Slides
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Q1 2025 STATUS AND PROGRESS 28 MAY 2025
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Q1 2025 Martin Rasmussen CEO • ANDFJORD SALMON IN BRIEF • Quarterly highlights and subsequent events • Status Kvalnes build-out: Phase 1 and phase 2A • Next smolt release • Kvalnes Phase 2: Plans and ambitions • Financials • Summary and outlook Bjarne Martinsen CFO AGENDA Jostein Nilssen Project Director
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NATURAL OPTIMAL WATER TEMPERATURES OXYGEN-RICH AND CLEAN ARCTIC SEAWATER LOW ENERGY COSTS. NO LIFTING, HEATING OR COOLING THE BEST OF TWO WORLDS 3 BENEFITS OF SEA BASED NET PEN FARMING 3 BENEFITS OF LAND BASED FARMING 1 2 3 NO PROBLEMS WITH SALMON LICE AND POISONOUS ALGAE NATURAL ESCAPE PREVENTION COLLECTION AND RECYCLING BIOWASTE = COMMERCIAL VALUE 1 2 3 Q1 2025 First pool, Kvalnes First pool, Kvalnes
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NATURAL FLOW – ANDFJORD SALMON’S FLOW-THROUGH SYSTEM JUNE2023
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KEY FIGURES – FIRST PRODUCTION CYCLE 1.05 LOW FEED CONVERSION RATE STRONGER GROWTH LOWER ENERGY COSTS HIGH SURVIVAL RATE Industry average = 1.27** +1 kilo Extra growth compared to Skretting’s growth table 1 kWh Energy use per kilo produced salmon 97.5% Industry average = 83.3%* Source: *Fish Health Report 2023 ** 2023 industry average HIGH SUPERIOR SHARE 91.1% Industry average = 85.1%** Q1 2025
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Q1 2025 • Andfjord Salmon in brief • QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS • Status Kvalnes build-out: Phase 1 and phase 2A • Next smolt release • Kvalnes Phase 2: Plans and ambitions • Financials • Summary and outlook AGENDA
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HIGHLIGHTS Q1 AND SUBSEQUENT PERIOD Q1 2025 OPTIMISED PRODUCTION LOGISTICS FOR +20% HIGHER VOLUMES Announced plan for increased water flow capacity and optimized fish logistics to enable 20% higher through-put to give 23,700 tonnes (HOG + post-smolt) production capacity from current Kvalnes license PHASE 2A CONSTRUCTION INITIATED Initiated phase 2a with additional production volume of 6,000 tonnes (HOG + post-smolt) RAISED FUNDS OF NOK ~1.4 BN Through bank package, potential sale and leaseback agreement, plus successful private placement KVALNES PHASE 1 BUILD-OUT ON TRACK FOR Q3 SMOLT RELEASE Solid progress on four next pools and other workstreams SUCCESSFUL BREAKTHROUGH TO ANDFJORDEN Successful and safe breakthrough from waterways to Andfjorden, filling outlet tunnel with seawater
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Q1 2025 • Andfjord Salmon in brief • Quarterly highlights and subsequent events • STATUS KVALNES BUILD-OUT: PHASE 1 AND PHASE 2A • Next smolt release • Kvalnes Phase 2: Plans and ambitions • Financials • Summary and outlook AGENDA
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K1 K2 K3 K4 K5 K6 K7 K9 K 1 1 K8 K10 K 1 2 PHASE 2 B: K9 – K12 PHASE 1: K1 – K4 PHASE 2 A: K5 – K8 Note: Illustration showing what Kvalnes may look like in 2027
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STATUS AND PROGRESS – WATERWAYS Q1 2025 o Capacity to support annual production of 48,100 tonnes (HOG + post-smolt) of salmon o Workstream on track o Breakthrough to sea/Andfjorden safely conducted on 22 May 2025 o Outlet tunnel currently filled with seawater o Successful breakthrough de-risks the build-out process and subsequent preparation for fish farming operations o Inlet waterway completed, minus final barrier to sea. Breakthrough for inlet tunnel planned for June-July WATERWAYS ON TRACK Tunnel outlet to Andfjorden 70 meter below sea level Temporarily access tunnel Pool K0
