Slide 1: Q4 2023 Presentation
Q4 2023 PRESENTATION CEO: Trond Håkon Schaug-Pettersen CFO: Trond Vadset Veibust 13 February 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
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 3 Q4 2023 Presentation
Slide 4: Highlights
HIGHLIGHTS • Harvest volumes of 1,104 tonnes (HOG) in Q4, with • EBITDA breakeven farming operations. an average weight of ~3.5 kg (HOG) and superior • Q1 QTD volume of 457 tonnes (HOG) having share of 90 %. harvested 2/4 groups. Average weight of ~3.9 kg • Continued strong biological performance, w
Slide 5: Agenda
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 5 Q4 2023 Presentation
Slide 6: Strong results after first full year in operation
STRONG RESULTS AFTER FIRST FULL YEAR IN OPERATION 2023 in numbers Net biomass growth1) (LW) Seawater mortality per month 1,60% Average conventional industry2) 1,20% 3,751 tonnes 0,80% 0,40% Salmon Evolution actuals Target Salmon Evolution 3-5 % annual basis 0,00% jul.23 aug.23 sep.23 okt.23 nov.23 d
Slide 7: Record high harvest volumes in Q4
RECORD HIGH HARVEST VOLUMES IN Q4 Comment Gearing up harvest volumes • Total Q4 harvest volumes of 1,104 tonnes HOG with Harvest volumes (tonnes, HOG) Superior share an average weight of ~3.5 kg HOG and a superior share of 90%. Q1-24 800 - 95 % • All-in price realization of NOK 76.4/kg1), reflecting
Slide 8: Ending 2023 with all time high biomass
ENDING 2023 WITH ALL TIME HIGH BIOMASS Comment Net biomass growth1) (LW) and standing biomass (LW) 1 600 2 400 • Standing biomass of more than 2,200 tonnes LW as per 31 December 2023. 1 400 2 100 Net biomass growth (tonnes, LW) • All time high biomass production in Q4 with Total biomass (tonnes, LW)
Slide 9: Indre Harøy Phase 2
Phase 2 8kt HOG H2 2025 Phase 3 16kt HOG Processing Phase 1 30 min by 2028 wellboat 8kt HOG Complete • Phase 2 will take production capacity to 16kt HOG annually, 50% of Indre Harøy fully developed. • Good progress on design and engineering during the quarter – initial Smolt groundworks completed fo
Slide 10: Agenda
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 10 Q4 2023 Presentation
Slide 11: North America: Closing in
NORTH AMERICA: CLOSING IN Project overview Target areas • Targeting a substantial operation in the North America market by utilizing the know-how and experiences from Norway • Established dedicated team and incorporated corporate structure. • As the project develops, Salmon Evolution aims to engage
Slide 12: Korea: Focus on cost optimization
KOREA: FOCUS ON COST OPTIMIZATION Project overview Overview main permits • 49/51% joint venture between SE and Dongwon Industries Jeongseon (smolt facility) • Project consists of a smolt facility, grow-out facility and certain other Permit Status Comment infrastructure. Zoning permit • Targeted tota
Slide 13: Agenda
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 13 Q4 2023 Presentation
Slide 14: Salmon Evolution benefitting from exceptionally high superior grade share
SALMON EVOLUTION BENEFITTING FROM EXCEPTIONALLY HIGH SUPERIOR GRADE SHARE Illustration of positive price implication of superior fish welfare Superior share Illustrative Q1 market prices Implied all-in price realization2) 100% 100 kr kg 100 100 98 kr kg 95 % 90 80 -4 % 90% 70 kr kg 94 kr kg 70 -8 %
Slide 15: Segment: Farming Norway
SEGMENT: FARMING NORWAY • Breakeven operational EBITDA Farming Norway (figures in NOK 1000) Q4 23 Q3 23 % • Revenues of NOK 85.9m, where 83.6 is sales revenues Operating revenue (NOK 1000) 85 850 13 349 543 % related to the harvest of 1,104 tonnes (HOG) in Q4. Operational EBITDA (NOK 1000)2 43 -8 11
Slide 16: Segment: Other
SEGMENT: OTHER • Revenues of NOK 7.5m related to sale of services to Summary of result Group companies and K Smart JV. (figures in NOK 1000) Q4 23 Q3 23 % Operating revenue (NOK 1000) 7 525 7 003 7% • In Other segment all resources related to projects and Operational EBITDA (NOK 1000) -16 205 -16 52
Slide 17: Group profit and loss
GROUP PROFIT AND LOSS • Revenues of NOK 88.9m in Q4, most of it related to the Summary of result 1,104 tonnes (HOG) harvested. (figures in NOK 1000) Q4 23 Q3 23 % Total operating revenue 88 850 15 856 460 % • EBITDA before fair value adjustment of biomass of Operational EBITDA -16 162 -24 637 34 % N
Slide 18: Group financial position and cash flow
GROUP FINANCIAL POSITION AND CASH FLOW Summary of financial position • Strong financial position. (figures in NOK 1000) 31 Des 2023 30 Sept 2023 • Significantly improved cash flow with increasing Non-current assets 2 074 286 2 039 203 harvest volumes. Current assets 634 883 720 175 ➢ Company expect
Slide 19: Agenda
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 19 Q3 2023 Presentation
Slide 20: Summary and outlook
SUMMARY AND OUTLOOK Fully operational Strong biological Competitive Strong financial Highly attractive at industrial scale performance farming cost position market backdrop Proof of concept Good fish health and fish Farming costs decreasing Solid shareholder base On the verge of demonstrated and wel
Slide 21: Q&A
Q&A www.salmonevolution.no 21 Q4 2023 Presentation
Slide 22: Agenda
Agenda • Highlights • Operations – Norway • Operations - International • Financials • Summary and outlook • Appendices 22 Q4 2023 Presentation
Slide 23: Salmon Evolution is the global leader in land-based salmon farming
SALMON EVOLUTION IS THE GLOBAL LEADER IN LAND-BASED SALMON FARMING Pioneering the hybrid Proof of concept in Premium position We put biology first International expansion flow-through system Norway based on quality & ESG (HFS) Our technology approach Establish Indre Harøy as global Developing superi
Slide 24: Robustness of hybrid flow through system fully demonstrated
ROBUSTNESS OF HYBRID FLOW THROUGH SYSTEM FULLY DEMONSTRATED AFTER ALMOST 2 YEARS IN OPERATION 1 We have found the sweet-spot: 2 Minimizing risk: Hybrid flow-through system (HFS) Each tank is a separate biozone RAS Recirculating aquaculture system Biofilter shared by No biofilter – each tank a severa
Slide 25: Strong management team with extensive experience
Strong management team with extensive experience leading a growing organization and corporation Management team Organizational structure Corporate structure Trond Håkon Schaug-Pettersen, CEO ▪ >15 years experience from both salmon industry and capital markets notably at Hofseth International and Swe
Slide 26: Highly competent board of directors backed by strong owners
Highly competent board of directors backed by strong owners Board of directors Ownership as per 31 December 2023 Tore A. Tønseth Eunhong Min Chairman of the board Board member Shareholder Ownership Board representative Comments share ▪ Investment Director at Ronja ▪ Chief Executive Officer of Capita