Slides
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Q2 2025 STATUS AND PROGRESS 4 SEPTEMBER 2025
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Q2 2025 Martin Rasmussen CEO • ANDFJORD SALMON IN BRIEF • Quarterly highlights and subsequent events • New regulations for land-based aquaculture • Status Kvalnes build-out • Preparations for smolt release • Financials • Summary and outlook Bjarne Martinsen CFO AGENDA
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Q2 2025
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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 Q2 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%** Q2 2025
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Q2 2025 • Andfjord Salmon in brief • QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS • New regulations for land-based aquaculture • Status Kvalnes build-out • Preparations for smolt release • Financials • Summary and outlook AGENDA
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HIGHLIGHTS Q2 AND SUBSEQUENT PERIOD Q2 2025 RAISED FUNDS OF NOK 1.15 BN NOK 400 million private placement of shares plus NOK 750 million bond issue for investments and working capital for Kvalnes expansion SALE-LEASEBACK Completed sale and leaseback of Kvalnes harbour area, with gross proceeds of NOK 400 million WATERWAYS COMPLETED Successful and safe breakthrough to Andfjorden from both inlet and outlet tunnel, completion of waterways workstream KVALNES PHASE 1 BUILD-OUT ON TRACK Pool K1 completed primo september and pool K0 connected to Kvalnes area infrastructure SUCCESSFUL BREAKTHROUGH TO ANDFJORDEN Successful and safe breakthrough from waterways to Andfjorden, filling tunnels with seawater Testing of tunnel functions and infrastructure ongoing PREPARATIONS FOR SMOLT RELEASE Preparations underway to initiate smolt release ultimo September
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Q2 2025 • Andfjord Salmon in brief • Quarterly highlights and subsequent events • NEW REGULATIONS FOR LAND-BASED AQUACULTURE • Status Kvalnes build-out • Preparations for smolt release • Financials • Summary and outlook AGENDA
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Q2 2025 NEW REGULATIONS LAND-BASED AQUACULTURE SUMMARY OF REGULATORY CHANGES o The regulations removes confusion about which aquaculture facilities are defined as being “on land” or “at sea”, irrespective of the fish’s life stage. o Reequirement for the disinfection of intake water for land-based aquaculture facilities in order to reduce the risk of spreading infectious agents via water. o The purification requirement for freshwater only applies to facilities sourcing freshwater from areas with migrating anadromous fish or other activities that may pose an infection risk. o The temporary suspension of processing applications for permits for the aquaculture of food fish such as salmon, trout, and rainbow trout is lifted. o Andfjord Salmon’s locations at Andøya (Kvalnes, Breivik and Fiskenes) are all set on solid ground, which is defined as “on land” in the regulations. o Existing facilities that have already been granted permission for land-based aquaculture will not be subject to the proposed purification requirements, unless significant modifications are made. What constitutes a “significant modification” will be specified in a guidance document prepared by the Norwegian Food Safety Authority (Mattilsynet). o (Not applicable as Andfjord Salmon sources seawater from the ocean) o Means that Andfjord Salmon can progress the work to apply for salmon farming licenses at Breivik and Fiskenes, Andøya. *Source: https://www.regjeringen.no/no/aktuelt/nytt-regelverk-pa-plass-apner-for-soknader-om-fiskeoppdrett-pa-land-igjen/id3113845/ CONSEQUENCES FOR ANDFJORD SALMON
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Q2 2025 • Andfjord Salmon in brief • Quarterly highlights and subsequent events • New regulations for land-based aquaculture • STATUS KVALNES BUILD-OUT • Preparations for smolt release • Financials • Summary and outlook AGENDA
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PHASE 2 B: K9 – K12 PHASE 1: K1 – K4 PHASE 2 A: K5 – K8 Note: Illustration of pools showing the next phases of build-out. K1 K2 K3 K4 K5 K6 K7 K8 K9 K10 K11 K12 POOL K0
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WATERWAYS COMPLETED Q2 2025 o Capacity: Supports annual production of 48,100 tonnes (HOG + post-smolt) o Outlet tunnel: Breakthrough to sea/Andfjorden safely conducted on 22 May 2025 o Inlet tunnel: Successful breakthrough to sea early July o Branch tunnel to pool K0: Completed o Inlet tunnel including tunnel below pools are filled with water, and circulation is ongoing o Outlet tunnel operational ready o Workstream: Completed/on track
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STATUS AND PROGRESS – POOLS 2023 Q2 2025 o Pool K0 connected to waterways and filled with seawater – undergoing final preparations for smolt release o Pool K1 completed primo september: Commissioning and testing ongoing o All concrete elements for K3 are produced, and installation is close to completion. o K2 and K4 are progressing as planned and currently satisfy the operational criteria for biomass ramp-up 4 POOLS BEING CONSTRUCTED POOL K1
