Taxes
67 Note 15 - Earnings per share
68 Note 16 - Government grants
69 Note 17 - Leases
70 Note 18 - Other current receivables and prepayments
71 Note 19 - Derivative financial instruments
72 Note 20 - Cash and restricted cash
72 Note 21 - Share Capital & Capital history
73 Note 22 - Interest bearing debt
75 Note 23 - Trade and other current liabilities
76 Note 24 - Related party balances and transactions
77 Note 25 - Climate risk
78 Note 26 - Events after the reporting date
78

Salmon Evolution ASA Financial statements 79
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution
Letter from the CEO 3
Key figures 4
03 Board statements 04
Financial statement and result 02
Sustainability and corporate responsibility

Capital history (NOK thousands)

Date	Capital Increase	Share Capital After Change	Par Value	Subscription price per share	New shares	Total no. of outstanding shares
Opening balance 1 July 2020		5,375,159	0.05			107,503,182
Share options exercised 10 July 2020	30,000	5,405,159	0.05	3.33	600,000	108,103,182
Private placement 23 July 2020	581,395	5,986,554	0.05	4.30	11,627,906	119,731,088
Private placement 11 September 2020	5,000,000	10,986,554	0.05	5.00	100,000,000	219,731,088
Private placement 23 March 2021	4,166,667	15,153,221	0.05	6.00	83,333,333	303,064,421
Acquisition Kraft Laks 16 August 2021	109,535	15,262,756	0.05	7.58	2,190,694	305,255,115
Private placement 12 October 2021	277,068	15,539,824	0.05	7.71	5,541,374	310,796,489
Share options exercised 26 March 2022	81,250	15,621,074	0.05	4.80	1,625,000	312,421,489
Private placement 5 April 2022	1,666,667	17,287,741	0.05	9.00	33,333,333	345,754,822
Private placement 18 April 2023	3,409,091	20,696,832	0.05	7.70	68,181,818	413,936,640
Private placement 18 June 2024	2,433,333	23,130,165	0.05	7.50	48,666,660	462,603,300

The Company entered into an investment agreement with Dongwon Industries and completed a NOK 50 million private placement towards Dongwon Industries in July 2020. The Company raised NOK 500 million in a private placement in connection with its initial public offering related to the admission on Merkur Market (now Oslo Børs) in September 2020. Further, the Company also raised another NOK 500 million in a private placement in March 2021. In August 2021 the Company acquired 100% of the shares in Kraft Laks AS. As part of the settlement the Company issued 2,190,694 new shares of NOK 7.5775 per share, and thereby increased its equity by NOK 16.6 million. In October 2021 the Company carried out a private placement of USD 5m (NOK ~43m) towards Cargill. Further, in April 2022 the Company carried out a private placement raising gross proceeds of NOK 300 million at a subscription price of NOK 9.00 per share, bringing total raised equity to more than NOK 1.7 billion. In April 2023 the Company carried out a private placement raising gross proceeds of NOK 525 million at a subscription price of NOK 7.7 per share, bringing total raised equity to more than NOK 2.2 billion. In June 2024 the Company carried out a private placement raising gross proceed of NOK 365 million at a subsciption price of NOK 7.5 per share, bringing total raised equity to more than NOK 2.5 billion.# Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 21 - SHARE CAPITAL & CAPITAL HISTORY

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flows
Consolidated statement of changes in equity
Note 1 - Summary of significant accounting policies
Note 2 - Critical estimates and judgments
Note 3 - Financial risk and capital management
Note 4 - Operating revenue and other income
Note 5 - Segment
Note 6 - Biological assets and inventory
Note 7 - Cost of materials and change in inventory
Note 8 - Personnel expenses, remuneration to the board and auditor's fee
Note 9 - Share based payments
Note 10 - Other operating expenses
Note 11 - Property, plant, equipment and intangible asset
Note 12 - Finance income & finance cost
Note 13 - Investment in assosiated companies
Note 14 - Taxes
Note 15 - Earnings per share
Note 16 - Government grants
Note 17 - Leases
Note 18 - Other current receivables and prepayments
Note 19 - Derivative financial instruments
Note 20 - Cash and restricted cash
Note 21 - Share Capital & Capital history
Note 22 - Interest bearing debt
Note 23 - Trade and other current liabilities
Note 24 - Related party balances and transactions
Note 25 - Climate risk
Note 26 - Events after the reporting date

Salmon Evolution ASA Financial statements

Directors responsibility statement
Independent auditor’s report
Alternative Performance Measures
Sustainability Indicators and GRI Index

01 This is Salmon Evolution

Letter from the CEO
Key figures

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

Note 22 - Interest bearing debt

Long-term interest bearing debt (NOK thousands)

	31.12.2024	31.12.2023
Debt to credit institutions	569,100	569,969
Other long-term interest bearing debt	0	0
Leasing liabilities	9,668	8,189
Total long-term interest-bearing debt	578,768	578,158

Short-term interest bearing debt (NOK thousands)

	31.12.2024	31.12.2023
Debt to credit institutions	158,488	103,275
Other short-term interest bearing debt	0	0
Leasing liabilitites	5,317	4,350
Total short-term interest-bearing debt	163,805	107,625

| Total interest-bearing debt | 742,573 | 685,783 |
| Cash & cash equivalents | 429,462 | 386,396 |
| Net interest-bearing debt | 313,111 | 299,387 |

In Q1 2023 the Group signed a NOK 1,550 million green debt financing package with DNB and Nordea relating to phase 1 and 2 at Indre Harøy, thus refinancing the existing senior secured debt financing package. The new package consisted of a NOK 525 million non-amortizing term loan facility to the existing NOK 525 million construction loan relating to phase 1, a NOK 250 million revolving credit facility available for general corporate purposes including Indre Harøy phase 2 capex and a NOK 775 million construction facility available for financing of capex relating to phase 2 at Indre Harøy. In June 2024 the Group expanded its existing senior secured debt financing package related to Indre Harøy Phase 1 and 2, from 1,550 NOKm to 2,225 NOKm. Additionally, the Company has a NOK 150 million Overdraft Facility with Nordea. As per 31 December 2024, NOK 525 million was drawn of the secured green debt financing package. In ad-dition, the Company has drawn NOK 145 million, of the NOK 150 million available, of the Overdraft Facility. The Group has also entered into loan agreements for a total of NOK 60 million relating to Salmon Evolution Dale AS of which around NOK 58 million was drawn as per 31 December 2024. This financing is for financing of working capital, investments in Salmon Evolution Dale as well as refinancing of the seller’s credit from the acquisition of Salmon Evolution Dale AS. The above table does not include other long-term liabilities of NOK 3.6 million related to water rights in Salmon Evolution Dale AS. The loans are floating interest rate loans denominated in NOK with an interest charge based on NIBOR 3M plus an agreed margin.

Financial covenants

The most important financial covenants for the long-term financing of the Group are, respectively, a solvency requirement that the borrower’s (Salmon Evolution Norway AS) book equity ratio (including intra-group loans) shall be minimum 45%. Further, there is a profitability requirement linked to the borrower’s EBITDA which shall be greater than NOK 250 million on a last 12-month basis from Q2 2027. Quarterly EBITDA figures shall be measured from Q2 2024 with set minimum EBITDA levels reflecting the company’s gradual ramp up of production volumes and profitability. In anticipation of not being able to meet its minimum EBITDA requirement for Q4 2024, Q1 2025 and Q2 2025 the loan agreement was amended from lender dated 4 December 2024. Finally, there is a minimum cash requirement that stipulates that the obligors (Salmon Evolution Norway AS, Salmon Evolution Sales AS and Salmon Evolution ASA) cash balance shall be greater than NOK 100 million at any time. Any undrawn and available amounts under the revolving facility and the overdraft is included in the calculation of the cash balance. As per 31 December 2024 the Company is in compliance with all financial covenants.

Information supporting the cash flows (NOK thousands)

Interest bearing debt	Short term	Long term
Balance at January 1, 2023	58,906	531,394
Repayment of loans and borrowings	-12,841	0
Proceeds from new bank loan	60,763	56,800
Obligations due to land and water rights	0	153
Change in lease liabilities	797	-1,487
Balance at Dec 31, 2023	107,625	586,859
Balance at January 1, 2024	107,625	586,859
Repayment of loans and borrowings	0	-869
Proceeds from new bank loan	55,213	0
Change in obligations due to land and water rights	0	-5,059
Change in lease liabilities*	968	1,480
Balance at Dec 31, 2024	163,805	582,411

*See note 17 for more information about leases

Salmon Evolution Annual Report 2024 75

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 22 - INTEREST BEARING DEBT

Group consolidated financial statements (IFRS)

43 Consolidated statement of profit or loss
43 Consolidated statement of comprehensive income
43 Consolidated statement of financial position
44 Consolidated statement of cash flows
45 Consolidated statement of changes in equity
46 Note 1 - Summary of significant accounting policies
47 Note 2 - Critical estimates and judgments
51 Note 3 - Financial risk and capital management
52 Note 4 - Operating revenue and other income
55 Note 5 - Segment
56 Note 6 - Biological assets and inventory
57 Note 7 - Cost of materials and change in inventory
58 Note 8 - Personnel expenses, remuneration to the board and auditor's fee
59 Note 9 - Share based payments
60 Note 10 - Other operating expenses
61 Note 11 - Property, plant, equipment and intangible asset
62 Note 12 - Finance income & finance cost
65 Note 13 - Investment in assosiated companies
66 Note 14 - Taxes
67 Note 15 - Earnings per share
68 Note 16 - Government grants
69 Note 17 - Leases
70 Note 18 - Other current receivables and prepayments
71 Note 19 - Derivative financial instruments
72 Note 20 - Cash and restricted cash
72 Note 21 - Share Capital & Capital history
73 Note 22 - Interest bearing debt
75 Note 23 - Trade and other current liabilities
76 Note 24 - Related party balances and transactions
77 Note 25 - Climate risk
78 Note 26 - Events after the reporting date
78

Salmon Evolution ASA Financial statements

79 Directors responsibility statement
98 Independent auditor’s report
99 Alternative Performance Measures
102 Sustainability Indicators and GRI Index
103

01 This is Salmon Evolution

3 Letter from the CEO
4 Key figures

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

Note 23 - Trade and other current liabilities

Trade payables (NOK thousands)

