Andfjord Salmon Group As · OSL:ANDF
Andfjord Salmon Group As — Q4 2023 Earnings Presentation
37 slides from Andfjord Salmon Group As's earnings presentation, Feb 29, 2024
Slide 1: Q4 2023 Status and Progress
Q4 2023 STATUS AND PROGRESS 29 FEBRUARY 2024
Slide 2: Agenda
Q4 2023 AGENDA • INTRODUCTION • Quarterly highlights and subsequent events • Status Kvalnes build-out • Financials • Post-smolt strategy Martin Rasmussen Bjarne Martinsen • Summary and outlook CEO CFO
Slide 3: Building the most sustainable facility of its kind
“i y. \ BA te a NE ¥ eon | | | a) ® ak ae NNSA he ih . aS = = tel : | \ \! ie . J . ' : \ Ye » BUILDINGTHE \ Wy 8 stent VE SHR AND SUSTAINABLE WITH A “LEAR raciuryor CONSCIENCE ITS KIND
Slide 4: The best of two worlds
Q4 2023 THE BEST OF TWO WORLDS 3 BENEFITS FROM SEA BASED NET PEN FARMING 3 BENEFITS FROM 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 SEAWA
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
Q4 2023 KEY FIGURES: FIRST PRODUCTION CYCLE INDUSTRY LEADING LOW FEED STRONGER LOWER ENERGY SURVIVAL RATE CONVERSION GROWTH COSTS RATE 97.5% 1.05 +1 kilo 1 kWh Survival rate for first Feed conversion rate for first Extra growth first 12 months in Energy use per kilo produced production cycle product
Slide 8: Agenda
Q4 2023 AGENDA • Introduction • QUARTERLY HIGHLIGHTS AND SUBSEQUENT EVENTS • Status Kvalnes build-out • Financials • Post-smolt strategy • Summary and outlook
Slide 9: Highlights Q4 and subsequent period
Q4 2023 HIGHLIGHTS Q4 AND SUBSEQUENT PERIOD EXCAVACTION PROGRESSING AS PREPARATION FOR POST-SMOLT COMPLETED PLANNED POOL CONCRETE STRATEGY PRODUCTION Pool pit excavation at Harbour area and Post-smolt production Kvalnes completed one waterways workstreams Initiated preparation for opportunity identi
Slide 10: Agenda
Q4 2023 AGENDA • Introduction • Quarterly highlights and subsequent events • STATUS KVALNES BUILD-OUT • Financials • Post-smolt strategy • Summary and outlook
Slide 11: Production volume of 40,000t at Kvalnes with total potential of 90,000t
Q4 2023 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
Q4 2023 Q3 KVALNES Construction start in 2027: +12,000 tonnes 5 Construction 2023-2025: (exact location to be +18,000 tonnes decided) +4,000 tonnes license expansion 1 2 3 4 Construction start in 2026: +5,000 tonnes First pool In operation: 1,000 tonnes
Slide 13: Kvalnes status and progress
Q4 2023 Q3 KVALNES STATUS AND PROGRESS POOLS Pool pit excavation reached WATERWAYS 100% completion, one quarter Outlet and inlet waterways PORT ahead of schedule reached 10% completion Harbour area progressing as planned, reached 30% completion
Slide 14: Key construction milestones for build-out phase at Kvalnes (8,000 t)
Q4 2023 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: K1-K4 STATUS: PREPARATIONS STARTED PLAN: W
Slide 15: Agenda
Q4 2023 AGENDA • Introduction • Quarterly highlights and subsequent events • Status Kvalnes build-out • FINANCIALS • Post-smolt strategy • Summary and outlook
Slide 16: Statement of comprehensive income
Q4 2023 STATEMENT OF COMPREHENSIVE INCOME All amounts in 1000 NOK Statement of comprehensive income Q4 2023 Q4 2022 2023 2022 1.10 – 31.12 1.10 – 31.12 1.1 – 31.12 1.1 – 31.12 Unaudited Unaudited Unaudited Operating income and expenses Revenue from contracts with customers 1 - 37 279 - Other income
Slide 17: Statement of financial position
Q4 2023 STATEMENT OF FINANCIAL POSITION All amounts in 1000 NOK Assets 31.12.2023 - Unaudited 31.12.2022 Intangible assets 14 389 8 556 Property, plant & equipment 876 632 498 386 Right-of-use assets 17 640 22 539 Other non-current assets 113 89 Total non-current assets 908 774 529 570 Biological as
Slide 18: Statement of financial position
Q4 2023 STATEMENT OF FINANCIAL POSITION All amounts in 1000 NOK Equity and liabilities 31.12.2023 - Unaudited 31.12.2022 Total equity 993 688 475 704 Borrowings 59 959 67 375 Lease liabilities 9 340 13 296 Total non-current liabilities 69 299 80 671 Borrowings 7 666 56 168 Lease liabilities 4 511 4
Slide 19: Statement of cash flows
Q4 2023 STATEMENT OF CASH FLOWS All amounts in 1000 NOK Statement of cash flows Q4 2023 Q4 2022 2023 2022 1.10 – 31.12 1.10 – 31.12 1.1 – 31.12 1.1 – 31.12 Unaudited Unaudited Unaudited Net cash flow from operating activities -17 247 -16 287 -29 148 -88 443 Net cash flow from investing activities -2
Slide 20: Scale-up tailored for capital efficiency
Q4 2023 SCALE-UP TAILORED FOR CAPITAL EFFICIENCY Incurred costs vs estimated Kvalnes build-out plan Capital expenditure, Kvalnes phase 1 budget cost, incl. buffer) Added Accum. Technical 1800 Capex (NOK, infrastructure Stage, Kvalnes production production 1,650 est.) (8,000t) (HOG, est.) (HOG, est.)
