Salmon Evolution ASA — Investor Presentation 2023

Aug 17, 2023

Q2 2023 PRESENTATION

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

17 August 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

• Biomass production is back on track strong biological performance since mid-May with good appetite and normal mortality levels.
• Q3 on track for all time high biomass production standing biomass of 1,628 tonnes (LW) per 15 August.
• Batch 2 harvested in May yielding 585 tonnes HOG with 93 % superior share, tight weight concentration and good price realization.
• Batch 6 and 7 stocked in end of May and end of June as planned.
• Favorable production cost development further improvements expected alongside increased production volumes.
• Contracts awarded for Indre Harøy phase 2. Upon completion this adds another 7.9kt HOG, bringing the total up to 15.8kt HOG per annum.
• Successful private placement in April raising gross proceeds of NOK 525 million.
• Available liquidity of NOK 853 million per 30 June 2023 including committed undrawn credit facilities.

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

STRONG BIOLOGICAL PERFORMANCE

• On 15 August biomass growth in Q3 amounts to ~580 tonnes (LW). The total standing biomass amounts to ~1,628 tonnes (LW).
• On-site freshwater production installed and operative – use of freshwater implemented as an integrated part of the fish grading process.
• Per 15 August the largest group in batch 3 has reached ~3.8 kg LW, closely followed by the largest group in batch 4 at ~3.6 kg LW, boding well for healthy harvest weights
• Next harvest expected end of Q3.
• Annual steady state production volumes of 7,900 tonnes HOG expected during Q4 2023.

Comments Net biomass growth1) (LW) and harvest volumes (HOG)

6 Extending the Ocean Potential

GROUP BIOMASS OVERVIEW

Group biomass development

		30 June 2023		15 August 2023
Batch	Units (#)	Weight (g)	Biomass (tonnes, LW)	Units (#)	Weight (g)	Biomass (tonnes, LW)	Comments
Batch #3 (Oct 22)	~149,000	~2,010	300	~147,000	~3,000	441	Split in two groups with largest at ~3.8 kg. Good appetite over the summer.
Batch #4 (Dec 22)	~182,000	~1,980	360	~179,000	~2,900	519	Split in two groups with largest at ~3.6 kg. Good appetite over the summer.
Batch #5 (Feb 23)	~251,000	~1,120	280	~249,000	~1,670	416	Split in two groups with largest at ~2.0 kg. Good appetite over the summer.
Batch #6 (May 23)	~272,000	~140	38	~271,000	~360	98	Strong appetite and low mortality
Batch #7 (Jun 23)	~275,000	~80	22	~275,000	~220	61	Strong appetite and low mortality
Total Indre Harøy	~1,129,000	~890	1,000	~1,121,000	~1,365	1,535
Smolt	~2,575,000	~19	47	~2,510,000	~37	93
Total Group	~3,704,000		1,047	~3,631,000		1,628

THREE MORE SMOLT RELEASES PLANNED FOR REST OF 2023

1) Steady state production is defined as an annualized production of 7,900 tonnes HOG 2) In-house sourcing of smolt

BATCH 2 HARVESTED OUT IN MAY WITH GOOD RESULTS

Comments

• Total batch 2 harvest volumes of 585 tonnes HOG.
• Fast tracking of harvest in a historically strong market as a precautionary step with regards to fish welfare
• Harvest capacities and operational procedures stress tested – the whole batch was successfully harvested out over 9 days (8 harvest days).
• Similar tight weight concentration as seen in batch 1, also seen for the different subgroups of batch 2.
• Good product quality evidenced by superior grade share of 93%, supporting strong price realization.
• Average realized price of NOK 96.2/kg¹ for batch 2 as a whole.

CCO Odd Frode Roaldsnes with fish from batch 2 harvest

CONTRACTS AWARDED FOR INDRE HARØY PHASE 2

Indre Harøy

Preparatory blasting and excavation works close to completion

Phase 2 doubles annual production volume to 15.8kt HOG

Phase 2 project status

• Contracts awarded for Indre Harøy phase 2.
• Upon completion phase 2 adds another 7.9kt HOG, bringing the total up to 15.8kt HOG per annum.
• Estimated phase 2 capex of NOK 1,600 1,700m1 reflecting infrastructure investments already taken in phase 1, expected design and productivity improvements in phase 2 and estimated inflation effect.
• The project is subject to final investment decision by the Group upon completion of the project design phase, expected towards the end of 2023

