Atlantic Sapphire Asa · OSL:ASA

Atlantic Sapphire Asa — H1 2021 Earnings Presentation

26 slides from Atlantic Sapphire Asa's earnings presentation, Aug 26, 2021

  1. Slide 1: Operational Update & Phase 2 Intro

    Operational Update & Phase 2 Intro First Half 2021 Report August 26, 2021 |

  2. Slide 2: Important Information

    IMPORTANT INFORMATION IMPORTANT INFORMATION This presentation (the "Presentation") has been produced by Atlantic Sapphire ASA (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. This Presen

  3. Slide 3: Contents First Half 2021 Update

    Contents First Half 2021 Update ▪ US Operations ▪ US Biological Performance ▪ Past vs. Present: Incident Risk ▪ R&D: Trials On Rainbow Trout In Denmark ▪ Proven Offtake At Premium Pricing… ▪ …Charting The Path For A Billion Dollar Brand ▪ First Half 2021 Consolidated Financial Statements ▪ Summary a

  4. Slide 4: US Operations First Half 2021 Update

    US Operations First Half 2021 Update Operational status ▪ Started Q3 2021 with good water quality parameters and biological performance ▪ Facilities Operation Advisory Board established to prevent future incidents by reviewing and approving all nonstandard procedures ▪ Experts with different backgro

  5. Slide 5: US Biological Performance

    US Biological Performance First Half 2021 Update First US batches have mixed performance ▪ First batches have in periods been exposed to suboptimal conditions, Growth curve of batch introduced in 2019 vs. 2020 which has negative trickle-down effects later in the life cycle ▪ Current biomass in the o

  6. Slide 6: Past vs. Present: Incident Risk

    Past vs. Present: Incident Risk First Half 2021 Update Past: Phase 1 start-up conditions Present: Risk mitigation strategies implemented 1. Operational risk profile: fragmented subcontractor network, 1. Operational risk profile: Critical systems established in-house smaller internal team, rapidly gr

  7. Slide 7: R&D: Trials On Rainbow Trout In Denmark

    R&D: Trials On Rainbow Trout In Denmark First Half 2021 Update Atlantic salmon vs. Steelhead growth curve Testing Rainbow trout as an addition to Atlantic Salmon 6,000 Atlantic Salmon Trout 5,000 Gaining valuable experience with trout as a potential Bluehouse species: 4,000 grams 3,000 2,000 ▪ Trout

  8. Slide 8: Proven Offtake At Premium Pricing With Strong And Growing Retail Footprint

    Proven Offtake At Premium Pricing With Strong And Growing Retail Footprint… US price achievement – premium fish Selected partners Locations carrying Bluehouse Salmon1 (superior, 3kg+) – USD/kg RTF2 Bluehouse premium Fishpool index 12.4 12.3 12.3 12.5 12.1 11.8 11.9 12.2 11.9 8.2 7.6 7.6 7.0 5.4 5.9

  9. Slide 9: Charting The Path For A Billion Dollar Brand

    …Charting The Path For A Billion Dollar Brand First Half 2021 Update Brand awareness and recognition Brand development ▪ Generate product desirability and trial ▪ Business drivers (metrics and KPI) + Buzz = Sustainable Profitable Growth ▪ Strong traction from mainstream media of PR efforts ▪ Our mis

  10. Slide 10: First Half 2021 Consolidated Financial Statements

    First Half 2021 Consolidated Financial Statements First Half 2021 Update H1 2021 financials at a glance XXX ▪ Total harvest volume of 1,275t HOG in the first six months ▪ xxx of 2021, up from 989t HOG in FY 2020 ▪ Stable and high premium price achievement combined with few downgrades in Q2 2021 ▪ US

  11. Slide 11: Summary and Areas of Focus Going Forward

    Summary and Areas of Focus Going Forward First Half 2021 Update Summary US phase 2 Bluehouse currently under construction ▪ Operational improvements after a challenging start to 2021 ▪ US batches introduced from mid-2020 are raising the bar on biological performance compared to initial batches INSER

  12. Slide 12: Phase 2 Intro

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  13. Slide 13: Phase 1 Challenges

