Salmon Evolution ASA — Earnings Release 2020

Mar 2, 2021

Salmon Evolution - Results for the fourth quarter 2020

Salmon Evolution - Results for the fourth quarter 2020

Fourth quarter highlights

· Construction of Phase 1 at Indre Harøy progressing according to plan - on

time and on budget

· Critical infrastructure completed including wastewater tunnel - project

execution risk significantly reduced

· Received a NOK 96.8 million funding commitment from Enova and granted NOK 14

million in funding from the Norwegian Skattefunn tax incentive scheme

· Available cash of NOK 648 million (NOK 2.95 per share) at 31 December

Subsequent events

· Signed Joint Venture term sheet with Dongwon Industries for the

establishment of a 49/51 joint venture for construction and operation of a

20,000 tonnes LWE land-based salmon farming facility in South Korea

· Constructive discussions with banks for long term debt financing of phase 1

at Indre Harøy - committed term sheet expected finalized Q1/Q2 2021

Since the groundwork started in May, Phase 1 at Indre Harøy has developed

according to plan. The main contractor, Artec Aqua, has entered into agreements

with subcontractors who are currently working on site.

Blasting work for the fish-tanks and buildings is completed, and the masses have

been transported out or crushed for reuse. Concrete works, including foundations

for buildings and tanks, started in September and will continue in the coming

quarters.  Tunnel for wastewater was successfully finished in December.

The company remains on track for the first smolt release which is scheduled to

be in March 2022.

Total capital expenditures during the fourth quarter amounted to NOK 71.8

million, of which NOK 68.3 million were investments related to the turnkey

project with Artec Aqua and NOK 3.2 million was capitalized personnel and shared

cost. As per 31 December 2020, accumulated capex from project initiation in 2019

amounts to NOK 220.0 million.

Commenting on the development, CEO Håkon André Berg, said:

"Activity on Indre Harøy was high during the quarter, with important milestones

for the groundwork being reached and we are happy to see the project develop

according to plan. During the quarter, we also received public funding and

grants, strengthening our financial capabilities further."

In February 2021, Salmon Evolution signed a term sheet for a joint venture with

Dongwon Industries for the development, construction, and operation of a 20,000

tonnes LWE land-based farming facility in South Korea, using Salmon Evolution's

hybrid flow through technology ("HFS"). The project will be developed in two

phases, with construction start targeted in 2022 and commencement of grow out

production in 2024.

"This collaboration is in accordance with Salmon Evolution's overall strategy

for international expansion, leveraging our in-house experience and HFS

competence in developing close-to-market salmon production in collaboration with

local first-class partners."", says Berg.

Outlook

Salmon Evolution expects global demand of salmon to continue to grow in coming

years, and thus see limited risk for the volume contribution from land-based

suppliers bringing the salmon market out of balance. Salmon Evolution has clear

ambitions to be among the leading players in this market. The company has a

clear road map towards +70,000 tonnes production capacity by 2030 and is already

on track for ~25,000 tonnes by 2024.

Results presentation

CEO Håkon André Berg and CFO Trond Håkon Schaug-Pettersen will present the

results by webcast today, Tuesday 2 March at 08:00 a.m. CET.

The presentation and subsequent Q&A will be held in English.

The presentation can be accessed at www.salmonevolution.no, or with the

following link: https://streams.eventcdn.net/salmonevolution/2020q4/

For further information, please contact:

Håkon André Berg,

CEO, Salmon Evolution

hakon.andre.berg@salmone.no

+47 41 19 22 57

Trond Håkon Schaug-Pettersen,

CFO, Salmon Evolution

thsp@salmone.no

+47 91 19 13 27

About Salmon Evolution

Salmon Evolution is a Norwegian land-based salmon farming company focused on

extending the ocean's potential by transferring the best preconditions offered

by the sea to farm fish on land through its hybrid flow-through system

technology (HFS). This secures a truly sustainable production process with

controlled and optimal growth conditions and limiting operational and biological

risk.

The company's first production facility is under construction at Indre Harøy,

strategically located on the Norwegian west coast with access to unlimited fresh

seawater, renewable energy, established infrastructure for salmon farming, and

an educated and experienced work force. The entire project is designed for an

annual capacity of approx. 31,500 tonnes HOG.

Salmon Evolution Holding AS is listed at Euronext Growth under the ticker SALME.

To learn more, please visit www.salmonevolution.no