Andfjord Salmon Group As · OSL:ANDF
Andfjord Salmon Group As — H1 2021 Earnings Presentation
31 slides from Andfjord Salmon Group As's earnings presentation, Sep 3, 2021
Slide 1: Q2 / H1 Report 2021 - Status and progress
Q 2 Q2 / H1 Report 2021 September 3, 2021 Status and progress
Slide 2: Q2 / H1 Presentation 2021 Agenda
Q2 / H1 Presentation 2021 Martin Rasmussen Bjarne Martinsen Ben Tommy Eriksen CEO CFO R&D Director Agenda o Quarterly highlights and subsequent events o Operational update o The flow-through technology o Summary and outlook 2
Slide 3: Andfjord Salmon at a glance
Q 2 ANDFJORD SALMON AT A GLANCE FOUNDED: 2014 - LOCATION: ANDØYA, NORWAY - EURONEXT GROWTH: ANDF FLOW-THROUGH FIRST LOCATION Uses a closed flow through system, Andfjord Salmon™ has been granted which combines the benefits of both a license for 10 000 tonnes MAB traditional and land based aquaculture
Slide 4: Expansion potential to a total capacity of ~90,000t (HOG)
Q 2 EXPANSION POTENTIAL TO A TOTAL CAPACITY OF ~90.000t (HOG) o Andfjord Salmon has secured, by purchase or purchase options, land on Andøya enabling Indicative*) an expansion of total annual production volumes to ~90.000t (HOG) o The Company has secured the license for Kvalnes I and has already sta
Slide 5: Agenda
Q 2 AGENDA QUARTERLY OPERATIONAL FLOW-THROUGH KEY SUMMARY HIGHLIGHTS AND UPDATE TECHNOLOGY FINANCIALS AND SUBSEQUENT EVENTS OUTLOOK
Slide 6: Highlights Q2
Q 2 FIRST POOL COMPLETED o Outer section of inlet pipeline repaired o Second section of inlet pipeline successfully installed MORE LAND OPERATIONS ACQUIRED BUILDING COMPLETED o Installation of water intake filter section in progress Further land acquired Operations and o Operational pool testing, in
Slide 7: Update zoning plan for Fiskenes / Breivik
Q 2 UPDATE ZONING PLAN FOR FISKENES / BREIVIK BREIVIK 69 DEGREES NORTH, 25,000 HOG, TOTAL POTENTIAL ANDØYA, VESTERÅLEN PRODUCTION VOLUME FISKENES 25,000 69 DEGREES NORTH, HOG, TOTAL POTENTIAL ANDØYA, VESTERÅLEN PRODUCTION VOLUME o Process managed by Andøy municipal council o Zoning plan approved by
Slide 8: Agenda
Q 2 AGENDA QUARTERLY OPERATIONAL FLOW-THROUGH KEY SUMMARY HIGHLIGHTS AND UPDATE TECHNOLOGY FINANCIALS AND SUBSEQUENT EVENTS OUTLOOK
Slide 9: Maximising long-term earnings potential at Kvalnes
Q 2 Maximising long-term earnings potential at Kvalnes 20 000 18 000 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 Phase 1 Phase 2 Phase 3 Total
Slide 10: Construction finalised, pool soon to be filled with water
Q 2 STATUS FIRST KVALNES POOL (PHASE 1): Construction finalised, pool soon to be filled with water COMPLETED ACTIVITIES REMAINING POST WATER FILL ACTIVITIES: o Pool is connected to Andfjorden o Automation and electrical work for water measurement o Inner sections of inlet pipeline repaired and insta
Slide 11: Solid progress on the Kvalnes area development (phase 2)
Q 2 Solid progress on the Kvalnes area development (phase 2) STATUS KVALNES PHASE 2: o Excavation and blasting work progressing according to plan o No unexpected surprises BENEFITS OF FAST- TRACKING KVALNES PHASE 2: o Reduces expansion risk o Saves expenses on de-mobilization and mobilization of mac
Slide 12: Purchase of adjacent land enables early development of Kvalnes Phase 3
Q 2 Purchase of adjacent land enables early development of Kvalnes Phase 3 BENEFITS OF EARLY DEVELOPMENT OF KVALNES PHASE 3: o Increases production volume by 50%: from ~12,600 to ~19,000 tonnes HOG o Represents potential EBIT increase from approx. NOK 350 to 500 million *) o Significantly strengthen
Slide 13: Agenda
Q 2 AGENDA QUARTERLY OPERATIONAL FLOW-THROUGH KEY SUMMARY HIGHLIGHTS AND UPDATE TECHNOLOGY FINANCIALS AND SUBSEQUENT EVENTS OUTLOOK
Slide 14: Natural ocean pools – built on Atlantic salmon biology
F L O W NATURAL OCEAN POOLS – T H BUILT ON ATLANTIC SALMON BIOLOGY R O U G H Andfjord Salmon™ recreates the Atlantic Ocean in a flow-through pool on land We are simply recreating the natural ocean habitat in our natural ocean pools on land, resulting in healthy robust salmon with ample continous sup
