Andfjord Salmon Group As · OSL:ANDF
Andfjord Salmon Group As — Q3 2023 Earnings Presentation
36 slides from Andfjord Salmon Group As's earnings presentation, Nov 30, 2023
Slide 1: Q3 2023 Status and Progress
Andfjord Salmon tataki with ponzu sauce and pomegranate Q3 2023 STATUS AND PROGRESS 30 NOVEMBER 2023
Slide 2: Andfjord Salmon logo
62 (Be és -ANDFJORD™ SALMON
Slide 3: Agenda
Q3 2023 AGENDA Gravlax from Andfjord Salmon with roe and Norwegian aquavit • INTRODUCTION • Quarterly highlights and subsequent events • Andfjord Salmon’s production method: Benefits and potential • Status Kvalnes build-out • Financials Martin Rasmussen Bjarne Martinsen Jostein Nilssen • Summary and
Slide 4: Fish farming with a clear conscience
FISH) PARMING WITH A CLEAR CONSCIENCE
Slide 5: The best of two worlds
NOV 2023 THE BEST OF TWO WORLDS 3 BENEFITS FROM SEA BASED NET–PEN FARMING 3 BENEFITS FROM LAND BASED FARMING First pool, Kvalnes First pool, Kvalnes 1 1 NO PROBLEMS WITH OPTIMAL WATER SALMON LICE AND TEMPERATURES POISONOUS ALGAE 2 2 OXYGEN-RICH AND NATURAL ESCAPE CLEAN ARCTIC PREVENTION SEAWATER 3 3
Slide 6: Natural flow – Andfjord Salmon's flow-through system
JUNE 2023 NATURAL FLOW – ANDFJORD SALMON’S FLOW-THROUGH SYSTEM
Slide 7: PY ANDFJORD™
PY ANDFJORD™ SALMON
Slide 8: Agenda
Q3 2023 AGENDA Gravlax from Andfjord Salmon with roe and Norwegian aquavit • Introduction • QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS • Andfjord Salmon’s production method: Benefits and potential • Status Kvalnes build-out • Financials • Summary and outlook
Slide 9: Highlights Q3 and subsequent period
Q3 2023 HIGHLIGHTS Q3 AND SUBSEQUENT PERIOD Successful completion Very positive customer Pool pit excavation at Harbour area Blasting of waterways of first production cycle feedback Kvalnes ahead of workstream progressing started schedule as planned
Slide 10: Agenda
Q3 2023 AGENDA Gravlax from Andfjord Salmon with roe and Norwegian aquavit • Introduction • Quarterly highlights and subsequent events • ANDFJORD SALMON’S PRODUCTION METHOD: BENEFITS AND POTENTIAL • Status Kvalnes build-out • Financials • Summary and outlook
Slide 11: First generation in first pool, Kvalnes
First generation in first pool, Kvalnes
Slide 12: How does strong biology translate to finances?
