Andfjord Salmon Group As · OSL:ANDF
Andfjord Salmon Group As — Q2 2023 Earnings Presentation
32 slides from Andfjord Salmon Group As's earnings presentation, Sep 14, 2023
Slide 1: Q2 2023 Status and Progress
Q2 2023 STATUS AND PROGRESS 14 SEPTEMBER 2023
Slide 2: Q2 Presentation 2023 Agenda
Q2 2023 Q2 PRESENTATION 2023 AGENDA Introduction Quarterly highlights and subsequent events First harvest Successful financing Next build-out phase Martin Rasmussen Bjarne Martinsen Summary and outlook CEO CFO
Slide 3: Andfjord Salmon in Brief: The Best of Two Worlds
Q2 2023 ANDFJORD SALMON IN BRIEF: THE BEST OF TWO WORLDS 3 BENEFITS FROM SEA BASED NET–PEN FARMING 3 BENEFITS FROM LAND BASED FARMING 1 1 NO PROBLEMS WITH OPTIMAL WATER SALMON LICE AND TEMPERATURES POISONOUS ALGAE 2 OXYGEN-RICH AND CLEAN ARCTIC SEAWATER 2 NATURAL ESCAPE PREVENTION 3 3 LOW ENERGY COL
Slide 4: Natural Flow – Andfjord Salmon's Flow-Through System
JUNE 2023 NATURAL FLOW – ANDFJORD SALMON’S FLOW-THROUGH SYSTEM
Slide 5: DQ onorsono-
4 DQ onorsono- SALMON
Slide 6: Contents
Q2 2023 CONTENTS • Introduction • QUARTERLY HIGHLIGHTS • First harvest • Successful financing • Next build-out phase • Summary and outlook
Slide 7: Highlights Q2 and Subsequent Period
Q2 2023 HIGHLIGHTS Q2 AND SUBSEQUENT PERIOD Bank and equity Build-out plan revealed: Successful first Salmon sold to Kvalnes expansion in full financing secured to fund Roadmap to 40,000 t at production cycle strategically selected momentum next build-out phase Kvalnes completed with strong European
Slide 8: Contents
Q2 2023 CONTENTS • Introduction • Quarterly highlights • FIRST HARVEST • Successful financing • Next build-out phase • Summary and outlook
Slide 9: Supreme Biological Performance
Q2 2023 SUPREME BIOLOGICAL PERFORMANCE Salmon survival rate by county Excellent biology proven by industry leading survival rate in Andfjord’s first pool (conventional farming, 2022) Survival rate (%) 99,8 99,7 99,5 99,3 98,9 98,7 98,4 98,3 98,2 98,1 98,0 97,9 97,8 100 Pre-harvest 88.0% Post-harvest
Slide 10: Steep Growth Rates from First Production Cycle
Q2 2023 STEEP GROWTH RATES FROM FIRST PRODUCTION CYCLE 40% ahead of expectations based on Average weight per fish (grams) benchmarking against conventional farming • Fish growth 40% ahead of original schedule Stopped based on Skretting’s growth table for ocean net feeding 20 June 3 400 pen • Stopped
Slide 11: Successful First Production Cycle
Q2 2023 SUCCESSFUL FIRST PRODUCTION CYCLE 97.5% 91.1% 3.4 kg 646 t 530 t An industry leading Superior share of first Average weight per fish Total biomass Head-On Gutted (HOG) survival rate harvest of salmon
Slide 12: Average price achieved per kilo superior salmon
12 Circles: Average price achieved per kilo superior salmon
Slide 13: Positive Response from the International Markets
Q2 2023 POSITIVE RESPONSE FROM THE INTERNATIONAL MARKETS “Very satisfied with yield and colour. “Very pleased, and positively Willing to pay more for the next batch.” surprised by the excellent colour”. Polish customer that produces fresh, Irish customer smoked and frozen salmon products “So satisfi
Slide 14: Contents
Q2 2023 CONTENTS • Introduction • Quarterly highlights • First harvest • SUCCESSFUL FINANCING • Next build-out phase • Summary and outlook 14
Slide 15: Statement of Comprehensive Income
Q2 2023 STATEMENT OF COMPREHENSIVE INCOME All amounts in 1000 NOK Statement of comprehensive income Q2 2023 Q2 2022 HY 2023 HY 2022 2022 1.4 – 30.6 1.4 – 30.6 1.1 – 30.6 1.1 – 30.6 1.1 – 31.12 Unaudited Unaudited Unaudited Unaudited Operating income and expenses Revenue from contracts with customers
Slide 16: Statement of Financial Position
Q2 2023 STATEMENT OF FINANCIAL POSITION All amounts in 1000 NOK Assets 30.06.2023 - Unaudited 31.12.2022 30.06.2022 - Unaudited Intangible assets 12 570 8 556 3 599 Property, plant & equipment 521 109 498 386 481 911 Right-of-use assets 19 496 22 539 24 104 Other non-current assets 71 89 106 Total n
