Atlantic Sapphire As

Hello everyone and welcome to Atlantic Sapphire's presentation of the 2022 Integrated ESG and Annual Report. I am Johan Andreasen and with me to present today is always, as always, Carl-Ori Haag. In this presentation, we will give you some of the highlights of 2022 for Atlantic Sapphire from a financial and ESG perspective. We will also give a brief operational update that is based on the update we released together with the private placement on March 16th. Although the story is similar to one month ago, we hope it will be useful with a recap of what the company is focusing on over the next few months.

Hi everyone, and thanks for listening in. In an effort to make the presentation easily accessible for all our interested stakeholders, we have pre-recorded the presentation so that everyone can listen in whenever it suits them. If there are any other questions, don't hesitate to reach out directly to Johan or myself afterwards.

Thank you Carl. I will start with a quick repetition over Atlantic software is today. The company is currently fully focused on our American operations. Sapphire is unique to any other salmon farms due to our national given patented water intake and discharge infrastructure that we believe is an enormous advantage as we scale up our business. The company has made significant investments into construction of our 9.5 kilotons Phase 1 facility and part of the 15 kilotons Phase 2 expansion. mostly made before the COVID capex cost inflation. With current construction costs, the replacement value of our infrastructure is way higher than the capex spent. We have a considerable physical asset base, including land, groundwater wells, hatcheries, smolt facility, 36 grow tanks, harvesting, filleting facility, and all necessary supporting infrastructure. Extensive knowledge has been gained from being a first mover and building up more than 10 years of unique experience at large scale. We have also developed a recognized consumer brand and existing offtake, setting the stage for the future. So over to some operational highlights. I will start with a summary of some biological KPIs for Q4 and Q1. The net biomass gain in the first quarter came in at 640 ton, which is in line with Q4 of last year. Our focus over the last couple of quarters has been on heavy infrastructure upgrades and operational improvements. Unfortunately, feeding and production has been negatively impacted by these activities, as we have not had sufficient production capacity available to us while this work has been ongoing, primarily tied to biofiltration. In the same period, we have seen higher than desired mortality rates, The nature of this mortality is different to what we have experienced in the past with large events with high mortality in a short period. The mortality we have seen in the period behind us is more spread over a longer period, but it adds up to a substantial volume. That being said, we are confident that the upgrades we have been doing is what was needed to be done to set the stage for a safer production environment for our fish. and good biomass gain in the future. We had approximately two and a half kilotons of standing biomass and about six million fish swimming in the tanks as the end of Q1. Q1 harvest volumes was around 400 tons hog, and we do expect the second quarter to be similar in size of harvest as we are building up our standing biomass to a fully stocked farm that is expected to be around mid-year. From that point, we expect our monthly harvest volumes to be around 750 to 800 tons monthly. So, over to price achievement. The average price achievement in the second half of 2022 was reduced to a high share of small fish harvested. We do expect to see higher prices going forward due to a combination of larger fish sizes and fewer downgrades. We expect to see a price increase in the first half of 2023 compared to 2022. From the second half of 2023, we expect that 80 to 90% of our harvest volume will fall into the Blue House Premium category and return an average sales price of $12. Over to you, Carl.