Interim report
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Q1 2025 Extending the ocean potential 1 609 Extending the ocean potential Q1 2025
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Q1 2025 Extending the ocean potential 2 Highlights in the quarter • New production record with net biomass growth of 1,624 tonnes LW, up 7 % from Q4 2024. • Ending Q1 2025 with a new all-time high standing biomass of 2,939 tonnes LW, a 45% increase from Q4 2024, reaching targeted run -rate levels in both volume and number of individuals , a prerequisite for taking out the full growth potential. • Revenues of 49.7 NOKm after harvesting 581 tonnes HOG including post smolt, group EBITDA of -4.1 NOKm and farming EBITDA of 5.7 NOKm. • Indre Harøy phase 2 construction well underway – on track for first smolt release in Q1 -26 as planned. • 418 NOKm in available liquidity including committed undrawn credit facilities at the end of the quarter. Additionally, the Company has 1,450 NOKm in earmarked construction financing. Key figures Operational Q1 2025 Q1 2024 2024 Standing biomass (tonnes, LW) 2 939 2 676 2 023 Net growth (tonnes, LW) 1 624 1 558 5 706 Harvest volumes (tonnes, HOG) 581 901 4 891 All-in price realization/kg (NOK)1 75,9 108,0 93,4 Farming EBITDA/kg 9,7 40,2 23,0 Farming costs/kg (NOK) 72,6 67,0 69,4 Financial (in thousand) Operating revenues 49 668 100 252 471 573 Operational EBITDA2 -4 092 24 117 71 415 Operational EBIT2 -25 413 5 755 -4 727 Profit (loss) before tax -52 407 -1 201 -47 405 Cash flow from operations -6 558 -1 802 43 331 Operational EBITDA Farming Norway2 5 659 36 236 112 425 Capital structure (in thousand) Cash flow from investment activities -237 814 -40 478 -342 562 Cash flow from financing activities 232 794 -3 916 342 297 Cash and cash equivalents 417 884 340 199 429 462 Net Interest-bearing debt 612 634 364 047 316 754 Equity ratio (%) 63 % 70 % 70 % Profitability Earnings per share (NOK) -0,11 -0,00 -0,11 1Calculated on a back to farm basis and adjusted for transport cost to Norway border (Sisalmoni equivalent) 2Before fair value adjustment related to biological assets
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Q1 2025 Extending the ocean potential 3 Norway Operations In Q1 2025, Salmon Evolution set a new production record of 1,624 tonnes LW, an increase of 7% increase compared to Q4 2024 and a solid production in absolute terms , considering a low standing biomass going into the quarter. Operations remained stable at both the smolt facility in Dale and the grow-out facility at Indre Harøy, with continued strong biological performance and minimal mortality rates. During the quarter Salmon Evolution's standing biomass increased by 45% compared to Q4 2024, reaching 2,939 tonnes LW. This level is in line with the company’s targeted run-rate level, both in terms of total biomass volume and the number of individuals. Achieving this milestone is a prerequisite for taking out the full growth potential. Harvest during the first quarter of 2025 totalled 581 tonnes HOG including post smolt (HOG converted). The harvest volume was impacted by a deliberate focus on biomass growth and optimization of the standing biomass to support long-term production targets. In addition, and as previously disclosed, part of the planned harvest was scheduled for late in the quarter and limited availability of harvest capacity resulted in approximately 300 tonnes originally intended for March being deferred into April. Harvest weights in Q1 2025 averaged 2.3 kg HOG. As previously disclosed, this was an effect of the smolt quality issues experienced in the first half of 2024 , which was compensated by restocking several new smolt groups within a short timeframe and leading to the Company entering the quarter with a sub-optimal biomass composition. This necessitated partial harvesting of certain groups at suboptimal weights. Salmon Evolution is entering Q2 2025 with significantly better biomass composition, with harvest weights expected to improve from Q2 and onwards. Furthermore, t he company ex pects the biomass composition to be fully normalized during the second quarter. In Q1 2025 Salmon Evolution successfully stocked one new smolt group according to plan, achieving a stocking weight above targeted level. Salmon Evolution has not experienced the same challenges encountered during the first half of 2024, underscoring the positive impact of the correc tive measures implemented last year. Upgrades at the smolt facility in Dale - including the installation of additional heating capacity to ensure a more stable and favourable growth environment during the winter season, as well as improvements to the smolt ification process - have had the intended effect, resulting in enhanced biological performance and smolt quality. Harvest guidance The 2025 harvest guidance was updated from and estimated 6,000 – 6,500 tonnes HOG to 5,800 – 6,200 tonnes HOG , aligned with expected production ramp -up whilst also prioritizing to mainta in targeted run -rate biomass through the year.
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Q1 2025 Extending the ocean potential 4 Indre Harøy phase 2 Indre Harøy Phase 1 and 2 together represent a potent platform with strong expected cash flow generation, supporting an organic investment capacity for Salmon Evolution. Ahead of the Phase 2 investment decision in Q2 2024, the Company conducted a thorough tender process with contractors across all major components to secure cost visibility and reduce estimate risk, leverag ing extensive operational experience gained over nearly three years and the successful completion of Phase 1. Phase 2 is expected to add 10,100 tonnes HOG of annual harvest capacity, increasing Salmon Evolution’s production capacity from 7,900 tonnes to approximately 18,000 tonnes HOG. The additional 2,200 tonnes beyond the original plan is achieved by incorporating pre -grow-out tanks, offering a highly capital -efficient way to scale production using existing infrastructure. Under the new program the stocking weights in the grow-out department are raised from ~130 grams to ~400 grams, while the targeted harvest weight is reduced to approximately 5.2 kg LW. Combined this shortens the production cycle from approximately 11 months to 8–9 months under the new program, making it possible to increase the number of smolt stockings from 6 to 8 per year per phase, improving the utilization of the grow out facility. Generally, this is considered a more conservative production plan with lower average harvest weight and peak densities through the production cycle, also lowering the operational risk through increased robustness and added operational flexibility. The Phase 2 project is divided between Artec Aqua, responsible for process facility design, construction, and commissioning , and HENT , responsible for civil design and construction , in addition to own deliverables. The project builds on key learnings from Phase 1 and has a total estimated investment cost of up to 2.5 NOKbn, including contingencies, buffers and the additional tank capacity. Indre Harøy illustration Illustration: Salmon Evolution
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Q1 2025 Extending the ocean potential 5 Project status – Indre Harøy phase 2 The project is on plan and budget, with targeted first smolt release in Q1-26 and first harvest in Q4- 26 as planned . In parallel Salmon Evolution is proceeding with the planning and engineering for the additional tank capacity (pre-grow-out tanks) with expected completion aligned with the phase 2 grow-out facility. At the end of the quarter concrete works for the first 4 tanks was comp leted, with process installations initiating soon. Piping and concrete works below ground was mostly completed during the quarter , as well as the concrete structure for the intake station. The upper section of the intake pipe was also installed , and blasting works for the intake pipe during April. Activity at the building site is expected to gradually increase towards the summer, currently there are approximately 130-140 workers working on site. At the end of Q 1 2025 the accumulated investment in the project amounted to 653 NOKm, of which 247 NOKm was invested during the quarter. Tank installations (April 2025) Salmon Evolution is also developing a plan to cover the smolt needs for phase 2 and beyond. One of the benefits of the new grow -out program, is that the Company will get better utilization of the smolt facility at Dale. Additionally, the Company is evaluating several options to increase smolt capacity , including temporary external sourcing , expansion opportunities at our existing smolt facility and other options.
