Salmon Evolution ASA — Investor Presentation 2023

Nov 15, 2023

Q3 2023 PRESENTATION

CEO: Trond Håkon Schaug-Pettersen CFO: Trond Vadset Veibust

15 November 2023

DISCLAIMER

This presentation (the "Presentation") has been prepared by Salmon Evolution ASA (the "Company" and together with is subsidiaries, the "Group") except where context otherwise requires, solely for information purposes. This Presentation, and the information contained herein, does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities of the Company and neither the issue of the materials nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity. and do not constitute or form part of any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction.

This Presentation is furnished by the Company, and it is expressly noted that no representation, warranty, or undertaking, express or implied, is made by the Company, its affiliates or representative directors, officers, employees, agents or advisers (collectively "Representatives") as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein, for any purpose whatsoever. Neither the Company nor any of its affiliates or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss whatsoever and howsoever arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation. The Presentation comprise a general summary of certain matters in connection with the Group and do not purport to contain all of the information that any recipient may require to make an investment decision. These materials have not been approved, reviewed or registered with any public authority or stock exchange. By attending a Presentation meeting or receiving these materials, you acknowledge that you will be solely responsible for your own assessment of the Company, the Group and its market position, and that you will conduct your own analysis and be solely responsible for forming your own view of the Company and its prospects. Each recipient should seek its own independent advice in relation to any financial, legal, tax, accounting or other specialist advice

This Presentation speaks as of the date hereof. All information in this Presentation is subject to updating, revision, verification, correction, completion, amendment and may change materially and without notice. None of the Company or its affiliates or representatives undertakes any obligation to provide the recipient with access to any additional information or to update this Presentation or any information or to correct any inaccuracies in any such information. The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect developments that may occur after the date of this Presentation. These materials do not purport to contain a complete description of the Group or the market(s) in which the Group operates, nor do they provide an audited valuation of the Group. The analyses contained in these materials are not, and do not purport to be, appraisals of the assets, stock or business of the Group or any other person. The Company has not authorized any other person to provide any persons with any other information related to the Group and the Company will not assume any responsibility for any information other persons may provide

Matters discussed in this Presentation may constitute or include forward-looking statements. Forward-looking statements are statements that are not historical facts and may include, without limitation, any statements preceded by, followed by or including words such as "aims", "anticipates", "believes", "can have", "continues", "could", "estimates", "expects", "intends", "likely", "may", "plans", "forecasts", "projects", "should", "target" "will", "would" and words or expressions of similar meaning or the negative thereof. These forward-looking statements reflect the Company's beliefs, intentions and current expectations concerning, among other things, the Company's potential future revenues, results of operations, financial condition, liquidity, prospects, growth and strategies. Forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The forward-looking statements in this Presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions that may not be accurate or technically correct, and their methodology may be forward-looking and speculative. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. None of the Company or any of its Representatives provide any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. Forward-looking statements are not guaranteeing of future performance and such risks, uncertainties, contingencies and other important factors could cause the actual results of operations, financial condition and liquidity of the Company or the industry to differ materially from those results expressed or implied in this Presentation by such forward-looking statements. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved, and you are cautioned not to place any undue influence on any forward-looking statement. Furthermore, information about past performance given in these materials is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance.

These materials are not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would be contrary to local laws or regulations, and by accepting these materials, each recipient confirms that it is able to receive them without contravention of any unfulfilled registration requirements or other legal or regulatory restrictions in the jurisdiction in which such recipients resides or conducts business. In member states of the European Economic Area ("EEA"), the materials are directed at persons, who are "qualified investors" as defined in Article 2(e) of the Prospectus Regulation (Regulation (EU) 2017/1129, as amended) ("Qualified Investors"), and in the United Kingdom only at (i) persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order; or (iii) other persons to whom it may otherwise be lawfully communicated. The materials do not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States, and the securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The materials are not for general distribution in or into the United States of America, but directed only at persons reasonably believed to be a "qualified institutional buyer", as defined in the Securities Act.

This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Romsdal City Court as first venue.

