Good morning, everyone. I am Vidar Aspehaug, and pleased to welcome you to the presentation of our third quarter results for 2025.

Joining me today is our CFO, Róbert Róbertsson, and together we will walk you through the key highlights and developments from the past quarter. After the presentation, we'll open the floor for questions.

As before, you're welcome to submit them by email, and you'll see the email on screen. All this disclaimer, then we'll go to the agenda.

We will begin with some key highlights from the last quarter, covering operational performance, financial results, and strategic updates. Then we will look ahead with a brief outlook and summary before wrapping up with a Q&A session.

If you have any questions, please send to [email protected]. Starting with some highlights.

Throughout the presentation, we have put the respective '24 numbers in brackets behind the '25 numbers to give you some reference. In the third quarter, we harvested 1,545 tonnes, with a group operational EBIT of negative €5 million.

The main reasons are high costs due to low utilization of company capacity, a low superior share, and a challenging market situation. Concluding Q3, we have harvested a total of 9,163 tonnes so far this year, compared to 8,298 tonnes last year.

Looking ahead in '25, we're lowering our full-year harvest guidance from 18,000 tonnes to 17,000 tonnes. Our harvest guidance for 2026 is at 17,000 tonnes, and I will give you more detail on this later in the presentation.

An important milestone for us is that we have completed the transfer of 8.2 million smolt in '25, supporting our long-term goal of producing 30,000 tonnes. Strategically, we have made some operational changes in Kaldvik that I will comment on.

We have started the test production of sterile fish, and the license that we have been awaiting approval in Seyðisfjörður is still pending. We have also initiated a strategic review of our production model aiming to reduce risk and improve stability in our operations, and I will comment further on this later in the presentation.

Starting with our farming operations. As mentioned in the Q2 report, we had an incident this summer with reduced growth and early harvest due to algae in the '23 generation.

The same incident resulted in a loss of 900 tonnes in July. On the positive side, and as shown in the figure below, the sea temperatures have been back to normal in '25, supporting better growth compared to '24, when we experienced an unusually low temperature.

At the end of Q3, we had 19,300 tonnes of biomass at sea. This is 3,200 tonnes less than at the same time last year.

Then some information on our smolt production and transfer this year. We have, as mentioned, finalized the sea transfer of 8.2 million smolt, finally reaching our target of 7.5 million smolt.

7.7 of these were produced at our own facilities in north and south, and 500,000 were from an external supplier. The average smolt size was 288 grams, a bit smaller than last year, mainly due to an earlier output and external smolt of smaller size.

Still, the total biomass of smolt put to sea was 13.7% higher than last year. Transfer mortality has been a major challenge in previous years, and even though it's not great compared to other regions, 93% survival after 60 days at sea is significantly better than our last year's 79% survival rate.

Main losses here is related to a few trips with high mortality, and the survival of most trips were significantly higher than the average. Thus, we believe that the investments that we have done in our land sites the previous years are paying off, and that we will keep seeing good production of a more robust smolt than previous years going forward.

Then to sales and harvesting. In Q3, we harvested 1,545 tonnes, which is 2,250 tonnes—2,250 tonnes less than in the same quarter last year.

As we're all aware, there have been and still is a challenging market situation with respect to salmon prices. Despite the low superior share of 65%, 43% of our sales were secured through fixed price contracts, helping on the overall price achievement ending at €6.3 per kilo.

With the limited volumes harvested this year, we have naturally had a high harvest cost of €2.59 per kilo the last quarter, but for the year to date this is €1.31 per kilo. That concludes the operational update, and now I'll pass the word to Róbert, who will walk you through the financial performance.

Thank you, Vidar. Good morning.

I've prepared a few slides to walk you through the financial update for the third quarter. First off, you have highlights from the quarter, which was marked by limited harvest volume, suboptimal utilization of our harvesting capacity, and low superior share.

As Vidar mentioned, operational EBIT for the group was negative by €5 million, and EBIT per kilo amounted to negative €3.3. Revenues reached approximately €10 million.

