Salmon Evolution ASA — Investor Presentation 2025

Feb 11, 2025

PRESENTATION Q4 2024

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

11 February 2025

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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• Highlights

• Operations
• Growth
• Financials
• Summary and outlook

Highlights in the quarter

• New harvest record with total harvest of 1,729 tonnes HOG including post smolt.
• Farming EBITDA of 9 NOK/kg, Group EBITDA of 9.3 NOKm and Farming EBITDA of 15.3 NOKm.
• Solid price achievement strategy of backloading harvest in second half of 2024 paying off.
• Standing biomass end Q4 at ~2,000 tonnes LW. Stable operations supporting continued positive growth trend at Indre Harøy, with biomass growth of 1,518 tonnes LW in the quarter.
• Indre Harøy phase 2 construction well underway on track for first smolt release in Q1-26 as planned.
• Strong financial position with 684 NOKm in available liquidity including committed undrawn credit facilities. Additionally, the Company has 1,450 NOKm in earmarked construction financing.

• Highlights
• Operations
• Growth
• Financials
• Summary and outlook

SIGNIFICANT MILESTONE ACHIEVED

Continued strong results in 2024

Development in key performance indicators indicate consistently good fish health

New harvest record

• All-in price realization on harvested fish of NOK ~82/kg¹ , outperforming index on superior grade.
  • Strategy to backload harvest in 2H 2024 paying of.
• Total harvest of 1,729 tonnes HOG, including 105 tonnes² LW post smolt.
• Continued excellent product quality with superior grade share of 95 %.
• Avg. harvest weight ~3.8 kg (HOG), +15 % Q/Q.
• Harvest guidance for 2025 unchanged at 6,000 to 6,500 tonnes HOG including sale of post smolt.
  • Base scenario Q1 harvest of 1,100 tonnes HOG, but potentially pushing some volume scheduled late Q1 into Q2. Focus on optimizing biomass composition, harvest weights and price realization.
  • Current biomass composition will lead to temporary lower harvest weights in Q1.

Increasing harvest weights Harvest guidance unchanged

CLOSING IN ON FULL POTENTIAL

Batch 9 a strong datapoint

Strong biological results have significant positive impact on economics

Positive growth trend continues

Net daily biomass gain % Biomass development

• Strong feeding and biomass gain, especially from second half of November and through December.
• Data-driven optimization initiatives yielding the expected effects, strong underlying biological KPIs and continued minimal mortality.
• Successfully stocked two smolt groups in Q4, minimal mortality after arrival and stocking weights above target.

• Biomass production at 1,518 tonnes LW, second highest on record and +11 % Q/Q, strong growth momentum going into 2025.
• Fully stocked farm, but absolute growth figure affected by low relative average weight of standing biomass.
• Prioritizing to grow the biomass in Q1 to take out full growth potential.

Successful post smolt delivery

• SE has utilized excess capacity at Indre Harøy during 2H 2024 to produce post smolt for external sale
  • Facilitated by partly external sourcing of smolt
• First post smolt group was delivered to a well-known salmon farmer in December. A second delivery was completed mid-January.
  • The first delivery comprised approximately 150k individuals at ~700 grams (about 105 tons LW).
  • Pricing at market terms.
• Both groups have been performing well after transfer to sea, a testament to the good fish-health at Indre Harøy.
• Already secured overcapacity on smolt for 2025 which is planned utilized for post smolt deliveries.

Launching land -based salmon in retail

• Salmon Evolution is launching land -based smoked salmon in partnership with Lofoten.
• Lofoten is a renowned premium brand with wide distribution in Norwegian retail.
• A key enabler for the partnership is to offer consumers more choice on the shelf, and potentially appeal to a broader target group.
• The smoked salmon will be available in Meny and selected Spar stores all over Norway from week 8.