	31 Dec 2024	31 Dec 2023
Trade payables operation	98,527	33,812
Trade payable constructions	94,857	37,687
Total trade payables	193,384	71,499

Social security and other taxes (NOK thousands)

	31 Dec 2024	31 Dec 2023
Tax payable	0	415
Payroll withholding tax	3,641	3,563
Employer's national insurance contributions	3,439	3,329
VAT payable	0	966
Total social security and other taxes	7,080	8,273

Other current liabilities (NOK thousands)

	31 Dec 2024	31 Dec 2023
Accrued salaries, holiday pay and bonus provisions	9,846	10,410
Accrued interest expense	4,562	4,225
Total other current liabilities	14,408	14,635

Salmon Evolution Annual Report 2024 76

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 23 - TRADE AND OTHER CURRENT LIABILITIES

Group consolidated financial statements (IFRS)

43 Consolidated statement of profit or loss
43 Consolidated statement of comprehensive income
43 Consolidated statement of financial position
44 Consolidated statement of cash flows
45 Consolidated statement of changes in equity
46 Note 1 - Summary of significant accounting policies
47 Note 2 - Critical estimates and judgments
51 Note 3 - Financial risk and capital management
52 Note 4 - Operating revenue and other income
55 Note 5 - Segment
56 Note 6 - Biological assets and inventory
57 Note 7 - Cost of materials and change in inventory
58 Note 8 - Personnel expenses, remuneration to the board and auditor's fee
59 Note 9 - Share based payments
60 Note 10 - Other operating expenses
61 Note 11 - Property, plant, equipment and intangible asset
62 Note 12 - Finance income & finance cost
65 Note 13 - Investment in assosiated companies
66 Note 14 - Taxes
67 Note 15 - Earnings per share
68 Note 16 - Government grants
69 Note 17 - Leases
70 Note 18 - Other current receivables and prepayments
71 Note 19 - Derivative financial instruments
72 Note 20 - Cash and restricted cash
72 Note 21 - Share Capital & Capital history
73 Note 22 - Interest# Salmon Evolution ASA Financial statements

Note 24 - Related party balances and transactions

During the ordinary course of business, the Group engages in certain transactions with related parties. The following is a summary of related party transactions carried out in the period:

The Group has a consultancy agreement with Ronja Capital Investment AS (Tore Tønseth, chair of the Board) and Kjøles Stansekniver AS (Frode Kjølås, chair nomination committee) relating to assistance in certain projects on an ad-hoc basis. The Group has during 2024 purchased legal services from Adviso Advokatfirma AS in the amount of NOK 55,000 (77,000 in 2023) in its ordinary course of business. Board member Ingvild Vartdal is a partner at Adviso Advokatfirma AS but has not had any role in the services rendered to Salmon Evolution. In Addition, the Group have purchased well boat services both from Rostein AS in the amount of NOK 10.9 million. Rofisk AS owns Rostein AS (100%), and former board member (until 2023) Glen Allan Bradley is the chair of the Board in Rofisk AS.

Income from related parties (NOK thousands)

	2024	2023
K Smart Farming Co., Ltd (Board member)	2 047	9 765
Total (incl.VAT)	2 047	9 765

Expenses to related parties (incl.VAT) (NOK thousands)

	2024	2023
Rofisk AS (Board member, until 2023)	10 898	4 291
Adviso Advokatfirma AS (Board member)	55	77
Kjølås Stansekniver AS (Nomination committee)	181	1 081
Stette Eiendom AS (Board member)	0	15
Ronja Capital Investment AS (Chair of the board)	828	0
Total (incl.VAT)	11 961	5 464

Current liabilities to related parties (NOK thousands)

	2024	2023
Rofisk AS (Board member, until 2023)	868	890
Kjølås Stansekniver AS (Nomination committee)	0	40
Total current liabilities to related parties	868	930

Current receivables from related parties (NOK thousands)

	2024	2023
K Smart Farming Co., Ltd (Board member)	14 834	11 326
Total current liabilities to related parties	14 834	11 326

There were no non-current liabilities to related parties as of 31.12.24

Note 25 - Climate risk

Climate risks may affect both production and financial performance through physical and transitional risk.

Physical Risks

Although the company operates in closed systems, its operations may still be impacted by changes in weather and temperature conditions. Climate change could lead to rising water temperatures, which in turn may affect water quality. As the operation is land-based, the company already closely monitors and controls water quality, which helps minimize the potential negative effects of changes in water temperature. Furthermore, extreme weather events, such as heavy rainfall, storms, or flooding, could cause operational disruptions, infrastructure damage, and increased maintenance costs, which may affect production. During the design and construction of the facility, physical climate risks were taken into consideration, and contingency plans have been implemented to minimize potential disruptions to operations.

Transitional Risks

Transitional risks include regulatory changes and requirements, as well as shifts in consumer behavior, which could impact the group’s operational and financial performance. The company is actively working to reduce its carbon footprint through energy efficiency measures and circular production processes. The growing demand for sustainable farmed salmon is seen as an opportunity rather than a risk, and the company is well-positioned to meet this demand.

Accounting Implications

In accordance with IFRS, the company considers climate risks as part of its asset and liability valuations. Based on the current assessment of climate risks, the company has concluded that these risks do not currently have a material impact on the financial statements. Necessary investments in technology and compliance with evolving regulations are considered manageable within the company’s existing capital structure. No immediate need for asset impairments or other significant adjustments to the financial statements due to climate risks has been identified. The company will continue to monitor the development of climate risks and make any necessary adjustments to ensure long-term sustainable operations and compliance with all regulatory requirements. The group is committed to aligning with climate risk reporting standards. For more information on how we manage climate risks and minimize their impact, please refer to our ESG report.

Note 26 - Events after the reporting date

No material subsequent events.

Salmon Evolution ASA Financial statements

Statement of profit or loss (NOK thousands)

	Note	2024	2023
Other income	3	33 244	29 376
Total operating revenue		33 244	29 376
Personnel expenses	4	-49 343	-49 403
Depreciation	6	-3 499	-3 119
Other operating expenses	8	-24 858	-38 838
Operating profit (EBIT)		-44 455	-61 984
Financial income	3	128 021	76 850
Financial expenses	9	-12 120	-11 497
Net financials		115 901	65 353
Profit/loss before tax		71 446	3 369
Income tax expense	10	0	763
Profit/loss for the period		71 446	4 132

Statement of comprehensive income (NOK thousands)

	2024	2023
Profit/loss for the period	71 446	4 132

Group consolidated financial statements (IFRS)

Consolidated statement of profit or loss

Consolidated statement of comprehensive income

Consolidated statement of financial position

Consolidated statement of cash flows

Consolidated statement of changes in equity

Note 1 - Summary of significant accounting policies

Note 2 - Critical estimates and judgments

Note 3 - Financial risk and capital management

Note 4 - Operating revenue and other income

Note 5 - Segment

Note 6 - Biological assets and inventory

Note 7 - Cost of materials and change in inventory

Note 8 - Personnel expenses, remuneration to the board and auditor's fee

Note 9 - Share based payments

Note 10 - Other operating expenses

Note 11 - Property, plant, equipment and intangible asset

Note 12 - Finance income & finance cost

Note 13 - Investment in associated companies

Note 14 - Taxes

Note 15 - Earnings per share

Note 16 - Government grants

Note 17 - Leases

Note 18 - Other current receivables and prepayments

Note 19 - Derivative financial instruments

Note 20 - Cash and restricted cash

Note 21 - Share Capital & Capital history

Note 22 - Interest bearing debt

Note 23 - Trade and other current liabilities

Note 24 - Related party balances and transactions

Note 25 - Climate risk

Note 26 - Events after the reporting date

Directors responsibility statement

Independent auditor’s report

Alternative Performance Measures

Sustainability Indicators and GRI Index

01 This is Salmon Evolution

Letter from the CEO

Key figures

03 Board statements

04 Financial statement and result

02 Sustainability and corporate responsibility

Salmon Evolution ASA Financial statements

Statement of profit or loss

Statement of comprehensive income

Statement of financial position

Statement of cash flows

Statement of changes in equity

Note 1 - Summary of significant accounting policies

Note 2 - Financial risk and capital management

Note 3 - Intercompany balances and intercompany transactions

Note 4 - Personnel# Salmon Evolution Annual Report 2024

01 This is Salmon Evolution

Letter from the CEO

Key figures

Board statements

02 Sustainability and corporate responsibility

03 Financial statement and result

Group consolidated financial statements (IFRS)

Salmon Evolution ASA Financial statements

Statement of profit or loss

Statement of comprehensive income

Statement of financial position

Statement of financial position (NOK thousands)

Note	31.12.2024	31.12.2023
Assets
Intangible assets	6	8 382 5 835
Deferred tax asset	10	3 891
Property, plant & equipment	7	18 754
Right-of-use assets	6, 7	5 949
Group non-current receivables	3	1 307
Investment in subsidiaries	11	859 438
Total non-current assets		2 203 769
Other current receivables	3	174 910
Cash and cash equivalents	12	397 819
Total current assets		572 729
Total assets		2 776 498

Statement of financial position (NOK thousands)

Note	31.12.2024	31.12.2023
Equity and liabilities
Share capital	13	23 130
Share premium	13	2 450 459
Other reserves	5	10 703
Other equity	0	0
Retained earnings	101 781	30 335
Total equity		2 586 073
Long-term interest bearing debt	9	25 000
Lease liabilities - long term	7	3 353
Total non-current liabilities		28 353
Short-term interest bearing debt	9	145 018
Trade payables	14	2 041
Current liabilities to Group Companies	3	1 415
Lease liabilities - short term	7	2 955
Other current liabilities	14	10 643
Total current liabilities		162 072
Total liabilities		190 425
Total equity and liabilities		2 776 498

The Board of Directors of Salmon Evolution ASA
Elnesvågen/Ålesund 10 April 2025

Tore A Tønseth CHAIR
Peder Stette DIRECTOR
Anne Breiby DIRECTOR
Ingvild Vartdal DIRECTOR
Vibecke Bondø DIRECTOR
Eunhong Min DIRECTOR
Jan-Emil Johannessen DIRECTOR
Trond Håkon Schaug-Pettersen CEO

