Salmon Evolution ASA — Investor Presentation 2024

Feb 13, 2024

Q4 2023 PRESENTATION

CEO: Trond Håkon Schaug-Pettersen CFO: Trond Vadset Veibust 13 February 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 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

• Harvest volumes of 1,104 tonnes (HOG) in Q4, with an average weight of ~3.5 kg (HOG) and superior share of 90 %.
• Continued strong biological performance, with good appetite and low mortality across the farm. Standing biomass of more than 2,200 tonnes per 31 December 2023.
• All-time high biomass production in Q4 with 1,439 tonnes in net biomass growth.
• EBITDA breakeven farming operations.
• Q1 QTD volume of 457 tonnes (HOG) having harvested 2/4 groups. Average weight of ~3.9 kg (HOG) and superior share above 95 %.
• On track for farming cost on par with the conventional industry.
• Available liquidity of NOK 645 million per 31 December 2023 including committed available undrawn credit facilities.

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

STRONG RESULTS AFTER FIRST FULL YEAR IN OPERATION

2023 in numbers

Net biomass growth1) (LW)

Harvest volume (HOG) Superior grade share

6 Q4 2023 Presentation

1) Net biomass growth includes mortality and culling

2) 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. 3) Source: Fish Health Report 2022, published by the Norwegian Veterinary Institute

Seawater mortality per month

RECORD HIGH HARVEST VOLUMES IN Q4

Q1-23

Q2-23

• Total Q4 harvest volumes of 1,104 tonnes HOG with an average weight of ~3.5 kg HOG and a superior share of 90%.
• All-in price realization of NOK 76.4/kg1), reflecting that majority of volumes were harvested in November.
  • ➢ Price realization calculated on all the fish sold, including downgrades.
• Batch 3 and 4 which was affected by the AGD event in Q2 are now fully harvested out. This has slightly impacted harvest weights and superior share in Q4.
• Gradually increasing harvest weights expected going forward.
• QTD volume of 457 tonnes (HOG) having harvested 2/4 groups. Average weight of ~3.9 kg (HOG) and superior share above 95 %, yielding strong prices.
  • ➢ Tight weight concentration with only 6% less than 3 kg HOG and 56% over 4 kg HOG

585

93 %

ENDING 2023 WITH ALL TIME HIGH BIOMASS

• Standing biomass of more than 2,200 tonnes LW as per 31 December 2023.
• All time high biomass production in Q4 with net biomass growth of 1,439 tonnes LW.
• High harvesting activity in November temporarily reducing biomass production during the quarter, but strong development in production towards the end of December and going into Q1.
• Good appetite and low mortality levels across the farm.
• Batch 9 stocked in October. Completion of batch 10 stocking in January.

Net biomass growth1) Comment (LW) and standing biomass (LW)

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

NORTH AMERICA: CLOSING IN

Project overview Target areas

• Targeting a substantial operation in the North America market by utilizing the know-how and experiences from Norway
• Established dedicated team and incorporated corporate structure.
• As the project develops, Salmon Evolution aims to engage in partnership structures leveraging the human capital in our Group and maximizing shareholder value.

Status

• Closing in on site search with 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.
• In advanced negotiations on a high-potential site which ticks "all the boxes" on size, topography and water parameters.

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

KOREA: FOCUS ON COST OPTIMIZATION

Project overview

• 49/51% joint venture between SE and Dongwon Industries
• Project consists of a smolt facility, grow-out facility and certain other infrastructure.
• Targeted total annual capacity 16.8kt HOG.

Status

• As previously communicated the primary focus in the last quarters has been cost optimization. Completion of design work as well as permitting have had good progress in Q4.
• The overall project economics is challenging, primarily driven by sitespecific circumstances related to the Yangyang grow-out site, the lack of certain other salmon farming infrastructure and regulatory framework having an impact on the project cost as well as the operating cost.
• Currently engaging with relevant authorities in South Korea to shore up government financial support, to improve project economics.
• Clarifications expected during Q2-24.

Overview main permits

Jeongseon (smolt facility)
Permit	Status	Comment
Zoning permit
Construction permit	( )	First permit received, only formalities remaining
Sea permit	NA

Yangyang (grow-out facility)

Permit	Status	Comment
Zoning permit
Construction permit		Subject to purchase of site.
Sea permit	( )	First permits received, good traction.

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

SALMON EVOLUTION BENEFITTING FROM EXCEPTIONALLY HIGH SUPERIOR GRADE SHARE

Illustration of positive price implication of superior fish welfare

• According to the Norwegian Food Safety Authority the share of downgraded fish has never been higher than recorded at the start of 2024³ . In week 4 the share of downgrades amounted to 37 % of harvested fish.
• The share of downgrades has been increasing rapidly over the last 5 years³ .

60%

70%

80%

90%

100%

SEGMENT: FARMING NORWAY

• Breakeven operational EBITDA
• Revenues of NOK 85.9m, where 83.6 is sales revenues related to the harvest of 1,104 tonnes (HOG) in Q4.
• All-in price realization of NOK 76.4 per KG.
  • ➢ Superior share of 90 %.
  • ➢ Reflecting that most harvest took place in November.
  • ➢ Price realization calculated on all the fish sold, including downgrades.
• On track for farming cost on par with the conventional industry.
• Capacity adjustments of NOK -9.4m.