Slide 17: Statement of Financial Position
Q2 2023 STATEMENT OF FINANCIAL POSITION All amounts in 1000 NOK Equity and liabilities 30.06.2023 - Unaudited 31.12.2022 30.06.2022 - Unaudited Total equity 643 061 475 704 515 300 Borrowings 63 417 67 375 122 562 Lease liabilities 11 027 13 296 14 517 Total non-current liabilities 74 444 80 671 137
Slide 18: Statement of Cash Flows
Q2 2023 STATEMENT OF CASH FLOWS All amounts in 1000 NOK Statement of cash flows Q2 2023 Q2 2022 HY 2023 HY 2022 2022 1.4 – 30.6 1.4 – 30.6 1.1 – 30.6 1.1 – 30.6 1.1 – 31.12 Unaudited Unaudited Unaudited Unaudited Net cash flow from operating activities -27 315 -2 520 -41 612 -18 383 -88 443 Net cash
Slide 19: Financing Secured for Kvalnes Build-Out
Q2 2023 FINANCING SECURED FOR KVALNES BUILD-OUT NOK 825 MILLION BANK LOAN COMMITMENT TOP 10 SHAREHOLDERS (PER 4 SEPTEMBER 2023) • SpareBank 1 Nord-Norge, SpareBank 1 SR-bank, SpareBank 1 SMN, with Ranked the 18th largest support from Eksfin. Bank loan for 50 % of the investment Jerónimo Martins Agro
Slide 20: Scale-Up Tailored for Capital Efficiency
Q2 2023 SCALE-UP TAILORED FOR CAPITAL EFFICIENCY Kvalnes build-out plan Uses of capital, Kvalnes phase 1 Added Accum. Technical Capex (NOK, infrastructure Stage, Kvalnes production production est.) (8,000t) (HOG, est.) (HOG, est.) Waterways (40,000t) ~20% Pilot ~ 450m +1,000t 1,000t ~30% 1 Up to 1,6
Slide 21: Progress as Planned
Q2 2023 PROGRESS AS PLANNED Incurred costs vs estimated Uses of capital, Kvalnes phase 1 Project progress per main budget cost, incl. buffer (per workstream (per 31 August 2023) 30 June 2023) 100 1800 90 1600 Technical infrastructure 80 (8,000t) Waterways 1400 (40,000t) 70 ~20% ~30% 1200 60 Up to 10
Slide 22: Production Volume of 40,000 Tons at Kvalnes with Total Potential of 90,000 Tons
Q2 2023 PRODUCTION VOLUME OF 40,000 TONS AT KVALNES WITH TOTAL POTENTIAL OF 90,000 TONS Kvalnes build-out plan Expected total production profile by stages (HOG) Comments Tons HOG • Targeting first harvest of up to 700 tons (HOG) in Added Accum. Stage, production production June/July 2023 Kvalnes (HO
Slide 23: Contents
Q2 2023 CONTENTS • Introduction • Quarterly highlights • First harvest • Successful financing • NEXT BUILD-OUT PHASE • Summary and outlook 23
Slide 24: Kvalnes 1, Phase Two
Q2 2023 KVALNES 1, PHASE TWO FISKENES BREIVIKA KVALNES 24
Slide 25: Kvalnes 1 – Phase Two
Q2 2023 KVALNES 1 – PHASE TWO Construction start in 2027: +12,000 tons 5 Construction start in 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 Pilot In operation: 1,000 tons 25
Slide 26: Kvalnes Expansion in Full Momentum
Q2 2023 • Extensive preparation work carried out at Kvalnes KVALNES EXPANSION IN FULL MOMENTUM • Concrete injected to stabilize the sections surrounding the 12 pools • Excavated masses from pool pits and waterways utilised for port and quay development.
Slide 27: Key Construction Milestones for Build-Out Phase at Kvalnes (8,000 t)
Q2 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 EXCAVATION OF POOL PITS K1-K12 CONCRETE WORKS: K1-K4 WATERWAYS INSTALLATION OF TECHNICAL INFRASTRUCTURE HARBOUR AND PORT SMOLT RELEASE
Slide 28: Contents
Q2 2023 CONTENTS • Introduction • Quarterly highlights • First harvest • Successful financing • Next build-out phase • SUMMARY AND OUTLOOK 28
Slide 29: Summary and Outlook
Q2 2023 SUMMARY AND OUTLOOK Bank and equity Build-out plan Successful first Salmon sold to various Kvalnes expansion in financing secured to revealed: Roadmap to production cycle European distributors full momentum fund next build-out 40,000 t at Kvalnes completed with strong phase (8,000 t) at biol
Slide 30: Q&A
69°N ANDØYA VESTERÅLEN NORWAY Q&A 30
Slide 31: Disclaimer
Q2 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 32: Andfjord Salmon AS – Follow Our Salmon
69°N ANDØYA VESTERÅLEN NORWAY ANDFJORD SALMON AS KVALNES, ANDØYA, NORWAY FOLLOW OUR SALMON: ANDFJORDSALMON.COM ANDFJORD.NO POST@ANDFJORD.NO
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