Salmon Evolution ASA — Investor Presentation 2024

May 7, 2024

PRESENTATION Q1 2024

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

7 May 2024

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 forwardlooking 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.

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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
• Financials
• Summary and outlook

EXTENDING THE OCEAN POTENTIAL 3

• Appendices

Highlights

• Farming EBITDA of NOK 36.2 million NOK 40.2 EBITDA/kg.
• Group EBITDA of NOK 24.1 million and EBIT of NOK 5.8 million.
• Q1 harvest volumes of 901 tonnes HOG with average weight of 4.6 kg LW, superior share of 96 % and strong price realization.
• Record high standing biomass of almost 2,700 tonnes LW end of quarter.
• Stable operations with net biomass growth of ~1,560 tonnes LW, up 8 % from Q4.
• Q2 harvest volumes expected in the range of 1,600 1,800 tonnes HOG.

• Highlights

• Operations
• Financials
• Summary and outlook
• Appendices

Strong harvest results and price realization

• Total Q1 harvest volume of 901 tonnes HOG.
• Average weight of ~4.6 kg (LW) and an industry leading superior grade share of 96%.
  • Consistent and tight weight spread.
• All-in price realization of NOK ~108/kg¹ in Q1. Highlights value of having a minimal number of downgrades.
  • Consistently outperforming NASDAQ benchmark price on Superior grade fish.
• April harvest volume of ~600 tonnes HOG with a superior grade share of 96 %.
  • Harvest guidance in Q2 of estimated 1,600 1,800 tonnes HOG unchanged.
  • Somewhat lower harvest weights in Q2 due to low stocking weights during spring/summer 2023 – offset by record high salmon prices. ^{0 200 400 600 800} 1 000 1 200 1 400 1 600 1 800 2 000

Strong price realization Significant increase in harvest volume Q2

The right size, and perfect quality

Harvest in week 7 used as an illustration

Exceptionally tight weight spread 'Only' superior fish

Exceptional harvest results with core weight category being 4-5 kg and superior grade share of 96%+

All time high biomass end of March

Feeding levels up 25 % in March vs January Steadily increasing biomass growth

• Stable operations with net biomass growth of ~1,560 tonnes LW, up 8 % from Q4.
• Standing biomass of almost 2,700 tonnes LW end Q1, up 21 % from Q4.
• Daily feeding average of 21t/day in March up 25 % from January, continuing the steady increase in biomass growth.
• Batch 11 was stocked in March and has had a good and stable environment after arrival at Indre Harøy. However, poor smolt quality has led to a reduced stocking volume for this batch.
  • Secured overcapacity on smolt through external sourcing – upsizing stocking volume in Q2, minimizing impact on future harvest volumes.
• Low overall mortality batches set for harvest in Q2 have accumulated mortality to date of 2.6% - 3.7%.

Operational priorities

1	Improve every day	• We are steadily improving our grow-out operations and increasing biomass growth and harvest volumes. • Run-rate biomass growth supporting 7,900 tonnes HOG in annual harvest targeted during 2H 2024. • Long-term we anticipate to continue past this point, as we see numerous opportunities optimizing feed, biology and improvements to the production plan.
2	Ensure optimal smolt size and quality	• Stable and regular supply of high quality smolt of the correct size. • Harmonizing production plan at smolt facility with grow out operation at Indre Harøy. Significant improvement expected in 2024, both on regularity and stocking weights, allowing for optimization of harvest weights and volumes. • Securing overcapacity on smolt through external sourcing, adding operational flexibility.
3	Initiate Indre Harøy phase 2	• Indre Harøy phase 2 will be an improved copy of phase 1 - key learnings are incorporated. • Working with our contractors in optimizing cost and reducing uncertainty, continuously making progress. As communicated earlier, final investment decision is expected in Q2. • Phase 2 will significantly strengthen Salmon Evolution's operational platform.
4	International expansion	• Securing a site in North America. We are in advanced negotiations on a high-potential site which ticks "all the boxes" on size, topography and water parameters. • Defining the road ahead in Korea. Current focus is on cost optimization and capital discipline. Design work has been completed, and permitting is on track. Further clarifications expected during Q2.