Q3 2023 HOW DOES STRONG BIOLOGY TRANSLATE TO FINANCES? Two main parameters that affect revenue and profitability (Note: simplified*): FISH FEED Fish-related factors: Feed-related factors: • Number of smolt • Amount of feed • Cost of smolt • Cost of feed • Survival rate • Feed conversion ratio (=amou
Slide 13: Survival rate impact on sales revenues
Q3 2023 SURVIVAL RATE IMPACT ON SALES REVENUES Assumptions*: • 5 kg harwest weight / 84% yield • Salmon price: NOK 80 per kg 2 MILL. SMOLT RELEASED = 5 POOLS IN OPERATION 4.8 MILL. SMOLT RELEASED = 13 POOLS IN OPERATION Survival Survival SALES REVENUE MNOK SALES REVENUE MNOK rate rate 680 100% 1600
Slide 14: Feed factor impact on cost
Q3 2023 FEED FACTOR IMPACT ON COST Assumptions*: • Feed price: NOK 20 per kg • FCR: 1.27 (industry average), 1.10 (base case) and 1.05 (1st production cycle) 8,000 T (HOG) PRODUCTION VOLUME 19,000 T (HOG) PRODUCTION VOLUME MNOK FEED COST FCR MNOK FEED COST FCR NOK FEED COST PER KG 300 1,40 600 1,40
Slide 15: Strong biology impact on EBIT
Q3 2023 STRONG BIOLOGY IMPACT ON EBIT Assumptions*: • Feed price: NOK 20 per kg • FCR: 1.27 (industry average), 1.10 (base • Smolt price: NOK 20 per individual case) and 1.05 (1st production cycle) • Salmon price: NOK 80 per kg • Survival rate 85 %, 95 % and 97.5 % EBIT – 2 MILLION SMOLT RELEASED (5
Slide 16: Agenda
Q3 2023 AGENDA Gravlax from Andfjord Salmon with roe and Norwegian aquavit • Introduction • Quarterly highlights and subsequent events • Andfjord Salmon’s production method: Benefits and potential • STATUS KVALNES BUILD-OUT • Financials • Summary and outlook
Slide 17: Production volume of 40,000 tons at Kvalnes with total potential of 90,000 tons
Q3 2023 PRODUCTION VOLUME OF 40,000 TONS AT KVALNES WITH TOTAL POTENTIAL OF 90,000 TONS Kvalnes build-out plan Expected total production capacity by stages (HOG) Comments 90 000 Tons HOG Kvalnes Pilot • Gradual ramp-up to full capacity of Added Accum. 80 000 Stage, production production 40,000 tons
Slide 18: Kvalnes
Q3 2023 KVALNES Construction start in 2027: +12,000 tons 5 Construction 2023-2025: (exact location to be +18,000 tons decided) +4,000 tons license expansion 1 2 3 4 Construction start in 2026: +5,000 tons First pool In operation: 1,000 tons
Slide 19: Kvalnes
Q3 2023 KVALNES Pool pit excavation reached 80% completion. Outlet and inlet waterways reached 5% completion.
Slide 20: Kvalnes
Q3 2023 KVALNES Port and harbour area progressing as planned. Reached 20% completion. Mass balance approach: 2,100 tonnes relocated on-site every day.
Slide 21: Kvalnes
Q3 2023 KVALNES First pool – proven flow trough technology Technology from traditional salmon farming
Slide 22: Kvalnes expansion in full momentum
Legg inn oppdatert bilde Q2 2023 Erstatte truck loads med • Extensive preparation work KVALNES EXPANSION IN FULL MOMENTUM massebalanse.for å få frem carried out at Kvalnes miljøbudskap Mass balance approach: 2,100 • Concrete injected to tonnes relocated on-site every Fjerne logoer til leverandører s
Slide 23: Key construction milestones for build-out phase at Kvalnes (8,000 t)
Q3 2023 KEY CONSTRUCTION MILESTONES FOR BUILD-OUT PHASE AT KVALNES (8,000 t) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 PLAN: EXCAVATION OF POOL PITS K1-K12 STATUS: 80% FINISHED – AHEAD OF SCHEDULE PLAN: CONCRETE WORKS: K1-K4 STATUS: NOT STARTED PLAN: WATERWAYS S
Slide 24: Strong progress – rock pits ahead of schedule
Q3 2023 STRONG PROGRESS – ROCK PITS AHEAD OF SCHEDULE Project progress per main workstream (per 30 Development progress per active workstream November 2023) 100 Rock pits Port area Waterways 100% 100% 100% 90 90% 90% 90% 80 80 80% 80% 80% 80% 70 70% 70% 70% 60 60% 60% 60% 50 50% 50% 50% 40 40% 40% 4