The price achievement remained stable year over year and ended at €6.3 per kilo. This is mainly due to higher ratio of fixed price contracts, as Vidar mentioned, to the US, which made up for the low superior share during the quarter.

As demonstrated on previous slide, the limited harvest volumes led to partial utilization of our harvesting facility and wellboats. Consequently, we experienced increased operational cost during the quarter.

Over to the financial summary. Total assets increased by €6 million during the quarter.

This was primarily driven by investments in biological assets. Liabilities increased by €16 million, mostly driven by financing of working capital.

Equity ratio was 55% at the end of the quarter. Here you can see analysis of the net interest-bearing debt, which increased by €27 million during the quarter.

EBITDA was negative by €2 million. Net investments in working capital amounted to €17.4 million, primarily due to biomass built up during the quarter.

Total capex for '25 is estimated at €15 million, which is lower than the original guidance of €18 million. Capex investments during the quarter amounted to €3.7 million, making the total capex investments year to date approximately €12.6 million.

Financial items amounted to €3.7 million. The final step in the acquisition process of the box factory was finalized during the quarter with issuance of around 1.6 million shares in Kaldvik at a price of 27.6 NOK per share.

The issuance was used to settle the seller's credit from the acquisition of all shares in Mosi ehf. from earlier this year.

The company Mosi owns the property and building hosting Djúpsteypa, the producer of fish boxes in Djúpivogur. The new shares were issued to the seller, Heimstø AS, in September.

Heimstø is a close associate to a primary insider of Kaldvik and the biggest shareholder in the company through its subsidiary, Austur Holding AS. Here you can see the financial calendar for the financial year 2025.

The management of Kaldvik has decided to change the reporting mechanism from this quarter and onwards. Now we will provide quarterly company updates, while financial reports are issued semi-annually with a half-year and full-year reports.

Next company update for fourth quarter is scheduled for February 25, 2026, and the next financial report will be issued for full year 2025 on April 30, 2026. For further information about the financials for the third quarter and year-to-date numbers, please refer to the appendix for the income statement, balance sheet, cash flow statement, statement of changes in equity, and share capital and shareholder information.

In September, a share repair was carried out with limited participation. The share repair was executed to ensure that all shareholders had the opportunity to take part in the private placement which was carried out in June 2025.

Finally, an update on the investigation request from a group of minority shareholders related to the acquisition of the previously mentioned box factory and the remaining 33% shares in the harvesting station Búlandstindur. The transaction was carried out in March this year.

The investigation request was initiated last August. Now in October, the Trøndelag District Court decided to not approve the request, as the court considered the transaction had been sufficiently documented.

The deadline for appeal was yesterday, 20th of November. As of this moment, I have no further information of whether the minority shareholders have appealed the court decision, but the company will update the market on this matter later on.

Thank you. Now I will hand it back over to our CEO, Vidar Aspehaug.

Thank you, Róbert. Then status on strategic updates.

Since I presented the Q2 report shortly after stepping into the role as CEO of Kaldvik, the past months has been focused on gaining a detailed understanding of the company's operations and identifying the areas where we need to strengthen our processes. During this process, we have initiated several operational improvement measures.

We have put in place a new and refocused executive management team, and we have established a new operational management group led by our COO, Kjartan Lindbøl, with a clear production focus aimed at improving coordination and reducing biological and operational risk. Also, we have renegotiated the sales agreement with our sales partner, providing an improved price indication and clearer commercial terms.

We have also implemented cost reduction initiatives, including organizational adjustments, transferring sales activities to an external partner, and other measures to lower the overall cost base. In addition, we have initiated a broader strategic reset.

This process will assess the production model with the objective of improving robustness and reducing risk going forward. These initiatives form an important foundation for developing a more predictable and efficient operation, and they will continue to be a key focus area over the coming quarters.

Here is the updated management team. Since stepping into the CEO role, the focus has been on strengthening the core of the organization.

We have streamlined the management structure to ensure a strong emphasis on production, biological performance, and operational execution. The organization is now leaner, which contributes to lower costs and clearer roles.