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PIPING AND ASSOCIATED INSTALLATIONS OF TECHNICAL INFRASTRUCUTRE NEARING COMPLETION o 100,000 meters of pipes (OPI) for electrical cabling and wiring o Fish logistics system o Feed system o Sludge handling system o Oxygen system o Fresh seawater support system Sludge facility Sludge facility Piping for cabling and wiring
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STATUS AND PROGRESS – POOLS 2023 Q1 2025 o Workstream on track o Columns, supports and preparations for wall elements completed for K1 and K3 o All UHPC wall elements for pool K1 produced. o Ongoing Installation of technical infrastructure in K1 and K3 o Additional development resources, manpower and equipment mobilised to increase production of concrete and UHPC wall elements, installation capacity and construction of dividing walls o Mobilisation of additional resources has incurred extra cost in the short term, but will drive efficiency gains for forthcoming pools o On track for initiating smolt release from Q3 2025 (September) 4 POOLS BEING CONSTRUCTED
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STATUS AND PROGRESS – HARBOUR 2023 Q1 2025 o Workstream on track o Temporary breakwater constructed to shield ongoing construction work from waves and currents from Andfjorden • Dredging of harbour, to make it deeper, is more or less completed • Initiated construction of quay facility • Started installing armour stone to protect harbour from wave erosion • Adverse weather conditions have eroded the financial buffer for the harbour workstream, additional flexibility required for sea transport of armour stone QUAY AND BREAKWATER BEING CONSTRUCTED
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Testing Construction Production Phase 1 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25e Q2’25e Q3’25e Q4’25e Q1’26e Q2’26e Excavation of Phase 1 and 2 pool pits Initial scheduleStatus: 100% finished (ahead of schedule) Waterways Status: 99% finished (Break through inlet tunnel remaining) Technical infrastructure Status: 45% finished (on track) Operational harbour and port Status: 81% finished (on track) Phase 2a K5-K8 Shared infrastructure as part of Phase 1 Construction period Q3’26e Concrete works K1-K4 Status: 74% finished (on track) Harbour area Water- ways Initial schedule Production Phase 2a First post- smolt sale First harvestFirst smolt insert Concrete pools Off-take from Note: Status per 28th May 2025 BUILD-OUT OF PHASE 1 AT KVALNES NEARING COMPLETION Q1 2025
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Q1 2025 • Andfjord Salmon in brief • Quarterly highlights and subsequent events • Status Kvalnes build-out: Phase 1 and phase 2A • NEXT SMOLT RELEASE • Kvalnes Phase 2: Plans and ambitions • Financials • Summary and outlook AGENDA
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PLANNED SMOLT RELEASE 2023 Q1 2025 o Initiating release of smolt from September o Pools K0 and K1 (for future splitting) to be stocked first o Smolt to be transferred to pools K3, K2 and K4 as biomass density increases o Smolt release represents a significant scale up of commercial operations for Andfjord Salmon o Currently assessing “post-smolt” production opportunities The smolt from our first generation of salmon that was produced with excellent results.
