Andfjord Salmon Group As · OSL:ANDF
Andfjord Salmon Group As — Q2 2024 Earnings Presentation
31 slides from Andfjord Salmon Group As's earnings presentation, Sep 4, 2024
Slide 1: Q2 2024 Status and Progress
Q2 2024 STATUS AND PROGRESS 4 SEPTEMBER 2024
Slide 2: Agenda
Q2 2024 AGENDA • ANDFJORD SALMON IN BRIEF • Quarterly highlights and subsequent events • Status Kvalnes build-out • Private placement: Strategic investors • Regulations • Financials • Summary and outlook Martin Rasmussen Bjarne Martinsen CEO CFO
Slide 3: Building the world's most fish-friendly facility
say oa O ir BUILDING THE } WORLD'S MOST. FISH-FRIENDLY Ne My AAR ae FACILITY OF CONSCIENCE ITS KIND
Slide 4: The best of two worlds
Q2 2024 THE BEST OF TWO WORLDS 3 BENEFITS OF SEA BASED NET PEN FARMING 3 BENEFITS OF LAND BASED FARMING First pool, Kvalnes First pool, Kvalnes 1 1 NO PROBLEMS WITH NATURAL OPTIMAL SALMON LICE AND WATER TEMPERATURES POISONOUS ALGAE 2 2 OXYGEN-RICH AND NATURAL ESCAPE CLEAN ARCTIC PREVENTION SEAWATER
Slide 5: Natural Flow – Andfjord Salmon's flow-through system
JUNE 2023 NATURAL FLOW – ANDFJORD SALMON’S FLOW-THROUGH SYSTEM
Slide 6: Andfjord Salmon
PY ANDFJORD™ SALMON
Slide 7: Key figures – first production cycle
Q2 2024 KEY FIGURES – FIRST PRODUCTION CYCLE HIGH LOW FEED STRONGER LOWER ENERGY HIGH SUPERIOR SURVIVAL RATE CONVERSION GROWTH COSTS SHARE RATE 97.5% 1.05 +1 kilo 1 kWh 91.1% Industry average Industry average Extra growth Energy use per kilo Industry average = 83.3%* = 1.27** compared to produced sa
Slide 8: Agenda
Q2 2024 AGENDA • Andfjord Salmon in brief • QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS • Status Kvalnes build-out • Private placement: Strategic investors • Regulations • Financials • Summary and outlook
Slide 9: Highlights Q2 and subsequent period
Q2 2024 HIGHLIGHTS Q2 AND SUBSEQUENT PERIOD BUILD-OUT STRONG PROGRESS INITIATED SUCCESSFUL PRIVATE PROGRESSING AS ON WATERWAYS PRODUCTION OF PLACEMENT PLANNED POOL COMPONENTS De-risks a challenging NOK 350 million from All workstreams on or part of the build-out Preparations for pool strategic inves
Slide 10: Agenda
Q2 2024 AGENDA • Andfjord Salmon in brief • Quarterly highlights and subsequent events • STATUS KVALNES BUILD-OUT • Private placement: Strategic investors • Regulations • Financials • Summary and outlook
Slide 11: Production volume of 40,000t at Kvalnes with total potential of 90,000t
Q2 2024 PRODUCTION VOLUME OF 40,000t AT KVALNES WITH TOTAL POTENTIAL OF 90,000t Kvalnes build-out plan Expected total production capacity by stages (HOG) Comments 90 000 Tons HOG Kvalnes Pilot • Gradual ramp-up to full capacity of Added Accum. 80 000 Stage, production production 40,000 tonnes at Kva
Slide 12: Kvalnes expansion stages and construction start
Construction start 2023-2025: +18,000 tonnes +4,000 tonnes license expansion 1 2 3 Construction start in 2027: +12,000 tonnes 5 (exact location to be decided) 4 Construction start in 2026: +5,000 tonnes First pool In operation: 1,000 tonnes NOTE: ILLUSTRATIVE GRAPHICS
Slide 13: Status and progress – pools
Q2 2023 Q3 2024 STATUS AND PROGRESS – POOLS POOL CONSTRUCTION INITIATED • Workstream on track • Concrete elements produced by factory on site • Foundation work for pools K1 and K3 is in the final stage • Production of pool walls is in progress, with a planned significant increase in concrete product
Slide 14: Pool construction method
Q2 2023 Q3 2024 POOL CONSTRUCTION METHOD ON-SITE FACTORY AND CRANE • The 24-hour production of concrete elements ensures continuous progress. • The on-site factory and crane for installing concrete elements have significantly improved progress efficiency. On-site factory On-site crane CONSTRUCTION S
Slide 15: Sustainability at core of build-out
Q2 2023 Q3 2024 SUSTAINABILITY AT CORE OF BUILD-OUT EFFICIENT AND SMART BUILD-OUT PROCESS • Utilizing masses from pool pits and tunnels as raw material in concrete reduces costs and enhances environmental sustainability. • Avoiding approximately 23,300 tonnes (equivalent to 780 truckloads) of materi
Slide 16: Status and progress – waterways
Q2 2023 Q3 2024 STATUS AND PROGRESS – WATERWAYS WATERWAYS ON TRACK • Capacity to support annual production of 40,000 tonnes (HOG) of Salmon • Workstream on track • Quality of bedrock is in line with expectations. • Strong progress in recent months (excluding summer vacation period in July) • Total l
