Slide 1: Presentation Q1 2024
PRESENTATION Q1 2024 CEO: Trond Håkon Schaug-Pettersen CFO: Trond Vadset Veibust 7 May 2024
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
• Highlights • Operations • Financials • Summary and outlook • Appendices EXTENDING THE OCEAN POTENTIAL 3
Slide 4: Highlights
Highlights • Farming EBITDA of NOK 36.2 million - NOK 40.2 EBITDA/kg. • Group EBITDA of NOK 24.1 million and EBIT of NOK 5.8 million. • Q1 harvest volumes of 901 tonnes HOG with average weight of 4.6 kg LW, superior share of 96 % and strong price realization. • Record high standing biomass of almost
Slide 5: Agenda: Operations
• Highlights • Operations • Financials • Summary and outlook • Appendices EXTENDING THE OCEAN POTENTIAL 5
Slide 6: Strong harvest results and price realization
Strong harvest results and price realization Strong price realization Significant increase in harvest volume Q2 • Total Q1 harvest volume of 901 tonnes HOG. Harvest volumes (tonnes, HOG) Superior share • Average weight of ~4.6 kg (LW) and an industry leading superior grade share of 96%. Q2-24 expect
Slide 7: The right size, and perfect quality
The right size, and perfect quality Harvest in week 7 used as an illustration Exceptionally tight weight spread ‘Only’ superior fish Spread distribution (%) Superior grade share (% on all harvested individuals) 3,6 % 48,2 % 33,4 % 1,104 12,1 % 185 96,4 % 0,3 % 5,3 % 0,6 % 1-2 2-3 3-4 4-5 5-6 6-7 Sup
Slide 8: All time high biomass end of March
All time high biomass end of March Feeding levels up 25 % in March vs January Steadily increasing biomass growth • Stable operations with net biomass growth of ~1,560 Net biomass growth1 / total biomass (tonnes, LW) tonnes LW, up 8 % from Q4. 1 800 2 800 • Standing biomass of almost 2,700 tonnes LW
Slide 9: Operational priorities
Operational priorities 1 • We are steadily improving our grow-out operations and increasing biomass growth and harvest volumes. • Run-rate biomass growth supporting 7,900 tonnes HOG in annual harvest targeted during 2H 2024. Improve every day • Long-term we anticipate to continue past this point, as
Slide 10: Improve every day
1 Improve every day Our core DNA: Operational excellence FCRb on harvested batches • Substantial operational experience obtained after 1,14 more than 2 years of production. • Focus shifting from “just managing” operations to 1,12 continuously seek improvements in everything we do, fueled by advanced
Slide 11: Ensure optimal smolt size and quality
2 Ensure optimal smolt size and quality Importance of smolt Calibrating smolt and grow out logistics • Stable and regular supply of high quality smolt of 2023 smolt stocking at Indre Harøy the correct size is required to take out the full 235g 80g 75g 90g 200g 195g potential of Indre Harøy. • Signif
Slide 12: Indre Harøy phase 2: Progressing as planned
3 ILLUSTRATIVE TIMELINE Indre Harøy phase 2: Progressing as planned Q2-24 Q3-24 Q4-25 Q3-26 Final investment Initiate First smolt First harvest decision construction insert • Indre Harøy phase 2 will be an improved copy of phase 1, incorporating key learnings after close to two years in operation. •
Slide 13: International expansion
4 International expansion North America – closing in Korea – focus on cost optimization • Focus centered around areas with an established salmon • Design and engineering activities for grow-out facility at farming industry and value chain, mirroring the unique benefits, Yangyang completed in Q1. sca
Slide 14: Agenda: Financials
• Highlights • Operations • Financials • Summary and outlook • Appendices EXTENDING THE OCEAN POTENTIAL14
Slide 15: Farming: Above NOK 40/kg in EBITDA margin
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS: Q1 2024 Farming: Above NOK 40/kg in EBITDA margin REVENUE EBITDA EBITDA HARVEST VOLUME NOK 98.2 million NOK 36.2 million NOK 40.2/KG 901 TONNES HOG +14 % vs. Q4 2023 >100 % vs. Q4 2023 >100 % vs. Q4 2023 -18 % vs. Q4 2023 • EBITDA margin above NOK 40/kg. Farm
Slide 16: Other: Expansion cost base
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS: Q1 2024 Other: Expansion cost base REVENUE EBITDA EXPANSION PROJECTS EXPANSION COST1 NOK 6.5 million NOK -12.1 million Three - 3 NOK 13.5/KG • In Other segment all resources related to projects and technology department are employed, as well as other corporat
Slide 17: Group: Positive EBIT margin
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS: Q1 2024 Group: Positive EBIT margin REVENUE EBITDA EBIT EBITDA NOK 100.3 million NOK 24.1 million NOK 5.8 million NOK 26.8/KG +13 % vs. Q4 2023 >100 % vs. Q4 2023 >100 % vs. Q4 2023 >100 % vs. Q4 2023 • Positive Group EBIT for the first time. Group (figures i
Slide 18: The value of excellent superior grade share
The value of excellent superior grade share Superior share first part of 20241 Q1 market prices2 (NOK/kg) Implied all-in price realization3) 100% NASDAQ 112 90% 108 +18% NOK +16/kg / +17% 80% +31% +32% +34% 70% 92 65 60% 50% 30 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 W
Slide 19: Group financial position and cash flow
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS: Q1 2024 Group financial position and cash flow CASH FLOW OPERATIONS TOTAL CASH FLOW CASH AND CASH EQUIVALENTS NIBD NOK -1.8 million NOK -46.2 million NOK 340.2 million NOK 355.3 million Summary of financial position • Very close to having a positive operation
Slide 20: A high portion of CAPEX carries no future replacement cost
ESTIMATE - INDRE HARØY A high portion of CAPEX carries no future replacement cost CAPEX is our license cost… ...and a high portion is non-recurring • For the conventional industry, the license is the Share of total depreciations – NOK/kg biggest investment – licenses are not depreciated. • A high po
Slide 21: Cost leadership is our objective
INDRE HARØY Cost leadership is our objective Company estimates Phase 1 Phase 1+2 Phase 1+2+3 Harvest volume (kt, HOG) 8 16 32 Farming EBITDA cost/kg (HOG) 1 53,0 51,0 48,0 Depreciations - adjusted2 4,0 4,5 5,0 EBIT adjusted cost/kg (HOG) - Farming 57,0 55,5 53,0 Expansion cost/kg (HOG) 3 6,0 4,0 2,0
Slide 22: Agenda: Summary and outlook
• Highlights • Operations • Financials • Summary and outlook • Appendices EXTENDING THE OCEAN POTENTIAL22
Slide 23: Unique growth platform
Unique growth platform = Highly profitable even at Fully operational at Costs and investments Ready for the modest harvest volumes industrial scale on par next step • NOK 40.2 EBITDA/kg in Q1, • Proof of concept. • Opex and growth capex • Scalable platform on back highlighting the inherent • Good fi
Slide 24: Agenda: Appendices
• Highlights • Operations • Financials • Summary and outlook • Appendices EXTENDING THE OCEAN POTENTIAL24
Slide 25: We are not in a tax payable position the next decade
We are not in a tax payable position the next decade • Significant differences in accounting profit and taxable profit under the Norwegian tax regime. • Biomass-buildup is directly deductible in the tax accounts. • Average taxable depreciation-profile of 17 year versus 32 years under IFRS. • Taxable
Slide 26: Next update
Next update 15th August 2024 – Q2 2024 presentation | Q2 operational update will be released early July.