Farming Norway

(figures in NOK 1000)	Q4 23	Q3 23	%
Operating (NOK 1000) revenue	85 850	13 349	543 %
1000)2 Operational (NOK EBITDA	43	-8 115	101 %
1000)2 Operational (NOK EBIT	-16 722	-23 877	% 30
(NOK)1 All-in price realization/kg	76 4 ,	70 8 ,
Harvest volumes (tonnes HOG) ,	1 104	185	497 %

¹Calculated on a back to farm basis and adjusted for transport cost to Norway border (Nasdaq equivalent)

²Before fair value adjustment related to biological assets

Harvest volume (tonnes, HOG)

SEGMENT: OTHER

• Revenues of NOK 7.5m 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 related to future expansion.
• Conservative approach to capitalizing costs on new projects and developments.

Summary of result

(figures in NOK 1000)	Q4 23	Q3 23	%
Operating (NOK 1000) revenue	7 525	7 003	% 7
Operational (NOK 1000) EBITDA	-16 205	-16 522	% 2

Indre Harøy Yangyang

North America

GROUP PROFIT AND LOSS

• Revenues of NOK 88.9m in Q4, most of it related to the 1,104 tonnes (HOG) harvested.
• EBITDA before fair value adjustment of biomass of NOK -16.2m in Q4 2023.
• EBIT after fair value adjustment of biomass of NOK -35.9m .
  • ➢ NOK -9.4m in capacity adjustments
  • ➢ NOK -2.6m in fair value adjustments of the biomass
• Negative net financials of 15.0m in the quarter.
  • ➢ Primarily related to interest rate costs and changes in value of interest rate swaps – partly offset by interest rate income on bank balance

Summary of result

(figures in NOK 1000)	Q4 23	Q3 23	%
operating Total revenue	88 850	15 856	% 460
Operational EBITDA	-16 162	-24 637	% 34
Operational EBIT	-33 253	-40 699	18 %
Fair value adjustment of biomass	-2 606	14 843
Operating profit (EBIT)	-35 859	-25 857
Net financials	029 -15	-10 640
Profit/loss before tax	-50 888	-36 497
tac Income expense	0	0
Profit/loss for the period	-50 888	-36 497
Standing biomass (tonnes LW) ,	2 204	2 100	% 5
Harvest volumes (tonnes HOG) ,	1 104	185	497 %
Earnings share (NOK) per	-0 12 ,	-0 09 ,

GROUP FINANCIAL POSITION AND CASH FLOW

• Strong financial position.
• Significantly improved cash flow with increasing harvest volumes.
  • ➢ Company expect substantial increase in harvest volumes from Q2 and onwards.
  • ➢ Investments the next 6-9 months expected to be relatively moderate.
• Available liquidity of NOK 645m per 31 December including committed undrawn credit facilities.

Summary of financial position

(figures in NOK 1000)	31 2023 Des	30 Sept 2023
Non-current assets	2 074 286	2 039 203
Current assets	634 883	720 175
Total assets	2 709 169	2 759 378
Equity	1 920 693	1 971 054
liabilities Non-current	586 859	400 577
Current liabilities	201 617	210 923
Total equity and liabilties	2 709 169	2 759 378
equiv (NOK 1000) Cash and cash alents Net Interest-bearing debt (NOK 1000) Equity (NOK 1000) Equity ratio	386 396 299 386 1 920 693 % 71	445 865 231 090 1 971 054 % 71

Summary of cash flow

Net change in cash and cash equivalents	-59 469	-115 810
Net cash flow from financing activ ities	2 471	23 773
flow from inv activ ities Net cash estments	-67 232	-64 892
Net cash flow from operating activ ities	5 293	-74 691
(figures in NOK 1000)	Q4 23	Q3 23

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

SUMMARY AND OUTLOOK

Fully operational at industrial scale

Proof of concept demonstrated and steady state production within reach. Ready for scaling on back of cash generating phase 1.

Strong biological performance

Good fish health and fish welfare demonstrated by consistent low mortality and exceptionally high superior share

Competitive farming cost

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

Strong financial position

Solid shareholder base and strong bank relations.

Highly attractive market backdrop

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

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

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

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

ROBUSTNESS OF HYBRID FLOW THROUGH SYSTEM FULLY DEMONSTRATED AFTER ALMOST 2 YEARS IN OPERATION

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

25 Q4 2023 Presentation

Highly competent board of directors backed by strong owners

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

Board of directors Ownership as per 31 December 2023

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
Kjølås Stansekniver AS	3,0 %	(Frode H. Kjølås, chair nomination committee)
J.P. Morgan SE	2,8 %		Former key executive and shareholder in Optimar
Stette Invest AS	2,8 %	Peder Stette	Former key executive and shareholder in Optimar
Verdipapirfondet Dnb Norge	2,7 %
Ewos AS	2,3 %		Subsidiary of Cargill, strategic feed supplier to Salmon Evolution
Verdipapirfondet DNB SMB	2,2 %
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
Bortebakken AS	1,9 %		Shareholder in processing partner Vikenco
Other	50,6 %
Total	100,0 %

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