• Highlights
• Operations Norway
• Operations International
• Financials
• Summary and outlook
• Appendices

HIGHLIGHTS

• Strong biological performance. Standing biomass of 2,100 tonnes per 30 September, up from 1,047 tonnes per 30 June 2023.
• All-time high biomass production with 1,290 tonnes in net biomass growth.
• Quarterly run-rate of 1,600-1,700 tonnes end of September, about 70-75 % of steady-state levels.
• Parts of batch 3 harvested in September yielding 185 tonnes HOG with 96 % superior share, tight weight concentration and good price realization.
• On track for production cost on par with conventional farming
• Batch 8 stocked end August og and batch 9 end October bringing farm to steady-state number of individuals of 1.5-1.6 million.
• Available liquidity of NOK 705 million per 30 September 2023 including committed available undrawn credit facilities.
• Q4 harvest expectation 1,000 1,200 tonnes (HOG).

• Highlights
• Operations Norway
• Operations International
• Financials
• Summary and outlook
• Appendices

WE PUT BIOLOGY FIRST

• Lower production cost

realization

• Lower production cost

• Improved market access and pricing power

1) Source: Fish Health Report 2022, published by the Norwegian Veterinary Institute. Norway average seawater mortality of 16.1% on an annual basis, reworked to monthly rates by dividing by 12. 2) Source: Fish Health Report 2022, published by the Norwegian Veterinary Institute ⁶

STRONG OPERATIONAL PERFORMANCE

• All-time high standing biomass of 2,100 tonnes on 30 September, up 101 % since 30 June.
• All-time high biomass production during Q3 with 1,290 tonnes in net biomass growth.
• Steadily increasing biomass production quarterly run rate of 1,600 – 1,700 tonnes in net biomass production end of September. This represents 70 – 75% of steady state levels.
• Batch 8 stocked end August og and batch 9 end October bringing farm to steady-state number of individuals of 1.5-1.6 million.
• Batch 10 planned stocked in December setting conditions for streamlined production in fully stocked farm and steady state.

Gearing up biomass growth and harvest

GROUP BIOMASS OVERVIEW

Group biomass development

		30 June 2023		30 September 2023
Batch	Units (#)	Weight (g)	Biomass (tonnes, LW)	Units (#)	Weight (g)	Biomass (tonnes, LW)	Comments
Batch #3 (Oct 22)	~149,000	~2,010	300	~84,000	~3,205	268	Harvested ~185 tonnes (HOG) mid-September. Expect remaining biomass to be harvested in Q4.
Batch #4 (Dec 22)	~182,000	~1,980	360	~178,000	~3,980	708	Harvest of first group pushed into October to optimize harvest weights. Expect entire batch to be harvested in Q4.
Batch #5 (Feb 23)	~251,000	~1,120	280	~247,000	~2,440	602	Expect to harvest around 50% of the individuals in Q4 (largest groups). Performance according to plan.
Batch #6 (May 23)	~272,000	~140	38	~268,000	~790	212	Strong performance
Batch #7 (Jun 23)	~275,000	~80	22	~275,000	~490	135	Strong performance.
Batch #8 (Aug 23)				~275,000	~205	56	Batch #8 stocked late August at ~90 grams. Strong performance first month in facility.
Total Indre Harøy	~1,129,000	~890	1,000	~1,327,000	~1,490	1,980
Smolt	~2,575,000	~19	47	~2,900,000	~41	120
Total Group	~3,704,000		1,047	~4,227,000		2,100

SIGNIFICANTELY INCREASING HARVEST VOLUMES IN Q4

• Parts of batch 3 harvested in September yielding 185 tonnes HOG with 96 % superior share, tight weight concentration and good price realization.
• Harvest of first group in Batch 4 pushed into Q4 to optimize harvest weights and price realization.
• Significant ramp up of harvest volumes in Q4, with planned harvest of rest of batch 3, all of batch 4 and about half of batch 5 in Q4.
  • As of date this is already well underway.
• Q4 harvest volumes expected between 1,000 1,200 tonnes (HOG).

Comment Gearing up harvest volumes

• Highlights
• Operations Norway
• Operations International
• Financials
• Summary and outlook
• Appendices

NORTH AMERICA – BUILDING A PIPELINE FOR FUTURE GROWTH

Project overview

• Established dedicated team and incorporated US corporate structure.
• Partnership model to be pursued once project matures, leveraging Salmon Evolution's human capital.