Digital signature

Salmon Evolution Annual Report 2024
FINANCIAL STATEMENTS AND RESULTS – STATEMENT OF FINANCIAL POSITION 80

Statement of cash flows (NOK thousands)

Note	2024	2023
Cash flow from operations
Profit before income taxes	71 446	3 369
Adjustments for:
Depreciation	6	3 499
Net financials	3	-115 901
Share based payment expenses	4	726
Changes in working capital:
Change in trade receivables	-6 170	-13 439
Change in other current recievables	-46 426	-64 262
Change in trade payables	-795	-2 579
Change in current liabilities to Group companies	3	-2 061
Change in other current liabilities	-352	-5 753
Cash generated from operations	-96 034	-139 020
Cash flow from investment activities
Investment in Group Companies	11	-500 000
Payments for intangible assets	6	-2 893
Proceeds from government grants		346
Payments for fixed assets and other capitalizations	6	-18 226
Financial income received		35 045
Net cash flow from investment activities	-485 728	-15 964
Cash flow from financing activities
Proceeds from issue of equity, net of paid transaction costs	13	349 425
Proceeds from intercompany borrowings	3	213 000
Proceeds from new borrowings	9	54 949
Repayment of borrowings	9	0
Payments of principal portion of lease liabiities		-3 096
Interest paid lease liabilities		-158
Financial expences paid		-11 966
Net cash flow from financing activities	602 154	277 801
Net change in cash and cash equivalents	20 392	122 817
Cash and cash equivalents at the beginning of the period		377 427
Cash and cash equivalents at the end of the period		397 819

Salmon Evolution Annual Report 2024
FINANCIAL STATEMENTS AND RESULTS – STATEMENT OF CASH FLOWS 81

Statement of changes in equity (NOK thousands)

Notes	Share capital	Share premium	Retained Earnings	Other Reserves	Total equity
Balance at 1 January 2023	17 288	1 605 894	26 202	7 540	1 656 923
Profit/loss for the period	0	0	4 132	0	4 132
Other comprehensive income	0	0	0	0	0
Total comprehensive income	0	0	4 132	0	4 132
Share options exercised	0	0	0	0	0
Private placement, April 2023	3 409	521 591	0	0	525 000
Private placements, transaction costs	0	-24 018	0	0	-24 018
Share options issued	0	0	0	2 438	2 438
Transactions with owners	13	3 409	497 573	0	2 438
Balance at 31 December 2023	20 697	2 103 467	30 335	9 978	2 164 476
Balance at 1 January 2024	20 697	2 103 467	30 335	9 978	2 164 476
Profit/loss for the period	0	0	71 446	0	71 446
Other comprehensive income	0	0	0	0	0
Total comprehensive income	0	0	71 446	0	71 446
Private placement June 2024	2 433	362 567	0	0	365 000
Private placement, transaction costs	0	-15 575	0	0	-15 575
Share options issued	0	0	0	0	0
Share based payment expensed	0	0	0	726	726
Transactions with owners	13	2 433	346 992	0	726
Balance at 31 December 2024	23 130	2 450 459	101 781	10 704	2 586 073

Salmon Evolution Annual Report 2024
FINANCIAL STATEMENTS AND RESULTS – STATEMENT OF CHANGES IN EQUITY 82

Note 1 - Summary of significant accounting policies

General information
Salmon Evolution ASA is a Norwegian business headquartered in Hustadvika, Møre og Romsdal and listed on the Oslo Børs with the ticker symbol “SALME”. Salmon Evolution ASA owns the following subsidiaries (collectively “the Group” or “SE”);
- Salmon Evolution Norway AS, headquartered and located in Elnesvågen, Norway
- Salmon Evolution International AS,
- Salmon Evolution Dale AS,
- Salmon Evolution Sales AS

SE is in the process of constructing a land-based salmon farming facility with a planned annual harvesting capacity of 31,500 tonnes HOG.# Salmon Evolution Annual Report 2024 FINANCIAL STATEMENTS AND RESULTS – NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The build-out is expected to be in three phases, with the first phase expected to consist of build out of land acquisition, building of foundation, water pumps supporting all three phases and build out of 12 grow out tanks and hatchery. SE operates a hybrid flow-through system (“HFS”), replacing the water every four hours with clear and fresh water from the Norwegian coast. Construction start of phase I was in Q1 2020 with completion in Q2 2023. Production started in the end of Q1 2022 when the first smolt was entered the first tank with first harvest late Q4 2022. Phase II consists of build out of an additional 12 grow out tanks with first smolt expected entered late Q1 2026. The last construction phase, phase III, consists of build-out of an additional 24 grow out tanks.

Basis of preparation and accounting principles

The financial statements of the Company have been prepared in accordance with the Norwegian Accounting Act § 3-9 and Finance Ministry’s prescribed regulations from 21 January 2008 on simplified IFRS. Principally this means that recognition and measurement comply with IFRS® International Accounting Standards and presentation and note disclosures are in accordance with the Norwegian Accounting Act and generally accepted accounting principles. Any exceptions from measurement and recognition according to IFRS is disclosed below.

Accounting period

The company was incorporated on 3 July 2020. The accounting period for the financial statements are 1 January 2024 - 31 December 2024.

Going concern

The Company has adopted the going concern basis in preparing its financial statements. When assessing this assumption, management has assessed all available information about the future. This comprises information about net cash flows from existing customer contracts and other service contracts, debt service and obligations. After making such assessments, management has a reasonable expectation that the Company has adequate resources to continue its operational existence for the foreseeable future.

Basis of measurement

The financial statements have been prepared under the historical cost basis.

Investments in subsidiaries

Investments in subsidiaries are valued at cost in the company accounts. The investment is valued as cost of acquiring shares, providing they are not impaired. An impairment loss is recognised for the amount by which the carrying amount of the subsidiary exceeds its recoverable amount. The recoverable amount is the higher of fair value less cost to sell and value in use. The recoverable amount of an investment in a subsidiary would normally be based on the present value of the subsidiary’s future cash flow.

Dividends and group contributions

The Company has applied simplifications in regard to the Directives specified by the Norwegian Ministry of Finance on 21. of January 2008, related to accounting treatment of dividends and group contributions: Dividends and group contributions will be treated in accordance with the Norwegian Accounting Act and deviates from IAS 10 no. 12 and 13.

Classification of current and non-current items

Assets are classified as current when it is expected to be realized or sold, or to be used in the Company’s normal operating cycle, or falls due or is expected to be realized within 12 months after the end of the reporting date. Assets that do not fall under this definition is classified as non-current. Liabilities are classified as current when they are expected to be settled in the normal operating cycle of the Company or are expected to be settled within 12 months after the reporting date, or if the Company does not have an unconditional right to postpone settlement for at least 12 months after the reporting date. Liabilities that do not fall under this definition are classified as non-current.

Employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Share based payments

Information relating to the Company’s employee option scheme is set out in note 5. The fair value of options granted under the scheme is recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted:
- including any market performance conditions (eg the entity’s share price)
- excluding the impact of any service and non-market performance vesting conditions (eg profitability, sales growth targets and remaining an employee of the entity over a specified time period), and
- including the impact of any non-vesting conditions (eg the requirement for employees to save or holdings shares for a specific period of time).

The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

Pensions

Income Tax

The tax expense represents the sum of the tax currently payable and change in deferred tax.

Current and change in deferred tax for the year

Current tax: Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Deferred tax benefit has not been recognised in the balanse sheet as the Company is in its start-up phase and does no have any historical results to refer to when assessing whether future taxable profits will be sufficient to utilize the tax benefit.

Deferred tax

Leases

All leasing agreements with a duration exceeding 12 months are capitalized. The Group assesses whether a legally enforceable contract is or contains a lease at the inception date of the contract. The assessment includes several criteria to be determined based on judgment that includes whether there is an identifiable asset in connection to the lease, whether the Group has the right to control the use of the identifiable asset, and whether the Group can obtain substantially all economic benefits from the identifiable asset. The Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. The lease liability is calculated based on the present value of the contractual minimum lease payments using the incremental interest rate of the lease. The contractual minimum lease payments consist of fixed payments based on contractual amount at the time of conclusion of the agreement.

This section is an excerpt from the Salmon Evolution Annual Report 2024, specifically Note 1 - Summary of Significant Accounting Policies.

Table of Contents Reference:

Group consolidated financial statements (IFRS) 43
Salmon Evolution ASA Financial statements 79
Statement of profit or loss 79
Statement of comprehensive income 79
Statement of financial position 80
Statement of financial position 80
Statement of cash flows 81
Statement of changes in equity 82
Note 1 - Summary of significant accounting policies 83
Note 2 - Financial risk and capital management 85
Note 3 - Intercompany balances and intercompany transactions 86
Note 4 - Personnel expenses, remuneration t o the board and auditor's fee 87
Note 5 - Share based payments 88
Note 6 - Property, plant, equipment, right-of- use assets and intangible assets 89
Note 7 - Leases 90
Note 8 - Other operating expenses 90
Note 9 - Debt 91
Note 10 - Taxes 92
Note 11 - Investments in subsidiaries 93
Note 12 - Cash and restricted cash 94
Note 13 - Share capital 95
Note 14 - Trade and other current liabilities 97
Note 15 - Events after the reporting date 97
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

Other Sections Referenced:

01 This is Salmon Evolution
Letter from the CEO 3
Key figures 4
03 Board statements
04 Financial statement and result
02 Sustainability and corporate responsibility# FINANCIAL STATEMENTS AND RESULTS – NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The lease liability is subsequently measured at amortized cost under the effective interest rate during the lease term and may also be adjusted to management’s reassessment of future lease payments based on options exercised, renegotiations, or changes of an index rate. The ROU asset is calculated based on the lease liability, plus initial direct costs towards the lease, and less any incentives granted by the lessor. The ROU asset is subsequently amortized under the straight-line method under the shorter of the lease term or the useful life of the underlying asset and is included as part of depreciation and amortization in the accompanying statements of other comprehensive income. Leases that fall under the IFRS 16 short-term exception are recognized on a straight-line basis over the lease term.

Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand and deposits held at call with financial institutions.

Trade and Other Receivables

Trade and other payables

Trade and other payables represent unpaid liabilities for goods and services provided to the Company prior to the end of the financial year and are presented as current liabilities unless payment is not due within 12 months after the reporting period. Trade and other payables are recognized initially at their fair value and are subsequently measured at amortized cost using the effective interest method.