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Q1 2025 Extending the ocean potential 6 North America Project overview and status Current uncertainty relating to the impact of potential tariffs in the North American market, as well as lack of a regulatory framework for land - based salmon farming in North America, reduces the relative attractiveness to expand into this market. Over the last three years Salmon Evolution has undertaken a n extensive site search in North America, identifying several promising high - potential sites for a hybrid flow-through system. A future expansion into North America will mirror the Group’s approach for Indre Harøy in Norway, focusing on areas with a n established salmon farming value chain. Salmon Evolution sees a considerable value in leveraging existing aquaculture infrastructure and value chains, enabling both scale and cost leadership, as well as reducing operational and biological risk. Salmon Evolution will maintain its presence in North America through a dedicated team, focused on nurturing and developing the strong relationships established over the past three years. This ongoing engagement is an important part of future expansion into this market and represents a limited financial investment. The Group’s strategy of pursuing accretive partnerships in overseas markets remains unchanged. When project develops, Salmon Evolution aims to engage in partnership structures leveraging the human capital and maximizing shareholder value. Korea Project overview and status The Group has a joint venture with the South Korean seafood giant Dongwon Industries where the plan is to develop, construct and operate a 16,800 tonnes HOG land -based salmon farming facility in South Korea, leveraging Salmon Evolution’s human capital. The design and engineering activities are mostly completed. Permitting work is on track and not considered a material risk for the realization of the project. The Group currently sees the overall project economics as challenging, primarily driven by site specific circumstances at the Yangyang grow-out site, in particular related to the intake and discharge water solution due to a relatively long and shallow shoreline at the grow -out site. Additionally, given that Korea has no existing salmon farming i ndustry, certain other infrastructure items are impacting the project cost as well as operating cost. The project is currently working with authorities in South Korea for financial support with further clarifications expected during 2025. Meanwhile project activities have been scaled down and cash burn has been reduced to a minimum.
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Q1 2025 Extending the ocean potential 7 Funding Since inception, Salmon Evolution has actively utilized the debt and capital markets to fund its growth roadmap. The Company continues to optimize its capital structure through strategic financial management, balancing debt and equity to maintain financial stability while supporting expansion projects. By regularly evaluating and adjusting its capital structure, Salmon Evolution aims to minimize financing costs and enhance returns on capital employed, ensuring a strong foundation for long-term value creation. Development in paid-in equity (NOKm) Source: Group data Funding Indre Harøy Phase 1 and 2 In June 2024 the Company expanded its existing senior secured debt financing package related to Indre Harøy Phase 1 and 2, from 1,550 NOKm to 2,225 NOKm. The new debt funding package consists of the following credit facilities: • 525 NOKm non-amortizing term loan facility (the “Term loan”). • 250 NOKm RCF facility available for general corporate purposes including Indre Harøy phase 2 capex (the “RCF facility”) • 1,225 NOKm construction facility available for financing of capex relating to the phase 2 grow -out facility at Indre Harøy (the “Construction Facility grow-out”). • 225 NOKm construction facility available for financing of capex relating to the phase 2 additional tank capacity (the “Construction facility additional tank capacity”). Additionally, there is added flexibility under the improved debt financing facility, in the form of added flexibility on other financial services and a 100 NOKm accordion facility. The entire facility non-amortizing until Q4 -26 or completion of phase 2. As per 31 March 2025, the Term Loan of 525 NOKm and the RCF facility was fully drawn. The construction facilities were not drawn per 31 March 2025. In addition, the Group has a 150 NOKm overdraft facility for biomass and receivables financing of which 150 NOKm was drawn at the end of Q4-24. 308 308 860 860 1360 1360 1377 1420 1428 1728 1728 1728 1728 2253 2253 2253 2253 2618 2618 2618 258 552 500 17 43 8 300 525 365 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 New equity
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Q1 2025 Extending the ocean potential 8 Funding Salmon Evolution Dale The Group has a debt financing package of 60 NOKm in relation to Salmon Evolution Dale. The bank debt package is split across three separate facilities and will be used as follows: • General corporate purposes, hereunder financing of working capital • Investments relating to facility upgrades • 25 NOKm in acquisition financing utilized for refinancing of seller’s credit with previous owners As part of the Indre Harøy phase 2 build out, the Group is evaluating expansion opportunities at Dale. In such scenario further debt financing of Salmon Evolution Dale is expected. As per 31 March 2025 about 58 NOKm of the 60 NOKm debt financing package was drawn.
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Q1 2025 Extending the ocean potential 9 Our technology – Hybrid flow-through system (HFS) The Company use a hybrid flow -through system (HFS) technology, which provides a steady supply of fresh, filtered seawater while reusing approximately 65% of the water. This reusage level represents what the Company considers the “sweet spot,” balancing cost efficiency with operational risk. Higher reuse levels require more extensive filtration and water treatment, increasing the complexity and operational risk. Lower reuse levels will significantly complicate filtration and UV treatment of incoming water, as well as maintaining a stable temperature at the farm. At the Indre Harøy facility, seawater intake is based on two inlet pipes located at depths of 25 meters and 95 meters. This allows us to access seawater with optimal temperatures year - round, thus reducing the energy consumption related to heating the water to maintain a stable temperature. The incoming water is filtered and treated with UV to minimize the impact from parasites, viruses and other particles, and eliminate the impact from sea lice, whilst ensuring a continuous flow of fresh, clean seawater. To maintain optimal biological and growth conditions in the fish tanks, oxygen and CO2 levels are continuously monitored and adjusted. Each tank operates as a separate biological zone, ensuring that water does not mix between tanks. This design serves as a critical risk mitigation measure, as any potential disease outbreak is contained withi n the affected tank, preventing cross-contamination. Aligned with our commitment to sustainability and circular economy principles, Salmon Evolution filters wastewater and collects sludge, which is then transported to a recirculation plant for conversion into fertilizer, biogas, or similar products. Salmon Evolution use data and AI to continuously drive optimization and reduce risk, leveraging the benefits of land -based salmon farming where the goal is to identify and replicate optimal conditions for fish growth. Every day over 40 million data points are logged at Indre Harøy, creating a vast pool of insights, that paired with deep operational expertise and know-how, provide actionable data for real - time decision making. Making a home for the salmon to thrive
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Q1 2025 Extending the ocean potential 10 Group financial review Revenue and results for the first quarter 2025 Comparable figures for Q1 2024 in brackets (figures in NOK 1000) Q1 2025 Q1 2024 FY 2024 Total operating revenue 49 668 100 252 471 573 Operational EBITDA -4 092 24 117 71 415 Operational EBIT -25 413 5 755 -4 727 Profit/loss for the period -52 407 -1 201 -47 405 In Q 1 2025 Salmon Evolution harvested 581 tonnes HOG, including around 106 tonnes LW post smolt (LW to HOG conversion 84 %) , resulting in operating revenues of 49.7 NOKm (100.3 NOKm). Operating expenses totalled 53.8 NOKm (76.1 NOKm). In all material resp ect this related to operating expenses at our facilities in Dale and Indre Harøy , primarily production costs in relation to said harvest, costs related to the growth projects and other administration expenses. The Group had a negative EBITDA of 4.1 NOKm (positive 24.1 NOKm) in the quarter, w ith Operational EBIT ending at negative 25.4 NOKm (positive 5.8 NOKm). EBIT after fair value adjustment related to the biomass of negative 19.3 NOKm ended at negative 44.7 NOKm (positive 6.7 NOKm). In the quarter the Group recorded capacity adju stments for unutilized production capacity of 4.8 NOKm. Capacity adjustments are decre asing alongside increased utilization of the facility. Net financials for the quarter were negative at 7.7 NOKm (negative 7.9 NOKm), primarily driven by interest rate costs , partly offset by a positive change in value of the interest hedge contract and interest rate income on the bank deposits. The Group recorded no tax cost in Q1, and the loss for the period ended at negative 52.4 NOKm (negative 1.2 NOKm). Salmon Evolution’s share of K Smart’s net income is recognized in the profit and loss statement. The investment in K Smart is accounted for using the equity method where K Smart is considered an associated company.