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o Fish logistics system o Feed system o Sludge handling system o Oxygen system o Fresh seawater support system ALL TECHNICAL INFRA- STRUCUTRE INSTALLED AND TESTING ONGOING TECHNICAL INFRASTRUCTURE – STATUS Q2 2025
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HARBOUR – OPERATIONALLY READY 2023 Q2 2025 o Dredging work complete o Installation of armour stone ongoing o The temporary breakwater section, which was initially constructed to shield ongoing work in the harbour, has been removed - thereby re-opening the harbour o Harbour is operationally ready to receive wellboats with smolt
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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: 100% finished Technical infrastructure Status: 99% finished (on track) Operational harbour and port Status: 90% finished (on track) Phase 2a K5-K8 Shared infrastructure as part of Phase 1 Construction period Q3’26e Concrete works K1-K4 Status: 85% finished (on track) Initial schedule Production Phase 2a First harvestFirst smolt insert Note: Status per 4th September 2025 BUILD-OUT OF PHASE 1 AT KVALNES NEARING COMPLETION Q2 2025
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Q2 2025 • Andfjord Salmon in brief • Quarterly highlights and subsequent events • New regulations for land-based aquaculture • Status Kvalnes build-out • PREPARATIONS FOR SMOLT RELEASE • Financials • Summary and outlook AGENDA
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PLANNED SMOLT RELEASE 2023 Q2 2025 ON TRACK TO INITIATE SMOLT RELEASE ULTIMO SEPTEMBER ~1,100,000 smolt in total to be released this autumn o ~350,000 to be released in pool K0 ultimo September o ~750,000 in pool K1 ultimo October o Smolt to be transferred to next pools 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 o Following the initial release, Andfjord Salmon expects to continuously introduce new batches to maintain consistent salmon production The smolt from our first generation of salmon that was produced with excellent results.
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CHASING FOR IMPROVEMENTS 2023 Q2 2025 NEW FEEDING SOLUTION DEVELOPED: o Using seawater instead of air to distribute the feed = gentler on piping infrastructure and hoses, which releases less microplastics o Releases feed below the pool surface = higher accuracy for sinking rate o Possible to adjust distribution pressure and distribution area according to number of fish released in pool o Higher accuracy of pellet landing area makes it easier to monitor the feeding with a camera o In total: Higher feeding capacity, reduced feed waste, lower energy consumption INVESTED IN OPTOSCALE SYSTEM THAT MONITORS: o The feeding process o Fish development: Weight, condition factor, size distribution growth o Fish welfare according to 13 Laksvel welfare parametres CALANUS® PLUS BY ANDFJORD SALMON o Continues collaboration with Skretting regarding Andfjord Salmon’s specialised grow-out feed with Calanus o Same formula, but with improvements made to the feed’s buoyancy o More accurately designed for Andfjord Salmon’s flow-through technology AIMING TO IMPROVE FEED CONVERSION RATION (FCR) OF 1.05 FROM FIRST PRODUCTION CYCLE
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PREPARATIONS FOR SMOLT RELEASE 2023 Q2 2025 INFRASTRUCTURE TESTING o Tunnel infrastructure below pools currently filled with seawater to initiate circulation, facilitate particle sedimentation, and start assessment of seawater quality o From end-August: Full scale circulation throughout inlet waterway EXTENSIVE TECHNOLOGY TESTING PRIOR TO SMOLT RELEASE o Testing of fish logistics system o Testing of complete SCADA (supervisory control and data acquisition) control system PREPARATION AND TESTING OF SMOLT DELIVERY FROM WELLBOAT o Connecting wellboat to fish logistics system o Communication and interaction with wellboat o Run pipeline from K0’s water inlet to refill wellboat in order to reduce biological risk (avoid sourcing seawater from harbour) o Possible to terminate the operation and flush the water pipeline using the same water flow that we use to fill the wellboat o Monitoring and verification of speed and pressure via the SCADA system Overall, these tests provide important know-how about key focus areas and the use of operators
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Q2 2025 • Andfjord Salmon in brief • Quarterly highlights and subsequent events • New regulations for land-based aquaculture • Status Kvalnes build-out • Preparations for smolt release • FINANCIALS • Summary and outlook AGENDA
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[MAY]2025 ESTIMATED CAPEX PER PHASE, REVISED Note: 1) Stated capex numbers relate to investments (working capital/biomass, finance and operational costs not included). Estimates only FINANCING SECURED TO MAINTAIN 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 Revised capex budget announced at end of May • Revised capex plan presented for Kvalnes phases 1 and 2A, 2B and 4 Strong shareholder support • NOK 400 million private placement completed at NOK 36.80 per share • Jerónimo Martins (the Company’s largest shareholder) was allocated shares equal to an amount of NOK 300 million • Three other shareholders was allocated the remaining NOK 100 million Working capital financing secured • Successful bond issue of NOK 750 million, which will be applied towards investments and associated working capital related to Kvalnes expansion Sale-leaseback completed • Successful completion of sale of the harbour area at Kvalnes with receipt of NOK 400 million in gross transaction proceeds. Q2 2025