Statement of cash flows

The accompanying statements of cash flows are prepared in accordance with the indirect method.

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 84

Group consolidated financial statements (IFRS) 43

Salmon Evolution ASA Financial statements 79
Statement of profit or loss 79
Statement of comprehensive income 79
Statement of financial position 80
Statement of financial position 80
Statement of cash flows 81
Statement of changes in equity 82
Note 1 - Summary of significant accounting policies 83
Note 2 - Financial risk and capital management 85
Note 3 - Intercompany balances and intercompany transactions 86
Note 4 - Personnel expenses, remuneration t o the board and auditor's fee 87
Note 5 - Share based payments 88
Note 6 - Property, plant, equipment, right-of- use assets and intangible assets 89
Note 7 - Leases 90
Note 8 - Other operating expenses 90
Note 9 - Debt 91
Note 10 - Taxes 92
Note 11 - Investments in subsidiaries 93
Note 12 - Cash and restricted cash 94
Note 13 - Share capital 95
Note 14 - Trade and other current liabilities 97
Note 15 - Events after the reporting date 97
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution
Letter from the CEO 3
Key figures 4

03 Board statements 04
Financial statement and result 02
Sustainability and corporate responsibility

Note 2 - Financial risk and capital management

The Company’s financial assets and liabilities include trade and other receivables, trade and other payables, cash, and borrowings necessary for its operations. The Company’s risk management is carried out by the Company’s finance department. The Group is exposed to market risk, credit risk, and liquidity risk.

Market risk

Market risk is linked to both Interest Rate- and Currency fluctuations.

Interest Rate

The Company’s interest rate risk relates primarily to borrowings from financial institutions with variable interest rates. As of 31 December 2024 Salmon Evolution Norway AS, a subsidiary of Salmon Evolution ASA, has outstanding loans from credit institutions amounted to NOK 670 million (excluding financial leasing). The Construction Facility which represents the vast majority of the Company’s loan with financial institutions has an interest rate of NIBOR 3M plus an agreed margin of 3 %. In order to reduce exposure to fluctuations in the interest rate Salmon Evolution Norway AS has entered interest rate swap contracts with Nordea and Sparebanken Vest, of respectively NOK 150 million and NOK 50 million. Salmon Evolution ASA is guarantor for the loan. The Construction Facility and the Term Loan Facility are partly guaranteed by Eksfin.

Foreign Currency

The Company’s foreign currency risk relates to the Company’s operating, investing, and financing activities denominated in a foreign currency. This includes the Company’s revenues, expenses and capital expenditures. As of 31 December 2024 the Company had not made any contracts. The Company’s presentation currency is Norwegian Kroner (“NOK”).

Credit risk

With respect to credit risk arising from the financial assets of the Company, which comprise cash and cash equivalents, and other receivables, the Company’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. This risk is not considered to be material.

Liquidity risk

A lack of liquidity will entail a risk that the Company will not be able to pay its obligations on maturity. Management monitors rolling forecasts of the Company’s liquidity reserve (comprising cash and cash equivalents) on the basis of expected cash flows. The Company’s business plan and growth strategy is capital intensive and the Company may be dependant upon future equity issues and/or debt financing in order to finance its current long-term plans.

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 2 - FINANCIAL RISK AND CAPITAL MANAGEMENT 85

Group consolidated financial statements (IFRS) 43

01 This is Salmon Evolution
Letter from the CEO 3
Key figures 4

03 Board statements 04
Financial statement and result 02
Sustainability and corporate responsibility

Note 3 - Intercompany balances and intercompany transactions

Intercompany balances

31.12.2024 (NOK thousands)

	Non-current receivables	Current receivables	Non-current liabilities	Current liabilities
Salmon Evolution Norway AS	1	265 971	9	317 091
Salmon Evolution International AS	33	108	0	0
Salmon Evolution Dale AS	7	275 534	0	0
Salmon Evolution Sales AS	1 000	0	0	81
K Smart Farming Co., Ltd	0	14 834	0	0
Total	1 307 354	24 685	0	1 000

31.12.2023 (NOK thousands)

	Non-current receivables	Current receivables	Current liabilities
Salmon Evolution Norway AS	1 395 187	89 736	3 310
Salmon Evolution International AS	31	190	0
Salmon Evolution Dale AS	0	3 075	166
Salmon Evolution Sales AS	1 000	27	0
Salmon Evolution North America	1 964	0	0
K Smart Farming Co., Ltd	0	11 326	0
Total	1 429 342	104 164	3 476

Intercompany and related party transactions: (NOK thousands)

	Revenue	Interest
Salmon Evolution Norway AS	30 662	98 743
Salmon Evolution International AS	0	1 848
Salmon Evolution Dale AS	469	275
Salmon Evolution Sales AS	0	-208
K Smart Farming Co., Ltd	2 047	0
Total intercompany transactions	33 178	100 658

Investments in Salmon Evolution Norway AS and Salmon Evolution International AS is partly financed with loan from Salmon Evolution ASA. The interest rate on these loans is set at an interest rate of 3 months Nibor + a margin of 3 %. Intercompany receivables to Salmon Evolution Norway AS are unsecured. The bank loans have security in all material assets of Salmon Evolution Norway AS, including but not limited to land and plant and machinery. Salmon Evolution ASA as parent company of the Group has also fully guaranteed the Group’s bank loans. Carrying value of the investment property pledged as security is NOK 2,314 million.

Salmon Evolution ASA also requires an administration fee from group companies. This fee covers administration, advice and development of the company, and is invoiced based on time spent by the employees of the parent company in the various areas. Total amount in 2024 was NOK 30,7 million (NOK 19.3 million in 2023). In addition, the company has required refund of costs from K Smart Farming Co., Ltd to expats posted in Korea, and also apprentices from Korea who have had residency in Norway. There were no other significant transactions with group companies and related parties in 2024.# Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 3 - INTERCOMPANY BALANCES AND INTERCOMPANY TRANSACTIONS

Group consolidated financial statements (IFRS)

43 Salmon Evolution ASA
Financial statements
Statement of profit or loss
Statement of comprehensive income
Statement of financial position
Statement of financial position
Statement of cash flows
Statement of changes in equity
Note 1 - Summary of significant accounting policies
Note 2 - Financial risk and capital management
Note 3 - Intercompany balances and intercompany transactions
Note 4 - Personnel expenses, remuneration t o the board and auditor's fee
Note 5 - Share based payments
Note 6 - Property, plant, equipment, right-of- use assets and intangible assets
Note 7 - Leases
Note 8 - Other operating expenses
Note 9 - Debt
Note 10 - Taxes
Note 11 - Investments in subsidiaries
Note 12 - Cash and restricted cash
Note 13 - Share capital
Note 14 - Trade and other current liabilities
Note 15 - Events after the reporting date
Directors responsibility statement
Independent auditor’s report
Alternative Performance Measures
Sustainability Indicators and GRI Index

01 This is Salmon Evolution

Letter from the CEO
Key figures
Board statements
Financial statement and result
Sustainability and corporate responsibility

Note 4 - Personnel expenses, remuneration to the board and auditor's fee

Personnel expenses, remuneration to executives and accrued liabilities to be paid in 2024 (NOK thousands)

	2024	2023
Salaries	37,472	35,240
Social security	6,379	6,074
Pensions	2,054	1,859
Other benefits	1,176	695
Share-based payments	726	2,347
Director's fee (both paid in 2023 and liabilities to be paid 2024)	2,893	3,188
Gross personnel expenses	50,699	49,403
- Capitalized costs	-1,356	0
Total personnel expenses recognized in P&L	49,343	49,403
Number of full-time employment equivalents	34	30

Norwegian entities are obligated to establish a mandatory company pension. This obligation is fulfilled under the current pension plan. No loans or guarantees have been given to the members of the board of directors or executive management. For personnel expenses and remuneration to the board please see group note 8 and our remuneration report for 2024, published on our website salmonevolution.no.

Auditor’s remuneration (NOK thousands)

	2024	2023
Statutory audit	1,018	568
Service in relation to tax return	0	6
Other services	278	19
Total	1,296	593

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 4 - PERSONNEL EXPENSES, REMUNERATION TO THE BOARD AND AUDITOR'S FEE

Group consolidated financial statements (IFRS)

43 Salmon Evolution ASA
Financial statements
Statement of profit or loss
Statement of comprehensive income
Statement of financial position
Statement of financial position
Statement of cash flows
Statement of changes in equity
Note 1 - Summary of significant accounting policies
Note 2 - Financial risk and capital management
Note 3 - Intercompany balances and intercompany transactions
Note 4 - Personnel expenses, remuneration t o the board and auditor's fee
Note 5 - Share based payments
Note 6 - Property, plant, equipment, right-of- use assets and intangible assets
Note 7 - Leases
Note 8 - Other operating expenses
Note 9 - Debt
Note 10 - Taxes
Note 11 - Investments in subsidiaries
Note 12 - Cash and restricted cash
Note 13 - Share capital
Note 14 - Trade and other current liabilities
Note 15 - Events after the reporting date
Directors responsibility statement
Independent auditor’s report
Alternative Performance Measures
Sustainability Indicators and GRI Index

01 This is Salmon Evolution

Letter from the CEO
Key figures
Board statements
Financial statement and result
Sustainability and corporate responsibility

Note 5 - Share based payments

In 2023 the Board of directors granted another tranche of stock options. Each option gives the holder the right to subscribe or purchase shares in Salmon Evolution at an average agreed exercise price of NOK 8.30. The options were granted on 1 June for executive management and 7 July for key employees. 50% of the options can be exercised at earliest, 12 months after the grant date. The remaining 50% of the options can be exercised at earliest, 24 months after the grant date. To account for this, an adjusted Black & Scholes option-pricing model is used by applying a weighted expected average life of 18 months.

Furthermore, in 2024 the Board of directors granted another tranche of stock options. Each option gives the holder the right to subscribe or purchase shares in Salmon Evolution at an average agreed exercise price of NOK 7.50. The options were granted on 18 September for both executive management and key employees. 1/3 of the options can be exercised at earliest 12 months, 1/3 of the options can be exercised after 24 months, and 1/3 of the options can be exercised after 36 months, after the grant date. To account for this, an adjusted Black & Scholes option-pricing model is used by applying a weighted expected average life of 18 months.