Q4 2024

• Highlights
• Operations
• Growth
• Financials
• Summary and outlook

EXTENDING THE OCEAN POTENTIAL12

REACHING CRITICAL SCALE OF OPERATIONS

Phase 2: Taking Salmon Evolution to the next level

SALMON EVOLUTION – INDRE HARØY SITE

Permitted to 36,000 tonnes HOG at Indre Harøy

Significant economies of scale unlocked when phase 2 is operational

Q4 2024

Phase 2 on track for first harvest during 2026

General

• Project on plan and budget good progress at building site.
• On track for targeted first smolt release Q1-26 and first harvest Q4-26.
• 90-100 workers on-site, steadily increasing as activity intensifies.

Status and progress – grow out

• Tank installations for first four tanks well underway.
• Continued good progress on other concrete works.

Tank installations well underway (February 2025)

Q4 2024

Good progress at building site

Concrete works for intake station (January 2025)

Status and progress – water intake

• Intake manifold in-place, a major milestone.
• Concrete works for the intake station progressing well.
• Preparations for intake pipe installation underway.

Status and progress – additional tank capacity

• Planning and engineering initiated and nearing completion.
• Expected completion of facility aligned with phase 2 grow-out.

EXPANSION PLANS

Indre Harøy is only the beginning

Tonnes capacity Construction start

• 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
• In advanced negotiations on a high-potential site. The initial site verification processes, points to this being an ideal site for a hybrid flowthrough system.
• Currently assessing the impact from potential tariffs in the North American market.

HOG 36,000 Tonnes capacity

TBD Construction start

Tonnes capacity

Construction start

• Highlights
• Operations
• Growth
• Financials
• Summary and outlook

Farming: NOK 8.9/kg EBITDA margin

REVENUE	EBITDA	EBITDA/KG	HARVEST VOLUME
148.7 NOKm	15.3 NOKm	NOK 8.9	1 729 TONNES HOG

• Strong price achievement in Q4 of ~82/kg¹NOK supported by solid harvest KPIs.
• NOK 8.9/kg EBITDA margin and NOK 23.0/kg in 2024.
• Impact on farming costs from post-smolt sales, allocation of costs between segments and harvest of fish with peak production in late Q2 and Q3 coinciding with a lower standing biomass, which impacted the cost allocation at that point in time.
  • Expect farming cost to decrease in line with increased biomass production.
• Lower feed prices expected to reduce farming cost during 2025.

armin or ay
		Q 202		F 202
perating revenues	1 7 ,	9 ,	7 7 ,	1 2 ,
Opera ional
perational E IT	,9	1 7 ,	7 9 ,	7 9 ,
arvest volumes (tonnes G) ,	1 729	1 10	91	1 7
reali ation1 ( K/k g) All in price	2 ,	7 ,	9 ,	2 0 ,
Opera ional O
perational E IT/kg ( K)	2 2 ,	1 1 ,	7 7 ,	2 ,
g2 Farming E IT A cost/k ( K)	7 9 ,	A	9 ,	/A
g p E IT A adjusted/k ( K)	9 ,	A	2 2 ,	A
g , p E IT adjusted/k ( K)	2 1 ,	A	1 0 ,	A

Indirect production costs expensed through cost of goods sold for underutilized capacity of NOK 3.9m.

Other: Expansion cost base

REVENUE 8.5 NOKm EBITDA -6.1 NOKm EXPANSION PROJECTS Three - 3

EXPANSION COST¹ NOK 3.5/KG

• Other segment encompass typical headquarter functions as well as staff working with growth projects.
• Cost base is primarily driven by salaries, a portion of this is reinvoiced to Farming and growth projects.
  • Salaries ~64 % of cost base in Q4.
• Costs positively impacted by allocation of costs between segments and one-offs.
  • OPEX reduction of ~2 NOKm between Q3 and Q4.
• Low cash burn on projects outside Norway.

