Andfjord Salmon Group As · OSL:ANDF
Andfjord Salmon Group As — Investor Presentation (May 2024)
21 slides from Andfjord Salmon Group As's investor presentation, May 2024
Slide 1: Company Presentation May 2024
COMPANY PRESENTATION MAY 2024
Slide 2: Disclaimer (I/II)
MAY 2024 DISCLAIMER (I/II) IMPORTANT INFORMATION This Presentation and its appendices (the "Presentation") has been produced by Andfjord Salmon Group AS (the "Company") solely for information purposes. By attending a meeting where this Presentation is made, or by reading the Presentation slides or b
Slide 3: Disclaimer (II/II)
MAY 2024 DISCLAIMER (II/II) This Presentation contains forward-looking information and statements relating to the business, financial performance, and results of the Company and/or industry and markets in which it operates. Forward-looking statements are statements that are not historical facts and
Slide 4: Investment Highlights
MAY 2024 INVESTMENT HIGHLIGHTS Salmon farming using First year of operations Post-smolt strategy Ready to grow Secured commitment flow-through show excellent recently introduced to production to 19,000 for up to NOK 825m in technology with biological results with enhance utilization and tons in the
Slide 5: Endless Access to Fresh Seawater
MAY 2024 ENDLESS ACCESS TO FRESH SEAWATER Gulf Stream 3 Fiskenes 2 Breivik 1 Kvalnes ANDØYA • Three sites located at Andøya, Norway • Andfjord’s flow-through system • Flow of seawater into the pools allows combines the best of two Atlantic salmon to thrive in its • Kvalnes site already in operation,
Slide 6: Production Potential of 90,000 Tons
MAY 2024 PRODUCTION POTENTIAL OF 90,000 TONS 25,000 tons 90,000 tons Planned Planned total expansion capacity, all sites Gulf Stream 25,000 tons Planned 3 expansion 3 Fiskenes 28,000 tons 12,000 tons 40,000 tons 25,000t 19,000 HOG Planned Planned total capacity (today’s license) + expansion 2 at Kva
Slide 7: Build-out Phase at Kvalnes (8,000t) Ahead of Schedule and on Budget
MAY 2024 BUILD-OUT PHASE AT KVALNES (8,000t) AHEAD OF SCHEDULE AND ON BUDGET Production Construction Production Q2’23 Q3’23 Q4’23 Q1’24 Q2’24e Q3’24e Q4’24e Q1’25e Q2’25e Q3’25e Excavation of Harbour Status: 100% finished pool pits for (ahead of schedule) Initial schedule area 19,000t HOG Concrete S
Slide 8: Excellent Biological and Operational Metrics from First Production Cycle
MAY 2024 EXCELLENT BIOLOGICAL AND OPERATIONAL METRICS FROM FIRST PRODUCTION CYCLE Average weight per fish (grams) at harvest ~40% above expectations Industry leading survival rate of 97.5% Average weight per fish (grams) Accumulated survival rate (%) 3,400 99.8 99.7 99.5 99.3 98.9 98.7 98.4 98.3 98.
Slide 9: Secured Commitment for Loan to Finance Debt Portion of Current Step at Kvalnes
MAY 2024 SECURED COMMITMENT FOR LOAN TO FINANCE DEBT PORTION OF CURRENT STEP AT KVALNES Debt funding plan for next expansion step at Kvalnes Main terms Key terms of the bank facility • Andfjord Salmon has secured commitment for a construction loan of up to NOK 825 million (up to 50% loan to capex) f
Slide 10: Scale-up Tailored for Capital Efficiency
MAY 2024 SCALE-UP TAILORED FOR CAPITAL EFFICIENCY Kvalnes build-out plan Split of capex for next stage at Kvalnes Expected production capacity split by stages Technical Tons HOG Added Accum. Stage, Capex1 infrastructure production production 40,000 40,000 40,000 Kvalnes (NOK, est.) (8,000t) Pilot (H
Slide 11: Low Production Costs and Strong Cash Flow Generation
MAY 2024 LOW PRODUCTION COSTS AND STRONG CASH FLOW GENERATION Not including post-smolt EBIT contribution Production costs vs. industry average Comment and illustrative feed cost comparison Illustrative EBIT2 sensitivity to salmon price NOK/kg HOG ✓ Low mortality NOKm 19,000t HOG 40,000t HOG NOK 62.0
Slide 12: Highly Competitive Economics Example Calculations
MAY 2024 HIGHLY COMPETITIVE ECONOMICS EXAMPLE CALCULATIONS Post-smolt strategy gives an additional +5 %p yield Conventional farming (Norway) Land-based RAS (Norway) Value per kg Value per kg Value per kg Value per kg Value per kg Item Comment Comment Comment (NOK) (NOK) (NOK) (NOK) (NOK) Capex less
Slide 13: Post-smolt Production as a Supplement
MAY 2024 POST-SMOLT PRODUCTION AS A SUPPLEMENT Pool density profile (kg/m3) – illustrative Commentary Andfjord Salmon has significant unused • Estimated 15-25% increase in EBIT through combined production strategy pool capacity in the start of each production cycle • Strategic collaboration agreed w
Slide 14: Post-smolt Added to Production Plan
MAY 2024 POST-SMOLT ADDED TO PRODUCTION PLAN Smolt release T+ 6 months T+ 12-15 months 100 – 150 grams ~1,000 grams ~4,000-6,000 grams Increased Post-smolt sold Remaining fish amount of smolt to conventional sold for human inserted into ocean-based consumption tanks fish farmers Pool density profile
Slide 15: Unique Location with Several Benefits
MAY 2024 UNIQUE LOCATION WITH SEVERAL BENEFITS Key comments Salmon farming licenses surrounding Andfjord Salmon • Agreement reached with Eidsfjord Sjøfarm/Holmøy Havbruk (part of Holmøy Group) Active farming licenses whereby Andfjord Salmon will farm post-smolt for a select number of nearby ocean- b
Slide 16: Supportive Shareholder Group
MAY 2024 SUPPORTIVE SHAREHOLDER GROUP Shareholders as of 16 May 20241 Comments Top 20 investors2 Number of shares % Jerónimo Martins 14,323,493 25.12% Andfjord Holding 4,715,680 8.27% Sustainability-focused food retailer Jerónimo Martins has signalled to support a KG Investment Comp AS 3,446,166 6.0
Slide 17: ESG Is a Key Focus for Andfjord Salmon
MAY 2024 ESG IS A KEY FOCUS FOR ANDFJORD SALMON Annual Strong focus on sustainability and environment in all activities ESG Committed to the UN Sustainable Development Goals reporting Low carbon footprint • Health and safety of our employees and • Andfjord Salmon’s technology avoids sea lice, elimin
Slide 18: Total Production Potential at Kvalnes: 40,000t HOG
Build-out plan utilises existing infrastructure to keep capex down Construction start in 2023-2025: Construction start in 2028 while enabling increased production +18,000 tons (target): volumes +4,000 tons license expansion +12,000 tons 5 • Examples of shared infrastructure include (exact location t
Slide 19: Our Vision and Mission
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Slide 20: Appendix
APPENDIX 20
Slide 21: Land-based Farming Needed to Bridge the Gap Between Supply and Demand
MAY 2024 LAND-BASED FARMING NEEDED TO BRIDGE THE GAP BETWEEN SUPPLY AND DEMAND Land- based necessary Strong underlying megatrends Global market supply (million tons LW) to meet demand 200 • The global Atlantic salmon market adds up to USD 24bn p.a., with strong macro trends driving Capture Aquacultu
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