Phase 1 with a planned annual production of 7,900 tons HOG is in full operation, whilst construction of phase 2 planned to add an addition 10,100 tons

Salmon Evolution is not only achieving impressive economic results but also setting a new standard with its pioneering model and technology

Founded in 2017 by a group of industry pioneers with extensive seafood experience, Salmon Evolution was built on an ambitious vision: to create a sustainable salmon farming model that could become a beacon for the industry.

In recent years, the Salmon RAS (Recirculating Aquaculture Systems) sector has seen the development of various technologies and impressive advancements. Salmon Evolution has contributed to this innovation with its hybrid flow-through system, which combines 65% flow-through, 35% recirculation, and introduces fresh seawater. This approach reduces biological risk and eliminates the need for biofilters.

Today, they are well on their way to realizing this vision, having secured proof of concept for their technology in Norway. Their controlled growth conditions allow for the elimination of challenges typical in conventional fish farming, improving fish welfare and reducing environmental impact.

The result is a new standard of salmon quality that the world has never seen before. Below, we provide an overview of how Salmon Evolution has navigated different phases of its project and the significant outcomes it has achieved.

The company presents its third quarter results

Highlights in the quarter

• Strong biological KPIs supported by continued stable operations
• Group EBITDA of -7.3 NOKm - Farming EBITDA of 2.2 NOKm and NOK 3.3 EBITDA/kg
• Pushing harvest into Q4 to maximize price realization – full year harvest guidance unchanged
• Standing biomass near record levels going into Q4 at ~2,600 tonnes LW. Restocking of grow-out facility completed during the quarter, record number of individuals as of date
• Indre Harøy phase 2 construction started – on track for first smolt release in Q1-26 as planned
• Strong financial position with 866 NOKm in available liquidity including committed undrawn credit facilities. Additionally, the Company has 1,450 NOKm in earmarked construction financing

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Consistent strong biological results

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Maximizing price realization in second half of 2024

Pushing harvest into Q4

• Used available flexibility to push harvest into Q4 maximizing price realization on back of higher expected prices
• Q3 harvest of 680 tonnes HOG, continued strong product quality with superior grade of 98 % and excellent feedback on taste
• All-in price realization of NOK ~72/kg1
• Outperforming index on superior grade
• Average weight on harvested fish of ~3.3 kg (HOG), up 10 % from Q2
• Impacted by low smolt stocking weights in 2023
• Q4-24 harvest weights expected at approximately 4 kg HOG.
• Harvest guidance for 2024 unchanged
• Expecting Q4 harvest of ~1,800 tonnes HOG bringing 2024 harvest up to ~5,000 tonnes HOG – on track

Harvest guidance unchanged

Biomass production increase

Net daily biomass gain %

• Good biomass buildup during the quarter with standing biomass of 2,582 tonnes LW end Q3 – close to all-time high levels
• Restocking of Indre Harøy completed during the quarter, all-time high number of individuals setting the stage for continued good growth
• Strong production at smolt facility, 39 % y/y increase resulting in good stocking weights on next smolt inserts

Biomass development

• Recently stocked smolt groups performing well with low mortality. Two additional batches planned stocked during Q4
• Supportive growth KPIs at Indre Harøy, steady improvement in daily growth rates
• Wide range of initiatives ongoing to take out full growth potentia

Significant jump in harvest and production

Comment

• Prioritizing biomass build-up during H1 2025 to take out full growth potential on back of fully stocked farm
• Biomass production expected to increase 40 % compared to 2024
• estimated harvest
• Spillover effects from issues with smolt quality in first half of 2024
• impacts 2025 harvest volumes
• Current biomass composition will lead to lower harvest weights in Q1.

                     • Q1-25 harvest estimate

                     ~1,100 tonnes HOG

Harvest guidance 2025

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2+ YEARS OF FULL INDUSTRIAL SCALE OPERATIONS

They have the answers they need

Continuous improvement… 

• Backdrop: Stable performance, we can devote our energy on optimization and tuning
• Enabled by big data – every day we collect more than 40 million datapoints at Indre Harøy
• 50+ identified optimization activities ongoing with different time frames and impact
• Examples:

                      • Longer seawater adaption of smolt before stocking at grow-out

                      • Cleaning routines for heat exchangers and CO2 strippers to further enhance water quality stability and minimize stress reactions

                      • Finetuning of tank hydraulics to optimize feeding

                      •Installing new RO-plant enabling more efficient fish transfers and more available feeding days

Driven by unique insights after 2+ years

FOCUS ON SMOLT QUALITY IS PAYING OFF

Significant improvement in stocking weights

Strong biomass growth at smolt facility

• Strong operational performance at smolt facility, biomass growth up 39 % Y/Y
• Continued focus on operational improvements.
• Expecting significant positive impact on stocking weights following facility upgrades during 2024 in combination with improved production plan
• Smolt group stocked in October had an average stocking weight of 270g.
• Initial performance of smolt at grow-out facility has a substantial compounding effect in terms of harvest weight

Stocking weights above target

REACHING CRITICAL SCALE OF OPERATIONS

Phase 2: Taking Salmon Evolution to the next level

SALMON EVOLUTION BENEFITS FROM GREATER SCALE AND FLEXIBILITY

Unlocking more potential at Indre Harøy with phase 2

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Why Salmon Evolution approach makes sense

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Creating a foundation for substantial profitable growth

• Proven operational excellence with strong biological and financial results
• Closing in on steady state volume and financials
• Competitive farming cost, expected to improve further with scale and falling feed cost
• On track with fully funded phase 2 expansion increasing annual planned harvest to 18kt HOG
• Strong financial position
• Attractive market outlook, strong price outlook for 2025 and beyond

editorial@seafood.media
www.seafood.media

Address:	Eikremsvingen 2C,
City:	Molde
State/ZIP:	(NO-6422)
Country:	Norway
Phone:	+47 901 16 803
E-Mail:	post@salmone.no
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