29.2.2024 07:00:01 CET | Andfjord Salmon | Inside information

Andfjord Salmon today announces plans to implement a post-smolt production
strategy, a supplement to production of human grade salmon, to capitalise on
unutilised pool capacity in the first half of each production cycle. The
company's build-out at Kvalnes is progressing according to plan.

POST-SMOLT STRATEGY HIGHLIGHTS

? Estimated 15-25% increase in EBIT through a combined production strategy

? Utilisation of surplus space in pools enables 10% higher biomass turnover

? No additional infrastructure capex required

? Shorter runway to revenue and positive cash flow effects

? Multiple positive biological and environmental effects for ocean-based fish
farmers

? Strategic partnership with Eidsfjord Sjøfarm/Holmøy Havbruk for post-smolt
cooperation

"We have worked on the post-smolt strategy for a long time and are delighted to
present it to our shareholders today. It will bring substantial benefits to
ocean-based fish farmers, the fish itself, the marine environment, the regional
aquaculture industry, and Andfjord Salmon and is a valuable supplement to our
own production of human grade salmon. We're simply utilising our infrastructure
in a smarter way to create more value for multiple stakeholders," says Martin
Rasmussen, CEO of Andfjord Salmon.

MORE SUSTAINABLE FISH FARMING

There is substantial industry demand for post-smolt due to the significant
benefits of shortening the ocean-based grow-out phase. Releasing larger and more
robust fish into ocean net pens offers multiple biological and environmental
benefits, including lower susceptibility to diseases, reduced time of exposure
to salmon lice, and improved survival rates.

Such ocean-based rewards in combination with land-based benefits, including
longer production time in facilities with collection of biological waste and no
escape risk, can enable even more sustainable aquaculture production.

UTILISING AVAILABLE CAPACITY

Andfjord Salmon has significant surplus pool capacity after the release of smolt
in the company's pool. The plan is to utilise some of this unused capacity by
releasing more smolt. After reaching a certain biomass density level, typically
after 5-7 months when the fish has reached an average weight of around 1
kilogram, some of the fish will be sold as post-smolt to ocean-based fish
farmers in the local region.

"In short, we are enhancing production capacity and income potential without
adding additional infrastructure costs," says Martin Rasmussen.

According to Andfjord Salmon's own calculations, the post smolt-strategy will
enable 10 percent higher biomass turnover, which in turn means an estimated
15-25 percent increase in EBIT. The company's cash flow will also improve
considerably as it can generate sales revenue from post-smolt after typically
5-7 months production time, in addition to income from the harvest of human
grade salmon after a full 12-15 month production cycle.

COOPERATION WITH EIDSFJORD SJØFARM

Andfjord Salmon has entered a strategic collaboration with ocean-based fish
farmer Eidsfjord Sjøfarm/Holmøy Havbruk to provide post-smolt for selected,
nearby ocean-based farming locations as part of upcoming production cycles.
Eidsfjord Sjøfarm/Holmøy Havbruk and Andfjord Salmon's initial production plan
has been approved by the relevant Norwegian authorities.

In addition, Andfjord Salmon is in discussion with other local, conventional
salmon farmers regarding entering into similar collaborations.

"I have said many times that Andfjord Salmon would not be able to achieve the
biological results we have done without learning from ocean-based farmers and
tapping into the extensive competence of the Northern Norwegian fish farming
industry. By collaborating on a post-smolt strategy, we can boost the
environmental, biological, and economic development of the aquaculture industry
in the Vesterålen region," says Martin Rasmussen.

BUILD OUT ON TRACK

In its current build-out phase, Andfjord Salmon is completing four new pools,
which brings the total production capacity to 8,000 tonnes HOG at Kvalnes in
2025. Andfjord Salmon is targeting a total production capacity of 40,000 tonnes
(HOG) at Kvalnes through a gradual increase in volume between 2025 and 2030. In
this initial build-out phase, Andfjord Salmon is also developing major shared
infrastructure, such as waterways and a harbour area, that will support future
production of 40,000 tonnes at Kvalnes.

This January, Andfjord Salmon announced that the excavation of the next 12 pool
pits at Kvalnes had been completed a full quarter ahead of schedule.
Consequently, preparation for production of the four first pools has already
been initiated.

The other two ongoing workstreams - development of the harbour area and
waterways - are on track. 

FOURTH QUARTER 2023 FINANCIAL RESULTS

Andfjord Salmon is currently expanding its Kvalnes facility and therefore had no
salmon production or revenue in the fourth quarter of 2023. The company had an
operating loss of NOK 19.4 million in the fourth quarter of 2023, versus a loss
of NOK 18.2 million in 2022. 

PRESENTATION AT 08:00 (CET) TODAY

Andfjord Salmon AS will provide a strategic update and presentation of the
fourth quarter 2023 financial results at 08:00 (CET) today.

The webcast presentation can be watched at the following link: 
https://channel.royalcast.com/landingpage/hegnarmedia/20240229_2/

The presentation will be held in English. The presentation materials 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 Kvalnes on the island of Andøya on the Arctic Archipelago of
Vesterålen, Norway, Andfjord Salmon has developed an innovative and sustainable
aquaculture concept for land-based farming of Atlantic salmon, based on a
flow-through technology solution. The company's ambition is to build the world's
most sustainable and fish-friendly aquaculture facility of its kind.

Andfjord Salmon AS is listed on Euronext Growth under the ticker ANDF. 
www.andfjordsalmon.com - http://www.andfjordsalmon.com/

ATTACHMENTS

Andfjord Salmon Q4 2023 presentation.pdf -
https://kommunikasjon.ntb.no/ir-files/17847566/2946/4137/Andfjord%20Salmon%20Q4%
202023%20presentation.pdf

Andfjord Salmon borsmelding norsk.pdf -
https://kommunikasjon.ntb.no/ir-files/17847566/2946/4138/Andfjord%20Salmon%20bor
smelding%20norsk.pdf

Pressebilder Feb 24 Andfjord Salmon AS.pdf -
https://kommunikasjon.ntb.no/ir-files/17847566/2946/4139/Pressebilder%20Feb%2024
%20Andfjord%20Salmon%20AS.pdf

Pressebilder Feb 24 Andfjord Salmon AS 2.pdf -
https://kommunikasjon.ntb.no/ir-files/17847566/2946/4140/Pressebilder%20Feb%2024
%20Andfjord%20Salmon%20AS%20%202.pdf

Pressebilder Feb 24 Andfjord Salmon AS 3.pdf -
https://kommunikasjon.ntb.no/ir-files/17847566/2946/4141/Pressebilder%20Feb%2024
%20Andfjord%20Salmon%20AS%20%203.pdf