Slide 25: Agenda
Q3 2023 AGENDA Gravlax from Andfjord Salmon with roe and Norwegian aquavit • Introduction • Quarterly highlights and subsequent events • Andfjord Salmon’s production method: Benefits and potential • Status Kvalnes build-out • FINANCIALS • Summary and outlook
Slide 26: Statement of comprehensive income
Q3 2023 STATEMENT OF COMPREHENSIVE INCOME All amounts in 1000 NOK Statement of comprehensive income Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 1.7 – 30.9 1.7 – 30.9 1.1 – 30.9 1.1 – 30.9 1.1 – 31.12 Unaudited Unaudited Unaudited Unaudited Operating income and expenses Revenue from contracts with custome
Slide 27: Statement of financial position
Q3 2023 STATEMENT OF FINANCIAL POSITION All amounts in 1000 NOK Assets 30.09.2023 - Unaudited 31.12.2022 30.09.2022 - Unaudited Intangible assets 13 245 8 556 6 144 Property, plant & equipment 544 850 498 386 483 860 Right-of-use assets 18 743 22 539 22 829 Other non-current assets 62 89 97 Total no
Slide 28: Statement of financial position
Q3 2023 STATEMENT OF FINANCIAL POSITION All amounts in 1000 NOK Equity and liabilities 30.09.2023 - Unaudited 31.12.2022 30.09.2022 - Unaudited Total equity 1 002 006 475 704 491 737 Borrowings 60 834 67 375 68 976 Lease liabilities 10 095 13 296 13 599 Total non-current liabilities 70 929 80 671 82
Slide 29: Statement of cash flows
Q3 2023 STATEMENT OF CASH FLOWS All amounts in 1000 NOK Statement of cash flows Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 1.7 – 30.9 1.7 – 30.9 1.1 – 30.9 1.1 – 30.9 1.1 – 31.12 Unaudited Unaudited Unaudited Unaudited Net cash flow from operating activities 15 510 -53 773 -26 102 -72 156 -88 443 Net ca
Slide 30: Scale-up tailored for capital efficiency
Q3 2023 SCALE-UP TAILORED FOR CAPITAL EFFICIENCY Incurred costs vs estimated Kvalnes build-out plan Capital expenditure, Kvalnes phase 1 budget cost, incl. buffer) Added Accum. Technical 1800 Capex (NOK, infrastructure Stage, Kvalnes production production 1,650 est.) (8,000t) (HOG, est.) (HOG, est.)
Slide 31: Supportive shareholder base
Q3 2023 SUPPORTIVE SHAREHOLDER BASE TOP 10 SHAREHOLDERS (PER NOVEMBER 2023) JERÓNIMO MARTINS Ranked the 18th largest food retailer in Europe Jerónimo Martins Agro-Alimentar, S.A. 25.12% 5,358 stores, 131,094 employees, and sales of Andfjord Holding AS 11.45% EUR 25.4 billion (2022) KG Investment Com
Slide 32: Agenda
Q3 2023 AGENDA Gravlax from Andfjord Salmon with roe and Norwegian aquavit • Introduction • Quarterly highlights and subsequent events • Andfjord Salmon’s production method: Benefits and potential • Status Kvalnes build-out • Financials • SUMMARY AND OUTLOOK
Slide 33: Summary and outlook
Q3 2023 SUMMARY AND OUTLOOK Successful completion Pool pit excavation Concrete factory to be Harbour area Blasting started on of first production ahead of schedule: set up in Q1 2024, progressing as both inlet and outlet cycle creates flexibility and ready for construction planned waterways, work on
Slide 34: Q&A
69°N Andfjord Salmon burger with ANDØYA Americana dressing and cheddar VESTERÅLEN NORWAY Q&A
Slide 35: Disclaimer
Q3 2023 DISCLAIMER IMPORTANT INFORMATION This presentation (the "Presentation") has been produced by Andfjord Salmon AS (the "Company") solely for information purposes. By reading the Presentation slides or by otherwise receiving this Presentation or the information contained herein, you agree to be
Slide 36: Follow our salmon
Y wl : / i “NG “4 OUR ouUR 7 “ VISION A ve 3 ~~ . oO) Na ; - Follo our salmon y j Y ° e . ‘ é 4 BUILDING THE. WORLD'S MOST FISH-FRIENDLY AND SUSTAINABLE wins SLEAR rciuryor CONSCIENCE ITS KIND