Improve every day

Our core DNA: Operational excellence FCRb on harvested batches

• Substantial operational experience obtained after more than 2 years of production.
• Focus shifting from "just managing" operations to continuously seek improvements in everything we do, fueled by advanced analytics.
• FCRb development on harvested batches a very good example – from 1.14 on batch 1 to an impressive 1.03 on batch 6 harvested out in April, highlighting the massive potential of operating in a controlled environment.
• Strong operational platform more than 70 highly skilled employees covering all critical functions; biology, technical, automation, engineers, analytics etc.
• Launched Salmon Evolution Academy to institutionalize our human capital base – inhouse multi discipline learning platform for all employees.

1

Ensure optimal smolt size and quality

• Stable and regular supply of high quality smolt of the correct size is required to take out the full potential of Indre Harøy.
• Significant focus have been put into streamlining the operations at our smolt facility at Dale with the grow out operation at Indre Harøy.
  • Various upgrades including more heating capacity to better control growth and smoltification during cold winter period.
  • Altered smolt production plan to harmonize stocking weights throughout the year.
• We are also securing overcapacity on smolt through external sourcing, adding operational flexibility and allowing for utilization of excess tank capacity at Indre Harøy for post smolt production.

Importance of smolt Calibrating smolt and grow out logistics

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2023 smolt stocking at Indre Harøy 235g 80g 75g 90g 200g 195g

• Irregularity in smolt stocking dates and varying stocking weights causing suboptimal logistics and harvest weights

2024 smolt stocking plan at Indre Harøy

• Smolt stocking evenly spread out over the year with about 2 months between each
• Significant improvement in stocking weights compared to 2023, all at 130g or more, allowing for increase in harvest weights and more regularity on harvest volumes

2

ILLUSTRATIVE TIMELINE

3

Indre Harøy phase 2: Progressing as planned

• Indre Harøy phase 2 will be an improved copy of phase 1, incorporating key learnings after close to two years in operation.
• Ambition to take final investment decision in Q2 and initiate construction after the summer holiday.
• Navigating the inflation pressure focus on cost optimization and facilitating competitive tendering processes.
• Assessing phase 2 capital structure, replacement cost of phase 1 substantially higher than invested amount.

International expansion

• Focus centered around areas with an established salmon farming industry and value chain, mirroring the unique benefits, scale and cost leadership position of Indre Harøy.
• Currently in advanced negotiations on a high-potential site. The initial site verification processes, including fatal flaws analyses of both water, biological, technical, and regulatory aspects, points to this being an ideal site for a hybrid flow-through system.
• Positive dialogues with both public and private stakeholders.

North America – closing in Korea – focus on cost optimization

• Design and engineering activities for grow-out facility at Yangyang completed in Q1.
• Permitting work on track and not considered a material risk for the realization of the project.
• As previously communicated primary focus over the last quarters centered around cost optimization and capital discipline.
• Working with authorities in South Korea on governmental financial support. Further clarifications expected during Q2-2024.

4

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

Farming: Above NOK 40/kg in EBITDA margin

REVENUE	EBITDA	EBITDA	HARVEST VOLUME
NOK 98.2 million	NOK 36.2 million	NOK 40.2/KG	901 TONNES HOG
+14 % vs. Q4 2023	>100 % vs. Q4 2023	>100 % vs. Q4 2023	-18 % vs. Q4 2023

• EBITDA margin above NOK 40/kg.
• Revenues of NOK 98.2m.
• All-in price realization of ~108 NOK/kg.
  • Price realization calculated on all the fish sold, including downgrades.
  • Superior share of 96 %.
  • Consistently outperforming NASDAQ benchmark price on Superior grade fish.
• Farming EBITDA cost of NOK 67/kg, down 12 % from last quarter.
  • Effect of decreasing production costs on batches in a fuller facility.
• Capacity adjustments of NOK 7.9m.

