Atlantic Sapphire As

Welcome to the AtlanticSapphire first half financial results presentation. My name is Gunnar Oskar Sinrae. I am the CFO of the company, and together with me, I have Pedro Corar, the CEO of the company, and I'll give him the word now to start off.

Thank you, Gunnar. I'm Pedro Corar, CEO of AtlanticSapphire. Let us go to the presentation. The first half of 2025 has been by far the best year for Atlantic Sapphire. We were able to validate our phase one, both from a productive and commercial standpoint by harvesting high quality fish, a commercial average weight of 2.9 kilos, giving us a chance to achieve premium price of $8.7 per kilo. All of that with good survival rates, stronger feeding capacity and consistent biomass gain. The decisions made by the end of 2024, especially in terms of giving stability to our systems, start to realize in concrete results. We expect to finish the year with a record harvest of 5.4 thousand tons with a realistic ambition of 7,000 tons for 2026 and 7.5 to 8.5 thousand tons for the period 2027 onwards. Our focus has been maximizing the efficiency of Phase 1, while we have reduced the focus in Phase 2, keeping the process to a minimum. To secure fundings of the company until reaching breakeven, we are contemplating a flexible financing option to raise the required funds. Our unique condition in terms of current and future production capacity is one of our main assets. Once we reach a VDA positive with Phase 1, we will have the biggest market waiting for us, giving the company an amazing potential in terms of growth and value addition with a medium-term goal of 100,000 tons per year. By the full validation of Phase 1, we will become the Salmon Company with the greatest growth potential in the world. Assuming a fully optimized Phase 1 scenario, the company should be able to achieve a stable production of 7,500 to 8,500 tons per year, with an EBITDA range from $3 to $5 per kilo. In Phase 2, we are keeping our ambitions in terms of achieving 25,000 tons at a higher optimized EBITDA from 4 to 6 kilos, dollar per kilo, profitability that should remain for future phases until reaching 100,000 tons. Our strong assets give us the right platform for future value creation. Our facility, plus the unique permits conditions related with water availability, has a tremendous value considering we are already starting to play an important role in the American market. About one year ago, the company was in a similar process of raising capital, and even if we don't feel great to be again in this position, there are good reasons why we are here. The predictions made one year ago were based on wrong information from our production system, basically in terms of stocks. Information that, as new management, we didn't have the chance to validate properly. This deviation has as a consequence a slower harvest average weight recovery, resulting in lower price achievement, especially in last quarter 24 and first quarter 25. From second quarter 25, we have been able to harvest constantly the right fish at the right price. Today, we are a totally different company than one a year ago. As mentioned, we have validated our Phase 1, both from a production and commercial standpoint, and this is a great milestone. All the measures implemented in terms of control, accountability and production stability had positive consequences in terms of performance. But now we are looking for more. We need to complete the validation of Phase 1 by creating the conditions to achieve profitability. Together with the management that led this first stage, we have recently hired two experienced professionals with whom we will lead a strong optimization process to reduce our costs in more important areas like feed, salaries, and energy consumption. While we have had extremely good survival rates, we have consistently been increasing our feeding rate per day, preparing the yield, the feed for future growth. In terms of feed conversion, we have achieved acceptable results. However, we are not satisfied, and as a consequence of that, one of our focuses for the coming months will be improving the ski parameter. During the first half of the year, we harvest about 1.2 thousand tons per quarter. While this number doesn't look much higher than 24, the big difference is in terms of average weight and quality. In the first half of 24, our harvest average weight was 1.5 kilos, and for 2025, this value was 2.8 kilos. And the difference is huge in terms of premium prices achievement and cost. Today, our product is sold through two main sales outlets, our premium Blue House salmon, sold at about $12 per kilo, and our fresh superior fillets, sold in the spot market but at a higher price than normal salmon. To achieve our ambitions in terms of price, we have been focused on increasing the premium Blue House share through increasing our volume among current customers as well as finding new ones. The strategy has worked well. Helped by good quality fish, we have been constantly increasing our price in our main markets, keeping an average price well above the market. From Q4 24 to Q2 25, we were able to increase our average price from $7.2 to $9.3. That is to say, $2.1 per kilo or around 30%. While our Blue House Premium brand has been from $3.9 to $5.4 per kilo above market reference during the last three months, our Stand and Superior Fish has also been $1.2 per kilo above price of references in the last two months. This reality shows the big potential we have in terms of reaching our price ambitions and validates the strategy developed by the company. To fulfill our ambitions in terms of biomass gain and harvest volume, our plan is based on keeping our current survival rates, but improving feed conversion and daily feeding rates, considering a normal operation with all of the ongoing units in place.

And I will start on the financial section.