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Q1 2025 Extending the ocean potential 11 Farming Norway (in NOK thousand) Q1 2025 Q1 2024 2024 Operating revenue 49 668 98 205 467 742 Operational EBITDA 2 5 659 36 236 112 425 Operational EBIT 2 -14 047 18 207 37 884 All-in price realization/kg (NOK)1 76,0 108,0 93,4 Harvest volumes (tonnes, HOG) 581 901 4 891 Farming EBITDA cost/kg 72,6 67,0 69,4 Operational EBITDA/kg (NOK) 9,7 40,2 23,0 Operational EBIT/kg (NOK) -24,2 20,2 7,7 1Calculated on a back to farm basis and adjusted for transport cost to Norway border ( Sisalmoni equivalent) 2Before fair value adjustment related to biological assets Farming Norway consists of the farming activities at the grow -out facility at Indre Harøy , smolt production at Salmon Evolution Dale and sales. In Q1 2025 Salmon Evolution harvested 581 tonnes HOG , including ~100 tonnes post smolt (LW to HOG conversion 84 %). This resulted in operating revenues of 49.7 NOKm (98,2 NOKm). The all-in price realization ended at NOK 76/kg , a significant reduction from the same quarter last year driven by high supply from the conventional industry, after a good growing season in the second half of 2024 and into 2025. Additionally, geopolitical uncertainty around trade tariffs and a lower average harvest weight impacted prices as well in the quarter. The all-in price realization is calculated on a back to farm basis and adjusted for transport cost to Norway border (Sisalmoni equivalent) and inclu des all fish sold, including downgrades. During the quarter the company reported limited downgrades and had an average superior grade share of 97 %. The overall price achieved by Salmon Evolution on superior grade fish is strong and consistently above the reference price. During the quarter Company sold another batch of post smolt, comprising around 106 tonnes LW. Pricing was at market terms. Salmon Evolution has already secured overcapacity on smolt for 2025, which is planned used for post smolt deliveries during the second half of the year. The farming EBITDA cost in the segment, including allocated G&A, ended at NOK 72.6 per kg. The farming EBITDA cost is the sum of all direct production and harvest cost and other operating expenses (G&A) allocated to the harvested fish during the production cycle , divided by harvest volume. Incident based mortality, culling and exports costs are excluded. The farming EBITDA cost was slightly down from the previous quarter . P ost smolt deliveries carry a higher farming EBITDA cost than harvested fish. Continued increase in production volumes, alongside solid biological KPIs and low mortality is expected to have a positive impact on the farming EBITDA cost, especially from the second half of 2025. Overall, the farming segment had an EBITDA of 5.7 NOKm, corresponding to an EBITDA per kg of 9.7 NOK. Profitability was primarily driven by said post smolt sales. The segment recorded capacity adjustments for unutilized production capacity of 4.8 NOKm.
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Q1 2025 Extending the ocean potential 12 Other (figures in NOK 1000) Q1 2025 Q1 2024 2024 Operating revenue 7 653 6 463 28 160 Operational EBITDA -9 751 -12 119 -41 010 In the Other segment all the resources related to projects and technology are employed, as well as general corporate functions. A significant portion of costs are related to future expansion. In Q 1 2025 the Other segment had operating revenues of 7.7 NOKm (6.4 NOKm) related to sale of services to the Farming segment and growth pro jects. Operating expenses totalled 17.4 NOKm (18.6 NOKm). The cost base in the segment is primarily driven by salaries, representing around 65 % of operating costs in Q 1 20 25. A portion of this is reinvoiced to the Farming segment for services rendered, as well as salaries relating to personnel taking part in the Indre Harøy phase 2 expansion project. The operational EBITDA ended at negative 9.8 NOKm (negative 12.1 NOKm). Cash flow (figures in NOK 1000) Q1 2025 Q1 2024 FY 2024 Net cash flow from operating activities -6 558 -1 802 43 331 Net cash flow from investments activities -237 814 -40 478 -342 562 Net cash flow from financing activities 232 794 -3 916 342 297 Net change in cash and cash equivalents -11 578 -46 197 43 066 Cash and cash equivalents at start of period 429 462 386 396 386 396 Cash and cash equivalents at end of period 417 884 340 199 429 462 During the quarter the Company had net cash flow from operating activities of -6.6 NOKm (-1.8 NOKm), reflecting the significant biomass increase during the quarter. Having initiated the Indre Harøy phase 2 expansion project, there was a significant increase in investments compared to previous quarters. The net cash flow from investment activities ended at -237.8 NOKm (negative 40.5 NOKm). Cash flow from financing was 232.8 NOKm after drawing the RCF facility. Total net cash flow during the fourth quarter was -11.6 NOKm (-46.2 NOKm). Cash and cash equivalents ended at 417.9 NOKm in the first quarter of 2025.
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Q1 2025 Extending the ocean potential 13 Financial position (figures in NOK 1000) 31 March 2025 31 March 2024 31 Dec 2024 Non-current assets 2 693 378 2 099 098 2 415 709 Current assets 747 049 632 585 768 639 Total assets 3 440 427 2 731 682 3 184 348 Equity 2 170 900 1 919 953 2 223 260 Non-current liabilities 854 462 586 208 582 411 Current liabilities 415 065 225 521 378 677 Total equity and liabilties 3 440 427 2 731 682 3 184 348 On 31 March 2025 the book value of the Company’s assets was 3,440.4 NOKm (2,731.7 NOKm). The main increase from previous periods is related to the ongoing Indre Harøy phase 2 expansion project. The fixed assets in the Company mostly relate to the facility at Indre Harøy, comprising land, buildings, and production equipment, as well as the Dale smolt facility and other smaller items . There are no significant movements from the previous quarter. The current assets in the Company are primarily biological assets, other current receivables, and cash & cash equivalents. Total equity amounted to 2,170.9 NOKm which corresponds to an equity ratio of 63%. Consolidated net interest-bearing debt totalled 612.6 NOKm at the end of the quarter.