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Q1 2025 • Andfjord Salmon in brief • Quarterly highlights and subsequent events • Status Kvalnes build-out: Phase 1 and phase 2A • Next smolt release • KVALNES PHASE 2: PLANS AND AMBITIONS • Financials • Summary and outlook AGENDA
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• Kvalnes construction plan follows a four-by- four pool expansion • Construction of Phase 1 and shared operational infrastructure for all 12 pools to be finalized by Q2 2025 • Phase 2a construction started, reaping construction synergies from continuous process across phases. • Accretive investment opportunity being pursued, prior to pool pits being cemented in: ‒ Includes wall segment joining Phase 1 and Phase 2a, which will reinforce the pools to allow for optimized water flow and fish logistics, as well as preparations for adherence to potential regulatory changes 1 ✓ 2b 2a Phase 2a Dividing walls between pools already started SPEED AND ACCURACY OF PHASE 1 ALLOWS FOR IMMEDIATE START OF PHASE 2 EXP. 2025 2025Q1 2025
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OLD water flow and fish logistics NEW water flow and fish logistics 19,000 tons Previous annual production estimate, Phases 1 & 2 (HOG) 23,700 tons Revised annual production estimate, Phases 1 & 2 (HOG + post-smolt) water inlet water outlet water inlet water outlet water inlet water outlet water inlet water outlet New system for increased flexibility of moving fish, enabling significantly higher pool utilization Reinforced concrete walls for increased water flow and levels Note: Illustrative DESIGN IMPROVEMENTS FOR OPTIMIZED POOL UTILISATION AND +20% OUTPUT 2023 Q1 2025 Fish to be moved using a network of underground piping
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Construction completed: 1,200 tons Total production potential at Kvalnes: 48,100t HOG + post-smolt Construction start in 2023-2025: +22,500 tons +5,100 tons license expansion Construction start in 2027 (target): +5,400 tons Construction start in 2028 (target): +13,900 tons (exact location to be decided) 1 2 3 4 5 Pilot Q1 2025 +20% PRODUCTION VOLUME AT KVALNES
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Q1 2025 • Andfjord Salmon in brief • Quarterly highlights and subsequent events • Status Kvalnes build-out: Phase 1 and phase 2A • Next smolt release • Kvalnes Phase 2: Plans and ambitions • FINANCIALS • Summary and outlook AGENDA
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o Construction loan of up to NOK 400 million (up to 50% loan to Phase 2a construction capex), for a total debt package of NOK 1,100 million o Overdraft facility of up to 60% of the value of borrowing base (standing biomass, inventories, accounts receivables) discussed, not yet committed o A leasing facility of NOK 175m is planned for certain equipment financing FEBRUARY 2025: ANNOUNCED NOK ̴1.4 BN FUNDING FOR PHASE 2 EXPANSION Q1 2025 NEW BANK PACKAGE SALE OF INFRASTRUCTURE ASSET SUCCESSFUL PRIVATE PLACEMENT o Term sheet for the sale of harbour area to Asset Buyout Partners based on estimated cost of NOK ~400 million which, if such transaction is agreed and completed, will give ~NOK +200 million in immediate positive cash effect to Andfjord o NOK ~200m of proceeds to be used to reduce the existing bank package o Upon completion, harbour is leased back to Andfjord Salmon company on an 80- year contract o Transaction to be settled following completion of de-merger of harbour property o Raised NOK 600 million o Strong support from large industrial shareholders, including: o Jerónimo Martins (NOK 226 million) o High Liner Foods (NOK 114 million) o Eidsfjord Sjøfarm/Holmøy Havbruk (NOK 15 million)
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STATEMENT OF COMPREHENSIVE INCOME Q1 2025 All amounts in NOK 1,000 Statement of comprehensive income Q1 2025 Q1 2024 2024 1.1 – 31.3 Unaudited 1.1 – 31.3 Unaudited 1.1 – 31.12 Operating income and expenses Revenue from contracts with customers - 57 190 Other operating income - - 134 Total operating income - 57 324 Cost of materials - -98 -375 Employee benefit expenses -4 142 -4 811 -21 683 Depreciation and amortisation expenses -5 952 -6 192 -24 756 Other operating expenses -8 979 -5 984 -25 450 Total operating expenses -19 072 -17 085 -72 264 Operating profit/loss -19 072 -17 028 -71 940 Financial income and expenses Financial income 1 250 1 528 4 914 Net financial costs -211 -205 -837 Net financial result 1 040 1 324 4 077 Profit/loss for the period -18 033 -15 705 -67 862