Slide 17: Key construction milestones for build-out phase at Kvalnes (8,000 t)
Q2 2024 KEY CONSTRUCTION MILESTONES FOR BUILD-OUT PHASE AT KVALNES (8,000 t) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 PLAN: EXCAVATION OF POOL PITS K1-K12 STATUS: 100% FINISHED – AHEAD OF SCHEDULE PLAN: CONCRETE WORKS: POOLS K1-K4 STATUS: 18% COMPLETION PLAN: W
Slide 18: Agenda
Q2 2024 AGENDA • Introduction • Quarterly highlights and subsequent events • Status Kvalnes build-out • PRIVATE PLACEMENT: STRATEGIC INVESTORS • Regulations • Financials • Summary and outlook
Slide 19: Successful private placement
Q2 2024 SUCCESSFUL PRIVATE PLACEMENT RAISED NOK 350 MILLION STRONG SUPPORT FROM LARGE INDUSTRIAL INVESTORS • Significantly oversubscribed • Lisbon-listed group with 230 years of know-how in the food business • Net proceeds used to expand production capacity at Kvalnes, • Revenue of EUR 30 billion in
Slide 20: Agenda
Q2 2024 AGENDA • Andfjord Salmon in brief • Quarterly highlights and subsequent events • Status Kvalnes build-out • Private placement: Strategic investors • REGULATIONS • Financials • Summary and outlook
Slide 21: Proposed new regulations for land-based aquaculture
Q2 2024 PROPOSED NEW REGULATIONS FOR LAND-BASED AQUACULTURE BACKGROUND KEY POINTS FROM THE PROPOSAL • After a two-year standstill period for considering license • The proposals will not affect facilities that have already applications for land-based aquaculture, the Norwegian received permission for
Slide 22: Agenda
Q2 2024 AGENDA • Andfjord Salmon in brief • Quarterly highlights and subsequent events • Status Kvalnes build-out • Private placement: Strategic investors • Regulations • FINANCIALS • Summary and outlook
Slide 23: Statement of comprehensive income
Q2 2024 STATEMENT OF COMPREHENSIVE INCOME All amounts in 1,000 NOK Statement of comprehensive income Q2 2024 Q2 2023 HY 2024 HY 2023 2023 1.4 – 30.6 1.4 – 30.6 1.1 – 30.6 1.1 – 30.6 1.1 – 31.12 Unaudited Unaudited Unaudited Unaudited Operating income and expenses Revenue from contracts with customer
Slide 24: Statement of financial position
Q2 2024 STATEMENT OF FINANCIAL POSITION All amounts in 1,000 NOK Assets 30.06.2024 - Unaudited 31.12.2023 30.06.2023 - Unaudited Intangible assets 16 445 14 389 12 570 Property, plant & equipment 1 443 058 876 632 521 109 Right-of-use assets 15 376 17 640 19 496 Other non-current assets 35 113 71 To
Slide 25: Statement of financial position
Q2 2024 STATEMENT OF FINANCIAL POSITION All amounts in 1,000 NOK Equity and liabilities 30.06.2024 - Unaudited 31.12.2023 30.06.2023 - Unaudited Total equity 1 287 142 993 688 643 061 Borrowings 218 324 59 959 63 417 Lease liabilities 7 869 9 340 11 027 Total non-current liabilities 226 193 69 299 7
Slide 26: Statement of cash flows
Q2 2024 STATEMENT OF CASH FLOWS All amounts in 1,000 NOK Statement of cash flows Q2 2024 Q2 2023 HY 2024 HY 2023 2023 1.4-30.6 1.4-30.6 1.1 – 30.6 1.1 – 30.6 1.1 – 31.12 Unaudited Unaudited Unaudited Unaudited Net cash flow from operating activities -11 141 -27 315 -31 730 -41 612 -29 148 Net cash f
Slide 27: Scale-up tailored for capital efficiency
Q2 2024 SCALE-UP TAILORED FOR CAPITAL EFFICIENCY CAPITAL EXPENDITURE, INCURRED COSTS VS KVALNES BUILD-OUT PLAN ESTIMATED BUDGET COST, KVALNES PHASE 1 INCL. BUFFER Added Accum. Technical Capex (NOK, infrastructure 1800 Stage, Kvalnes production production est.) (8,000t) (HOG, est.) (HOG, est.) Waterw
Slide 28: Agenda
Q2 2024 AGENDA • Andfjord Salmon in brief • Quarterly highlights and subsequent events • Status Kvalnes build-out • Private placement: Strategic investors • Regulations • Financials • SUMMARY AND OUTLOOK
Slide 29: Summary and outlook
Q2 2024 SUMMARY AND OUTLOOK BUILD-OUT STRONG PROGRESS INITIATED POOL SUCCESSFUL PRIVATE PROGRESSING AS ON WATERWAYS PRODUCTION PLACEMENT PLANNED De-risks a challenging Foundation work for Strategic investors All workstreams on or part of the build-out pools K1 and K3 at final supporting Andfjord ahe
Slide 30: Andfjord Salmon
ma FQ snorsono™ SALMON
Slide 31: Disclaimer
Q2 2024 DISCLAIMER NEXT QUARTERLY UPDATE: IMPORTANT INFORMATION This presentation (the "Presentation") has been produced by Andfjord Salmon AS (the "Company") solely for information purposes. By reading the Presentation slides or by otherwise receiving this Presentation or the information contained