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Q1 2025 Extending the ocean potential 14 Share information As per 31 March 2025 Ronja Capital Investment AS was the Company’s largest shareholder with 32,407,311 shares, corresponding to 7.0% of the total number of share s outstanding. The 20 largest shareholders held 58.4% of the shares in the Company. During the quarter the average daily traded volume was about 480,000 shares and the average daily traded value was about NOK 3.3 million (Oslo Børs). Salmon Evolution ASA was listed on Oslo Børs on 9 July 2021. Source: Monitor Holdings, Company 20 largest shareholders at 31 March 2025 Shareholder # of shares % share Ronja Capital Investment AS 32 407 311 7,0 % DNB Asset Management 29 510 478 6,4 % Arctic Fund Management 24 569 080 5,3 % Handelsbanken Fonder 22 346 507 4,8 % Farvatn AS 21 168 366 4,6 % Dongwon Industries 17 932 838 3,9 % Nordea Investment Management 16 702 022 3,6 % Rofisk AS 15 204 563 3,3 % Kjølås Stansekniver AS 13 173 105 2,8 % Stette Invest AS 12 410 954 2,7 % Jakob Hatteland Holding AS 9 790 519 2,1 % Ewos AS 9 480 984 2,0 % Mevold Invest AS 9 074 474 2,0 % Lyngheim Invest AS 8 149 252 1,8 % Hustadlitt AS 7 500 000 1,6 % Bortebakken AS 7 427 330 1,6 % Bondø Invest AS 4 614 718 1,0 % Salmoserve AS 3 614 561 0,8 % AS Straen 3 300 000 0,7 % Møring AS 3 116 017 0,7 % Total 20 largest shareholders 271 493 079 58,7 % Other shareholders 191 110 227 41,3 % Total number of shares 462 603 306 100,0 %
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Q1 2025 Extending the ocean potential 15 Outlook statement from the board of directors Over the last twelve months Salmon Evolution has proven the concept of land -based salmon farming with a hybrid flow-through system, both technically, biologically and financially . The technology and our highly skilled and motivated employees, coupled with a unique data driven growth environment, gives insights and opportunities for continuous improvements of production, fish welfare and financial results. To further improve operations and execute our Indre Harøy phase 2 construction project – which upon completion more than doubles the production capacity – will be Salmon Evolution’s main priorities in the coming periods. Phase 2 will be transformative for Salmon Evolution, ensuring critical scale and supporting a substantial organic investment capacity. Norway has many unique characteristics making it ideal for land - based salmon farming. The strong results achieved further underscores this and the benefits of being located in the heart of the global aquaculture cluster, with easy access to the world’s most efficient salmon farming value chain. The Norwegian government has also published a proposal for new land-based aquaculture legislation, which is expected to come into effect during 2025, significantly reducing the regulatory risk going forward. This further underlines the relative attractiveness of Norway and sets Norway apart from other countries as the most attractive place to invest in and grow the business. What Salmon Evolution has built at Indre Harøy is truly unique and represents a strong platform for further growth in a world where the geopolitical uncertainty has increased. Looking ahead Salmon Evolution enters Q2 2025 with the targeted run-rate biomass level, a prerequisite for taking out the full growth potential and representing a solid foundation for continued growth. Although salmon prices recently have been weaker than normal, driven by improved biology for conventional farmers and geopolitical uncertainty around trade tariffs, Salmon Evolution has a positive long-term view on the salmon price driven by the expectation of limited supply growth and continued strong demand in the years ahead. A view supported by leading seafood analysts. The company remains fully committed to its long-term vision; to be a global leader in land - based salmon farming, delivering sustainable, high-quality salmon while continuously driving biological and operational excellence. With phase 1 at Indre Harøy in full operation and phase 2 well underway, Salmon Evolution is i n a unique position to capitalize on future opportunities and further solidify its leadership in the industry. Tank installations (early April 2025)
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Q1 2025 Extending the ocean potential 16 Responsibility Statement Responsibility statement in connection with interim management report by the Board of Directors and CEO of Salmon Evolution ASA. We confirm, to the best of our knowledge, that the condensed set of financial statements for the period 1 January to 31 March 2025 has been prepared in accordance with IAS 34 – Interim Financial Reporting and gives a true and fair view of the Company’s and Group’s assets, liabilities, financial position and profit or loss as a whole. We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the period and their impa ct on the condensed set of financial statements, a description of the principal risks and uncertainties facing the group, and major related parties’ transactions. The Board of Directors of Salmon Evolution ASA Ålesund/Elnesvågen 12 May 2025 Tore Tønseth Chair Peder Stette Director Anne Breiby Director Ingvild Vartdal Director Vibecke Bondø Director Jan-Emil Johannessen Director Eunhong Min Director Trond Håkon Schaug-Pettersen CEO
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Q1 2025 Extending the ocean potential 17 Interim financial statements Statement of Profit and Loss (figures in NOK 1000) Note Q1 2025 Q1 2024 FY 2024 Sales revenue from farming 2 49 668 97 522 467 742 Other income 0 2 730 3 831 Total operating revenue and other income 49 668 100 252 471 573 Change in inventory 3,4 47 520 30 828 29 603 Cost of materials 3,4 -39 753 -48 594 -200 933 Personnel expenses -20 071 -18 112 -68 046 Other operating expenses -41 455 -40 257 -160 781 Operational EBITDA -4 092 24 117 71 415 Depreciations 5 -21 321 -18 362 -76 142 Operational EBIT -25 413 5 755 -4 727 Fair value adjustment of biomass 3 -19 256 942 -10 498 Operating Profit (EBIT) -44 669 6 697 -15 225 Financial income 6 4 742 7 146 28 239 Financial expense 6 -11 620 -13 207 -52 610 Share of net income from associated companies -859 -1 837 -7 809 Net financial -7 738 -7 899 -32 180 Profit/loss before tax -52 407 -1 201 -47 405 Income tax expense 7 0 0 0 Profit/loss for the period 8 -52 407 -1 201 -47 405 Basic earnings per share (NOK) 8 -0,11 0,00 -0,11 Diluted earnings per share (NOK) 8 -0,11 0,00 -0,11 Consolidated statement of comprehensive income Profit/(loss) for the period -52 407 -1 201 -47 405 Currency translation differences 6 -308 348 -178 Total comprehensive income for the period, net of tax -52 715 -854 -47 584