The fair value of the options is set on the grant date and is expensed over its lifetime. The fair value of the options has been calculated using the adjusted Black & Scholes option-pricing model, which takes into account the exercise price, the term of the option, the share price at the grant date, expected price volatility of the underlying share, expected dividend and risk-free rates. Given the recent listing and lack of historical price and volatility data, the expected volatility is based on historical volatility for a selection of comparable companies listed on Oslo Stock Exchange (“Oslo Børs”). The risk-free interest rate is set to equal the interest on Norwegian government bonds with the same maturity as the option.

Average key assumptions are listed below.

Outstanding options (NOK thousands)

	2024	2023
Outstanding options 1 January	7,060	5,150
Options granted	3,880	1,910
Options exercised	0	0
Options forfeited	0	0
Outstanding options at end of period	10,940	7,060

	2024	2023
Charges to income statement, Salmon Evolution ASA	576	2,347
Charges to the shares in Salmon Evolution Norway AS	120	73
Charges to the shares in Salmon Evolution Dale AS	29	18

Key assumptions

	2024	2023
Average fair value (NOK)	1.10	0.83
Average exercise price (NOK)	7.50	8.30
Weighted expected average life (in years)	5.0	3.2
Estimated dividend per share (NOK)	0	0
Expected average volatility	26.9 %	19.6 %
Risk-free rate	3.62 %	3.31 %

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 5 - SHARE BASED PAYMENTS

Group consolidated financial statements (IFRS)

43 Salmon Evolution ASA
Financial statements
Statement of profit or loss
Statement of comprehensive income
Statement of financial position
Statement of financial position
Statement of cash flows
Statement of changes in equity
Note 1 - Summary of significant accounting policies
Note 2 - Financial risk and capital management
Note 3 - Intercompany balances and intercompany transactions
Note 4 - Personnel expenses, remuneration t o the board and auditor's fee
Note 5 - Share based payments
Note 6 - Property, plant, equipment, right-of- use assets and intangible assets
Note 7 - Leases
Note 8 - Other operating expenses
Note 9 - Debt
Note 10 - Taxes
Note 11 - Investments in subsidiaries
Note 12 - Cash and restricted cash
Note 13 - Share capital
Note 14 - Trade and other current liabilities
| 15 - Events after the reporting date |
Directors responsibility statement
Independent auditor’s report
Alternative Performance Measures
Sustainability Indicators and GRI Index

01 This is Salmon Evolution

Letter from the CEO
Key figures
Board statements
Financial statement and result
Sustainability and corporate responsibility

Note 6 - Property, plant, equipment, right-of-use assets and intangible assets

Property, plant, equipment, intangibles assets (NOK thousands)

	Intangible assets	Assets under construction	Fixtures and fittings	Right-of-use assets	Total
Cost
1 January 2024	5,835	0	1,234	12,973	20,042
Additions	3,806	18,162	64,831	22,862	41,646
Disposals	-1,259	0	0	0	-1,259
Cost 31 December 2024	8,382	18,162	1,298	13,804	41,646

Accumulated depreciation
1 January 2024	0	0	399	4,664	5,062
Depreciation for the period	0	0	307	3,192	3,499
Net book value 31 December 2024	8,382	18,162	593	5,950	33,086

Estimated lifetime	n/a	n/a	3-5 years	3-5 years
Depreciation method	n/a	n/a	Linear	Linear

Propery, plant and equipment (NOK thousands)

	Intangible assets	Assets under construction	Assets in use, not allocated	Buildings	Fixtures and fittings	Total
Cost
1 January 2023	2,564	0	1,193	11,682	15,439	15,439
Additions	6,059	0	41	1,291	7,391	7,391
Disposals	-2,788	0	0	0	-2,788	-2,788
Cost 31 December 2023	5,835	0	1,234	12,973	20,042	20,042

Accumulated depreciation
1 January 2023	0	0	103	1,841	1,944	1,944
Depreciation for the period	0	0	296	2,823	3,119	3,119
Net book value 31 December 2023	5,835	0	835	8,309	14,980	14,980

Intangible Assets (NOK thousands)

	01.01.2024	Additions	Grants	31.12.2024
Skattefunn-project	1,329	1,822	-346	2,805
Other research and development projects	1,250	1,017	0	2,267
Protection rights	3,256	55	0	3,311
Total	5,835	2,893	-346	8,382

Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset’s historical cost and estimated residual value at disposal. Depreciation is charged to expense when the property, plant or equipment is ready for use or placed in service. Capitalised development costs are related to building strategy and purchase of rights for sale and development of own branding.# Salmon Evolution Annual Report 2024

01 This is Salmon Evolution

Letter from the CEO 3
Key figures 4

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result
02 Sustainability and corporate responsibility

04 Financial statements and results – NOTE 6 - PROPERTY, PLANT, EQUIPMENT, RIGHT-OF-USE ASSETS AND INTANGIBLE ASSETS 89

The company has also activated costs for a development project with grants (Skattefunn) from The Research Council of Norway to improve the quality of landbased salmon. Total cost for this project in 2024 was NOK 3,650 thousand (3,829 thousand in 2023). The receivable is accounted for as a short-term receivable from the tax authorities. In the financial accounts the receivable related to the grant is netted partly against the related asset’s acquisition cost and partly against expenses recognised in the income statement. Grants for 2024 amounted to NOK 694 thousand (728 thousand in 2023).

Group consolidated financial statements (IFRS) 43

Salmon Evolution ASA Financial statements 79

Statement of profit or loss 79
Statement of comprehensive income 79
Statement of financial position 80
Statement of financial position 80
Statement of cash flows 81
Statement of changes in equity 82
Note 1 - Summary of significant accounting policies 83
Note 2 - Financial risk and capital management 85
Note 3 - Intercompany balances and intercompany transactions 86
Note 4 - Personnel expenses, remuneration t o the board and auditor's fee 87
Note 5 - Share based payments 88
Note 6 - Property, plant, equipment, right-of- use assets and intangible assets 89
Note 7 - Leases 90
Note 8 - Other operating expenses 90
Note 9 - Debt 91
Note 10 - Taxes 92
Note 11 - Investments in subsidiaries 93
Note 12 - Cash and restricted cash 94
Note 13 - Share capital 95
Note 14 - Trade and other current liabilities 97
Note 15 - Events after the reporting date 97
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

Note 7 - Leases

Amounts recognised in the balance sheet (NOK thousands)

	31 Dec 2024	31 Dec 2023
Right-of-use assets
Rent of premises	4,630	6,153
Car	421	938
Office supply	899	1,218
Total right-of-use assets	5,949	8,309
Lease liabilities
Current	2,955	2,797
Non-current	3,353	5,790
Total lease liabilities	6,307	8,587

Amounts recognised in the statement of profit or loss (NOK thousands)

	31 Dec 2024	31 Dec 2023
Depreciation right-of-use assets
Rent of premises	-2,149	-1,948
Car	-561	-473
Office supply	-482	-395
Gross depreciation	-3,192	-2,816
- Capitalized as assets under construction	0	0
Net depreciation	-3,192	-2,816

Leasing period: 3-5 years

Interest expense lease liability: 158, 434

The total cash outflow for leases in 2024 was NOK 3,254 thousand (3,148 thousand in 2023). The Company has entered into several lease agreements that are considered to qualify as short-term and/or low-value in accordance with IFRS 16. Payments associated with such short-term and low- value leases are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture.

Group consolidated financial statements (IFRS) 43

Salmon Evolution ASA Financial statements 79

Statement of profit or loss 79
Statement of comprehensive income 79
Statement of financial position 80
Statement of financial position 80
Statement of cash flows 81
Statement of changes in equity 82
Note 1 - Summary of significant accounting policies 83
Note 2 - Financial risk and capital management 85
Note 3 - Intercompany balances and intercompany transactions 86
Note 4 - Personnel expenses, remuneration t o the board and auditor's fee 87
Note 5 - Share based payments 88
Note 6 - Property, plant, equipment, right-of- use assets and intangible assets 89
Note 7 - Leases 90
Note 8 - Other operating expenses 90
Note 9 - Debt 91
Note 10 - Taxes 92
Note 11 - Investments in subsidiaries 93
Note 12 - Cash and restricted cash 94
Note 13 - Share capital 95
Note 14 - Trade and other current liabilities 97
Note 15 - Events after the reporting date 97
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

Note 8 - Other operating expenses

Other operating expenses (NOK thousands)

	2024	2023
Cost of premises (not defined as RoU)	1,455	781
Other operating and administrative expenses	13,379	14,820
Insurance	841	699
Consultancy fees	7,909	21,305
Other fees (Oslo Børs, VPS)	1,275	1,233
Total other operating expenses	24,858	38,838

Note 9 - Debt

Long-term interest bearing debt (NOK thousands)

	31 Dec 2024	31 Dec 2023
Debt to credit institutions	25,000	25,000
Other long-term interest bearing debt	0	0
Leasing liabilities	3,353	5,790
Total long-term interest-bearing debt	28,353	30,790

Short-term interest bearing debt (NOK thousands)

	31 Dec 2024	31 Dec 2023
Debt to credit institutions	145,018	90,069
Other short-term interest bearing debt	0	0
Leasing liabilitites	2,955	2,797
Total short-term interest-bearing debt	147,973	92,866

Total interest-bearing debt 176,326, 123,656
Cash & cash equivalents 397,819, 377,427
Net interest-bearing debt -221,494, -253,771

In Q1 2023 the Group signed a NOK 1,550 million green debt financing package with DNB and Nordea relating to phase 1 and 2 at Indre Harøy, thus refinancing the existing senior secured debt financing package. The new package consisted of a NOK 525 million non-amortizing term loan facility to the existing NOK 525 million construction loan relating to phase 1, a NOK 250 million revolving credit facility available for general corporate purposes including Indre Harøy phase 2 capex and a NOK 775 million construction facility available for financing of capex relating to phase 2 at Indre Harøy. In June 2024 the Group expanded its existing senior secured debt financing package related to Indre Harøy Phase 1 and 2, from 1,550 NOKm to 2,225 NOKm. Additionally, the Company has a NOK 150 million Overdraft Facility with Nordea. As per 31 December 2024, NOK 525 million was drawn of the secured green debt financing package. In addition, the Company has drawn NOK 145 million, of the NOK 150 million available, of the Overdraft Facility. The loans are floating interest rate loans denominated in NOK with an interest charge based on NIBOR 3M plus an agreed margin. Incurred interest expenses and establishing fees during construction period are capitalized as part of assets under construction in accordance with IAS 23.

