Slide 1: Q3 2020 Presentation
Q3 2020 PRESENTATION 19 November 2020
Slide 2: Agenda
Agenda • Introduction and highlights • Operational review • Financial review • Summary and outlook 2 Q3 2020 Presentation
Slide 3: Salmon Evolution – Extending the Ocean Potential
SALMON EVOLUTION – EXTENDING THE OCEAN POTENTIAL • First production facility under construction, with annual harvesting capacity of approx. 31,500 tonnes HOG. Clear roadmap to 70,000 A Norwegian tonnes by 2030 land-based salmon farming • Utilizing hybrid flow-through system with 30%- company with a
Slide 4: Q3 2020 Highlights
Q3 2020 HIGHLIGHTS • Construction of Phase 1 at Indre Harøy progressing according to plan. Contractual target price formalized at NOK 1.3 billion • Secured financing through pre-listing placement of NOK 500 million, direct equity investment of NOK 50 million and debt financing of NOK 40 million for
Slide 5: Agenda
Agenda • Introduction and highlights • Operational review • Financial review • Summary and outlook 5 Q3 2020 Presentation
Slide 6: Phase 1
Illustration: Salmon Evolution PHASE 1 12 GROW-OUT TANKS 6 Q3 2020 Presentation
Slide 7: Biology the most important consideration
BIOLOGY THE MOST IMPORTANT CONSIDERATION INCREASE OF COMPLEXITY WHEN DEGREE OF RECIRCULATION GOES ABOVE 65% • Known technology • HFS with fresh sea water being replaced every 4th hour • Optimal production environment • Minimal handling of the fish RAS HFS Flow-through 7 Q3 2020 Presentation
Slide 8: Hybrid flow-through technology advantages
HYBRID FLOW-THROUGH TECHNOLOGY ADVANTAGES • Separate production tanks secure bio-control • Maintenance flexibility, separate cleaning and disinfecting between biomass transfers • Low complexity - easy to operate and reduced risk of technical accidents • No biofilters • Area efficient 8 Q3 2020 Prese
Slide 9: A stepwise development of stand alone units
A STEPWISE DEVELOPMENT OF STAND ALONE UNITS Description 2020 2021 2022 2023 2024 2025 2026 2027 2028 Capacity CAPEX Cost/kg • Land acquisition Construction Phase 1 • Building of foundations ~7,900t HOG NOK 1.2 bn* NOK 40.8 • Construction of 12 grow-out tanks Production start Production – smolt relea
Slide 10: Phase 1 according to plan
PHASE 1 ACCORDING TO PLAN Accumulated CAPEX YTD 2020 (NOK million) • Development on time on budget 149 Land • Investments gradually increasing with higher 126 Investments (Indre Harøya) workload and increased complexity on site 112 Capitalized cost 103 • Total CAPEX of NOK 43.5 million in Q3 93 • NO
Slide 11: Financing reservations secure project control
FINANCING RESERVATIONS SECURE PROJECT CONTROL Financial commitments YTD Payment plan • Project turnkey-agreement (NOK million) (NOK million) includes clause for financing 250 reservations until financing is Accumulated secured Month 181 200 152 • In Q3 2020 the company 150 committed contracts and 11
Slide 12: Support from solid and committed owners
SUPPORT FROM SOLID AND COMMITTED OWNERS Paid-in equity • Raised NOK 550 million in new equity through private (NOK million) placement in connection with Merkur listing and direct investment from Dongwon Industries 861 • Secured debt financing of NOK 40 million for land acquisition 500 • Continuously
Slide 13: Expansion opportunities
EXPANSION OPPORTUNITIES • Agreement with South Korean Dongwon Industries • Commercial collaboration for sales & marketing in Asian markets • JV for construction of land-based fish farm in South Korea based Salmon Evolution plans to on SE technology and competence expand internationally • Scaling of
Slide 14: Roadmap to 70,000 tonnes
ROADMAP TO 70,000 TONNES 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Construction Phase I 7,900 tonnes Production start Production First sales in Q3 2022 – smolt release Construction Phase II 7,900 tonnes Construction of smolt facility Production First sales in Q3 2024 Construction Phase
Slide 15: Agenda
Agenda • Introduction and highlights • Operational review • Financial review • Summary and outlook 15 Q3 2020 Presentation
Slide 16: Profit & Loss
PROFIT & LOSS Summary of result (figures in NOK 1000) Q3 2020 Q3 2019 YTD 2020 YTD 2019 Total operating income 674 -175 704 -175 • Personnel expenses include Personnel expenses -4 365 -956 -6 843 -1 489 NOK 2.3 million in provision for Depreciations -64 -63 -212 -90 incentive program Other operating
Slide 17: Cash Flow
CASH FLOW • Positive cash flow from operations Cash flow summary due to increase in trade payables (figures in NOK 1000) Q3 2020 Q3 2019 YTD 2020 YTD 2019 • Cash flow from investments Profit before taxes -9 248 -3 480 -15 634 -7 957 negative due to increased activity Net cash flow from operating act
Slide 18: Financial Position
FINANCIAL POSITION Financial position as per 30.09.2020 (NOK million) 1,000 • Carrying amount of total fixed assets NOK 148.9 on 30 September. Increase related to purchase of land and construction work 800 Non-current assets Current assets • Total equity of NOK 792.5 million, corresponding 600 to an
Slide 19: Agenda
Agenda • Introduction and highlights • Operational review • Financial review • Summary and outlook 19 Q3 2020 Presentation
Slide 20: Summary & Outlook
SUMMARY & OUTLOOK • Global demand growth for salmon expected to continue. Land-based solutions addressing industry growth challenges • State of the art production facility under construction. Annual capacity of 31,500 tonnes HOG targeting the European market • Solid funding supported by committed ow
Slide 21: Next event Q4 2020 24 February 2021
NEXT EVENT Q4 2020 24 FEBRUARY 2021 Q&A www.salmonevolution.no 21 Q3 2020 Presentation