Norway - Indre Harøy Korea – YangYang North America

North Ame

O er
		Q 202		F 202
perating revenues	,	7 ,	2 2 ,	27 ,
Opera ional
g1 Expansion cost/k ( K/k g)	,	1 7 ,	,	2 ,

Group: Solid ending to a good year

REVENUE	EBITDA	EBIT	EBITDA/KG
149.5 NOKm	9.2 NOKm	-11.3 NOKm	NOK 5.3

• EBITDA of 9.2 NOKm in Q4 and 71.4 NOKm for 2024.
  • Positive EBITDA in three out of four quarters in 2024.
  • EBITDA/kg of 5.3 Q4 and 14.6 in 2024 respectively.
• Positive EBIT if adjusted for depreciations on nonrecurring CAPEX.
• Indirect production costs expensed through cost of goods sold for underutilized capacity of 3.9 NOKm.
• Fair value adjustment of –10.5 NOKm driven by lower standing biomass end of the year compared to 2023.
• Net financials of NOK –5.1 NOKm driven by interest expenses partly offset by interest income on cash balance.

roup
		Q 202		F 202
Total operating revenues	1 9 ,	9 ,	71 ,	1 ,
Opera ional
Opera ional
Fair value adjustment of biomass	10 ,	2 ,	10 ,	20 1 ,
perating profit (E IT)	21 ,	9 ,	1 2 ,	110 ,
et financials	,1	1 0 ,	2 2 ,	2 ,
Profit/loss before tax	2 9 ,	0 9 ,	7 ,	1 ,
Income tax expense	0 0 ,	0 0 ,	0 0 ,	0 0 ,
Profit/loss for the period	2 9 ,	0 9 ,	7 ,	1 ,
arvest volumes (tonnes G) ,	1 729	1 10	91	1 7
reali ation1 All in price ( K/k g)	2 ,	7 ,	9 ,	2 0 ,
Opera ional O
perational E IT/kg ( K)	,	0 1 ,	1 0 ,	9 7 ,

Group: Strong balance sheet

CASH FLOW OPERATIONS 1.0 NOKm

TOTAL CASH FLOW -133.8 NOKm

Available liquidity 684 NOKm

NIBD 135 NOKm

• 1.0 NOKm positive cash flow from operations.
  • Impacted by timing of harvest and post smolt sale.
• Investments related to phase 2 and gradually picking up as planned.
  • On track and budget.
• Strong financial position. Available liquidity of 684 NOKm including available committed undrawn credit facilities but excluding the 1,450 NOKm in committed construction facilities related to Indre Harøy phase 2.

ummary o inan ial posi ion
	e	0 un 2	e
on current assets	2 1	2 109	2 077
Current assets	7 9	972
o al asse s
Equity	2 22	2 277	1 921
on current liabilities	2		7
Current liabilities	79	21	202
o al e ui y an lia il ies
Cash and cash equivalents	29
et Interest bearing debt	1	17	299
Equity ratio	70	7	71
ummary o as lo
		Q 202		F 202
Cash flow from operations	1 0 ,	,	,	12 ,
Cash flow from investing	1 ,	0 ,	2 ,	,
Cash flow from financing	20 7 ,	,9	2 ,	70 ,
e an e

Gradual increase in CAPEX related to phase 2

• The phase 2 expansion is fully funded.
• Project is on track with good progress at the building site. CAPEX estimate for phase 2 of about NOK 240-250/kg including contingencies and buffers.

• Accumulated Capex to date of 407 NOKm, with a gradual increased expected going forward.
• Strong financial position with 684 NOKm in available liquidity including committed undrawn credit facilities. Additionally, the Company has 1,450 NOKm in earmarked construction financing.

• Highlights
• Operations
• Growth
• Financials
• Summary and outlook

EXTENDING THE OCEAN POTENTIAL24

Creating a foundation for substantial profitable growth

• Proven operational excellence with strong biological and financial results.
• Competitive farming cost, expected to improve further with scale and falling feed cost.
• On track with fully funded phase 2 expansion increasing annual planned harvest to 18kt HOG.
• Strong financial position.
• Attractive market outlook, with strong prices expected for 2025 and beyond.

Next update

Q1 2025 13th May 2025 | Q1 2025 operational update will be released early April