Financial covenants

The most important financial covenants for the long-term financing of the Group are, respectively, a solvency requirement that the borrower’s (Salmon Evolution Norway AS) book equity ratio (including intra-group loans) shall be minimum 45%. Further, there is a profitability requirement linked to the borrower’s EBITDA which shall be greater than NOK 250 million on a last 12-month basis from Q2 2027. Quarterly EBITDA figures shall be measured from Q2 2024 with set minimum EBITDA levels reflecting the company’s gradual ramp up of production volumes and profitability. Finally, there is a minimum cash requirement that stipulates that the obligors (Salmon Evolution Norway AS, Salmon Evolution Sales AS and Salmon Evolution ASA) cash balance shall be greater than NOK 100 million at any time. Any undrawn and available amounts under the revolving facility and the overdraft is included in the calculation of the cash balance. As per 31 December 2024 the Company is in compliance with all financial covenants.

Security

The Company’s bank debt facilities are fully guaranteed by Salmon Evolution ASA. The respective lenders also have a pledge over 100% of the shares in Salmon Evolution Norway AS and Salmon Evolution Dale AS. Furthermore, the respective lenders have a pledge over all material operating assets of the Group, hereunder inter alia, land, plant and machinery, operating licenses, inventory and receivables.

Group consolidated financial statements (IFRS) 43

Salmon Evolution ASA Financial statements 79

Statement of profit or loss 79
Statement of comprehensive income 79
Statement of financial position 80
Statement of financial position 80
Statement of cash flows 81
Statement of changes in equity 82
Note 1 - Summary of significant accounting policies 83
Note 2 - Financial risk and capital management 85
Note 3 - Intercompany balances and intercompany transactions 86
Note 4 - Personnel expenses, remuneration t o the board and auditor's fee 87
Note 5 - Share based payments 88
Note 6 - Property, plant, equipment, right-of- use assets and intangible assets 89
Note 7 - Leases 90
Note 8 - Other operating expenses 90
Note 9 - Debt 91
Note 10 - Taxes 92
Note 11 - Investments in subsidiaries 93
Note 12 - Cash and restricted cash 94
Note 13 - Share capital 95
Note 14 - Trade and other current liabilities 97
Note 15 - Events after the reporting date 97
Directors responsibility statement 98
Independent auditor’s report 99
Alternative Performance Measures 102
Sustainability Indicators and GRI Index 103

Note 10 - Taxes

Calculation of deferred tax/deferred tax benefit (NOK thousands)

	2024	2023
Fixed assets	-483	-54
Right-of-use assets	5,949	8,309
Lease liabilities	-6,307	-8,587
Net temporary differences	-841	-331
Tax losses carried forward	4,690	62,453
Basis for deferred tax	5,531	62,769
Deferred tax (22%)	1,217	13,809
Deferred tax benefit not

Deferred tax benefit has not been recognised in the balance sheet as the Company is in its start-up phase and does not have any historical results to refer to when assessing whether future taxable profits will be sufficient to utilize the tax benefit. However, there is payable tax in the subsidiary Salmon Evolution Sales AS and deferred tax liability in the subsidiary Salmon Evolution Dale AS. The group assumes to utilize tax losses carried forward against tax positions in its subsidiaries.

Basis for income tax expense, changes in deferred tax and tax payable (NOK thousands)

	2024	2023
Result before taxes	71 446	3 369
Permanent differences*	-16 096	-21 635
Basis for the tax expense	55 350	-18 266
Change in temporary differences	510	370
Application of loss carry forwards	-55 861	0
Basis for payable taxes in the income statement	0	-17 897

The company does not have any temporary differences given rise to deferred tax/ deferred tax benefit

Components of the tax expense (NOK thousands)

	2024	2023
Payable tax on this year's result	0	0
Change in deferred tax	12 592	-1 942
Change in deferred tax due to previous year group contribution	-415	-2 077
Change in deferred tax not capitalized in the balance sheet	-4 810	3 255
Calculated tax expense	7 368	-764

Reconciliation of the tax expense with the nominal tax rate (NOK thousands)

	2024	2023
Result before taxes	71 446	3 369
Calculated tax (22%)	15 718	741
Tax expense	0	-764
Difference	-15 718	-1 505
The difference consists of:
Tax on permanent differences	-3 541	-4 760
Change in tax rate	0	0
Change in deferred tax due to change in tax rate	0	0
Change in deferred tax not shown in the balance sheet	-4 810	3 255
Change due to application of loss carry forwards	-7 368	0
Change due to group contribution from previous year (tax wise)	0	0
Sum explained differences	-15 718	-1 505

Note 11 - Investments in subsidiaries

Location and place of business	Ownership/ voting right	Equity 31.12.24 (100%)	Result 2024 (100%)	Balance sheet value
Salmon Evolution Norway AS	Hustadvika, Norway	100 %	493 782	-111 712
Salmon Evolution International AS	Hustadvika, Norway	100 %	-20 848	-9 889
Salmon Evolution Dale AS	Folkestad, Norway	100 %	21 113	964
Salmon Evolution Sales AS	Ålesund, Norway	100 %	1 723	-812
K Smart Farming Co., Ltd*	Gangwangnak-ro, South Korea	49 %	16 780	-7 987
Balance sheet value as of 31 December 2024				859 438

*K Smart Farming Co., Ltd is owned through Salmon Evolution International AS

Movement in investment in subsidiaries during 2024 is analysed in the following way:

(NOK thousands)	01 January 2024	31 December 2023
Opening balance	359 288
Share options issued (Salmon Evolution Norway)	120
Share options issued (Salmon Evolution Dale)	29
Closing balance		359 438

Note 12 - Cash and restricted cash

Operating income (NOK thousands)	31 Dec 2024	31 Dec 2023
Cash in bank	395 911	375 377
Restricted bank deposits	1 908	2 050
Total cash and cash equivalents	397 819	377 427

Restricted cash are related to tax withholdings for employees (NOK 1,908 thousand).

Note 13 - Share capital

(NOK thousands)	Nominal value	31 Dec 2024	31 Dec 2023
Ordinary shares	0,05	462 603 306	306 413 936
Average number of shares	0,05	440 297 748	395 531 302
Share capital		23 130	20 697
Share premium		2 450 459	2 103 467
Total		2 473 589	2 124 164

The number of shares issued in the company at 31 December 2024 was 462,603,306 with a nominal value of NOK 0.05 each. All shares carry equal voting rights.

20 largest shareholders as of 31.12.24

No of shares	Percentage share
Ronja Capital Investment AS	32 407 311
DNB Asset Management	30 181 466
Arctic Fund Management	24 569 080
Handelsbanken Fonder	22 931 481
Farvatn AS	21 168 366
Dongwon Industries	17 932 838
Nordea Investment Management	16 702 022
Rofisk AS	15 204 563
Frode Kjølås	13 173 105
Stette Invest AS	12 410 954
Jakob Hatteland Holding AS	9 790 519
Ewos AS	9 480 984
Mevold Invest AS	9 074 474
Lyngheim Invest AS	8 449 252
Kristofer Reiten	7 569 330
Bondø Invest AS	4 614 718
Salmoserve AS	4 136 666
Hustadlitt AS	3 624 094
Nordnet Livsforsikring AS	3 349 404
AS Straen	3 300 000
Total 20 largest shareholders	270 070 627
Other shareholders	192 532 679
Total number of shares	462 603 306

As of 31 December 2024, shares directly held by members of the Board of Directors, Chief Executive officer, and Executive Management consisted of the following:

No of shares	Percentage share
Peder Stette, Member of the board - Stette Invest AS	12 410 954
Vibecke Bondø, Member of the board - Bondø Invest AS	4 614 718
Ingjarl Skarvøy, COO - Terra Mare AS and private	1 800 150
Trond Håkon Schaug-Pettersen, CEO - Troha Invest AS	500 000
Odd Frode Roaldsnes, CCO - Anno Invest AS	275 000
Jan-Emil Johannessen, Member of the board - Jawendel AS	173 333
Anne Breiby, Member of the board	168 935
Kamilla Mordal Holo, Project Director - C10 Holding AS & private	160 060
Trond Vadset Veibust, CFO - Trollkyrkja AS	90 000
Henriette Nordstrand, Technical

FINANCIAL STATEMENTS AND RESULTS – NOTE 13 - SHARE CAPITAL

Group consolidated financial statements (IFRS) 43

Salmon Evolution ASA Financial statements 79

Statement of profit or loss 79

Statement of comprehensive income 79

Statement of financial position 80

Statement of cash flows 81

Statement of changes in equity 82

Note 1 - Summary of significant accounting policies 83

Note 2 - Financial risk and capital management 85

Note 3 - Intercompany balances and intercompany transactions 86

Note 4 - Personnel expenses, remuneration t o the board and auditor's fee 87

Note 5 - Share based payments 88

Note 6 - Property, plant, equipment, right-of- use assets and intangible assets 89

Note 7 - Leases 90

Note 8 - Other operating expenses 90

Note 9 - Debt 91

Note 10 - Taxes 92

Note 11 - Investments in subsidiaries 93

Note 12 - Cash and restricted cash 94

Note 13 - Share capital 95

Note 14 - Trade and other current liabilities 97

Note 15 - Events after the reporting date 97

Directors responsibility statement 98

Independent auditor’s report 99

Alternative Performance Measures 102

Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3

Key figures 4

03 Board statements 04

Financial statement and result 02

Sustainability and corporate responsibility

Director - Heno Holding AS 50 000 0,0 %
Tore-Jakob Reite, Director Strategic Projects 1 250 0,0 %
Total 20 244 400 4,0 %

Capital history (NOK thousands)

