Slide 1: Q2 2023 Presentation
Q2 2023 PRESENTATION CEO: Trond Håkon Schaug-Pettersen CFO: Trond Vadset Veibust 17 August 2023
Slide 2: Disclaimer
DISCLAIMER This presentation (the “Presentation”) has been prepared by Salmon Evolution ASA (the “Company” and together with is subsidiaries, the “Group”) except where context otherwise requires, solely for information purposes. This Presentation, and the information contained herein, does not const
Slide 3: Agenda
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 3 Q2 2023 Presentation
Slide 4: Highlights
HIGHLIGHTS • Biomass production is back on track – strong • Favorable production cost development – further biological performance since mid-May with good improvements expected alongside increased appetite and normal mortality levels. production volumes. • Q3 on track for all time high biomass produ
Slide 5: Agenda
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 5 Q2 2023 Presentation
Slide 6: Strong biological performance
STRONG BIOLOGICAL PERFORMANCE Comments Net biomass growth1) (LW) and harvest volumes (HOG) 1 200 1 800 • On 15 August biomass growth in Q3 amounts to ~580 tonnes (LW). The total standing 1 000 1 500 Net biomass growth (tonnes, LW) biomass amounts to ~1,628 tonnes (LW). Total biomass (tonnes, LW) Qua
Slide 7: Group biomass overview
GROUP BIOMASS OVERVIEW Group biomass development 30 June 2023 15 August 2023 Biomass Biomass Batch Units (#) Weight (g) Units (#) Weight (g) Comments (tonnes, LW) (tonnes, LW) Split in two groups with largest at ~3.8 kg. Good appetite over Batch #3 (Oct 22) ~149,000 ~2,010 300 ~147,000 ~3,000 441 th
Slide 8: Three more smolt releases planned for rest of 2023
THREE MORE SMOLT RELEASES PLANNED FOR REST OF 2023 Graphical approximation of the current production plan and is prepared for illustration purposes Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Batch #3 Batch #4 Batch #5 Batch #6 Stocked: end May Batch #7 Stocked: end June Batch #8 Batch #9 Batch #10 Stea
Slide 9: Batch 2 harvested out in May with good results
BATCH 2 HARVESTED OUT IN MAY WITH GOOD RESULTS Comments • Total batch 2 harvest volumes of 585 tonnes HOG. • Fast tracking of harvest in a historically strong market as a precautionary step with regards to fish welfare • Harvest capacities and operational procedures stress tested – the whole batch w
Slide 10: Contracts awarded for Indre Harøy Phase 2
CONTRACTS AWARDED FOR INDRE HARØY PHASE 2 Indre Harøy Phase 2 project status • Contracts awarded for Indre Harøy phase 2. • Upon completion phase 2 adds another 7.9kt HOG, Preparatory blasting and bringing the total up to 15.8kt HOG per annum. excavation works close to completion • Estimated phase 2
Slide 11: Agenda
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 11 Q2 2023 Presentation
Slide 12: K Smart Farming – focus on engineering and permitting
K SMART FARMING – FOCUS ON ENGINEERING AND PERMITTING Project overview Overview main permits • Joint venture between SE and Dongwon Industries, Jeongseon (smolt facility) ownership split 49/51% respectively. • Dongwon Industries to facilitate 75% debt financing. Permit Status Comment • Targeted tota
Slide 13: North America – building a pipeline for future growth
NORTH AMERICA – BUILDING A PIPELINE FOR FUTURE GROWTH Project overview Target areas • Established dedicated team and incorporated US corporate structure. • Partnership model to be pursued once project matures, leveraging Salmon Evolution’s human capital. Comments Target areas • Project is receiving
Slide 14: Agenda
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 14 Q2 2023 Presentation
Slide 15: Farming cost continues to trend the right way