    Phase 1 Challenges 1 2 3 Approached Reliance on single RAS Prioritized a construction a large-scale project with system supplier with limited manager with ‘local a small number of experience at a large scale experience’ rather than internal staff and in the US ‘large complex water system experience’

  14. Slide 14: Large Scale Project with Small Team

    ! Large Scale Project with Small Team Total annual key hires in Global & North America Operation New staff added 18 9 9 2 7 2016 2017 2018 Key hire: Role critical to the Key delivery and hires: operation ofpositions Management the facility. 14 |

  15. Slide 15: Staffed Up to Meet Project Demands

    Staffed Up to Meet Project Demands 105 Total annual key hires 19 86 New staff added 47 39 21 18 9 9 2 7 2016 2017 2018 2019 2020 2021 Key hires: Management positions 15 |

  16. Slide 16: Limitations of RAS-focused design for Salmon Farming

    ! Limitations of RAS-focused design for Salmon Farming Traditional RAS Suppliers Water Treatment Designer Specialized Suppliers 16 |

  17. Slide 17: Centralized Accountability

    ! Centralized Accountability Civil Permitting Water Architectural Engineering Infrastructure Aquaculture RAS Construction Ventilation Consultant Oversight 17 |

  18. Slide 18: Large Scale Water Treatment Design

    Large Scale Water Treatment Design Similar piping, pumping and filtration systems are used for Bluehouse and municipal water treatment construction. Bluehouse Catskill/Delaware Phase 2 UV Disinfection Facility 1,136 mgd1 2,010 mgd1 1 mgd: million gallons per day 18 |

  19. Slide 19: Municipal Water Treatment Requires Design at Large Scale

    Municipal Water Treatment Requires Design at Large Scale Catskill/Delaware UV Detroit WWTP Disinfection Facility 2,010 2,460 Blue Plains WWTP 1,400 Passaic Valley WWTP Newtown Creek WWTP Bluehouse Phase 2 In Millions of 1,136 330 310 Gallons of Water Per Day 19 |

  20. Slide 20: Commercial Construction Does Not Equal Water Facility Construction

    ! Commercial Construction Does Not Equal Water Facility Construction Mechanical Systems Electrical I&C Building Material Site Civil Landscaping Carpentry, Furniture, Electronics ~2% ~1% ~1% 1% 1% 10% 18% 25% ~30% 16% 13% ~50% 54% 8% 5% 13% 36% ~5% ~10% Typical Commercial Bluehouse Typical Water Cons

  21. Slide 21: Design and Construction Team Has Experience in Large Complex Water Systems

    Design and Construction Team Has Experience in Large Complex Water Systems in Southeast U.S. 21 |

  22. Slide 22: Hazen/Wharton-Smith Team: Completed Projects

    Hazen/Wharton-Smith Team: Completed Projects Project Location Snow Hill Rd PS and FM Replacement Durham County, NC Leaf River Raw Water Reactor Clarifier New Augusta, MS Foley WWQI Fenholloway Pipeline Georgia-Pacific Thomas P. Smith WRF City of Tallahassee, FL Thomas P. Smith WRF Package 2 City of

  23. Slide 23: Phase 2 Takes Advantage Of All Phase 1 Learnings

    Phase 2 Takes Advantage Of All Phase 1 Learnings Continuous Improvement Atlantic Sapphire has identified over 500 “Possibilities for improvement” that will be incorporated in Phase 2 23 |

  24. Slide 24: Our New Phase 2 Delivery and Teaming Approach

    Our New Phase 2 Delivery and Teaming Approach We have changed how we are approaching the project to optimize quality and efficiency Atlantic Establishing criteria for Leading design Hazen and Bluehouse Farming consultant in water Sapphire treatment industry Sawyer Phase 2 Leaders in aquaculture Top

  25. Slide 25: Phase 2 Approach Is The Solution To The Phase 1 Challenges

    Phase 2 Approach Is The Solution To The Phase 1 Challenges 1 2 3 Appropriate Strategic selection Selection of staffing levels of design construction for large-scale consultant with contractor with vast project proven experience experience on water on water facilities facilities 25 |

  26. Slide 26: (<D Lu

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