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Q1 2025 Extending the ocean potential 18 Statements of financial position (figures in NOK 1000) Note 31 March 2025 31 March 2024 31 Dec 2024 Assets Intangible assets 5 81 880 73 228 81 101 Deferred tax assets 7 0 415 0 Assets under construction 5 738 283 106 827 481 778 Assets in use, not allocated 5 0 23 293 0 Property, plant & equipment 5 1 816 084 1 866 979 1 824 284 Right-of-use assets 5 47 610 11 170 17 857 Investment in associated companies 9 522 17 186 10 689 Total non-current assets 2 693 378 2 099 098 2 415 709 Inventory 3 9 500 11 195 12 866 Biological assets 3 202 350 182 627 171 004 Trade receivables 49 935 38 506 90 522 Other current receivables 53 310 45 064 51 142 Financial derivatives 6 14 069 14 993 13 643 Cash and cash equivalents 417 884 340 199 429 462 Total current assets 747 049 632 585 768 639 Total assets 3 440 427 2 731 682 3 184 348 Equity and liabilities Share capital 9 23 130 20 697 23 130 Share premium 9 2 415 049 2 124 647 2 415 049 Other reserves 11 838 10 871 11 483 Other equity 0 0 0 Uncovered losses -279 117 -236 262 -226 402 Total equity 2 170 900 1 919 953 2 223 260 Long-term interest-bearing debt 10 818 800 570 000 569 100 Lease liabilities - long term 10 32 019 7 506 9 668 Other long-term liabilities 10 3 643 8 702 3 643 Total non-current liabilities 854 462 586 208 582 411 Short-term interest-bearing debt 10 163 237 113 798 158 488 Trade payables 220 490 86 110 193 384 Social security and other taxes 1 721 4 639 7 080 Lease liabilities - short term 10 12 819 4 240 5 317 Other short-term liabilities 16 798 16 734 14 408 Total current liabilities 415 065 225 521 378 677 Total liabilities 1 269 528 811 729 961 088 Total equity and liabilities 3 440 427 2 731 682 3 184 348
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Q1 2025 Extending the ocean potential 19 Statement of cash flow (figures in NOK 1000) Note Q1 2025 Q1 2024 FY 2024 Cash flow from operations Profit/loss before tax -52 407 -1 201 -47 405 Adjustments for: Depreciation, amortisation and impairment loss 5 21 321 18 362 76 142 Net financials 7 738 7 899 32 180 Share based payment expenses 355 114 726 Changes in working capital: Change in trade receivables 40 793 1 990 -50 026 Change in other current receivables -2 838 -863 -11 073 Change in inventory and biological assets 3 -47 132 -30 721 -32 209 Change in fair value of biomass 3 19 256 -942 10 498 Change in trade payables 6 800 5 097 65 583 Change in social security and other taxes -1 999 -3 634 -779 Change in other current liabilities 1 555 2 098 -306 Cash (outflow) from operations -6 558 -1 802 43 331 Cash flow from investment activities Payments for fixed assets 5 -238 012 -40 579 -358 584 Proceeds from government grants 0 0 764 Payments for intangible assets 5 -894 -881 -12 176 Financial income received 1 092 983 27 434 Net cash (outflow) from investment activities -237 814 -40 478 -342 562 Cash flow from financing activities Proceeds from issue of equity 0 0 365 000 Transaction costs 0 0 -15 575 Proceeds from new borrowings 10 254 750 10 554 50 185 Repayment of borrowings -300 0 -900 Payments of principal portion of lease liabilities -4 812 0 -5 354 Interest paid lease liabilities -411 0 -941 Change in lease liabilities 0 109 0 Financial expenses paid -16 432 -14 580 -50 118 Net cash (outflow) from financing activities 232 794 -3 916 342 297 Net change in cash and cash equivalents -11 578 -46 197 43 066 Cash and cash equ. at the beginning of the period 429 462 386 396 386 396 Cash and cash equ. at the end of the period 417 884 340 199 429 462
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Q1 2025 Extending the ocean potential 20 Statement of Changes in Equity (figures in NOK 1000) Note Balance at 1 January 2024 9 20 697 2 124 647 10 758 0 -235 408 1 920 693 Profit/loss for the period 0 0 0 0 -1 202 -1 202 Other comprehensive income 0 0 0 0 348 348 Total comprehensive income 0 0 0 0 -854 -854 Share based payment expensed 0 0 113 0 0 113 Transactions with owners 0 0 113 0 0 113 Balance at 31 March 2024 9 20 697 2 124 647 10 871 0 -236 262 1 919 953 Balance at 1 January 2025 9 23 130 2 415 049 11 483 0 -226 402 2 223 260 Profit/loss for the period 0 0 0 0 -52 407 -52 407 Other comprehensive income 0 0 0 0 -308 -308 Total comprehensive income 0 0 0 0 -52 715 -52 715 Share based payment expensed 0 0 355 0 0 355 Transactions with owners 0 0 355 0 0 355 Balance at 31 March 2025 9 23 130 2 415 049 11 838 0 -279 117 2 170 900 Total equityShare capital Share premium Other reserves Other equity Uncovered losses
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Q1 2025 Extending the ocean potential 21 Selected notes to the quarterly financial statements Note 1 – Summary of significant accounting policies General information Salmon Evolution ASA and its subsidiaries, Salmon Evolution Norway AS, Salmon Evolution International AS, Salmon Evolution Dale AS and Salmon Evolution Sales AS (the “Company”, "SE" or "the Company") is a Norwegian business headquartered in Hustadvika kommune in Møre og Romsdal. Salmon Evolution operates a hybrid flow -through (HFS) system, utilizing fresh seawater from the Norwegian coast. The Company is building a land-based salmon farming facility at Indre Harøy, with a planned annual production of 36,000 tons HOG fully built . Phase 1 with a planned annual production of 7,900 tons HOG is in full operation, whilst construction of phase 2 planned to add an addition 10,100 tons HOG bringing total production up to 18,000 tons HOG was initiated in August 2024. Salmon Evolution has significant growth ambitions outside Indre Harøy. These interim financial statements were approved by the Board of Directors for issue on 12 May 2025. These interim financial statements have not been audited. Consolidation These condensed consolidated statements for the period ended 3 1 March 2025 include Salmon Evolution ASA together with its subsidiaries Salmon Evolution Norway AS, Salmon Evolution International AS, Salmon Evolution Dale AS and Salmon Evolution Sales AS. Basis of preparation These interim financial statements have been prepared in accordance with International Accounting Standard 34, "Interim financial reporting". These interim financial statements do not provide the same scope of information as the annual financial statement and should therefore be read in conjunction with the annual financial statements for the year ended 31 December 202 4, which have been prepared in accordance with IFRS® Accounting Standards as adopted by the EU. Going concern The Company has adopted the going concern basis in preparing its consolidated financial statements. When assessing this assumption, management has assessed all available information about the future. After making such assessments, management has a reasonable expectation that the Company has adequate resources to continue its operational existence for the foreseeable future.
