Andfjord Salmon Group AS: Solid progress at Kvalnes build-out | Second quarter and half-year 2024 financial results

04 Sep 2024 07:00 CEST

4.9.2024 07:00:01 CEST | Andfjord Salmon | Half yearly financial reports and
audit reports / limited reviews

All ongoing workstreams for Andfjord Salmon Group AS' (Andfjord Salmon)
build-out at Kvalnes, Andøya, show solid progress. The next two pools are
starting to take shape.

"Just before the summer we reported faster than expected progress for the
development of our waterways. I am pleased to share today that the performance
has been equally strong throughout August, following scheduled reduced activity
in July. The waterways are the arteries that supply water to the flow-through
systems in our pools, so they are key to our expansion," says Martin Rasmussen,
CEO of Andfjord Salmon.

As of yesterday, the waterways, including inlet and outlet tunnel, had reached
73 percent completion - a noticeable increase from 57 percent in early July this
year.

In this first phase of the Kvalnes build-out, Andfjord Salmon is completing four
new pools, increasing total production capacity to 8,000 tonnes HOG by 2025.
This initial phase includes developing shared infrastructure such as waterways
and a harbour area that will support future production of 40,000 tonnes salmon
at Kvalnes.

The harbour area workstream is currently at 48 percent completion, up from 42
percent since early July.

The pool construction workstream is also progressing in line with Andfjord
Salmon's build-out plan. Completion currently stands at 12 percent, up from 8
percent in early July. Concrete elements for the pools are being produced
on-site, utilizing raw materials from pool pits and tunnels as ingredient in the
concrete. This reduces both costs and emissions associated with the production.
The foundation work for the two next pools - K1 and K3 - is in its final stages,
and production of pool walls is ongoing. The crane that will install the pool
walls is assembled and already in place above the pool pit.

"Everything we need to ramp up pool construction is now in place. The plan is to
significantly increase production of concrete elements during September. We
therefore expect to see an uptick in pool construction during the coming
months," adds Martin Rasmussen.

NOK 350 MILLION PRIVATE PLACEMENT

A combination of solid progress at Kvalnes, strong biological results in its
first production cycle, and the prospect of an additional revenue stream through
use of surplus pool capacity for "post-smolt" production, enabled Andfjord
Salmon to successfully complete an equity raise of NOK 350 million in the second
quarter of 2024. This provided added financial flexibility for this build-out
stage.

Current shareholders, including the company's largest shareholder Jerónimo
Martins Agro-Alimentar S.A and Eidsfjord Sjøfarm AS/ Holmøy Havbruk AS, invested
their pro-rata shares in the private placement. High Liner Foods Incorporated, a
leading seafood processor and marketer in the US and Canada, also invested USD
10 million to become a new shareholder in Andfjord Salmon.

SECOND QUARTER 2024 FINANCIAL RESULTS

Andfjord Salmon is expanding its Kvalnes facility and had no salmon production
in the second quarter of 2024. Revenue was NOK 0.1 million (Q2 2023: Nok 9.6
million). The company reported a loss of NOK 18.8 million in this year's second
quarter, compared to a loss of NOK 18.2 million in the same period last year.

PRESENTATION AT 08:00 (CET) TODAY

Andfjord Salmon will provide an operational update and presentation of the
company's second quarter and half-year 2024 financial results at 08:00 (CET)
today. The webcast presentation can be viewed from this URL:
https://channel.royalcast.com/landingpage/hegnarmedia/20240904_2/ -
https://nor01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fchannel.royalc
ast.com%2Flandingpage%2Fhegnarmedia%2F20240904_2%2F&data=05%7C02%7C%7C7b3aea1669
484904d1ca08dc8ba9a5d7%7C2347c95974d84debb62d396439ac2b48%7C0%7C0%7C638538808124
831170%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1ha
WwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=ycz5NRBBFbquxiNSmLbdRR1T8%2F%2BgeCW5t5lHHrS
NFBk%3D&reserved=0

The presentation will be held in English. The presentation material and
half-year 2024 report are attached to this announcement.

DISCLOSURE REGULATION

This is information that Andfjord Salmon AS is obliged to make public pursuant
to the EU Market Abuse Regulation (MAR) Article 17 no. 1. The information was
submitted for publication, through the NTB Kommunikasjon service by the contact
persons listed below.

CONTACTS

* Investors: Bjarne Martinsen, CFO, Andfjord Salmon AS, +47 975 08 345,
bjarne.martinsen@andfjord.no
* Media: Martin Rasmussen, CEO, Andfjord Salmon AS, +47 975 08 665,
martin@andfjord.no

ABOUT ANDFJORD SALMON

Located at Andøya on the Arctic Archipelago of Vesterålen, Norway, Andfjord
Salmon is developing the world's most sustainable and fish-friendly aquaculture
facility of its kind. Through a proprietary flow-through system, Andfjord Salmon
combines the best from ocean and land-based salmon farming. In its first
production cycle, the company achieved an industry-leading survival rate of 97.5
percent, feed conversion ratio of 1.05, superior share of 91.1 percent, and
required 1 kWh to produce one kilo of salmon. Andfjord Salmon has identified a
roadmap towards a production capacity of 40,000 tonnes HOG at Kvalnes, Andøya,
and set a long-term ambition to reach 90,000 tonnes HOG across Kvalnes, Breivika
and Fiskenes at Andøya. For more information, see www.andfjordsalmon.com -
http://www.andfjordsalmon.com/.

ATTACHMENTS

Andfjord Salmon Q2 2024 presentation.pdf -
https://kommunikasjon.ntb.no/ir-files/17847566/18224538/4939/Andfjord%20Salmon%2
0Q2%202024%20presentation.pdf

_Andfjord_Half-year 2024_030924_Final.pdf -
https://kommunikasjon.ntb.no/ir-files/17847566/18224538/4940/_Andfjord_Half-year
%202024_030924_Final.pdf

More information:
Access the news on Oslo Bors NewsWeb site

626964__Andfjord_Half-year 2024_030924_Final.pdf
626964_Andfjord Salmon Q2 2024 presentation.pdf