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STATEMENT OF FINANCIAL POSITION Q1 2025 Assets 31.03.2025 - Unaudited 31.12.2024 31.03.2024 - Unaudited Intangible assets 16 350 16 420 15 077 Property, plant & equipment 2 897 667 2 230 854 1 067 333 Right-of-use assets 12 387 13 060 16 243 Other non-current assets 9 139 44 Total non-current assets 2 926 414 2 260 473 1 098 698 Biological assets - - - Other inventories 1 340 1 340 1 599 Trade and other receivables 22 44 46 Other current assets 23 215 76 443 2 777 Cash and cash equivalents 178 890 59 196 51 426 Total current assets 203 467 137 023 55 848 Total assets 3 129 880 2 397 496 1 154 545 All amounts in NOK 1,000 Figures do not include undrawn construction loan of NOK 440 million in total and an undrawn credit facility of NOK 20 million
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STATEMENT OF FINANCIAL POSITION Q1 2025 Equity and liabilities 31.03.2025 - Unaudited 31.12.2024 31.03.2024 - Unaudited Total equity 1 807 461 1 254 355 978 819 Borrowings 830 771 832 309 57 626 Lease liabilities 5 406 6 163 8 365 Total non-current liabilities 836 177 838 472 65 991 Borrowings - - 7 666 Lease liabilities 4 747 4 276 4 396 Trade payables 282 620 295 506 73 505 Other current liabilities 198 874 4 887 24 167 Total current liabilities 486 242 304 669 109 736 Total liabilities 1 322 420 1 143 141 175 726 Total equity and liabilities 3 129 880 2 397 496 1 154 545 All amounts in NOK 1,000
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STATEMENT OF CASH FLOWS Q1 2025 Statement of cash flows Q1 2025 Q1 2024 2024 1.1 – 31.3 Unaudited 1.1 – 31.3 Unaudited 1.1 – 31.12 Net cash flow from operating activities -18 519 -20 590 -69 945 Net cash flow from investing activities -447 031 -174 594 -1 208 411 Net cash flow from financing activities 585 244 -3 423 1 087 519 Net change in cash and cash equivalents 119 694 -198 606 -190 836 All amounts in NOK 1,000
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[MAY]2025 Estimated capex per phase, revised 31 Note: 1) Stated capex numbers relate to investments (working capital/biomass, finance and operational costs not included). Estimates only REVISED CAPEX PLAN: MAINTAINS MAXIMUM PROGRESS AND ACHIEVES EFFICIENCY GAINS FOR FUTURE BUILD-OUT PHASES Phase, Kvalnes Capex1 (NOK, est.) Added production (HOG, est.) Accumulated production (HOG, est.) Pilot ~ 450m +1,200t 1,200t 1 ~1,850m +9,800t 11,000t 2a ~1,270m +6,000t 17,000t 2b ~ 500m +6,700t 23,700t 3 (license expansion) ~ 0m +5,100t 28,800t 4 ~ 360m +5,400t 34,200t 5 ~ 1,100m +13,900t 48,100t Comments • Andfjord Salmon has been informed by main contractor Hæhre that the final construction cost will be higher than the original budget • In total, phases 1 and 2A had a prior total capex budget of NOK 2,800 million, which is hereby upwards adjusted to NOK 3,120 million. In addition, the company has conducted infrastructure work inside the waterways that are related to preparations for steps 4 and 5 of the expansion. This amounts to NOK 80 million in total and the budget for step 4 is adjusted accordingly • NOK 100 million of the capex is related to Phase 2B • The revision is connected to higher than expected costs related to concrete production; mobilization of additional development resources, manpower and equipment to maintain progress; unforeseen costs related to certain one-off design changes as the project has progressed; plus adverse weather conditions that have eroded the financial buffer for the harbour workstream • Front-loading of some of the additional capex investments are expected to drive efficiency gains and de-risk the build-out process for forthcoming build-out phases • The Kvalnes site is expected to deliver 48,100 tonnes of production once fully scaled • After these adjustments, the company expects blended capex for the full Kvalnes site at NOK 115/kg • Significant parts of the total Kvalnes infrastructure, including e.g. waterways and harbour to support full scale production of 48,100 tonnes, is taken as part of phases 1 and 2 Q1 2025