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Q1 2025 Extending the ocean potential 22 Accounting policies The accounting policies adopted are consistent with those of the previous financial year except that income tax expense is recognized in each interim period using the expected weighted average annual income tax rate for the full financial year. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss. The Company does not include net deferred tax benefits in its balance that exceeds the tax effect of group contributions in order to equalize tax payable in its subsidiaries. From Q4-24 there has been a principal change in cash flow regarding lease liabilities from presenting change in lease liabilities to actual paid expenses. Revenue Revenue from contracts with customers as defined in IFRS 15 is recognised when control of the goods is transferred to the customer at an amount that reflects the consideration to which the group expects to be entitled in exchange for those goods. Revenue for the Group derives from sale of smolt from contract with customer and whole and processed salmon in the spot marked. It has not been made any forward sales contracts. The Company recognised revenue at the point in time when control of the goods is transferred to the customer at an amount that reflects the expected amount that the group is entitled to have for the goods. The sales price is based on available market price where the price will vary with both quality and size. Normal credit term of the sales transactions is 30 days. If the delivered products have discrepancies compared to the agreed sales contract, cash refunds are given to the customer. Up until now, refunds are not material. Property, plant & equipment Property, plant, and equipment is measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and costs include expenditures that are directly attributable to the acquisition and placement of fixed assets in service. Costs of major replacements and renewals that substantially extend the economic life and functionality of fixed asset are capitalized. Costs associated with normal maintenance and repairs are expensed as incurred. Assets are normally considered property, plant, and equipment if the useful economic life exceeds one year. Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset’s historical cost. If a substantial part of an asset has an individual and different useful life, that portion is depreciated separately. The asset’s residual value and useful life are evaluated annually. Gains or losses arising from the disposal or retirement of an asset are determined as the difference between the sales proceeds and the carrying amount of the asset and recognized as part of other income in the accompanying statements of other comprehensive income. Depreciation is charged to expense when the property, plant or equipment is ready for intended use. For the second phase build out, which expected to be ready for intended use during 2026, assets under construction is not depreciated.
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Q1 2025 Extending the ocean potential 23 Biological assets Biological assets are, in accordance with IAS 41, measured at fair value unless the fair value cannot be measured reliably. For salmon in the grow-out facility, a present value model is applied to estimate the fair value. For roe, fry and smolt, historical cost is deemed to provide the best estimate of fair value, and hence applied. The Group is still in a ramp -up phase and not yet at steady state production volumes for the grow - out facility at Indre Harøy, and hence the facility's production capacity is not fully utilized. Cost of production is therefore adjusted for unutilized production capacity. For further information, please refer to note 3. Borrowing costs In accordance with IAS 23, the Company’s loan agreements are subject to the following principles relating to borrowing costs: General and specific borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred.
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Q1 2025 Extending the ocean potential 24 Note 2 – Segment The Group has implemented segment reporting which consists of production of farmed salmon in Norway (Farming Norway), other activities (Other), and eliminations. The segment performance is monitored to assess performance and profitability at a strategic level. Farming Norway consists of Salmon Evolution Norway AS (grow-out facility), Salmon Evolution Dale AS (smolt facility) and Salmon Evolution Sales AS. Additionally a portion of the Group overhead costs is allocated to the segment. Other consist of both revenue and costs not attributable to the farming segment. Sales revenue from contracts with customers comes from both Continental Europe, UK, Asia and other markets. (In thousand NOK) Farming Norway Other Eliminations Group Q1 2025 External revenue 49 668 0 0 49 668 Internal revenue 0 7 653 -7 653 0 Operating revenue 49 668 7 653 -7 653 49 668 Operational EBITDA 5 659 -9 751 0 -4 092 Operational EBIT -14 047 -11 840 474 -25 413 Fair value adjustment of biomass -19 256 Net financial -7 738 Profit/loss before tax -52 407 Harvested volum (tonnes, HOG) 581 581 Operational EBITDA/kg (NOK) 9,7 -7,0 Operational EBIT/kg (NOK) -24,2 -43,7 Total PPE 2 651 889 89 216 -57 248 2 683 857 (In thousand NOK) Farming Norway Other Eliminations Group Q1 2024 External revenue 98 205 2 047 0 100 252 Internal revenue 0 4 416 -4 416 0 Operating revenue 98 205 6 463 -4 416 100 252 Operational EBITDA 36 236 -12 119 0 24 117 Operational EBIT 18 207 -12 452 0 5 755 Fair value adjustment of biomass 942 Net financial -7 899 Profit/loss before tax -1 201 Harvested volum (tonnes, HOG) 901 901 Operational EBITDA/kg (NOK) 40,2 26,8 Operational EBIT/kg (NOK) 20,2 6,4 Total PPE 2 061 963 20 957 -1 424 2 081 496
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Q1 2025 Extending the ocean potential 25 (In thousand NOK) Farming Norway Other Eliminations Group FY 2024 External revenue 467 742 3 831 0 471 573 Internal revenue 0 24 329 -24 329 0 Operating revenue 467 742 28 160 -24 329 471 573 Operational EBITDA 112 425 -41 010 0 71 415 Operational EBIT 37 884 -44 509 1 898 -4 727 Fair value adjustment of biomass -10 498 Net financial -32 180 Profit/loss before tax -47 405 Harvested volum (tonnes, HOG) 4 891 4 891 Operational EBITDA/kg (NOK) 23,0 14,6 Operational EBIT/kg (NOK) 7,7 -1,0 Total assets 2 371 935 33 086 0 2 405 021
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Q1 2025 Extending the ocean potential 26 Note 3 – Biological assets and inventory Biological assets are, in accordance with IAS 41, measured at fair value . For salmon in the grow-out facility, a present value model is applied to estimate the fair value. For roe, fry and smolt, historical cost is deemed to provide the best estimate of fair value, and hence applied. The fair value of fish in the grow-out facility is calculated by multiplying the estimated biomass at the time of harvest with the estimated sales price at the same time and deducted for estimated costs to sell. For fish not ready for harvest, remaining pr oduction costs to grow the fish to harvest weight are deducted. The cash flow is further discounted by a discount rate considering both risk adjustment and time value. The Group considers that fish greater than 4.6 kg is ready for harvest (about 3.8 kg gutted weight), and such fish is thus classified as harvestable fish. Fish that have not achieved this weight are classified as non-harvestable. In the event of incident-based mortality, all costs allocated to fish affected by incident-based mortality will be deducted from the book value of the inventory. The estimated biomass volume is based on the actual number of individuals in the grow -out departments on the balance sheet date, adjusted for projected mortality up to harvest time and multiplied with the estimated harvest weight per individual at harvest time. BOOK VALUE OF INVENTORY Q1 2025 Q1 2024 FY 2024 Equipment 5 962 3 470 6 245 Raw materials 3 538 7 365 6 621 Biological assets 202 350 182 627 171 004 Finished goods 0 359 0 Total 211 850 193 822 183 870 BIOLOGICAL ASSETS Q1 2025 Q1 2024 FY 2024 Biological assets end of period 2 939 2 270 2 027 Q1 2025 Q1 2024 FY 2024 Biological assets beginning of period 171 004 153 790 153 790 Increase due to production 98 059 89 642 371 472 Reduction due to harvest/sale -47 457 -61 747 -334 727 Reduction due to incident based mortality 0 0 -9 473 Fair value adjustment beginning of period -21 391 -31 889 -31 889 Fair value adjustment end of period 2 135 32 831 21 391 Biological assets end of period 202 350 182 627 171 004 TONNES NOK 1000 NOK 1000