Slide 15: Natural ocean pools – built on Atlantic salmon biology
F L O NATURAL OCEAN POOLS – BUILT ON ATLANTIC SALMON BIOLOGY W T H R O U G H NATURAL HABITAT FOR SALMON FAECES DROP TO THE BOTTOM
Slide 16: Natural ocean pools – built on Atlantic salmon biology
F L O NATURAL OCEAN POOLS – BUILT ON ATLANTIC SALMON BIOLOGY W T H R O U G H NATURAL SLOW GULF CURRENT NATURAL HABITAT FOR SALMON
Slide 17: Natural ocean pools – built on Atlantic salmon biology
F L O NATURAL OCEAN POOLS – BUILT ON ATLANTIC SALMON BIOLOGY W T H R O U G H ANDFJORD SALMON POOL 30 000 M3 TYPICAL RAS SIZE POOL 5 000 M3
Slide 18: Natural ocean pools – built on Atlantic salmon biology
F L O NATURAL OCEAN POOLS – BUILT ON ATLANTIC SALMON BIOLOGY W T H R O U G H LIFTING WATER – HIGH ENERGY MOVING WATER – LOW ENERGY
Slide 19: Natural ocean pools – built on Atlantic salmon biology
F L O NATURAL OCEAN POOLS – BUILT ON ATLANTIC SALMON BIOLOGY W T H R O U G H NO LIFTING OF WATER - SAVES ENERGY LAMINAR FLOW – MIMICS NATURE
Slide 20: Natural ocean pools – built on Atlantic salmon biology
F L O NATURAL OCEAN POOLS – BUILT ON ATLANTIC SALMON BIOLOGY W T H R O U G H CLEAN WATER IN LICE AND ALGAE LEVEL FAECES SINK TO THE BOTTOM CLEAN WATER OUT
Slide 21: Technology summary – the best of two worlds
Q 2 TECHNOLOGY SUMMARY – THE BEST OF TWO WORLDS The benefits of Andfjord Salmon’s solutions and technology are filling in the gaps in alternative salmon farming methods. SUBJECT RAS OCEAN ANDFJORD THE ANDFJORD SALMON™ PATENTED TECHNOLOGY Low energy usage No need to lift the water above sea surface G
Slide 22: Agenda
Q 2 AGENDA QUARTERLY OPERATIONAL FLOW-THROUGH KEY SUMMARY HIGHLIGHTS AND UPDATE TECHNOLOGY FINANCIALS AND SUBSEQUENT EVENTS OUTLOOK
Slide 23: Cash and liquidity position
Q 2 Figures does not include a NOK 20 million undrawn credit facility with Sparebank 1 Nord Norge. In addition NOK 15 million in grants, not included from Innovation Norway (NOK 14 million) and Samskap (NOK 1 million). NOK 50 million share-holder loan is agreed after the reporting period and not inc
Slide 24: Balance sheet
BALANCE SHE Andfjord Salmon AS All amounts in NOK Equity and liabilities Note 30.06.2021 31.12.2020 30.06.2020 Unaudited Total equity | 542714 856 | 285140 085 Liabilities Liabilities to finan: 4 30 000000 Other non-current lial 3 4078 176 4078176 Total non-current liabilities 4 Current liabilities
Slide 25: Income statement
INCOME STATEMEN Andfjord Salmon AS All amounts in NOK Note Q22021 Q22020 YTD 2021 YTD 2020 2020 1.4- 30.6 1.4-30.6 1.1-30.6 1.1-30.6 44-3112 Unaudited Unaudited Operating income and expenses Other income oO ° ° ) 180 863 Total operating income oe re re oe t886s Salary and personnel expenses 3357 717
Slide 26: On track with current plan
Q 2 ON TRACK WITH CURRENT PLAN 2021 2022 Q2 Q3 Q4 Q1 Q2 1st pool technically Training Smolt in pool ready for operation 1st pool filled Analyses and and preparation with water and verification of for release of initiating of water biological first smolt testing conditions Excavation of Kvalnes area
Slide 27: Agenda
Q 2 AGENDA QUARTERLY OPERATIONAL FLOW-THROUGH KEY SUMMARY HIGHLIGHTS AND UPDATE TECHNOLOGY FINANCIALS AND SUBSEQUENT EVENTS OUTLOOK
Slide 28: Summary
Q 2 SUMMARY FIRST POOL: FIRST SMOLT: KVALNES 3: VALUE CREATION: First pool at Kvalnes ready First smolt to be released in Initiation of Kvalnes Underlines continuous to be filled with water. Q2 2022. phase 3: Attractive way efforts to maximise long forward, both term value creation for operationally
Slide 29: In conclusion: we have the solutions and technology
Q 2 IN CONCLUSION: We have the solutions and technology to build the world’s most fish friendly and sustainable aquaculture facility.
Slide 30: Q&A
Q&A J wnorso80"
Slide 31: Contact us
Contact us: Andfjord Salmon / Kvalnes, Andøya, Norway www.andfjordsalmon.com, post@andfjord.no