Comments

• Continuing evaluation of potential production sites.
• Focus on areas with favourable biological conditions and existing aquaculture infrastructure and value chain, mirroring the unique benefits, scale and cost leadership position of Indre Harøy.
• Positive dialogues with both public and private stakeholders.
• Currently narrowing in on a few qualifying sites, allowing in-depth site review and commencement of regulatory processes.

Site selection and initial due diligence Indicative timeline North America 2022 2023 2024 2025 2026 2027 2028 Due diligence, regulatory work & approvals and design & engineering Construction First harvest Production

K SMART FARMING – FOCUS ON ENGINEERING AND PERMITTING

Project overview

• Joint venture between SE and Dongwon Industries, ownership split 49/51% respectively.
• Dongwon Industries to facilitate 75% debt financing.
• Targeted total annual capacity 16.8kt HOG.

Comments

• Continued progress on design and engineering activities for Yangyang grow out site.
  • 60 % design review planned during Q4.
• Current primary focus is cost optimization.
  • Site specific circumstances impacting cost of grow-out facility, in particular the intake and discharge water solution.
  • Lack of certain other salmon farming infrastructure in Korea impacting project and operating cost.
• K Smart is working on the financing structure for the project to maximize the financial return profile. Subject to receiving relevant regulatory approvals and K Smart making a positive investment decision, construction start is now expected in 2024.

Overview main permits

Jeongseon (smolt facility)

Permit	Status	Comment
Zoning permit
Construction permit	( )	First permit received, expect conclusion Q4-23.
Sea permit	NA

Yangyang (grow-out facility)

Permit	Status	Comment
Zoning permit
Construction permit		Expected Q1-24
Sea permit		Expected Q1-24

• Highlights
• Operations Norway
• Operations International
• Financials
• Summary and outlook
• Appendices

WHY OUR SALMON FARMING APPROACH MAKES SENSE

Illustration of different technological approaches – pros and cons

		PARITY			PARITY
	0	Est CAPEX/kg (NOK, HOG) 100 200	300	Est. EBIT FARMING COST/kg (NOK, HOG) 40 50 60	70 80	90 100	ESCAPE	MORTALITY	ENERGY	NITROGEN RECOVERY	AIRFREIGHT	RESOURCE RENT TAX	GROWTH
Conventional	25-35	+130 (2022) +50 (2020)			55-65
Closed near shore		?			?
Closed off shore		?			?							?
Salmon Evolution			~200		60-65

Our approach solves many of the challenges the conventional industry face, with investments and costs at par

STRONG OUTLOOK FOR SALMON EVOLUTION

• Additional long-term potential in phase 1, focused on feed, genetics and AI
• Further cost optimization expected with phase 2 and 3

• Fishpool forward prices of NOK 95+/kg for 2024 and NOK 90+/kg for 2025
• SE will benefit from normal seasonal swings, given steady production year-round

• 1) Excluding G&A allocated Norway Facility and capacity adjustments
• 2) Expected run-rate in phase 1 steady state production, 7,900 tonnes HOG 16

PRICE IMPLICATION OF SUPERIOR FISH WELFARE AND UNIFORM HARVEST PROFILE

Source: For illustration purposes based on company data. Assumes average superior share of 85% for conventional industry and 95% for SE. Conventional industry assumed to have harvest distribution of 45% in 1H and 55% in 2H versus uniform harvest profile throughout the year for SE. ¹⁷