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

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 focus on design and engineering.
• Design of grow-out site intensified during quarter, giving better understanding of total scope and costs.
• Significant focus devoted on 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.
• Good progress on permitting first half 2023. Continued progress on this in the next quarters expected to allow for construction start during 2023, subject to K Smart Farming making a positive investment decision.
• Continued strong salmon prices in Korea

Overview main permits

Jeongseon (smolt facility)

Permit	Status	Comment
Zoning permit
Construction permit	( )	First permit received, expect conclusion Q3-23.
Sea permit	NA

Yangyang (grow-out facility)

Permit	Status	Comment
Zoning permit
Construction permit		Expected Q4-23 / Q1-24
Sea permit		Expected Q4-23 / Q1-24

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

• Project is receiving a lot of attention in the North American market.
• Ongoing engagement with relevant public and private stakeholders.
• Continuing evaluation of identified potential production sites both on the US and Canadian side of the border.
• Focus on narrowing down to one or two qualifying sites during 2H 2023 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

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

FARMING COST CONTINUES TO TREND THE RIGHT WAY

Farming EBITDA cost Comments ¹ (NOK/kg HOG) projection

• With high biomass production and increasing volumes, farming cost is coming down.
• Batch 5 with NOK ~71/kg HOG farming EBITDA cost per 30 Jun at a fish weight of 1.1kg LW.
• Cost trend supporting steady state production cost on par with conventional farming in Phase 1.
• Phase 2 and 3 allows further scaling of fixed costs per kg, primarily related to personnel and other OPEX.

1) Equal to «Farming EBITDA cost» as referred to in the Q4 2022 presentation (excluding SG&A allocated Norway Facility and capacity adjustments).

2) Mainly effect of decreasing smolt cost per kg. Smaller effects on other parameters. 3) Projected farming EBITDA (excluding SG&A allocated Norway facility) 15

GROUP PROFIT AND LOSS

(figures in 1000) NOK	Q2 23	Q2 22	YTD 23	YTD 22	2022
Sales revenues	56 287	12 689	56 287	19 515	46 107
Other income	4 459	-11	7 431	-19	1 574
Total operating revenue	60 746	12 678	63 718	19 496	47 681
Change in inventory	-8 587	1 841	28 991	2 417	34 077
Cost of materials	-22 018	-3 671	-43 268	-6 356	-34 706
Personnel expenses	-15 216	-10 684	-33 192	-17 687	-49 996
Other operating expenses	-35 717	-15 273	-59 401	-22 971	-65 538
Operational EBITDA	-20 793	-15 108	-43 153	-25 100	-68 481
Depreciations	-11 380	-1 467	-13 577	-2 510	-6 190
Operational EBIT	-32 173	-16 575	-56 731	-27 610	-74 671
Fair value adjustment of biomass	7 365	2 647	7 912	2 647	11 740
Operating Profit (EBIT)	-24 807	-13 928	-48 818	-24 963	-62 931
Financial income	14 206	5 780	16 051	15 970	35 322
Financial expense	-13 637	-2 153	-22 778	-2 779	-4 170
Share of net income from associated companies	-1 774	-177	-2 845	-276	-947
Financial expense - net	-1 205	3 450	-9 572	12 915	30 205
Profit/loss before tax	-26 013	-10 478	-58 390	-12 048	-32 726
Income tax expense	0	0	0	0	0
Profit/loss for the period	-26 013	-10 478	-58 390	-12 048	-32 726

• Revenues of NOK 56.3m in Q2 related to harvest of batch 2. The price realization was NOK ~96.2 per KG¹ .
  • ➢ Other income related to sale of services and expected insurance settlement.
• EBITDA before fair value adjustment of biomass of NOK -20.8m in Q2 2023.
  • ➢ Includes NOK 17.9m in incident-based mortality & extraordinary costs related to the mortality incident.
• EBIT after fair value adjustment of biomass of NOK 24.8m .
  • ➢ NOK 7.4m in fair value adjustments of the biomass during the quarter.
  • ➢ NOK 13.0m in capacity adjustments during the quarter.
• Negative net financials of 1.2m in the quarter.

UNDERLYING POSITIVE FARMING RESULT IN Q2

ADJUSTED FOR INCIDENT AND EXTRAORDINARY COSTS

Adjusted operational EBITDA – Farming Norway Comments

• The operational EBITDA for the farming segment ended at negative NOK 5.9m.
• The segment recorded NOK 12.9m in incident-based mortality costs, as well as NOK 5.0m in extraordinary costs, following the mortality incident during the quarter.
  • ➢ This was partly offset by NOK 3.1 in expected insurance settlements.
• Adjusted for these non-recurring costs the underlying result in the farming segment was positive with NOK 8.9m.

