Gigante Salmon As · OSL:GIGA
Gigante Salmon As — Investor Presentation (June 2024)
36 slides from Gigante Salmon As's investor presentation, Jun 13, 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION 13 Juni 2024 Private and confidential
Slide 2: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN FORM PART OF ANY PUBLIC OFFER OF SECURITIES AND NO ONE HAS TAKEN ANY ACTION THAT WOULD PERMIT A PUBLIC OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS
Slide 3: Table of Contents
TABLE OF CONTENTS 4 INTRODUCTION 5 COMPANY OVERVIEW 19 CAPEX UPDATE 22 BUSINESS PLAN 28 RISK FACTORS 3
Slide 4: Introduction: Project Summary
PROJECT SUMMARY INTRODUCTION BACKGROUND HIGHLY COMPETITIVE PROJECT ECONOMICS: PRODUCTION COSTS1 CAPEX ▪ Gigante Salmon is constructing a land-based salmon farming site on Lille Indre NOK/kg HOG NOK/kg HOG Rosøy which has a yearly production capacity of up to 16.000 tonnes HOG, based 188 on a license
Slide 5: Company Overview
COMPANY OVERVIEW
Slide 6: Investment Highlights
COMPANY OVERVIEW INVESTMENT HIGHLIGHTS ▪ Developed by a family-owned traditional salmon farmer. EXPERIENCE ▪ Gigante Havbruk AS (“Gigante Havbruk”) has 30 years of experience of successful salmon farming. ▪ Experienced management and operational team in place. ▪ Design builds on technology proven in
Slide 7: Progress and Milestones
COMPANY OVERVIEW PROGRESS AND MILESTONES The Norwegian Ministry of Rødøy Municipality approves the Fisheries lifted the requirement rezoning from agricultural and natural for licenses for land-based areas (LNF) to industrial use for land- aquaculture facilities in based aquaculture. Norway. The work
Slide 8: On Track for First Harvest in Q2-2025
COMPANY OVERVIEW ON TRACK FOR FIRST HARVEST IN Q2-2025 2023 2024 2025 2026 2027 2028 CONSTRUCTION PROJECT EXECUCTION PHASE PRODUCTION PLANT COMPLETED PRODUCTION PRODUCTION 0.15 MILL. SMOLT TEST HARVEST 550 TONNES HOG PRODUCTION 1.1 MILL. SMOLT PRODUCTION PHASE 1 HARVEST 5,000 TONNES HOG PRODUCTION 2
Slide 9: Designed for Operational Efficiency and Safety
COMPANY OVERVIEW DESIGNED FOR OPERATIONAL EFFICIENCY AND SAFETY ▪ The 3 production pools are divided into 3-4 raceways that are between 110 and 214 meters in length with a longitudinal partition, allowing water to circulate from one side to the other and back again. ▪ The production pools have a wat
Slide 10: Construction Phase Completed; First Basin in Operation
CONSTRUCTION PHASE 1 WAS COMPLETED IN JANUARY 2024 AND THE FIRST COMPANY OVERVIEW BASIN IS NOW IN OPERATION THREE RACEWAYS COMPLETED TEST PRODUCTION 10
Slide 11: Construction of Second and Third Basins Underway
COMPANY OVERVIEW THE CONSTRUCTION OF THE SECOND AND THIRD BASINS IS WELL UNDERWAY THE CONTRUCTION IS PROGRESSING ACCORDING TO PLAN. THE SECOND BASIN IS EXPECTED TO BE COMPLETED IN Q3 2024 AND THE THIRD BASIN IN Q2 2025 11
Slide 12: Test Production Ongoing
THE TEST PRODUCTION IS ONGOING AND PREPARATIONS FOR THE NEXT COMPANY OVERVIEW SMOLT RELEASE HAVE BEGUN ▪ After the first smolt release in January 2024, important lessons have been learned contributing to new solutions for more efficient operations. These will be incorporated into the two basins unde
Slide 13: Construction Design Gives High Flexibility
COMPANY OVERVIEW THE CONSTRUCTION DESIGN GIVES HIGH DEGREE OF FLEXIBILITY PRODUCTION PHASE 1 TEST PRODUCTION PRODUCTION PHASE 1 TEST PRODUCTION PRODUCTION PHASE 1 The test production is taking Production phase 1 will take During spring/summer 2025 the The fish from production phase place in the midd