GROUP PROFIT AND LOSS

Summary of result Comment

(figures in NOK 1000)	Q3 23	Q3 22	YTD 23	YTD 22	2022
Sales revenues	13 349	0	69 731	19 293	46 107
Other income	2 508	-223	9 843	-19	1 574
Total operating revenue	15 856	-223	79 574	19 273	47 681
Change in inventory	52 294	23 072	81 285	25 489	34 077
Cost of materials	-38 024	-11 852	-81 293	-18 208	-34 706
Personnel expenses	-21 708	-15 700	-54 900	-33 387	-49 996
Other operating expenses	-33 056	-16047	-92 456	-39 018	-65 538
Operational EBITDA	-24 637	-20 750	-67 788	-45 850	-68 481
Depreciations	-16062	-1 571	-29 639	-4 082	-6 190
Operational EBIT	-40 699	-22 321	-97 428	-49 932	-74 671
Fair value adjustment of biomass	14 843	6 226	22 755	8 873	11 740
Operating Profit (EBIT)	-25 857	-16 095	-74 673	-41 059	-62 931
Financial income	5 700	8 589	21 751	24 559	35 322
Financial expense	-14394	-6 460	-37 172	-9 239	-4 170
Share of net income from associated companies	-1 946	-220	-4 792	-496	-947
Financial expense - net	-10 640	1 908	-20 212	14 824	30 205
Profit/loss before tax	-36 497	-14 187	-94 885	-26 235	-32 726
Income tax expense	0	0	0	0	0
Profit/loss for the period	-36 497	-14 187	-94 885	-26 235	-32 726

• Revenues of NOK 15.9m in Q3, most of it related to harvest of first fish group in batch 3. The price realization was NOK ~72.0 per KG¹ .
  • ➢ Other income related to sale of services.
• EBITDA before fair value adjustment of biomass of NOK -24.6m in Q3 2023.
• EBIT after fair value adjustment of biomass of NOK -40.7m .
  • ➢ NOK 13.7m in capacity adjustments
  • ➢ NOK 14.8m in fair value adjustments of the biomass
• Negative net financials of 10,6m in the quarter.

FINANCIAL POSITION AND CASH FLOW

Financial position

2 039 203	2 004 856	1 850 894	1 706 688
720 175	766 288	455 281	574 316
2 759 378	2 771 144	2 306 174	2 281 004
971 054 1	2 008 594	1 563 906	1 570 208
577 400	573 318	531 393	493 497
210 923	189 232	210 873	217 299
2 759 378	2 771 144	2 306 173	2 281 004
445 865	561 675	278 759	457 120
231 090	85 188	302 990	54 582
971 054	2 008 594	1 563 906	1 570 208
71 %	72 %	68 %	69 %
			30 Sept 2023 30 June 2023 31 Dec 2022 30 Sept 2022

Cash flow

(figures in NOK 1000)	Q3 23	Q3 22	YTD 23	YTD 22	2022
Net cash flow from operating activities	-74 691	-22 823	-131 549	-18 600	-76 124
Net cash flow from investments activities	-64 892	-78 550	-289 773	-611 702	-796 132
Net cash flow from financing activities	23 773	33 329	588 427	581 877	645 471
Net change in cash and cash equivalents	-115 810	-68 046	167 105	-48 426	-226 786
Cash and cash equivalents at start of period	561 675	525 165	278 759	505 545	505 545
Cash and cash equivalents at end of period	445 865	457 119	445 865	457 119	278 759

Comment

• Strong financial position.
• Available liquidity of NOK 705 million per 30 Sept. including committed undrawn credit facilities.
• Investments the next 6-9 months expected to be relatively moderate.
• Negative cash flow from operations reflect record high biomass buildup

SEGMENTS

Farming Norway Other

Farming Norway			Q3 23 23 Q3 22 YTD 23 23 YTD 22		2022
Operating revenue (NOK 1000)	13 349	o		69 731 19 293	46 054
Sales revenue/kg (NOK)1	72.2	N/A	90.6	N/A	75.3
Operational EBITDA2 (NOK 1000)	-8 115		-11 364 -23 257 -22 057		-34 135
Harvest volumes (fonnes, HOG)	185	O	770	o	340

• Batch 3 partially harvested generating NOK 13.4 million in revenues.
  • High superior share of 96 % and strong price realization.
• Continued decreasing of farming cost on back of higher biomass production.
• Capacity adjustments of NOK 13.7 million.

Other		Q3 23 23 Q3 22 YTD 23 YTD 22		2022
Operating revenue (NOK 1000)	7 003			3 085 20 040 8 342 15 292
Operational EBITDA (NOK 1000)		-16 522 -9 386 -44 532 -21 146 -34 346

• Revenues of NOK 7 million related to sale of services to Group companies and K Smart JV.
• In Other segment all resources related to projects and technology department are employed, as well as other corporate functions. A significant portion of costs are thus related to future expansion.
• Conservative approach to capitalizing costs on new projects and developments.