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Q1 2025 Extending the ocean potential 27 The estimated sales price for the fish in the grow-out facility is based on forward prices from Sisalmoni with relevant adjustments. The net sales value is adjusted for expected quality differences and harvesting, logistics and sales expenses. The Group is still in a ramp-up phase for the grow-out facility at Indre Harøy, and hence the facility’s production capacity is not fully utilized. Cost of production is therefore adjusted for unutilized production capacity. In Q1 2025 this adjustment amounted to 5.6 NOKm (7.9 NOKm in Q1 -24) which has been expensed directly in the profit and loss statement. Note 4 – Cost of materials and change in inventory (numbers in thousand NOK) Q1 2025 Q1 2024 FY 2024 Cost of materials and change in inventory 7 767 -17 766 -171 330 Composition COGS: Inventory change 47 520 30 828 29 603 Raw material purchase -39 753 -48 594 -200 933 Sum 7 767 -17 766 -171 330 Composition inventory change: Change due to production 98 059 89 642 371 472 Change due to harvest/sale -47 457 -61 747 -336 093 Change due to incident based mortality 0 0 -6 167 Change inventory raw material -3 082 2 932 391 Sum 47 520 30 828 29 603 Composition - change due to production: Raw material cost 42 835 45 662 200 542 Salaries 10 519 7 784 34 340 Energy cost 12 910 13 254 48 330 Depreciations 15 385 12 924 55 758 Other operating expenses 16 410 10 018 32 503 Sum 98 059 89 642 371 472
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Q1 2025 Extending the ocean potential 28 Note 5 – Property, plant, equipment and intangible asset Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset’s historical cost and estimated residual value at disposal. Depreciation is charged to expense when the property, plant or equipment is ready for intended use. (figures in NOK 1000) Intangible assets Assets under construction Assets in use, not allocated Buildings and property Fixtures and fittings Right-of-use assets Total Cost 1 January 2024 72 350 70 781 54 019 1 582 996 310 888 22 163 2 113 197 Additions 889 36 046 136 5 125 0 241 42 437 Completed constructions 0 0 -30 862 8 205 22 657 0 0 Cost 31 March 2024 73 239 106 827 23 293 1 596 326 333 545 22 404 2 155 634 Acc. depreciation 1 January 2023 -3 0 0 -27 711 -17 984 -10 079 -55 777 Depreciation for the period -7 0 0 -9 966 -7 233 -1 155 -18 361 Net book value 31 March 2024 73 229 106 827 23 293 1 558 649 308 328 11 170 2 081 496 (figures in NOK 1000) Intangible assets Assets under construction Assets in use, not allocated Buildings and property Fixtures and fittings Right-of-use assets Total Cost 1 January 2025 81 136 481 778 0 1 598 740 342 102 33 185 2 536 940 Additions 2 144 256 505 0 277 9 630 31 600 300 156 Cost 31 March 2025 83 279 738 283 0 1 599 017 351 732 64 785 2 837 096 Acc. depreciation 1 January 2024 -34 0 0 -68 077 -48 480 -15 328 -131 919 Depreciation for the period -1 365 0 0 -10 270 -7 839 -1 847 -21 321 Net book value 31 March 2025 81 880 738 283 0 1 520 670 295 414 47 610 2 683 857
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Q1 2025 Extending the ocean potential 29 Note 6 – Finance income and finance cost The Group did not have any fair value adjustments of financial liabilities in Q1 2025, nor in 2024. (figures in NOK 1000) Finance income Q1 2025 Q1 2024 FY 2024 Interest income 3 983 3 905 21 250 Net change in value of financial derivatives 427 2 327 977 Foreign exchange gains 331 913 5 338 Other finance income 0 0 674 Financial income 4 742 7 146 28 239 Share of net income from associated companies -859 -1 837 -7 809 Total financial income 3 883 5 308 20 430 Finance expenses Q1 2025 Q1 2024 FY 2024 Interest on debts and borrowings 12 469 13 295 53 232 Realized loss/gain on interest derivative -1 509 -1 503 -5 966 Foreign exchange losses 432 1 413 4 460 Other finance expenses 229 2 884 Total financial expenses 11 620 13 207 52 610 Net financial income/- expenses -7 738 -7 899 -32 180 0 0 0 Fair value adjustments - financial assets (N OK tho usand) 31.03.2025 31.03.2024 31.12.2024 Unrealised changes in the value of interest rate swap 427 2 327 977 Unrealised changes in the value of contract related to power supply 0 0 0 Fair value adjustments recognised in profit and loss 427 2 327 977
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Q1 2025 Extending the ocean potential 30 Note 7 – Tax Income tax expense is recognised based on management’s estimate of the weighted average effective annual income tax rate expected for the full financial year. The estimated average annual tax rate used for the period ended 31 March 2025 is 22%, compared to 22% for the period ended 31 March 2024. Deferred tax benefit has not been recognised in the balance sheet as the Companies within the group are in their start -up phase and does not have any historical results to refer to when assessing whether future taxable profits will be sufficient to utilize the tax benefit. Note 8 – Earnings per share Basic earnings per share are based on the weighted average number of common shares outstanding during the period. Q1 2025: The Group have had 462,603,300 shares for the whole period. Q1 2024: The Group have had 413,963,640 shares for the whole period. (figures in NOK 1000) Q1 2025 Q1 2024 Profit/loss before tax -52 407 -1 201 Calculated tax (22%) -11 530 -264 Tax payable 0 0 Change in deferred tax (asset) -11 530 -264 Change in deferred tax not recognised in the balance sheet 11 530 264 Tax expense 0 0 Earnings per share (figures in NOK 1000) Q1 2025 Q1 2024 Gain/loss attributable to the equity owners of the Group -52 407 -1 201 Gain/loss for calculation of diluted earnings per share -52 407 -1 201 Weighted average number of shares outstanding 1) 462 603 300 413 936 640 Dilutive options 0 0 Average number om shares and options used in calculation for diluted EPS 462 603 300 413 936 640 Basic earnings per share (NOK) -0,11 -0,00 Diluted earnings per share (NOK) -0,11 -0,00