Slide 14: Kjell Lorentsen Has Taken the Helm of the Company
COMPANY OVERVIEW KJELL LORENTSEN HAS TAKEN THE HELM OF THE COMPANY KJELL LORENTSEN RUNE JOHANSEN LINDA STORHOLM KRISTINE ØDEGÅRD KRISTIAN AANES STIAN MYRVANG CEO CFO CCO CQO Technical manager Site manager ▪ Founder and long time ▪ Worked as CFO in Salten ▪ Master's degree in ▪ Biological aquaculture
Slide 15: Complementary and Highly Experienced Board of Directors
COMPANY OVERVIEW COMPLEMENTARY AND HIGHLY EXPERIENCED BOARD OF DIRECTORS LIV MONICA STUBHOLT KRISTIAN LORENTSEN CHAIR OF THE BOARD BOARD MEMBER ▪ Solicitor and partner in ▪ CEO Gigante Havbruk AS Advokatfirmaet Selmer AS ▪ Experience as auditor in Ernst & ▪ Leads the firm’s sustainability Young and
Slide 16: Highly Supportive Industrial Owner in Gigante Havbruk
COMPANY OVERVIEW HIGHLY SUPPORTIVE INDUSTRIAL OWNER IN GIGANTE HAVBRUK IN BRIEF STRONG BALANCE SHEET … … AND HIGH PROFITABILITY AND GROWTH MNOK MNOK ▪ The largest owner in Gigante Salmon is Gigante Havbruk, with Revenue EBITDA 51% direct ownership. 2,162 2,162 1,281 ▪ Gigante Havbruk has 160 FTE wit
Slide 17: Access to a Fully Integrated Value Chain
COMPANY OVERVIEW GIGANTE SALMON HAS ACCESS TO A FULLY INTEGRATED VALUE CHAIN BROODSTOCK SMOLT PRODUCTION WELLBOAT HARVEST EXPORT AND BREEDING THE MAJORITY OWNER GIGANTE HAVBRUK IS ALSO A CO-OWNER OF OPERATIONS AT ALL STAGES OF THE SALMON VALUE CREATION CHAIN. THIS ENSURES GIGANTE SALMON ACCESS TO NE
Slide 18: Large Proportion of Shareholders Are Industrial
A LARGE PROPORTION OF THE COMPANY’S SHAREHOLDERS ARE INDUSTRIAL COMPANY OVERVIEW SHAREHOLDERS FROM THE AQUACULTURE INDUSTRY # Shareholders as of 07/05/24 # shares % total total DISTRIBUTION OF SHAREHOLDERS 1 GIGANTE HAVBRUK AS 68,126,888 50.77% Private 2 KAPNORD AS1 17,272,728 12.87% 4% 3 YANNICK AS
Slide 19: Capex Update
CAPEX UPDATE
Slide 20: Capex Forecast Updated After First Production Basin
CAPEX FORECAST UPDATED TO REFLECT EXPERIENCES AFTER COMPLETION OF THE CAPEX UPDATE FIRST PRODUCTION BASIN CAPEX OVERVIEW AND COMPARISON MNOK 995 123 Other 63 Shore power 204 Pumps and pipes 645 65 62 Other 192 Technical installations Excavation 13% 82 19% Shore power 6% 160 222 Concrete, w
Slide 21: Gigante Salmon Has Highly Favorable Capex
GIGANTE SALMON HAS HIGHLY FAVORABLE CAPEX CAPEX UPDATE CAPEX PER KG HOG NOK 300 200-250 250 200-230 200 165-190 188 150 100 62 50 0 Land-based RAS Land-based Hybrid Conventional farming Gigante Salmon Phase 1 Gigante Salmon Full production 21 Source: Company information
Slide 22: Business Plan
BUSINESS PLAN
Slide 23: Fully-Funded to Produce 16,000 Tonnes After Capital Raise
FULLY-FUNDED TO PRODUCE 16,000 TONNES AFTER CAPITAL RAISE BUSINESS PLAN PHASE 1 FULL PRODUCTION INVESTMENT: MNOK 995 No additional investments required SMOLT RELEASED: 1,100,000 3,300,000 HARVEST (TONNES, WFE): 6,300 19,000 HARVEST (TONNES, HOG): 5,300 16,000 UTILISATION MAB: 0.5x 1.4x PROD. COST NO
Slide 24: Favorable Salmon Price Development in Recent Years
FAVORABLE SALMON PRICE DEVELOPMENT IN RECENT YEARS BUSINESS PLAN AVG. SALMON PRICE ▪ The average weekly salmon price has NOK/kg been 73 NOK/kg over the past 5 years. 160 ▪ In the last couple of years, the average weekly salmon price has increased to 140 92 NOK/kg and there have also been AVG. YTD24:
Slide 25: Competitive Production Costs