FARMING COST CONTINUES TO TREND THE RIGHT WAY Farming EBITDA cost1 (NOK/kg HOG) projection Comments Batch 5 - actuals1 • With high biomass production and 100 increasing volumes, farming cost is coming down. Expected forward prices (Fishpool) in harvest period 80 • Batch 5 with NOK ~71/kg HOG farming
Slide 16: Group profit and loss
GROUP PROFIT AND LOSS (figures in NOK 1000) Sales revenues Q2 23 56 287 Q2 22 12 689 YTD 23 56 287 YTD 22 19 515 2022 46 107 • Revenues of NOK 56.3m in Q2 related to harvest of Other income 4 459 -11 7 431 -19 1 574 batch 2. The price realization was NOK ~96.2 per KG1. Total operating revenue 60 746
Slide 17: Underlying positive farming result in Q2
UNDERLYING POSITIVE FARMING RESULT IN Q2 ADJUSTED FOR INCIDENT AND EXTRAORDINARY COSTS Adjusted operational EBITDA – Farming Norway Comments 5,0 • The operational EBITDA for the farming segment ended at negative NOK 5.9m. 8,9 12,9 -3,1 • The segment recorded NOK 12.9m in incident-based mortality cos
Slide 18: Financial position and cash flow
FINANCIAL POSITION AND CASH FLOW Financial position • Strong financial position. (figures in NOK 1000) 30 June 2023 31 March 2023 31 Dec 2022 30 June 2022 • Available liquidity of NOK 853 million per 30 June Non-current assets Current assets 2 004 856 766 288 1 943 697 352 039 1 850 894 455 281 1 57
Slide 19: Agenda
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 19 Q2 2023 Presentation
Slide 20: Roadmap to 100,000 tonnes HOG
ROADMAP TO 100,000 TONNES HOG 2020 2022 2024 2026 2028 2030 2032 NORWAY 31.5kt Indre Harøy based on current licenses Phase 1 Phase 2 Phase 3 7.9kt 7.9kt 15.7kt ++ 31.5kt+ ASIA South Korea phase 1 South Korea phase 2 8.4kt 8.4kt ++ 16.8kt+ North America North America 31.5kt+ ++ 31.5kt+ TOTAL Illustra
Slide 21: Summary & outlook
SUMMARY & OUTLOOK • Biomass production back on track – strong biological performance since mid May with good appetite and normal mortality levels • Q3 on track for all time high biomass production – standing biomass of 1,628 tonnes (LW) per 15 August. • Next harvest expected in September and steady
Slide 22: Q&A
Q&A www.salmonevolution.no 23 Q2 2023 Presentation
Slide 23: Agenda
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 24 Q2 2023 Presentation
Slide 24: Salmon Evolution at a glance
SALMON EVOLUTION AT A GLANCE Company overview Salmon farming facilities1 ▪ Established in 2017 Indre Harøy Yangyang ▪ Based in Hustadvika, strategically located in the salmon farming cluster on the west coast of Norway ▪ Listed on Oslo Stock Exchange in 2021 49% ownership ▪ Highly experienced and co
Slide 25: Robustness of hybrid flow through system fully demonstrated during the quarter
ROBUSTNESS OF HYBRID FLOW THROUGH SYSTEM FULLY DEMONSTRATED DURING THE QUARTER 1 We have found the sweet-spot: 2 Minimizing risk: Hybrid flow-through system (HFS) Each tank is a separate biozone RAS Recirculating aquaculture system Biofilter shared by No biofilter – each tank a several tanks – separ
Slide 26: Strong management team with extensive experience
Strong management team with extensive experience leading a growing organization and corporation Management team Organizational structure Corporate structure Trond Håkon Schaug-Pettersen, CEO ▪ >15 years experience from both salmon industry and capital markets notably at Hofseth International and Swe
Slide 27: Highly competent board of directors backed by strong owners
Highly competent board of directors backed by strong owners Board of directors Ownership as per 30 June 2023 Tore A. Tønseth Eunhong Min Ownership Chairman of the board Board member Shareholder Board representative Comments share ▪ Investment Director at Ronja ▪ Chief Executive Officer of Capital Do