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STATEMENT OF COMPREHENSIVE INCOME Q2 2025 All amounts in 1,000 NOK Statement of comprehensive income Q2 2025 Q2 2024 HY 2025 HY 2024 2024 1.4 – 30.6 Unaudited 1.4 – 30.6 Unaudited 1.1 – 30.6 Unaudited 1.1 – 30.6 Unaudited 1.1 – 31.12 Operating income and expenses Revenue from contracts with customers 884 78 884 135 190 Other operating income 43 - 43 - 134 Total operating income 927 78 927 135 324 Cost of materials -1 340 -112 -1 340 -210 -375 Employee benefit expenses -4 184 -5 636 -8 326 -10 446 -21 683 Depreciation and amortisation expenses -6 319 -6 220 -12 270 -12 412 -24 756 Other operating expenses -17 464 -7 249 -26 443 -13 233 -25 450 Total operating expenses -29 307 -19 216 -48 379 -36 301 -72 264 Operating profit/loss -28 380 -19 138 -47 452 -36 166 -71 940 Financial income and expenses Financial income 1 811 572 3 061 2 100 4 914 Net financial costs -222 -217 -433 -421 -837 Net financial result 1 589 355 2 629 1 679 4 077 Profit/loss for the period -26 791 -18 783 -44 823 -34 487 -67 862
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STATEMENT OF FINANCIAL POSITION Q2 2025 Assets 30.06.2025 - Unaudited 31.12.2024 30.06.2024 - Unaudited Intangible assets 16 384 16 420 16 445 Property, plant & equipment 3 349 786 2 230 854 1 443 058 Right-of-use assets 14 848 13 060 15 376 Other non-current assets 1 129 139 35 Total non-current assets 3 382 146 2 260 473 1 474 914 Biological assets - - - Other inventories - 1 340 1 487 Trade and other receivables 156 44 30 Other current assets 129 506 76 443 82 831 Cash and cash equivalents 964 812 59 196 228 038 Total current assets 1 094 474 137 023 312 385 Total assets 4 476 621 2 397 496 1 787 299 All amounts in 1,000 NOK 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 Q2 2025 Equity and liabilities 30.06.2025 - Unaudited 31.12.2024 30.06.2024 - Unaudited Total equity 2 177 761 1 254 355 1 287 142 Borrowings 1 537 725 832 309 218 324 Lease liabilities 6 641 6 163 7 869 Total non-current liabilities 1 544 366 838 472 226 193 Borrowings - - 7 666 Lease liabilities 6 154 4 276 4 304 Trade payables 572 784 295 506 254 529 Other current liabilities 175 556 4 887 7 465 Total current liabilities 754 495 304 669 273 964 Total liabilities 2 298 860 1 143 141 500 157 Total equity and liabilities 4 476 621 2 397 496 1 787 299 All amounts in 1,000 NOK
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STATEMENT OF CASH FLOWS Q2 2025 Statement of cash flows Q2 2025 Q2 2024 HY 2025 HY 2024 2024 1.4-30.6 Unaudited 1.4-30.6 Unaudited 1.1 – 30.6 Unaudited 1.1 – 30.6 Unaudited 1.1 – 31.12 Net cash flow from operating activities -39 621 -11 141 -58 140 -31 730 -69 945 Net cash flow from investing activities -262 101 -287 481 -709 132 -462 075 -1 208 411 Net cash flow from financing activities 1 087 644 475 234 1 672 888 471 811 1 087 519 Net change in cash and cash equivalents 785 922 176 612 905 616 -21 995 -190 836 All amounts in 1,000 NOK
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Q2 2025 • Andfjord Salmon in brief • Quarterly highlights and subsequent events • New regulations for land-based aquaculture • Status Kvalnes build-out • Preparations for smolt release • Financials • SUMMARY AND OUTLOOK AGENDA
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SUMMARY AND OUTLOOK Q2 2025 RAISED FUNDS OF NOK 1.55 BN NOK 400 million private placement of shares, NOK 750 million bond issue for investments and working capital for Kvalnes expansion, and NOK 400 million sale and leaseback WATERWAYS COMPLETED Breakthrough to Andfjorden from both inlet and outlet tunnel Pool K0 connected to waterways Completion of waterways workstream KVALNES PHASE 1 BUILD-OUT ON TRACK Pool K0 ready for smolt release ultimo September, K1 in October TARGETING FCR IMPROVEMENTS Aiming for leading feed conversion ratio (FCR) through new feeding solution, new monitoring system and further enhanced own feed SUCCESSFUL BREAKTHROUGH TO ANDFJORDEN Successful and safe breakthrough from waterways to Andfjorden, filling tunnels with seawater Testing of tunnel functions and infrastructure ongoing PREPARATIONS FOR SMOLT RELEASE Approximately 1.1 million smolt to be released in September/October Following the initial release, Andfjord Salmon expects to continuously introduce new batches to maintain consistent salmon production
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Q & A Q2 2025
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NEXT QUARTERLY UPDATE: Q3 2025 presentation – 27 November 2025 For more information on this presentation and its contents, please contact: Bjarne Martinsen, CFO Andfjord Salmon bjarne.martinsen@andfjord.no. Q2 2025