Salmon Evolution's Q1 2025 results demonstrate a strong trajectory towards its production targets

Salmon Evolution Achieves Record Biomass Production, Positions for Accelerated Growth

Norwegian land-based salmon farmer reaches targeted biomass run-rate, reports solid Q1 2025 revenues despite strategic harvest adjustments, and progresses on Phase 2 expansion.

Indre Harøy – Salmon Evolution ASA (OSE: SALME), a pioneering land-based salmon farming company, has announced a record biomass production in the first quarter of 2025. The company generated revenues of NOK 49.7 million from the harvest of 581 tonnes Head-on Gutted (HOG) salmon, including post-smolt, resulting in a group EBITDA of NOK -4.1 million and a Farming EBITDA of NOK 5.7 million.

A significant achievement during the quarter was Salmon Evolution setting a new production record and increasing its standing biomass by an impressive 45% compared to the previous quarter, reaching 2,939 tonnes Live Weight (LW). This milestone signifies the attainment of the company's targeted run-rate biomass levels at its Indre Harøy facility.

"Achieving our targeted run-rate biomass is essential for unlocking the full potential at Indre Harøy," stated Trond Håkon Schaug-Pettersen, CEO of Salmon Evolution. "With this key element now in place, coupled with strong biological performance, we are strategically well-positioned to continue scaling up our production volumes, harvest, and average harvest weights as we move forward."

The company also reported strong progress in its Phase 2 expansion project at Indre Harøy, which remains on schedule for the targeted first smolt release in Q1 2026 and the first harvest in Q4 2026.

"We maintained strong momentum at the construction site throughout the quarter and successfully achieved all key milestones," added Schaug-Pettersen. "Phase 2 is creating a unique and robust operational platform, and preparations for the first smolt release in approximately 10 months are already well underway."

Key Highlights for Q1 2025:

• Record Production: Net biomass growth reached a new high of 1,624 tonnes LW, a 7% increase from Q4 2024.
• All-Time High Biomass: Ended Q1 2025 with a record standing biomass of 2,939 tonnes LW, a substantial 45% increase from Q4 2024, achieving targeted run-rate levels in both total biomass volume and the number of individuals. This is a crucial prerequisite for maximizing the facility's growth potential.
• Solid Revenue Generation: Revenues amounted to NOK 49.7 million following the harvest of 581 tonnes HOG (including post-smolt converted to HOG). The group EBITDA was NOK -4.1 million, with a strong Farming EBITDA of NOK 5.7 million.
• Phase 2 Expansion on Track: Construction of the Indre Harøy Phase 2 expansion is progressing well, remaining on schedule for the first smolt release in Q1 2026 as planned.
• Strong Liquidity: The company maintained a robust financial position with NOK 418 million in available liquidity, including committed undrawn credit facilities, at the end of the quarter. Additionally, NOK 1,450 million in earmarked construction financing is secured for the Phase 2 expansion.

The record production of 1,624 tonnes LW in Q1 2025 represents a 7% increase compared to the previous quarter and is considered strong given the lower initial standing biomass. Operations at both the Dale smolt facility and the Indre Harøy grow-out facility remained stable, characterized by continued strong biological performance and minimal mortality rates. The significant 45% increase in standing biomass during the quarter underscores the successful ramp-up to targeted run-rate levels in both volume and the number of fish.

The harvested volume of 581 tonnes HOG in Q1 2025 was strategically influenced by a focus on maximizing biomass growth and optimizing the standing biomass to support long-term production targets. Additionally, approximately 300 tonnes of planned March harvest were deferred into April due to limited harvest capacity.

Harvest Guidance and Biomass Composition:

The company has updated its 2025 harvest guidance to 5,800 – 6,200 tonnes HOG, adjusted from the previous estimate of 6,000 – 6,500 tonnes HOG. Average harvest weights in Q1 2025 were 2.3 kg HOG, reflecting the impact of smolt quality issues experienced in the first half of 2024. These issues were mitigated by restocking with several new smolt groups within a short timeframe, resulting in a sub-optimal biomass composition entering the quarter and necessitating partial harvesting of certain groups at less than ideal weights.

Looking ahead, Salmon Evolution anticipates a significantly improved biomass composition entering Q2 2025, with harvest weights expected to increase from the second quarter onwards. The company projects a full normalization of biomass composition during the second quarter. In Q1 2025, Salmon Evolution successfully stocked one new smolt group according to plan, achieving a stocking weight above the targeted level, indicating the positive impact of corrective measures implemented following the challenges of early 2024. Upgrades at the Dale smolt facility, including increased heating capacity and improvements to the smoltification process, have also contributed to enhanced biological performance and smolt quality.

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Salmon Evolution's Q1 2025 results demonstrate a strong trajectory towards its production targets, with record biomass achieved and the Phase 2 expansion progressing as planned. The company is now well-positioned to capitalize on its increased biomass and improved operational stability to drive further growth in the global land-based salmon market.

Attachments

• SALME Q1 2025 Report
• SALME Q1 2025 Presentation

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