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[MAY]2025 Equity issue 32 STRONG SHAREHOLDER SUPPORT: IMMEDIATE RESOLUTION FOR CAPEX FINANCING • To finance the updated CAPEX, an equity injection totaling NOK 400 million has been secured from certain existing shareholders at a subscription price of NOK 36.80 per share: • Jerónimo Martins (the Company’s largest shareholder) will be allocated shares equal to an amount of NOK 300 million • Three other existing shareholders will be allocated the remaining NOK 100 million • The financing is carried out as a directed equity issue conducted in line with the authorization granted by the annual general meeting to the board of Andfjord Salmon • The board has considered the structure of the equity raise in light of relevant equal treatment obligations and guidelines, and is of the view that the ability to efficiently secure the additional capital required at current market price with no discount and without project or production interference is in the common interest of the Company and all its shareholders. Q1 2025 About Jerónimo Martins: • Portugal-based international industry group that operates in food distribution, retail and agribusiness • 19th largest food retailer in Europe and 47th largest retailer in the world, regardless of sector (Deloitte, 2023) • Listed on the Euronext Lisbon Stock Exchange with a market cap of EUR ~[13]bn1 • Consolidated group sales of EUR ~33.5bn (2024)
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[MAY]2025 Upcoming production cycle: Working capital 33 PREPARING FOR PRODUCTION: PLANNED BOND ISSUE TO COVER WORKING CAPITAL NEEDS Fixed income meetings Upcoming production cycle, starting Q3 2025 (September): • July/August 2025: Testing of all equipment and infrastructure, including waterways, concrete works, technical infrastructure, pools, etc. • Initiating release of smolt in September 2025 • After this release, Andfjord Salmon will continuously add more batches and have consistent salmon production Fixed income meetings: • Separate to the construction process, Andfjord Salmon is contemplating further working capital financing for the purpose of production ramp-up • Andfjord Salmon has mandated Arctic Securities as Global Coordinator and Joint Bookrunner, and Nordea and SpareBank 1 Markets as Joint Bookrunners, to arrange a series of fixed income meetings commencing on 30 May 2025 • Subject to inter alia market conditions, a NOK denominated senior secured floating rate bond issue with 3-year tenor may follow • See separate stock exchange announcement regarding fixed income meetings Q1 2025
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Q1 2025 • Andfjord Salmon in brief • Quarterly highlights and subsequent events • Status Kvalnes build-out: Phase 1 and phase 2A • Next smolt release • Kvalnes Phase 2: Plans and ambitions • Financials • SUMMARY AND OUTLOOK AGENDA
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SUMMARY AND OUTLOOK Q1 2025 OPTIMISED PRODUCTION LOGISTICS FOR +20% HIGHER VOLUMES Announced plan for increased water flow capacity and optimized fish logistics to enable 20% higher through-put to give 23,700 tonnes (HOG + post-smolt) production capacity from current Kvalnes license PHASE 2A CONSTRUCTION INITIATED Initiated phase 2a with additional production volume of 6,000 tonnes (HOG + post-smolt) STRONG FINANCING SUPPORT Q1: Raised NOK ̴1.4 bn Through bank package, potential sale and leaseback agreement, and private placement Q2: NOK 400 million directed equity issue to cover revised capex plan KVALNES PHASE 1 BUILD-OUT ON TRACK FOR Q3 SMOLT RELEASE Solid progress on four next pools and other workstreams Initiating release of approximately 1 million smolt in September 2025 SUCCESSFUL BREAKTHROUGH TO ANDFJORDEN Successful and safe breakthrough from waterways to Andfjorden, filling outlet tunnel with seawater Inlet tunnel breakthrough planned for June/July
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Q & A Q1 2025
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NEXT QUARTERLY UPDATE: Q2 2025 presentation – 4 Sept 2025 For more information on this presentation and its contents, please contact: Bjarne Martinsen, CFO Andfjord Salmon bjarne.martinsen@andfjord.no. Q1 2025