Date	Capital Increase	Share Capital After Change	Par Value	Subscription price per share	New shares	Total no. of outstanding shares
Opening balance 1 July 2020		5 375 159	0,05			107 503 182
Share options exercised 10 July 2020	30 000	5 405 159	0,05	3,33	600 000	108 103 182
Private placement 23 July 2020	581 395	5 986 554	0,05	4,30	11 627 906	119 731 088
Private placement 11 September 2020	5 000 000	10 986 554	0,05	5,00	100 000 000	219 731 088
Private placement 23 March 2021	4 166 667	15 153 221	0,05	6,00	83 333 333	303 064 421
Acquisition Kraft Laks 16 August 2021	109 535	15 262 756	0,05	7,58	2 190 694	305 255 115
Private placement 12 October 2021	277 068	15 539 824	0,05	7,71	5 541 374	310 796 489
Share options exercised 26 March 2022	81 250	15 621 074	0,05	4,80	1 625 000	312 421 489
Private placement 5 April 2022	1 666 667	17 287 741	0,05	9,00	33 333 333	345 754 822
Private placement 18 April 2023	3 409 091	20 696 832	0,05	7,70	68 181 818	413 936 640
Private placement 18 June 2024	2 433 333	23 130 165	0,05	7,50	48 666 660	462 603 300

The Company entered into an investment agreement with Dongwon Industries and completed a NOK 50 million private placement towards Dongwon Industries in July 2020. The Company raised NOK 500 million in a private placement in connection with its initial public offering related to the admission on Merkur Market (now Oslo Børs) in September 2020. Further, the Company also raised another NOK 500 million in a private placement in March 2021. In August 2021 the Company acquired 100% of the shares in Kraft Laks AS (now Salmon Evolution Dale AS). As part of the settlement the Company issued 2,190,694 new shares of NOK 7.5775 per share, and thereby increased its equity by NOK 16.6 million. In October 2021 the Company carried out a private placement of USD 5m (NOK ~43m) towards Cargill. Further, in April 2022 the Company carried out a private placement raising gross proceeds of NOK 300 million at a subscription price of NOK 9.00 per share, bringing total raised equity to more than NOK 1.7 billion. In April 2023 the Company carried out a private placement raising gross proceeds of NOK 525 million at a subscription price of NOK 7,7 per share, bringing total raised equity to more than NOK 2.2 billion. In June 2024 the Company carried out a private placement raising gross proceed of NOK 365 million at a subsciption price of NOK 7.5 per share, bringing total raised equity to more than NOK 2.5 billion.

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 13 - SHARE CAPITAL 96

Group consolidated financial statements (IFRS) 43

Salmon Evolution ASA Financial statements 79

Statement of profit or loss 79

Statement of comprehensive income 79

Statement of financial position 80

Statement of cash flows 81

Statement of changes in equity 82

Note 1 - Summary of significant accounting policies 83

Note 2 - Financial risk and capital management 85

Note 3 - Intercompany balances and intercompany transactions 86

Note 4 - Personnel expenses, remuneration t o the board and auditor's fee 87

Note 5 - Share based payments 88

Note 6 - Property, plant, equipment, right-of- use assets and intangible assets 89

Note 7 - Leases 90

Note 8 - Other operating expenses 90

Note 9 - Debt 91

Note 10 - Taxes 92

Note 11 - Investments in subsidiaries 93

Note 12 - Cash and restricted cash 94

Note 13 - Share capital 95

Note 14 - Trade and other current liabilities 97

Note 15 - Events after the reporting date 97

Directors responsibility statement 98

Independent auditor’s report 99

Alternative Performance Measures 102

Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3

Key figures 4

03 Board statements 04

Financial statement and result 02

Sustainability and corporate responsibility

Note 14 - Trade and other current liabilities

Trade payables (NOK thousands)

	31 Dec 2024	31 Dec 2023
Trade payables	2 041	2 836
Total trade payables	2 041	2 836

Other current liabilities (NOK thousands)

	31 Dec 2024	31 Dec 2023
Payroll withholding tax, VAT and other taxes	1 911	2 049
Employer's national insurance contributions	1 790	1 822
Accrued salaries, holiday pay and bonus provisions	6 942	7 084
Total other current liabilities	10 643	10 955

Note 15 - Events after the reporting date

No material subsequent events.

Salmon Evolution Annual Report 2024

FINANCIAL STATEMENTS AND RESULTS – NOTE 14 - TRADE AND OTHER CURRENT LIABILITIES 97

Group consolidated financial statements (IFRS) 43

Salmon Evolution ASA Financial statements 79

Statement of profit or loss 79

Statement of comprehensive income 79

Statement of financial position 80

Statement of cash flows 81

Statement of changes in equity 82

Note 1 - Summary of significant accounting policies 83

Note 2 - Financial risk and capital management 85

Note 3 - Intercompany balances and intercompany transactions 86

Note 4 - Personnel expenses, remuneration t o the board and auditor's fee 87

Note 5 - Share based payments 88

Note 6 - Property, plant, equipment, right-of- use assets and intangible assets 89

Note 7 - Leases 90

Note 8 - Other operating expenses 90

Note 9 - Debt 91

Note 10 - Taxes 92

Note 11 - Investments in subsidiaries 93

Note 12 - Cash and restricted cash 94

Note 13 - Share capital 95

Note 14 - Trade and other current liabilities 97

Note 15 - Events after the reporting date 97

Directors responsibility statement 98

Independent auditor’s report 99

Alternative Performance Measures 102

Sustainability Indicators and GRI Index 103

01 This is Salmon Evolution

Letter from the CEO 3

Key figures 4

03 Board statements 04

Financial statement and result 02

Sustainability and corporate responsibility

Directors responsibility statement

Today, the Board of Directors and the Chief Executive Officer reviewed and approved the Board of Director’s report and the consolidated and separate annual financial statements for Salmon Evolution ASA for the fiscal year ended December 31, 2024 (Annual report 2024). Salmon Evolution ASA’s consolidated financial statements have been prepared in accordance with IFRSs and IFRICs as adopted by the EU and applicable additional disclosure requirements in the Norwegian Accounting act. The separate financial statements for Salmon Evolution ASA have been prepared in accordance with the Norwegian Accounting Act and Norwegian accounting standards as of December 31, 2024. The Board of Directors’ report for the Group and the parent company is in accordance with the requirements in the Norwegian Accounting Act and Norwegian accounting standard no 16, as of December 31, 2024.

To the best of our knowledge:
* The annual financial statements for 2024 have been prepared in accordance with applicable financial reporting standards
* The consolidated and separate annual financial statements give a true and fair view of the assets, liabilities, financial position and profit as a whole as of 31 December 2024 for the Group and the parent company.
* The Board of Directors’ report for the Group includes a fair review of:
* the development and performance of the business and the position of the Group, and the parent company
* the principal risks and uncertainties the Group and parent company face.

The Board of Directors of Salmon Evolution ASA
Elnesvågen/Ålesund 10 April 2025

Tore A Tønseth
CHAIR

Peder Stette
DIRECTOR

Anne Breiby
DIRECTOR

Ingvild Vartdal
DIRECTOR

Vibecke Bondø
DIRECTOR

Eunhong Min
DIRECTOR

Jan-Emil Johannessen
DIRECTOR

Trond Håkon Schaug-Pettersen
CEO

Digital signature

Salmon Evolution Annual Report 2024 98

Group consolidated financial statements (IFRS) 43

Salmon Evolution ASA Financial statements 79

Statement of profit or loss 79

Statement of comprehensive income 79

Statement of financial position 80

Statement of cash flows 81

Statement of changes in equity 82

Note 1 - Summary of significant accounting policies 83

Note 2 - Financial risk and capital management 85

Note 3 - Intercompany balances and intercompany transactions 86

Note 4 - Personnel expenses, remuneration t o the board and auditor's fee 87

Note 5 - Share based payments 88

Note 6 - Property, plant, equipment, right-of- use assets and intangible assets 89

Note 7 - Leases 90

Note 8 - Other operating expenses 90

Note 9 - Debt 91

Note 10 - Taxes 92

Note 11 - Investments in subsidiaries 93

Note 12 - Cash and restricted cash 94

Note 13 - Share capital 95

Note 14 - Trade and other current# Alternative Performance Measures

Reconciliations

Operational EBIT (NOK thousands)

	2024	2023
Operational EBIT	-4,727	-130,680
Fair value adjustments:
Change in fair value of the bilogical assets	-10,498	20,149
Operating profit/loss	-15,225	-110,532

Operational EBITDA (NOK thousands)

	2024	2023
Operational EBIT	-4,727	-130,680
Depreciation	-76,142	-46,730
Operational EBITDA	71,415	-83,950

Equity ratio (NOK thousands)

	2024	2023
Total equity	2,223,260	1,920,693
Total liabilities	961,088	788,892
Equity ratio	70 %	71 %

Net interest bearing debt (NOK thousands)

	2024	2023
Long-term debt to credit institutions	569,100	569,969
Short-term debt to credit institutions	158,488	103,275
Cash & cash equivalents	429,462	386,396
Net interest-bearing debt (NIBD)	298,126	286,848
Lease liabilities	14,986	12,539
NIBD incl. Lease liabilities	313,111	299,387

APM Definitation & calculation

Reason for applying APM

Operational EBIT

Operational EBIT is calculated by adding the fair value adjustment of biomass to financial statement line-item Operating Profit (EBIT). For further information on revenues, other income, cost of materials, change in inventory, personnel expenses and other operating expenses see notes 4, 7, 8, 10. Operational EBIT are used by management, analysts, investors and is a well-known industry-measure to assess our performance. In addition, excluding fair value assessments that are linked to assumptions about the future from our EBIT gives a better comparability of our operational performance.

Operational EBITDA

Operational EBITDA is operational EBIT plus depreciations, write-downs and amortization. Operational EBITDA is reported in the Group’s segment reporting (see Note 5). For further information in revenues, other income, cost of materials, change in inventory, personnel expenses and other operating expenses see notes 4, 7, 8, 10. Operational EBITDA are used by management, analysts, investors and is a well-known industry-measure to assess our performance. In addition, excluding fair value assessments that are linked to assumptions about the future, and depreciations, write-downs and amortization, from our EBIT gives a better comparability of our operational performance.

NIBD

Net interest-bearing debt (NIBD) comprises interest-bearing loans and borrowings and lease liabilities, after deducting cash and cash equivalents. The metric is reported as a key figure of the Group and also reported in Note 22 in the annual report. Net interest-bearing liabilities is a measure of the Group’s net debt and borrowing commitments and is useful to assess the financial robustness and flexibility of the capital structure of the Group.