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Q1 2025 Extending the ocean potential 31 Note 9- Share capital & capital history The Company entered into an investment agreement with Dongwon Industries and completed a NOK 50 million in towards Dongwon Industries in July 2020. The Group raised NOK 500 million in a private placement in connection with its initial public offering related to the admission on Merkur Market (now Oslo Børs) in September 2020. Further, the Group also raised another NOK 500 million in a private placement in March 2021. In August 2021 the Group acquired 100% of the shares in Kraft Laks AS. As part of the settlement the Group issued 2,190,694 new shares of NOK 7.5775 per share, and thereby increased its equity by NOK 16.6 million. In October 2021 the Group carried out a private placement of USD 5m (NOK ~43m) towards Cargill. Further, in April 2022 the Group carried out a private placement raising gross proceeds of NOK 300 million at a subscription price of NOK 9.00 per share. In April 2023 the Group carried out a private placement raising gross proceed of NOK 525 million at a subscription price of NOK 7.7 per share. In June 2024 the Group carried out a private placement raising gross proceed of NOK 365 million at a subscription price of NOK 7.5 per share. (figures in NOK 1000) Opening balance 1 July 2020 5 375 159 0,05 107 503 182 Share options exercised 10 July 2020 30 000 5 405 159 0,05 3,33 600 000 108 103 182 Private placement 23 July 2020 581 395 5 986 554 0,05 4,30 11 627 906 119 731 088 Private placement 11 September 2020 5 000 000 10 986 554 0,05 5,00 100 000 000 219 731 088 Private placement 23 March 2021 4 166 667 15 153 221 0,05 6,00 83 333 333 303 064 421 Acquisition Kraft Laks 16 August 2021 109 535 15 262 756 0,05 7,58 2 190 694 305 255 115 Private placement 12 October 2021 277 068 15 539 824 0,05 7,71 5 541 374 310 796 489 Share options exercised 26 March 2022 81 250 15 621 074 0,05 4,80 1 625 000 312 421 489 Private placement 5 April 2022 1 666 667 17 287 741 0,05 9,00 33 333 333 345 754 822 Private placement 18 April 2023 3 409 091 20 696 832 0,05 7,70 68 181 818 413 936 640 Private placement 18 June 2024 2 433 333 23 130 165 0,05 7,50 48 666 660 462 603 300 Capital IncreaseDate Total no. of outstanding shares Share Capital After Change Par Value Subscription price per share New shares
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Q1 2025 Extending the ocean potential 32 Note 10 – Interest bearing debt In June 2024 the Group expanded its existing senior secured debt financing package related to Indre Harøy Phase 1 and 2, from 1,550 NOKm to 2,225 NOKm. Additionally, the Company has a NOK 150 million Overdraft Facility with Nordea. As per 31 March 2025, NOK 775 million was drawn of the secured green debt financing package. In addition, the Group has drawn NOK 150 million, of the NOK 150 million available in the Overdraft Facility. The Group has also entered into loan agreements for a total of NOK 60 million relating to Salmon Evolution Dale AS of which around NOK 58 million was drawn as per 31 March 2025. This financing is for financing of working capital, investments in Salmon Evolution Dale as well as refinancing of the seller’s credit from the acquisition of Salmon Evolution Dale AS. The above table does not include other long-term liabilities of NOK 3.6 million related to water rights in Salmon Evolution Dale AS. The loans are floating interest rate loans denominated in NOK with an interest charge based on NIBOR 3M plus an agreed margin. Financial covenants The most important financial covenants for the long-term financing of the Group are, respectively, a solvency requirement that the borrower’s (Salmon Evolution Norway AS) book equity ratio (including intra-group loans) shall be minimum 45%. Further, there is a profitability requirement linked to the borrower’s EBITDA which shall be greater than NOK 250 million on a last 12-month basis from Q2 2027. Quarterly EBITDA figures was measured from Q2 2024 with set minimum EBITDA levels reflecting the Group’s gradual ramp up of production volumes and profitability. Long-term interest bearing debt (NOK thousand) 31.03.2025 31.03.2024 Debt to credit institutions 818 800 570 000 Leasing liabilities 32 019 7 506 Other long term liabilities 3 643 8 702 Total long-term interest-bearing debt 854 462 586 208 Short-term interest bearing debt (NOK thousand) 31.03.2025 31.03.2024 Debt to credit institutions 163 237 113 798 Other short-term interest bearing debt 0 0 Leasing liabilitites 12 819 4 240 Total short-term interest-bearing debt 176 056 118 038 Total interest-bearing debt 1 030 518 704 246 Cash & cash equivalents 417 884 340 199 Net interest-bearing debt 612 634 364 047
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Q1 2025 Extending the ocean potential 33 Finally, there is a minimum cash requirement that stipulates that the obligors ( Salmon Evolution Norway AS, Salmon Evolution Sales AS and Salmon Evolution ASA) cash balance shall be greater than NOK 100 million at any time . Any undrawn and available amounts under the revolving facility and the overdraft is included in the calculation of the cash balance. As per 31 March 2025 the Group is in compliance with all financial covenants. Security The Group’s bank debt facilities are fully guaranteed by Salmon Evolution ASA. The respective lenders also have a pledge over 100% of the shares in the borrower, Salmon Evolution Norway AS and Salmon Evolution Dale AS. Furthermore, the respective lenders h ave a pledge over all material operating assets of the Group, hereunder inter alia, land, plant and machinery, operating licenses, inventory and receivables. Cash movements in financing activites (NOK thousand) Short term Long term Balance at January 1, 2024 107 625 578 157 Repayment of loans and borrowings 0 0 Proceeds from new bank loan 10 523 31 Change in leases liabilities -110 -682 Balance at March 31, 2024 118 038 586 208 Balance at January 1, 2025 163 805 582 411 Repayment of loans and borrowings -45 120 -300 Proceeds from new bank loan 49 870 250 000 Change in leases liabilities 7 502 22 351 Balance at March 31, 2025 176 056 854 462 Interest bearing debt
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Q1 2025 Extending the ocean potential 34 Note 11 – Transactions with related parties During the ordinary course of business, the Company may engage in certain arm’s length transactions with related parties. There were no material transactions with related parties in Q1 2025. Note 12 – Subsequent events No material subsequent events.
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Q1 2025 Extending the ocean potential 35 ABOUT SALMON EVOLUTION Salmon Evolution is the global leader within land -based salmon farming. Pioneering the hybrid flow-through system (HFS), Salmon Evolution is Extending the Ocean Potential by creating optimal growth conditions in a controlled environment on land. This appro ach, capturing the benefits of both land -based and sea -based farming, puts biology first and limits operational and biological risk. Salmon Evolution is strategically located the heart of the global aquaculture industry on the west coast of Norway, where the Company has its first facility and global centre of excellence fully operational at industrial scale. Enabled by the proof of conc ept in Norway, Salmon Evolution targets significant international expansion. Salmon Evolution is listed on Oslo Børs under the ticker SALME. To learn more, please visit www.salmonevolution.no . OFFICE ADDRESS Torget 5, 6440 Elnesvågen (HQ) Keiser Wilhelms gate 22, 6003 Ålesund PRODUCTION SITE S Grow-out: Indre Harøyvegen 88, 6430 Bud Smolt: Dalsfjordvegen 2805, 6120 Folkestad ORG NUMBER NO 925 344 877 MVA E-mail: post@salmone.no Web: salmonevolution.no BOARD OF DIRECTORS Tore Tønseth Chairman of the Board Anne Breiby Board Member Ingvild Vartdal Board Memb er Peder Stette Board Member Eunhong Min Board Member Jan-Emil Johannessen Board Member Vibecke Bondø Board Member MANAGEMENT Trond Håkon Schaug -Pettersen CEO Trond Vadset Veibust CFO Ingjarl Skarvøy COO Odd Frode Roaldsnes CCO Kamilla Mordal Holo CPO Henriette Nordstrand Technical Director Vidar Skjørli HR Director