Andfjord Salmon Group As · OSL:ANDF
Andfjord Salmon Group As — Investor Presentation (February 2025)
23 slides from Andfjord Salmon Group As's investor presentation, February 2025
Slide 1: Company Presentation
COMPANY PRESENTATION FEBRUARY 2025
Slide 2: Disclaimer
FEBRUARY 2025 DISCLAIMER IMPORTANT INFORMATION This presentation and its appendices (the "Presentation") has been produced by Andfjord Salmon Group AS (the "Company") solely for information purposes. By attending a meeting where this Presentation is made, or by reading the Presentation slides or by
Slide 3: Investment Highlights
FEBRUARY 2025 INVESTMENT HIGHLIGHTS Phase 1 production Phase 2a construction Optimizing production Making the site ready +NOK 200m in cash Increased bank about to commence – to be initiated for logistics for +20% for potential effect from sale and package to support to deliver up to 11,000 increased
Slide 4: Build-out of Phase 1 at Kvalnes nearing completion
FEBRUARY 2025 BUILD-OUT OF PHASE 1 AT KVALNES NEARING COMPLETION Construction Production Phase 1 Production Phase 2a Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25e Q2’25e Q3’25e Q4’25e Q1’26e Q2’26e Q3’26e Excavation of Phase 1 and 2 Status: 100% finished (ahead of schedule) Initial schedule First smolt
Slide 5: Speed and accuracy of Phase 1 allows for immediate start of Phase 2 expansion
FEBRUARY 2025 SPEED AND ACCURACY OF PHASE 1 ALLOWS FOR IMMEDIATE START OF PHASE 2 EXPANSION • Kvalnes construction plan follows a four-by-four pool expansion • Construction of Phase 1 and shared operational infrastructure for all 12 pools to be finalized by Q2 2025, on time and budget 2b • Decision
Slide 6: Design improvements for optimized pool utilization and +20% production output
FEBRUARY 2025 DESIGN IMPROVEMENTS FOR OPTIMIZED POOL UTILIZATION AND +20% PRODUCTION OUTPUT OLD NEW water flow and fish logistics water flow and fish logistics New system for increased water outlet water outlet water inlet water inlet flexibility of moving fish Reinforced concrete walls for water ou
Slide 7: New and more gentle logistics system reduces operational risk
FEBRUARY 2025 NEW AND MORE GENTLE LOGISTICS SYSTEM REDUCES OPERATIONAL RISK New fish logistics system developed in partnership with Cflow Key features of upgraded system Tank with fish Receiving tank(s) • Originally, Andfjord had planned for splitting between pools to utilize piping going over the w
Slide 8: Ensuring more stable, high utilization of the current license
FEBRUARY 2025 ENSURING MORE STABLE, HIGH UTILIZATION OF THE CURRENT LICENSE Current license (10,000t MAB) • New fish logistics system allowing for more flexibility in the relocation of fish between License utilization pools thanks to increased through the year Average water flow, with up to 24 times
Slide 9: Optimizations also open for adherence to potential regulatory changes
FEBRUARY 2025 OPTIMIZATIONS ALSO OPEN FOR ADHERENCE TO POTENTIAL REGULATORY CHANGES 1 Fish transport system • The Norwegian Ministry of Trade, Industry and Fisheries has proposed changes to the regulations to ensure the sustainable development of aquaculture production on land: – The proposals will
Slide 10: Total capex for Kvalnes down to an estimated NOK 105/kg
FEBRUARY 2025 TOTAL CAPEX FOR KVALNES DOWN TO AN ESTIMATED NOK 105/KG Updated Kvalnes build-out plan increases production by +20% Illustrative EBITDA sensitivity to salmon prices, Kvalnes Phase 1 & 2 (NOKm) Previous accum. Updated accum. Phase 1 Phase 2a Phase 2b Previous capex1 Updated capex1 Phase
Slide 11: Less than two years expected payback period on production optimizations
FEBRUARY 2025 LESS THAN TWO YEARS IN EXPECTED PAYBACK PERIOD ON PRODUCTION OPTIMIZATIONS Estimated annual production volumes Estimated EBITDA1 Estimated annual production volumes1 Tons, HOG & post-smolt – Kvalnes Phase 1 & 2a NOKm – Kvalnes Phase 1 & 2a Tons, HOG – Kvalnes Phase 1 & 2a +4,000 +200 N
Slide 12: New bank package to complete Phase 2 expansion
