Atlantic Sapphire As

Hello and welcome everyone. My name is Johan Andreasen and we want to welcome you to the Q4 operational update for Atlantic Sapphire. And as normal with me to present today is our CFO, Carles Danøyag.

Hello everyone and thank you for listening in. This time we've chosen to do this Q4 2023 presentation as a pre-recorded presentation which means that any questions you might have to Johan or myself after the presentation can be directed to us. So with that I'm going to give the word back to Johan to go through the operational updates.

Thank you, Carl. So, kicking off the main message here, which is that we have seen an improvement in performance and much more stable conditions in the farm since we have completed the very critical infrastructure upgrades last year. We have strong biomass growth across all the recent batches. The batches that have been transferred into the grow-out system tanks after Q3 are performing in line with expectations or better. The farming conditions are stable and that is supporting a good growth of biomass. Feeding and feed conversion rates are at solid levels. The recent batches of fish are absorbing feed well, indicating strong operation conditions. The mortalities are trending downwards and improved feed conversion ratios, which reflects good water quality. The farming temperatures are stable around 14 Celsius. Stable operations across all the growth systems at optimal farming temperatures. The new rental chillers are functioning in accordance with expectations. A new heat exchanger is being brought online and will further increase the buffer on our cooling capacity going into the summer months. The share of high-quality salmon is steadily increasing. The batches impacted by prior temperature issues are being harvested out as we speak and will be completed in the next few months. Around the half year of this year, all the remaining fish in the farm will be unaffected by the Q3 2023 legacy issues. The mix of batches are quickly improving. As I mentioned earlier, parts of the pre-Q3 batches went into early maturation due to the temporary challenges we had with temperature. The farming conditions have significantly improved since, and that is reducing the share of maturing fish in the standing biomass as a total. As I said, all the Q3 batches will be harvested by mid this year, and the remaining biomass has not had exposure to the elevated temperatures. Improved quality of harvested fish is also expected to yield improved financial performance. On the right-hand side in this slide, you will see a graphical view that basically shows that as of end of January, a little bit more than 60% of the total biomass in the farm was the so-called pre-Q3 batches that has some degree of maturation in them. But it also shows you that this is quickly improving as we are harvesting those fish out, and the production capacity is immediately replaced with the post-Q3 batches that are batches that has had a good temperature throughout its entire cycle. So it is a situation now where we are harvesting a lot of fish with reduced quality, but that is quickly improving in the next few months.