Farming Norway
(figures NOK 1000) in	Q1 24	Q4 23	%
Operating revenue	98 205	85 850	14 %
EBITDA2 Operational	36 236	43	>100 %
EBIT2 Operational	18 207	-16 722	>100 %
Harvest volumes (tonnes HOG) ,	901	1 104	-18 %
cost3 (NOK/kg) Farming EBITDA	67 0 ,	75 8 ,	-12 %
EBITDA/kg (NOK/kg)	40 2 ,	0 0 ,	>100 %
adjusted4 Operational EBIT	25 680	-9 249	>100 %
adjusted/kg4 (NOK/kg) EBIT	28 5 ,	-8 3 ,	>100 %

CONSOLIDATED KEY FIGURES AND HIGHLIGHTS: Q1 2024

Other: Expansion cost base

REVENUE NOK 6.5 million EBITDA NOK -12.1 million EXPANSION PROJECTS Three - 3

EXPANSION COST¹ NOK 13.5/KG

• 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 related to future expansion.
• Conservative approach to capitalizing costs on new projects and developments.
• Cost base somewhat trimmed, primarily effect of inhousing activities previously with consultants.

Norway - Indre Harøy phase 2 Korea – YangYang North America

(figures NOK 1000) in	Q1 24	Q4 23	%
Operating	6	7	-14
revenue	463	525	%
Operational	-12	-16	-25
EBITDA	119	205	%
cost/kg1	13	14
Expansion	5	7
(NOK/kg)	,	,

CONSOLIDATED KEY FIGURES AND HIGHLIGHTS: Q1 2024

Group: Positive EBIT margin

REVENUE NOK 100.3 million +13 % vs. Q4 2023

EBITDA NOK 24.1 million >100 % vs. Q4 2023

EBIT NOK 5.8 million >100 % vs. Q4 2023

EBITDA NOK 26.8/KG >100 % vs. Q4 2023

•	Positive Group EBIT for the first time.
---	-----------------------------------------	--	--	--	--	--	--	--

• Reflects potential and highlights that scaling costs are covered even at a relatively modest harvest volume.
• Revenues of NOK 100.3m, primarily sales revenues from harvesting 901 tonnes HOG.
• EBITDA of NOK 24.1m before FV adjustment.
• EBIT of NOK 5.8m before FV adjustment.
  • Capacity adjustments of NOK 7.9m.
  • FV adjustment of NOK 0.9m.
• Net financials of NOK –7.9m.
  • Primarily driven by interest rate expenses partly offset by interest income on the cash balance.
• Profit and loss for the period of -1.2m.

Group
NOK (figures in 1000)	Q1 24	Q4 23	%
Total operating revenue	100 252	88 850	13 %
Operational EBITDA	24 117	-16 162	>100 %
Operational EBIT	5 755	-33 253	>100 %
Fair value adjustment of biomass	942	-2 606
Operating profit (EBIT)	6 697	-35 859
Net financials	-7 899	-15 029
Profit/loss before tax	-1 201	-50 888
Income tax expense	0	0
Profit/loss for the period	-1 201	-50 888
Standing biomass (tonnes LW) ,	2 676	2 204	21 %
(tonnes HOG) Harvest volumes ,	901	1 104	-18 %
EBITDA/kg (NOK/kg)	26 8 ,	-14 6 ,	>100 %
Operational EBIT adjusted	13 228	-25 780	>100 %
adjusted/kg (NOK/kg) EBIT	14 7 ,	-23 4 ,	>100 %

CONSOLIDATED KEY FIGURES AND HIGHLIGHTS: Q1 2024

Group financial position and cash flow

CASH FLOW OPERATIONS NOK -1.8 million

TOTAL CASH FLOW NOK -46.2 million CASH AND CASH EQUIVALENTS NOK 340.2 million

NIBD NOK 355.3 million

• Very close to having a positive operational cash flow.
  • About 470 tonnes LW in biomass added in Q1 impacting the working capital.
• Investments mostly tied to Indre Harøy phase 2 where work has intensified with project being close to final investment decision.
  • One off effect related to VAT of negative 7.2m.
• Available liquidity of NOK 593 million including available committed undrawn credit facilities but excluding the committed construction facility of NOK 775 million in relation to Indre Harøy Phase 2.