Equity ratio

Equity ratio is calculated according to the Statement of Financial Position divided by total equity and liabilities according to the Statement of Financial Position. The metric is reported as a key figure of the Group. Equity ratio captures the financial solidity of the Group. Equity-ratio is, together with NIBD, useful to assess the financial robustness and -flexibility of the capital structure of the Group.

Sustainability Indicators and GRI Index

Being transparent in our reporting and operation have been important factors for us from the start. Therefore, we have chosen to report on our environmental, social, and governance factors in 2022. Due to the fact that we are still growing and there is still a lot of uncertainty on actual impact, we have chosen to report with reference to the Global Reporting Initiative (GRI) Standards (2021) in the 2022 reporting. We have ambitions for reporting in accordance with from next year and have plans in place to extend and enhance our reporting process going forward.

GRI DISCLOSURE LOCATION
GRI 2: General Disclosures 2021
2-1 Organizational details
2-2 Entities included in the organization’s sustainability reporting

GRI DISCLOSURE | LOCATION

GRI 3: Material Topics

GRI DISCLOSURE	LOCATION
3-1 Process to determine material topics	p. 12
3-2 List of material topics	p. 12
3-3 Management of material topics	p. 12

GRI 201: Economic Performance

GRI DISCLOSURE	LOCATION
201-1 Direct economic value generated and distributed	See financial statements and notes pp. 43-78
201-2 Financial implications and other risks and opportunities due to climate change	pp. 16-17
201-3 Defined benefit plan obligations and other retirement plans	See financial statements and notes pp. 43-78
201-4 Financial assistance received from government	See financial statements and notes pp. 43-78

GRI 205: Anti-corruption

GRI DISCLOSURE	LOCATION
205-2 Communication and training about anti-corruption policies and procedures	pp. 13, 34
205-3 Confirmed incidents of corruption and actions taken	Zero (0) incidents

GRI 301: Materials

GRI DISCLOSURE	LOCATION
301-1 Materials used by weight or volume	p. 19
301-2 Recycled input materials used	pp. 15-17

GRI 302: Energy

GRI DISCLOSURE	LOCATION
302-1 Energy consumption within the organization	p. 16
302-2 Energy consumption outside of the organization	p. 16

GRI 303: Water and Effluents

GRI DISCLOSURE	LOCATION
303-1 Interactions with water as a shared resource	pp. 15-19
303-2 Management of water discharge-related impacts	pp. 15-19
303-3 Water withdrawal	pp. 15-19
303-4 Water discharge	pp. 15-19
303-5 Water consumption	pp. 15-19

GRI 304: Biodiversity

GRI DISCLOSURE	LOCATION
304-2 Significant impacts of activities, products and services on biodiversity	p. 17

GRI 305: Emissions

GRI DISCLOSURE	LOCATION
305-1 Direct (Scope 1) GHG emissions	p. 19
305-2 Energy indirect (Scope 2) GHG emissions	p. 16 – 100% renewable energy
305-5 Reduction of GHG emissions	p. 19

GRI 306: Waste

GRI DISCLOSURE	LOCATION
306-1 Waste generation and significant waste-related impacts	p. 17

GRI 401: Employment

GRI DISCLOSURE	LOCATION
401-1 New employee hires and employee turnover	9 new employees, 2% turnover
401-3 Parental leave	p. 21

GRI 403: Occupational Health and Safety

GRI DISCLOSURE	LOCATION
403-1 Occupational health and safety management system	pp. 21-22
403-2 Hazard identification, risk assessment, and incident investigation	pp. 21-22
403-3 Occupational health services	pp. 21-22
403-4 Worker participation, consultation, and communication on occupational health and safety	pp. 21-22
403-5 Worker training on occupational health and safety	Health and safety training for all employees
403-6 Promotion of worker health	pp. 21-22
403-9 Work-related injuries	pp. 21-22
403-10 Work-related ill health	Zero (0) incidents

GRI 404: Training and Education

GRI DISCLOSURE	LOCATION
404-1 Average hours of training per year per employee	p. 21
404-2 Programs for upgrading employee skills and transition assistance programs	p. 21
404-3 Percentage of employees receiving regular performance and career development reviews	p. 21

GRI 405: Diversity and Equal Opportunity

GRI DISCLOSURE	LOCATION
405-1 Diversity of governance bodies and employees	pp. 9, 22, 34, 36(BoD)
405-2 Ratio of basic salary and remuneration of women to men	p. 34

GRI 406: Non-discrimination

GRI DISCLOSURE	LOCATION
406-1 Incidents of discrimination and corrective actions taken	Zero (0) incidents reported

GRI 413: Local Communities

GRI DISCLOSURE	LOCATION
413-1 Operations with local community engagement, impact assessments, and development programs	p. 24

ABOUT SALMON EVOLUTION

Salmon Evolution is the global leader within land-based salmon farming with a clear roadmap for 100,000 tonnes HOG annual production capacity. Pioneering the hybrid flow-through system (HFS), Salmon Evolution is Extending the Ocean Potential by creating optimal growth conditions in a controlled environment on land. This approach, capturing the benefits of both land-based and sea-based farming, puts biology first and limits operational and biological risk. Salmon Evolution is strategically located the heart of the global aquaculture industry on the west coast of Norway, where the Company has its first facility and global centre of excellence fully operational at industrial scale. Enabled by the proof of concept in Norway, Salmon Evolution targets significant international expansion. Salmon Evolution is listed on Oslo Børs under the ticker SALME. To learn more, please visit www.salmonevolution.no.

01 This is Salmon Evolution

Letter from the CEO: 3
Key figures: 4

02 Sustainability and corporate responsibility

Reporting period, frequency and contact point: 01.01.2024-31.12.2024 – Annual reports from 2024 – Contact point: CFO
Restatements of information: p. 11
External assurance: N/A – no external assurance of ESG reporting for the 2024 report
Activities, value chain and other business relationships: pp. 3, 17-19, 23-24
Employees: pp. 20-22
Workers who are not employees: N/A – only employees or subcontractors
Governance structure and composition: pp. 13, 37
Nomination and selection of the highest governance body: pp. 37-40
Chair of the highest governance body: p. 39
Role of the highest governance body in overseeing the management of impacts: p. 39
Delegation of responsibility for managing impacts: pp. 12, 15, 24-25
Conflicts of interest: pp. 23-24, 37
Communication of critical concerns: p. 38
Collective knowledge of the highest governance body: p. 36
Remuneration policies: p. 40
Process to determine remuneration: p. 40
Statement on sustainable development strategy: pp. 13-14
Policy commitments: p. 15
Embedding policy commitments: p. 15
Compliance with laws and regulations: p. 37
Membership associations: p. 39
Approach to stakeholder engagement: pp. 24-25
Collective bargaining agreements: p. 21

03 Board statements

04 Financial statement and result

Group consolidated financial statements (IFRS): 43
Salmon Evolution ASA Financial statements: 79
- Statement of profit or loss: 79
- Statement of comprehensive income: 79
- Statement of financial position: 80
- Statement of financial position: 80
- Statement of cash flows: 81
- Statement of changes in equity: 82
Note 1 - Summary of significant accounting policies: 83
Note 2 - Financial risk and capital management: 85
Note 3 - Intercompany balances and intercompany transactions: 86
Note 4 - Personnel expenses, remuneration to the board and auditor's fee: 87
Note 5 - Share based payments: 88
Note 6 - Property, plant, equipment, right-of- use assets and intangible assets: 89
Note 7 - Leases: 90
Note 8 - Other operating expenses: 90
Note 9 - Debt: 91
Note 10 - Taxes: 92
Note 11 - Investments in subsidiaries: 93
Note 12 - Cash and restricted cash: 94
Note 13 - Share capital: 95
Note 14 - Trade and other current liabilities: 97
Note 15 - Events after the reporting date: 97
Directors responsibility statement: 98
Independent auditor’s report: 99
Alternative Performance Measures: 102
Sustainability Indicators and GRI Index: 103OFFICE ADDRESS
Torget 5, 6440 Elnesvågen, Norway

PRODUCTION SITE
Indre Harøyvegen 88, 6430 Bud, Norway

BUSINESS REGISTRATION NUMBER
NO 925 344 877 MVA

E-mail: [email protected]
Web: salmonevolution.no

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Salmon Evolution ASA — Annual Report 2024

Salmon Evolution ASA Annual report FISH, PEOPLE, OCEAN 2024

2024: A Year of Growth, Learning, and Milestones

Building on a Strong Foundation

Unlocking New Opportunities

Pioneering the Future

01 This is Salmon Evolution

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

- LETTER FROM THE CEO

Letter from the CEO 3

Key figures 4

01 This is Salmon Evolution

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

- KEY FIGURES

Letter from the CEO 3

Key figures 4

This is Salmon Evolution Read chapter 01 5

THIS IS SALMON EVOLUTION - KEY FIGURES

Letter from the CEO 3

Key figures 4

Our Strategy for Sustainable Growth

Sustainability at the Core

Operational Excellence

The Road Ahead

Our Strategy

01 This is Salmon Evolution

02 Sustainability and corporate responsibility

03 Board statements

04 Financial statement and result

THIS IS SALMON EVOLUTION - OUR STRATEGY

Letter from the CEO 3

Key figures 4

01 This is Salmon Evolution

Letter from the CEO

Key figures

02 Sustainability and corporate responsibility

Sustainability and corporate responsibility

ESG in Brief

ESG Reporting

ESG in Brief

Stakeholders and Material Topics

Governance and ESG

Our core values

03 Board statements

04 Financial statement and result

Environment and technology

Our Technology

Management

02 Sustainability and corporate responsibility

ESG in Brief

Environment and technology

01 This is Salmon Evolution

03 Board statements

04 Financial statement and result

Our Commitment

01 This is Salmon Evolution

03 Board statements

04 Financial statement and result

Climate Change Impact

01 This is Salmon Evolution

02 Sustainability and corporate responsibility

ESG in Brief

03 Board statements

04 Financial statement and result

Environment and technology

Circular Economy, Pollution and Waste

Biodiversity and Nature

Fish and Water

Fish Health and Welfare

Sustainable Inputs and Outputs

ESG in Brief

01 This is Salmon Evolution

Letter from the CEO

Key figures

02 Sustainability and corporate responsibility

Salmon Evolution ASA Annual Report 2024