COMPETITIVE PRODUCTION COSTS BUSINESS PLAN EBIT-COSTS PER KG HOG2 ▪ Feed conversion and mortality rates per NOK 2023 generation are conservatively assumed at 1.10 and 10 % respectively for budgeting purposes 60 59 ▪ When comparing Gigante Salmon and 4 traditional aquaculture, one of the 9 major diff
Slide 26: Illustrative EBIT Sensitivities
ILLUSTRATIVE EBIT SENSITIVITIES WITH DIFFERENT PRICE AND COST ASSUMPTIONS BUSINESS PLAN EBIT SENSITIVITY PHASE 1 PRODUCTION EBIT SENSITIVITY AT FULL PRODUCTION MNOK MNOK 1,085 1,017 950 925 857 291 790 261 765 238 697 232 630 208 605 185 537 179 470 155 445 132 126 377 102 310 79 73 49 20 Salmon Sal
Slide 27: Investment Summary
INVESTMENT SUMMARY BUSINESS PLAN STRONG SHAREHOLDER AND STATE OF THE ART OWNERSHIP BANK SUPPORT TECHNOLOGY The company is backed by strong The capital raise is backed by a 130 The finished site will be substantially owners with extensive industrial MNOK precommitment from Gigante more efficient to m
Slide 28: Risk Factors
RISK FACTORS
Slide 29: Risk Factors (1/7)
RISK FACTORS (1/7) RISK FACTORS Investing in the Company and its Shares involves inherent and significant risks, and an investment in the Company and its Shares is suitable only for investors who understand the risks associated with this type of investment and who can afford a loss of all or part of
Slide 30: Risk Factors (2/7)
RISK FACTORS (2/7) RISK FACTORS The Company may not have sufficient insurance coverage to cover any damage to the Rødøy Facility, during and after the construction has completed The Rødøy Facility is subject to risk for damage during the construction work, and even after completion of the constructi
Slide 31: Risk Factors (3/7)
RISK FACTORS (3/7) RISK FACTORS Aquaculture is vulnerable to errors in technology, production equipment and maintenance routines Aquaculture as an industry is vulnerable to errors in technology, production equipment and maintenance routines. Such errors could cause damage to production and biomass,
Slide 32: Risk Factors (4/7)
RISK FACTORS (4/7) RISK FACTORS Risks related to food safety and health concerns Food safety issues and perceived health concerns may in the future have a negative impact on demand for the products of the Group. It will be of critical importance to the Group that its products are perceived as safe a
Slide 33: Risk Factors (5/7)
RISK FACTORS (5/7) RISK FACTORS Risks related to intellectual property The success of the Group will depend on the Group's ability to preserve trade secrets, to prevent third parties from infringi ng proprietary rights of the Group and to operate without infringing the proprietary rights of third pa
Slide 34: Risk Factors (6/7)
RISK FACTORS (6/7) RISK FACTORS Any failure to comply with applicable trade sanctions and restrictions could also result in criminal and civil penalties and sanctions, such as fines and loss of import and export privileges. Risks related to litigation, disputes and claims The Group may in the future
Slide 35: Risk Factors (7/7)
RISK FACTORS (7/7) RISK FACTORS RISK RELATING TO THE SHARES The Company does not expect to pay dividends in the near future Norwegian law provides that any declaration of dividends must be adopted by the Company’s shareholders at the Company’s general meeting of shareholders. Dividends may only be d
Slide 36: Gigante Salmon
Gigante ax Salmon
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