Andfjord Salmon Group As · OSL:ANDF
Andfjord Salmon Group As — Q3 2024 Earnings Presentation
32 slides from Andfjord Salmon Group As's earnings presentation, Nov 28, 2024
Slide 1: Q3 2024 Status and Progress
Q3 2024 STATUS AND PROGRESS 28 NOVEMBER 2024
Slide 2: Agenda
Q3 2024 AGENDA • ANDFJORD SALMON IN BRIEF • Quarterly highlights and subsequent events • Status Kvalnes build-out • Proposed new land-based aquaculture regulations: Andfjord Salmon’s response • Financials • Summary and outlook Martin Rasmussen Bjarne Martinsen Jostein Nilssen CEO CFO Project Directo
Slide 3: SH FA
SH FA EISH F RMING : CONSCIE NCE 7 ae. _ Dasiorsgner * ™
Slide 4: The Best of Two Worlds
Q3 2024 THE BEST OF TWO WORLDS 3 BENEFITS OF SEA BASED NET PEN FARMING 3 BENEFITS OF LAND BASED FARMING First pool, Kvalnes First pool, Kvalnes 1 1 NO PROBLEMS WITH NATURAL OPTIMAL SALMON LICE AND WATER TEMPERATURES POISONOUS ALGAE 2 2 OXYGEN-RICH AND NATURAL ESCAPE CLEAN ARCTIC PREVENTION SEAWATER
Slide 5: Natural Flow – Andfjord Salmon's Flow-Through System
JUNE 2023 NATURAL FLOW – ANDFJORD SALMON’S FLOW-THROUGH SYSTEM
Slide 6: Andfjord Salmon
ANDFJORD™ SALMON
Slide 7: Key Figures – First Production Cycle
Q3 2024 KEY FIGURES – FIRST PRODUCTION CYCLE HIGH LOW FEED STRONGER LOWER ENERGY HIGH SUPERIOR SURVIVAL RATE CONVERSION GROWTH COSTS SHARE RATE 97.5% 1.05 +1 kilo 1 kWh 91.1% Industry average Industry average Extra growth Energy use per kilo Industry average = 83.3%* = 1.27** compared to produced sa
Slide 8: Agenda
Q3 2024 AGENDA • Andfjord Salmon in brief • QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS • Status Kvalnes build-out • Proposed new land-based aquaculture regulations: Andfjord Salmon’s response • Financials • Summary and outlook
Slide 9: Highlights Q3 and Subsequent Period
Q3 2024 HIGHLIGHTS Q3 AND SUBSEQUENT PERIOD KVALNES BUILD-OUT WATERWAYS NEAR SOLID PROGRESS ON PROPOSED ON TRACK COMPLETION NEXT FOUR POOLS REGULATIONS All workstreams on or De-risks a challenging Pool framework for all Response submitted as ahead of schedule part of the Kvalnes build- four pools cl
Slide 10: Agenda
Q3 2024 AGENDA • Andfjord Salmon in brief • Quarterly highlights and subsequent events • STATUS KVALNES BUILD-OUT • Proposed new land-based aquaculture regulations: Andfjord Salmon’s response • Financials • Summary and outlook
Slide 11: Production Volume of 40,000t at Kvalnes with Total Potential of 90,000t
Q3 2024 PRODUCTION VOLUME OF 40,000t AT KVALNES WITH TOTAL POTENTIAL OF 90,000t 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 tonnes at Kva
Slide 12: Construction start 2023-2025: +18,000 tonnes
Construction start 2023-2025: +18,000 tonnes +4,000 tonnes licence expansion 1 2 3 Construction start in 2027: +12,000 tonnes 5 (exact location to be decided) 4 Construction start in 2026: +5,000 tonnes First pool In operation: 1,000 tonnes NOTE: ILLUSTRATIVE GRAPHICS
Slide 13: Status and Progress – Waterways
2024 Q3 2023 STATUS AND PROGRESS – WATERWAYS WATERWAYS ON TRACK o Capacity to support annual production of 40,000 tonnes (HOG) of Salmon o Workstream on track o Strong progress in recent months: Reached 90% completion as of 27 November 2024 o Total length 4.4 km: o 20 m of outlet waterway remains o
Slide 14: Waterways: Infrastructure in Place
2024 Q3 2023 WATERWAYS: INFRASTRUCTURE IN PLACE TUNNEL INFRASTRUCTURE BELOW POOLS COMPLETED o 8 x vertical inlet shafts to provide pools with fresh seawater (most adjacent pools share one inlet) o 6 x vertical outlet shafts (adjacent pools share one outlet) o Completed horizontal sections from pools
Slide 15: Status and Progress – Pools
2024 Q3 2023 STATUS AND PROGRESS – POOLS 4 POOLS BEING CONSTRUCTED o Workstream on track o Concrete wall elements produced by factory on site o Columns, supports and preparations for wall elements completed for K1 and in progress for K3 o CONSTRUCTION STEPS: o Installation of walls with Ultra-High P
Slide 16: Status and Progress – Harbour
2024 Q3 2023 STATUS AND PROGRESS – HARBOUR QUAY AND BREAKWATER BEING CONSTRUCTED o Workstream on track o Excavated masses from the tunnels and pool pits being moved into place to complete the breakwater o Digging underway to make the harbour deeper
Slide 17: Sustainability at Core of Build-Out
