Andfjord Salmon (ANDF) Investor Update summary

Project Progress and Operational Highlights

• Waterways and tunnel systems are nearly complete, with four pools 65% finished and major infrastructure on or ahead of schedule; tunnel breakthrough to sea is expected in Q2 2025.

• Harbour and breakwater construction is progressing well, with 71% completion and temporary structures protecting ongoing work.

• Innovative use of ultra-high performance concrete (UHPC) for pool walls ensures durability and reduces long-term maintenance.

• Facility design enables efficient water flow, energy savings, and high fish welfare, achieving a 97.5% survival rate in the first production cycle.

• The site is prepared for future regulatory changes, with water treatment chambers already integrated.

Production Capacity and Optimization

• Production capacity at Kvalnes is set to increase by 20%, targeting up to 48,100 tons (HOG + post-smolt) annually when fully built out.

• Upgraded logistics and water flow systems enable higher flexibility, better fish welfare, and improved MAB utilization to 90–93%.

• The new system allows for easier fish movement between pools, supporting both human-grade and postsmolt production.

• Ramp-up plan targets 5,000 tons production in 2026, with gradual increase as biomass builds.

• Optimal fish density is targeted at 25–35 kg/m³, balancing welfare and productivity.

Financial Update and Funding

• NOK 1.4 billion in funding secured through a bank package, NOK 600 million equity, NOK 400 million bank loan, and NOK 200–400 million from a sale-leaseback of the harbor.

• Total CapEx for Step 2A is NOK 1.15 billion, with additional NOK 200 million for operational equipment; blended CapEx per kilo is NOK 105, down from NOK 114.

• Sale-leaseback of the harbor provides operational control and contributes to financing, with an 80-year lease at 7.5% yield.

• Production optimizations are expected to unlock NOK 200 million in additional annual EBITDA, with a payback period of 1.8 years.

• Major shareholders include Jerónimo Martins (up to 30%), High Liner Foods (up to 8.1%), and Eidsfjord Sjøfarm (up to 4.5%), all supporting recent capital raises.