Slide 21: Supportive shareholder base
Q4 2023 SUPPORTIVE SHAREHOLDER BASE TOP 10 SHAREHOLDERS (PER 26 FEBRUARY 2024) JERÓNIMO MARTINS Listed on stock exchange in Lisbon. Ranked the 18th Jerónimo Martins Agro-Alimentar, S.A. 25.12% largest food retailer in Europe (2022), 5,729 Andfjord Holding AS 11.45% stores, ̴130,000 employees, and sa
Slide 22: Agenda
Q4 2023 AGENDA • Introduction • Quarterly highlights and subsequent events • Status Kvalnes build-out • Financials • POST-SMOLT STRATEGY • Summary and outlook
Slide 23: Key drivers: the post-smolt opportunity
Q4 2023 Q3 KEY DRIVERS: THE POST-SMOLT* OPPORTUNITY The combination of land and ocean-based farming is a unique opportunity for Norway and the Norwegian salmon farming industry STRONG DEMAND SUSTAINABLE BIOLOGICAL BENEFITS AVAILABLE POOL SPACE PRODUCTION Substantial demand for Ocean-based fish farme
Slide 24: A supplement to production of human grade salmon
Q4 2023 Q3 A SUPPLEMENT TO PRODUCTION OF HUMAN GRADE SALMON POOL DENSITY PROFILE (KG/M3) – ILLUSTRATIVE • Estimated 15-25% increase in EBIT through combined production strategy, strategic collaboration agreed with Eidsfjord Sjøfarm/Holmøy Havbruk to realise plans • Andfjord Salmon will release smolt
Slide 25: How we will do it
Q4 2023 Q3 HOW WE WILL DO IT NOTE: SIMPLIFIED ILLUSTRATIVE EXAMPLE OF PRODUCTION CYCLE AFTER 12-15 MONTHS Salmon slaughter weight: 4-6 kg AFTER 6 MONTHS AFTER 3 MONTHS Post-smolt weight: ~ 1,000 grams Smolt weight: 500 grams SMOLT RELEASE Smolt weight: 100-150 grams Post-smolt sold to conventional o
Slide 26: Additional post-smolt production density
Q4 2023 Q3 ADDITIONAL POST-SMOLT PRODUCTION POOL DENSITY PROFILE (KG/M3) – ILLUSTRATIVE PRODUCTION CYCLE Slaughter weight: 4-6 kg 1,000 grams post-smolt sold to ocean farming +15 - 25% EBIT improvement potential versus human grade only. DENSITY Release of 100 – 150 grams smolt 1 1 2 2 3 3 4 4 5 5 6
Slide 27: Post-smolt offers multiple beneficiaries
Q4 2023 Q3 POST-SMOLT OFFERS MULTIPLE BENEFICIARIES OCEAN-BASED FISH FARMERS THE SALMON THE LOCAL MARINE ENVIRONMENT • More robust fish released to sea, less • More robust fish released to sea, less • Longer production time in facilities with susceptible to diseases susceptible to diseases = enhance
Slide 28: Beneficial for local aquaculture industry
Q4 2023 BENEFICIAL FOR LOCAL AQUACULTURE INDUSTRY Enhanced cooperation between ocean-based and land-based farmers = positive for regional economic development Salmon farming licenses surrounding Andfjord Salmon Active farming licenses • Andfjord Salmon beneQts from the extensive expertise of Qsh far
Slide 29: Benefits for Andfjord Salmon
Q4 2023 BENEFITS FOR ANDFJORD SALMON OPTIMISING INFRASTRUCTURE AND REVENUE POTENTIAL • Inclusion of post-smolt production in pools • No additional infrastructure capex required • Enabling 10% higher biomass turnover FINANCIAL BENEFITS INDUSTRIAL BENEFITS • Strong fundamentals for post-smolt drives a
Slide 30: Supplementary post-smolt strategy increases production volume, EBIT and sustainability
Q4 2023 SUPPLEMENTARY POST-SMOLT STRATEGY INCREASES PRODUCTION VOLUME, EBIT AND SUSTAINABILITY ADDITIONAL REVENUE APPROVED BY PARTNERSHIP INCREASES STRENGHTENS STREAM AUTHORITIES IN PLACE EBIT SUSTAINABILITY Significant surplus pool Initial production plan Agreement in place with Strong fundamentals
Slide 31: Agenda
Q4 2023 AGENDA • Introduction • Quarterly highlights and subsequent events • Status Kvalnes build-out • Financials • Post-smolt strategy • SUMMARY AND OUTLOOK
Slide 32: Summary and outlook
Q4 2023 SUMMARY AND OUTLOOK EXCAVACTION PROGRESS AS PREPARATION FOR POST-SMOLT COMPLETED PLANNED POOL PRODUCTION STRATEGY Pool pit excavation at Harbour area and Initiated preparation for Post-smolt production Kvalnes completed one waterways workstreams concrete production opportunity identi`ed, qua
Slide 33: 33
33
Slide 34: Andfjord Salmon
a IQ sxorsono" SALMON
Slide 35: Disclaimer
Q4 2023 DISCLAIMER 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 herein, you agree to be
Slide 36: Appendix
Q4 2023 Appendix
Slide 37: Definition: What is post-smolt?
Q4 2023 Q3 DEFINITION: WHAT IS POST-SMOLT? Post-smolt is a more robust fish, considered to be a key to further growth in the Norwegian salmon farming industry, since it provides SMOLT: POST-SMOLT: improved sustainability 100 – 150 GRAMS 400 GRAMS – 1,000 GRAMS and fish health. Smolt is salmon that w