• Highlights
• Operations Norway
• Operations International
• Financials
• Summary and outlook
• Appendices

SUMMARY AND OUTLOOK

Fully operational at industrial scale

Strong biological performance. Proof of concept demonstrated and steady state production within reach

Highly attractive market backdrop

On the verge of significantly increasing harvest volumes. Strong price outlook for 2024 and beyond.

Highly competitive farming cost

Farming costs decreasing on back of higher biomass production. Ideal locations and scale will ensure competitiveness.

Strong financial position

Funding for phase 2 in place. Solid shareholder base and strong bank relations.

Scalable business model

Ready for scaling in Norway and beyond on back of cash flow generating phase 1.

• Highlights
• Operations Norway
• Operations International
• Financials
• Summary and outlook
• Appendices

SALMON EVOLUTION IS THE GLOBAL LEADER IN LAND-BASED SALMON FARMING

We put biology first	Proof of concept in Norway	International expansion	Pioneering the hybrid flow-through system (HFS)	Premium position based on quality & ESG
Our technology approach captures the benefits of both land-based and sea-based farming	Establish Indre Harøy as global center of excellence – in the hearth of the global aquaculture industry	Enabled by proof of concept in Norway	Developing superior cost position & technology leadership	Committed to quality & sustainability

Conservative approach in a disruptive industry Long-term competitive advantage & profitability

SALMON EVOLUTION AT A GLANCE

• Founded in 2017 by entrepreneurs with extensive track record in the aquaculture and seafood industry. Listed on Oslo Stock Exchange from 2021.
• ▪Backed by strategic owners across the value chain.
• ▪Pioneering the Hybrid flow-through system (HFS) setting Salmon Evolution apart from other land-based salmon farming players.
• Fully operational at industrial scale.
• ▪Clear roadmap to 100kt (HOG) by 2032.

• Optimal location with unlimited access to seawater
• Surrounded by the worldleading Norwegian aquaculture cluster
• Centre of excellence for future projects in Norway and beyond

ROBUSTNESS OF HYBRID FLOW THROUGH SYSTEM FULLY DEMONSTRATED DURING THE QUARTER

Fresh seawater is our primary form of water treatment, complemented by standard CO² stripping and oxygenation – no need for complex systems that significantly increase biological risk

Strong management team with extensive experience leading a growing organization and corporation

Highly competent board of directors backed by strong owners

Board of directors Ownership as per 30 September 2023

Tore A. Tønseth

• Chairman of the board ▪ Investment Director at Ronja
• Capital ▪ >15 years experience in finance

Peder Stette

• Board member
• >20 years experience from technology development in the seafood industry

Eunhong Min Board member

▪ Chief Executive Officer of Dongwon Industries, one of the largest seafood groups globally

Ingvild Vartdal Board member

▪ Partner at Adviso law firm specialized in corporate and international tax

Vibecke Bondø Board member

• >20 years experience from the aquaculture industry
• Former CEO of SalmoNor and Chair for NTS ASA

Anne Breiby Board member

▪ Extensive experience from board positions in companies such as Ulstein Group, Rem Offshore and Akva Group

majority owner of Strand Havfiske

Jan-Emil Johannessen Board member

▪ >30 years of experience from the aquaculture industry, most recently as head of Benchmark Genetics

Shareholder Ownership share Board representative Comments Ronja Capital II AS 7,3 % Tore Tønseth Owned by founder of Sølvtrans, a leading wellboat company The Bank of New York Mellon SA/NV 6,3 % Farvatn Private Equity AS 4,6 % Dongwon Industries Co. Ltd 3,9 % Eunhong Min Dongwon Industries, JV partner in South Korea Rofisk AS 3,5 % Owned by founder of Rostein, a leading wellboat company Verdipapirfondet Dnb Norge 3,1 % Kjølås Stansekniver AS 3,0 % (Frode H. Kjølås, chair nomination committee) Former key executive and shareholder in Optimar

Competent board of directors with extensive industrial experience Strong backing including highly strategic owners across the value chain