2024 Q3 2023 SUSTAINABILITY AT CORE OF BUILD-OUT EFFICIENT AND SMART BUILD-OUT PROCESS o Utilising masses from pool pits and tunnels as raw material in concrete reduces costs and enhances environmental sustainability. o Saves approximately 23,300 tonnes (equivalent to 780 truckloads) of concrete mat
Slide 18: Key Construction Milestones for Build-Out Phase at Kvalnes (8,000 t)
Q3 2024 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: 100% FINISHED – AHEAD OF SCHEDULE PLAN: CONCRETE WORKS: POOLS K1-K4 STATUS: 51% COMPLETION PLAN: W
Slide 19: Agenda
Q3 2024 AGENDA • Introduction • Quarterly highlights and subsequent events • Status Kvalnes build-out • PROPOSED NEW LAND-BASED AQUACULTURE REGULATIONS: ANDFJORD SALMON’S RESPONSE • Financials • Summary and outlook
Slide 20: Proposed New Regulations for Land-Based Aquaculture
Q3 2024 PROPOSED NEW REGULATIONS FOR LAND-BASED AQUACULTURE BACKGROUND KEY POINTS FROM THE PROPOSAL o After a two-year standstill period for administering licence applications for land- o The proposals will not affect facilities that have already received permission based aquaculture, the Norwegian
Slide 21: Response to Proposal
Q3 2024 RESPONSE TO PROPOSAL MAIN COMMENTS FROM ANDFJORD SALMON o No need for universal disinfection requirement. o A “one size fits all” approach to disinfection of inlet water is unnecessary, because prevention of infection to surrounding o Unwise to establish framework conditions that limit the m
Slide 22: Agenda
Q3 2024 AGENDA • Andfjord Salmon in brief • Quarterly highlights and subsequent events • Status Kvalnes build-out • Proposed new land-based aquaculture regulations: Andfjord Salmon’s response • FINANCIALS • Summary and outlook
Slide 23: Statement of Comprehensive Income
Q3 2024 STATEMENT OF COMPREHENSIVE INCOME All amounts in NOK 1,000 Statement of comprehensive income Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 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 custom
Slide 24: Statement of Financial Position
Q3 2024 STATEMENT OF FINANCIAL POSITION All amounts in NOK 1,000 Assets 30.09.2024 - Unaudited 31.12.2023 30.09.2023 - Unaudited Intangible assets 16 259 14 389 13 245 Property, plant & equipment 1 825 558 876 632 544 850 Right-of-use assets 14 068 17 640 18 743 Other non-current assets 27 113 62 To
Slide 25: Statement of Financial Position
Q3 2024 STATEMENT OF FINANCIAL POSITION All amounts in NOK 1,000 Equity and liabilities 30.09.2024 - Unaudited 31.12.2023 30.09.2023 - Unaudited Total equity 1 272 107 993 688 1 002 006 Borrowings 607 899 59 959 60 834 Lease liabilities 7 005 9 340 10 095 Total non-current liabilities 614 904 69 299
Slide 26: Statement of Cash Flows
Q3 2024 STATEMENT OF CASH FLOWS All amounts in NOK 1,000 Statement of cash flows Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 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 -9 408 15 510 -41 138 -26 102 -29 148 Net cash f
Slide 27: Scale-Up Tailored for Capital Efficiency
Q3 2024 SCALE-UP TAILORED FOR CAPITAL EFFICIENCY CAPITAL EXPENDITURE, INCURRED COSTS VS ESTIMATED KVALNES BUILD-OUT PLAN KVALNES PHASE 1 BUDGET COST, INCL. BUFFER Added Accum. Technical Capex (NOK, infrastructure Stage, Kvalnes production production 2000 est.) (8,000t) (HOG, est.) (HOG, est.) Waterw
Slide 28: Supportive Shareholder Group
Q3 2024 SUPPORTIVE SHAREHOLDER GROUP 10 LARGEST INVESTORS SHARES % STRONG SUPPORT FROM LARGE INDUSTRIAL INVESTORS Jerónimo Martins Agro-Alimentar S.A 18,958,855 28.04% • Lisbon-listed group with 230 years of know-how in the food business Andfjord Holding AS 4,858,680 7.19% • Revenue of EUR 30 billio
Slide 29: Agenda
Q3 2024 AGENDA • Andfjord Salmon in brief • Quarterly highlights and subsequent events • Status Kvalnes build-out • Proposed new land-based aquaculture regulations: Andfjord Salmon’s response • Financials • SUMMARY AND OUTLOOK
Slide 30: Highlights Q3 and Subsequent Period
Q3 2024 HIGHLIGHTS Q3 AND SUBSEQUENT PERIOD Oppdater bilde KVALNES BUILD-OUT WATERWAYS NEAR SOLID PROGRESS ON PROPOSED ON TRACK COMPLETION FOUR NEXT POOLS REGULATIONS All workstreams on or De-risks a challenging Pool framework for all Response submitted as ahead of schedule part of the Kvalnes build
Slide 31: Q&A
Q3 2024 Q&A
Slide 32: Next Quarterly Update
Q3 Q2 2024 NEXT QUARTERLY UPDATE: Q4 2024 presentation – 18 February 2025 For more information on this presentation and its contents, please contact: Bjarne Martinsen, CFO Andfjord Salmon bjarne.martinsen@andfjord.no.
Andfjord Salmon Group AS — Q3 2024 Earnings Presentation on 6ix