Slide 1: Salmon Evolution Company update
Salmon Evolution Company update 18 June 2024
Slide 2: Disclaimer (I/II)
Disclaimer (I/II) IMPORTANT INFORMATION. THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES, DEPENDENCIES OR POSSESSIONS, INCLUDING ANY STATE OF THE UNITED STATES AND THE DISTRIC
Slide 3: Disclaimer (II/II)
Disclaimer (II/II) This Company Presentation is current as of 18 June 2024 and the material and the views expressed herein are subject to change based upon a number of factors, including, without limitation, macroeconomic and equity market conditions, investor attitude and demand, the business prosp
Slide 4: Agenda
• Investment highlights • Company introduction • Q1 and operational update • Appendices EXTENDING THE OCEAN POTENTIAL 4
Slide 5: Creating a foundation for substantial profitable growth
UNIQUE GROWTH PLATFORM Creating a foundation for substantial profitable growth Proven operational Increasing planned output New debt package Strong cash generating Significant organic growth excellence to 18,000t HOG secured fundament potential • 2+ years in full operation • Phase 2 adding 10,100t H
Slide 6: Consistent and continued strong operational performance
INDRE HARØY PHASE 1 Consistent and continued strong operational performance Net biomass growth1 (LW) Mortalities versus industry (monthly, %) Net biomass growth (LW, lhs) Total biomass (LW, rhs) 1.6 % Conventional industry average (16.7% annual basis) 3 2,000 3,000 1.2 % 1,500 2,000 0.8 % Salmon Evo
Slide 7: Indre Harøy proven – ready for scaling
INDRE HARØY PHASE 1 - 3 Indre Harøy proven – ready for scaling Indre Harøy Phase 1 proven Scaling up Indre Harøy further Fully expanding Indre Harøy • Harvested out 6 full batches with strong results • Expansion of additional 7,900 tonnes on existing plot • License and plot available to bring Indre
Slide 8: Indre Harøy site to deliver 36,000 tonnes HOG
INDRE HARØY PHASE 1 - 3 Indre Harøy site to deliver 36,000 tonnes HOG Phase 3 +18,000t HOG All necessary licenses Phase 2 and in place optimisation +10,100t HOG Planned construction Increased production with start Q3-24 added tank capacity Phase 1 7,900t HOG Operational since Q1-22 • Utilizing exist
Slide 9: Optimising production at Indre Harøy
INDRE HARØY PHASE 1 AND 2 Optimising production at Indre Harøy Optimized grow-out program Key benefits Current grow-out program Optimising production Start weight: Start weight: New pre Phase 2 buildout increased to add 10.1kT (7.9kT) through ~130 grams ~400 grams an increase of tank capacity optimi
Slide 10: Improved Phase 2 project fully funded
Improved Phase 2 project fully funded Sources and uses – Indre Harøy Phase 2 expansion including additional tank capacity • DNB Bank and Nordea Bank have credit approved an increase of bank facilities of 675 NOKm in connection with the transaction, subject to NOKm completion of new equity raise of m
Slide 11: Creating cash flow foundation for substantial organic growth
POTENTIAL TO FULLY FUND NORWAY EXPANSION ON RETAINED EARNINGS – FOR ILLUSTRATIVE PURPOSES Creating cash flow foundation for substantial organic growth Est. harvest volume Ph.2 ~18,000 tonnes, HOG • When Phase 2 is fully operational, Illustrative realized salmon Salmon Evolution has a strong cash NOK
Slide 12: Indre Harøy is only the beginning
EXPANSION PLANS Indre Harøy is only the beginning Norway expansion North America South Korea SE focused on capital discipline and leveraging human capital Yangyang grow out site Jeongson Target smolt facility site areas 36,000t HOG planned Indre 18-54,000t HOG Harøy phase 1-3 potential additional si
Slide 13: Company introduction
• Investment highlights • Company introduction • Q1 and operational update • Appendices EXTENDING THE OCEAN POTENTIAL13
Slide 14: The global frontrunner in land-based salmon farming
The global frontrunner in land-based salmon farming Pioneering the hybrid flow- Superior profitability We put biology first Proof of concept in Norway International expansion through system (HFS) through cost leadership Our technology approach Establish Indre Harøy as global Enabled by proof of conc
Slide 15: Robustness of hybrid flow-through system fully demonstrated
2+ YEARS IN FULL OPERATION Robustness of hybrid flow-through system fully demonstrated Two main approaches to land-based salmon farming The sweet spot: Hybrid flow-through system Moving production on land RECIRCULATION RATE AND • Optimal conditions WATER TREATMENT COMPLEXITY UP TO 99.9% • No escapes
Slide 16: We focus our efforts where we can create most value
We focus our efforts where we can create most value A sustainable value chain from egg to finished product Genetics Smolt Grow-out Processing Downstream • World-leading genetics • In-house smolt • All necessary licenses to • World-leading • Build a premium concept company production to ensure produc
Slide 17: Experienced senior management backed by a strong board
SENIOR MANAGEMENT AND BOARD WITH PROVEN COMPETENCE FROM THE AQUACULTURE INDUSTRY Experienced senior management backed by a strong board Highly experienced management team BoD with extensive industrial experience Industrial shareholder base Trond Håkon Schaug-Pettersen, CEO Tore A. Tønseth, Chairman
Slide 18: Q1 and operational update
• Investment highlights • Company introduction • Q1 and operational update • Appendices
Slide 19: Highlights Q1-24
Highlights Q1-24 Highly profitable at modest • Farming EBITDA NOK 36.2 million - above NOK 40/kg. Group EBITDA NOK 24.1 million volumes • Farming EBITDA cost NOK 67/kg, down 12 % from last quarter. Effect of decreasing production costs on batches in a fuller facility • Harvest volumes of 901 tonnes
Slide 20: 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 % 12.1 % 96.4 % 0.3 % 5.3 % 0.6 % 1-2 2-3 3-4 4-5 5-6 6-7 Superior grad
Slide 21: The value of excellent superior grade share
The value of excellent superior grade share Superior share first part of 2024 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 Wee
Slide 22: Stable operations and low mortality
Stable operations and low mortality Setting the stage for an active second half of 2024 Biomass development and monthly mortality • Standing biomass of ~2,250 tonnes LW end of May following high Total biomass (tonnes, LW) harvest activity in April and May 3,000 • Biomass volume negatively affected b
Slide 23: Cost leadership is our objective
INDRE HARØY Cost leadership is our objective Company illustration - full run rate Phase 1 Improved Phase 1+2 Improved Phase 1-3 Harvest volume (kt, HOG) 8 18 36 Farming EBITDA cost/kg (HOG)1 53.0 50.0 47.0 Depreciation – adjusted2 4.0 5.0 5.0 EBIT adjusted cost/kg (HOG) – Farming 57.0 55.0 52.0 Expa
Slide 24: Appendices
• Investment highlights • Company introduction • Q1 and operational update • Appendices EXTENDING THE OCEAN POTENTIAL24
Slide 25: Making a home for the Salmon to thrive
Making a home for the Salmon to thrive Biology is our number one priority, leveraging abundant seawater resources, prioritizing impeccable water quality and temperature. • All seawater is replaced every 4 hours – 80 minutes including reuse • Sweet-spot technology, no need for complex biofilters incr