Summary of financial position
NOK (figures in 1000)	31 March 2024 31 Dec 2023
Non-current assets	2 099 098 2 074 286
Current assets	632 585	634 883
Total assets	2 731 682	2 709 169
Equity	1 919 953	1 920 693
Non-current liabilities	586 208	586 859
Current liabilities	225 521	201 617
Total equity and liabilties	2 731 682	2 709 169
Cash and cash equivalents	340 199	386 396
Net Interest-bearing debt	355 345 299 386
Equity ratio	70 % 71 %
Summary of cash flow
(figures NOK 1000) in	Q1 24	231 Q4
flow from Net cash operating activities	-1 802	-6 038
Net cash flow from investments activities	-41 460	-67 233
Net cash flow from financing activities	-2 934	13 802
Net change	-46 197	-59 469

The value of excellent superior grade share

• According to the Norwegian Food Safety Authority the share of downgraded fish has never been higher than recorded at the start of 2024¹ . In the first 12 weeks of 2024, the share of downgrades varied between 22 % and 38 % on a weekly basis.
• The high share of downgraded fish has a significant impact on all-in price realization for the conventional industry.

ESTIMATE - INDRE HARØY

A high portion of CAPEX carries no future replacement cost

CAPEX is our license cost… ...and a high portion is non-recurring

• For the conventional industry, the license is the Share of total depreciations – NOK/kg biggest investment – licenses are not depreciated.
• A high portion of CAPEX for Salmon Evolution is non-recurring and carries no future replacement cost - but are still being depreciated.
  • Indirect project costs
  • Capitalized internal costs
  • Groundworks and other infrastructure
• The effect is calculated to about NOK 3.7/kg of total depreciations in phase 1 steady state.
• For the Q1 results this would result in a farming EBIT/kg of NOK 28.5.
• In the first decade of operations replacement cost in general is estimated to be limited.

INDRE HARØY

Cost leadership is our objective

Company estimates	Phase 1	Phase 1+2	Phase 1+2+3
(kt HOG) Harvest volume ,	8	16	32
(HOG)1 Farming cost/kg EBITDA	53 0 ,	51 0 ,	48 0 ,
adjusted2 Depreciations -	4 0 ,	4 5 ,	0 5 ,
cost/kg (HOG) EBIT adjusted Farming -	57 0 ,	55 5 ,	53 0 ,
(HOG)3 Expansion cost/kg	6 0 ,	4 0 ,	2 0 ,
cost/kg Group Full EBIT adjusted -	63 0 ,	59 5 ,	55 0 ,

• In phase 1 we have established much of the operational platform needed in phase 2 and 3, reflected in a gradually decreasing Farming EBITDA cost/kg.
• Illustration is based on current input factors and currency rates, except for feed where we apply a slight reduction and use a long term delivered feed cost of NOK 20/kg.

• Highlights
• Operations
• Financials
• Summary and outlook

EXTENDING THE OCEAN POTENTIAL22

• Appendices

Unique growth platform

Highly profitable even at modest harvest volumes

• NOK 40.2 EBITDA/kg in Q1, highlighting the inherent profitability potential.
• Highly attractive market backdrop - strong price outlook for 2024 and beyond.

Fully operational at industrial scale

• Proof of concept.
• Good fish health and welfare demonstrated by consistent low mortality and exceptionally high superior share.

Costs and investments on par

• Opex and growth capex on par with traditional farming.
• Norwegian operation have strong advantage on OPEX and value chain.

Ready for the next step

• Scalable platform on back of more than 2 years in full operation – significant human capital asset base.
• Strong operational platform with 8kt cash generating phase 1.

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

EXTENDING THE OCEAN POTENTIAL24

We are not in a tax payable position the next decade

• Significant differences in accounting profit and taxable profit under the Norwegian tax regime.
• Biomass-buildup is directly deductible in the tax accounts.
• Average taxable depreciation-profile of ~17 year versus 32 years under IFRS.
  • Taxable depreciations are 'frontloaded', for 2023 ~7.6 % of asset value in main asset owning company where depreciated.
  • NOK 146m in taxable depreciations vs. NOK 43m in depreciations under IFRS in 2023.
• In Norway we anticipate to continue to build infrastructure and biomass, prolonging the period until we get into a taxable position.
• We have almost NOK 600m in taxable loss carried forward.
  • Reflecting start-up costs, taxable depreciations and said tax-effect from biomass-buildup.
• We do not expect to be in a tax payable position over the next decade.

Next update

15th August 2024 – Q2 2024 presentation | Q2 operational update will be released early July.