FEBRUARY 2025 NEW BANK PACKAGE TO COMPLETE PHASE 2 EXPANSION Debt funding plan for next expansion at Kvalnes Key terms of the bank facility Main terms Updated bank package • Andfjord Salmon has received a term sheet signed by the banks for an additional commitment for a construction loan of up to NO
Slide 13: ~NOK 400m sale of infrastructure asset
FEBRUARY 2025 ~NOK 400M SALE OF INFRASTRUCTURE ASSET Key terms of the sale leaseback to Asset Buyout Partners AS (“ABP”) • Andfjord Salmon signed a term sheet for the sale of the harbour area to ABP based on estimated cost of ~NOK 400m which, if such transaction is duly agreed and completed, will gi
Slide 14: Constructing growth and enabling production boost
FEBRUARY 2025 CONSTRUCTING GROWTH AND ENABLING PRODUCTION BOOST 1600 NOKm Sources and uses ~1,375-1,425 ~1,375-1,425 1400 Buffer and other ~25-75 ~175 Lease financing • Phase 2a construction, optimizations across the system and buffer Fish logistics system ~100 to amount to NOK 1,375-1,425 million 1
Slide 15: Highly supportive shareholder group
FEBRUARY 2025 HIGHLY SUPPORTIVE SHAREHOLDER GROUP 28.0% 5.4% 4.5% ownership ownership ownership About Jerónimo Martins: About High Liner Foods: About Eidsfjord Sjøfarm (Holmøy Havbruk): • Portugal-based international industry group that operates in • North American processor and supplier of seafood
Slide 16: Investment Highlights
FEBRUARY 2025 INVESTMENT HIGHLIGHTS Phase 1 production Phase 2a construction Optimizing production Making the site ready +NOK 200m in cash Increased bank about to commence – to be initiated for logistics for +20% for potential effect from sale and package to support to deliver up to 11,000 increased
Slide 17: Appendix
APPENDIX 17
Slide 18: Land-based farming needed to bridge the gap between supply and demand
FEBRUARY 2025 LAND-BASED FARMING NEEDED TO BRIDGE THE GAP BETWEEN SUPPLY AND DEMAND Land- based necessary Strong underlying megatrends Global market supply (million tons LW) to meet demand 200 • The global Atlantic salmon market adds up to USD 24bn p.a., with strong macro trends driving Capture Aqua
Slide 19: Endless access to fresh seawater
FEBRUARY 2025 ENDLESS ACCESS TO FRESH SEAWATER Gulf Stream 3 Fiskenes 2 Breivik 1 Kvalnes ANDØYA • Three sites located at Andøya, Norway • Andfjord’s flow-through system • Flow of seawater into the pools allows combines the best of two worlds, Atlantic salmon to thrive in its natural • Kvalnes site
Slide 20: Production potential of 90,000 tons
FEBRUARY 2025 PRODUCTION POTENTIAL OF 90,000 TONS 90,000 tons 20-25,000 tons Planned total Planned expansion capacity, all sites Gulf Stream 20-25,000 tons 3 Planned expansion Fiskenes 34,200 tons 13,900 tons 48,100 tons 3 23,700t HOG & Planned Planned total capacity 20-25,000t post-smolt (today’s e
Slide 21: Excellent biological and operational metrics from first production cycle
FEBRUARY 2025 EXCELLENT BIOLOGICAL AND OPERATIONAL METRICS FROM FIRST PRODUCTION CYCLE Average weight per fish (grams) at harvest ~40% above expectations Industry leading survival rate of 97.5% Average weight per fish (grams) Accumulated survival rate (%) 3,400 99.8 99.7 99.5 99.3 98.9 98.7 98.4 98.
Slide 22: ESG is a key focus for Andfjord Salmon
FEBRUARY 2025 ESG IS A KEY FOCUS FOR ANDFJORD SALMON Strong focus on sustainability and environment in all activities Annual Committed to the UN Sustainable Development Goals ESG reporting Low carbon footprint • Health and safety of our employees and • Andfjord Salmon’s technology avoids sea lice, e
Slide 23: Build-out plan utilises existing infrastructure to keep capex down
FEBRUARY 2025 Build-out plan utilises existing infrastructure to keep capex down Construction start in 2023-2025: Construction start in 2028 while enabling increased production +22,500 tons (target): volumes +5,100 tons license expansion +13,900 tons 5 • Examples of shared infrastructure include (ex
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