FINANCIAL POSITION AND CASH FLOW

Financial position

(figures in NOK 1000)		30 June 2023 31 March 2023 31 Dec 2022 30 June 2022
Non-current assets	2 004 856	1 943 697	1 850 894	1 574 338
Current assets	766 288	352 039	455 281	642 159
Total assets	2 771 144	2 295 736	2 306 174	2 216 497
Equity	2 008 594	1 531 636	1 563 906	1 583 510
Non-current liabilities	573 318	574 360	531 393	458 694
Current liabilities	189 232	189 740	210 873	174 293
Total equity and liabilties	2 771 144	2 295 736	2 306 173	2 216 497
Cash and cash equivalents (NOK 1000)	561 675	171 352	278 759	525 165
Net Interest-bearing debt (NOK 1000)	85 188	488 729	302 990	-45 641
Equity (NOK 1000)	2 008 594	1 531 636	1 563 906	1 583 510
Equity ratio	72 %	67 %	68 %	71 %

Cash flow

(figures in NOK 1000)	Q2 23	Q2 22	YTD 23	YTD 22	2022
Net cash flow from operating activities	-25 085	-31 323	-56 858	4 224	-76 124
Net cash flow from investments activities	-72 726	-254 984	-224 880	-533 151	-796 132
Net cash flow from financing activities	488 132	381 550	564 654	548 549	645 471
Net change in cash and cash equivalents	390 322	95 243	282 916	19 620	-226 785
Cash and cash equivalents at start of period	171 353	429 922	278 759	505 545	505 545
Cash and cash equivalents at end of period	561 674	525 165	561 675	525 165	278 760

• Strong financial position.
• Available liquidity of NOK 853 million per 30 June including committed undrawn credit facilities.
• Significant reduction in investments after completion of Phase 1 at Indre Harøy.
• Investments the next 6-9 months expected to be relatively moderate.
• Private placement in April raising gross proceeds of NOK 525 million.

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

ROADMAP TO 100,000 TONNES HOG

SUMMARY & OUTLOOK

• Biomass production back on track strong biological performance since mid May with good appetite and normal mortality levels
• Q3 on track for all time high biomass production standing biomass of 1,628 tonnes (LW) per 15 August.
• Next harvest expected in September and steady state production volumes expected during Q4.
• Favorable production cost development further improvements expected alongside increased production volumes.
• Contracts signed for Indre Harøy phase 2 paving the way for a doubling of annual production volume to 15.8kt HOG per annum.
• Strong financial position.

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

SALMON EVOLUTION AT A GLANCE

Company overview

• Established in 2017
• Based in Hustadvika, strategically located in the salmon farming cluster on the west coast of Norway
• Listed on Oslo Stock Exchange in 2021
• Highly experienced and complementary management team
• ~70 FTEs across Management & Administration, Operations, Projects, Technology and Sales & Marketing
• First mover with Hybrid flow-through system (HFS) setting Salmon Evolution apart from other land-based salmon farming players

Operational value chain

Focusing own efforts where we are competitive and can create most value Securing key inputs through strategic partnerships with world-leading suppliers

Salmon farming facilities¹

Further expansion 20

32 100

North America

Total grow-out capacity

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 June 2023

Tore A. Tønseth

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

Peder Stette Board member

Vibecke Bondø Board member

▪ >20 years experience from technology development in the seafood industry

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

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
• Janne-Grethe Strand Aasnæs Board member ▪ Chief Executive Officer and
  • majority owner of Strand Havfiske

Anne Breiby Board member

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

Jan-Emil Johannessen Board member

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

Ownership Board representative Comments

Shareholder	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 %
Hongkong and Shanghai Banking Corp	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
STETTE INVEST AS	2.8 %	Peder Stette	Former key executive and shareholder in Optimar
J.P. Morgan SE	2.8 %
EWOS AS	2.3 %		Subsidiary of Cargill, strategic feed supplier to Salmon Evolution
VERDIPAPIRFONDET DNB SMB	2.3 %
JAKOB HATTELAND HOLDING AS	2.1 %
MEVOLD INVEST AS	2.0 %		Shareholder in processing partner Vikenco
LYNGHEIM INVEST AS	1.9 %		Shareholder in processing partner Vikenco
Other	52.2 %
Total	100.0 %

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