Atlantic Sapphire As

Hello, everyone, and welcome to Atlantic Sapphire's Q3 operational update. I am Johan Andreasson, and with me to present today is, as always, our CFO, Carl Øyhag.

Hello, everyone. As usual, we will open up for a Q&A session after the presentation. You can type your questions directly into the Q&A tab in the Teams window. We will also remind you that we only answer questions from attendees that have identified themselves with name. Johan?

Thank you, Carl. We will start with a summary of the biological performance in the third quarter. The net biomass gain in the quarter came in at 1,560 tons, which is up from 1,240 tons in Q2. We saw good performance in July and August, then a slowdown in biomass gain in September, which is linked to the issues that we experienced with appetite drop and elevated mortality in certain systems. Very in response, also elected to slow down feeding to de-risk while we were investigating the root cause of the issue. On a positive note, we are continuing to see very low maturation levels across all batches that we currently have in the farm. As of September 30th, we had approximately 3,250 tons of standing biomass in the farm, which is lower than we expected in the Q2 update. This is tied to early harvest and the lower biomass gain. In Q3, we ended up harvesting approximately 1,050 tons head on gutted weight. As a result of the lower than expected feeding and early harvest, the steady state standing biomass of 4,200 tons round living rate is now expected to be by the end of the first quarter of next year. That being said, we do have plenty of fish in the Blue House that are in good condition. and with a very good growth potential. Switching to the next slide, I want to spend some time on recapping the background for the October 16th stock market announcement that we sent out. As announced, fish in certain independent systems was harvested out at suboptimal rates after first experiencing a gradual loss of appetite and later elevated mortality. Other fish that showed similar signs were transferred into other systems that didn't have these issues. Since we started to experience appetite loss, the company has spent a lot of resources to get to the root cause of these challenges, using both internal resources as well as external labs and experts, both domestically and abroad. We now know the cause of the issue, which is tied to certain suboptimal operational procedures, which became more of an issue in combination with unfavorable temperatures.