As part of this, we have evaluated our internal functions and decided not to continue with an internal sales department at this stage. Sales activities have been transferred to an external partner, allowing us to concentrate fully on our core business and operational performance.

We are also working actively to identify and realize synergies across the company. The objective is to utilize resources more efficiently and support a more integrated and coordinated operation.

This management team reflects that focus: clearer accountability, stronger production leadership, and an organization aligned with improving biological results and reducing cost. Also, as a new CEO, I want to reset expectations with full transparency.

Our objective is to provide guiding that the market can rely on based on realistic biological assumptions, better data quality, and clear communication of risk factors. Looking at recent years, we have missed several operational targets, and there are several reasons for this, apart from the fact that aquaculture can be an unpredictable and challenging industry to guide.

In Kaldvik, smolt capacity has been challenging, with lower releases than planned and survival rates impacted by transfer complications and smolt quality. In addition, production and construction in our land sites has been carried out simultaneously, with the challenges that that gives.

These factors have also contributed to weaker performance at sea, and this is not an ideal combination with the demanding Icelandic environmental conditions. Now that we have reached our target production capacity in land, we're optimistic, but also respectful that we need to adapt further to the production environment that we are operating in.

To address these challenges, a strategic review is underway with the goal of establishing a more robust and predictable production. The strategic review of our production model is planned to be finalized by the end of Q1 '26, and the outcome may include adjustments to our production strategy.

The purpose of the review is to analyze the entire Kaldvik value chain and identify how we best optimize production, utilize license capacity, and make effective use of our assets given the specific conditions that we operate under in Iceland. A key objective is to establish the lowest possible cost of production at an acceptable level of biological and operational risk.

As part of this work, we're evaluating the potential to increase the share of fish grown with only one winter at sea. We will be assessing the opportunity to combine external smolt supply with our own in-house smolt capacity, and we are analyzing how harvest capacity and flexibility can be strengthened.

The review will give us a clearer basis for long-term decisions and support a more robust and predictable production model going forward. Then a bit about what to expect going forward.

For Q4 '25, we expect to harvest 7,800 tonnes, which is 1,000 tonnes less than needed to reach our originally guided volume totaling 18,000 tonnes for the year. Thus, our new guiding for '25 is 17,000 tonnes.

By increasing harvest in Q3 and Q4, we have been aiming to utilize the growth season in Iceland best possible and also to achieve better prices. However, we see now that with challenges with lost harvest days due to weather, delayed stun-and-bleed vessel, and limitations to our wellboat capacity, we will not be able to reach the target of 18,000 tonnes.

As previously said, we're guiding a total harvest of 17,000 tonnes for 2026. To summarize, I will conclude with the outlook and key points going forward.

On the commercial side, our sales agreement has been renegotiated, and we now have a flexible and robust sales partner in place. For '25, our harvest outlook is 17,000 tonnes, adjusted down from 18,000 tonnes.

The harvest outlook for '26 is also 17,000 tonnes. The '25 generation smolt cycle has delivered a strong output of 8.2 million smolt and a 93% survival rate.

This provides a foundation for our long-term ambition of 30,000 tonnes. The application for a 10,000 tonne license in Seyðisfjörður still remains pending approval.

We have initiated structural and cost reduction measures, supported by a new organizational setup, and the strategic review continues with the objective of optimizing the production model and reducing risk. Overall, these initiatives position us to improve operational stability and hopefully support a more predictable performance going forward.

We will conclude our presentation here, and we're now open for questions. As mentioned initially, please send questions to [email protected].

Hello. We have had some questions from you.

The first question is: What is the expected superior share for Q4?

We cannot guide on the superior share for Q4, so...

We are harvesting the '23 generation, and as we have indicated earlier, we've had some issues with the '23 generation, and that might affect the superior share in Q4 without giving formal guidance on it. What is expected contract share for Q4?

With increased harvest in Q4, we expect the contract share to lower down to around 20%. How does the '24 generation look compared to the '23 generation, and do you expect lower cost per kilo on that generation?

How much lower? The '24 generation is looking better than the '23 generation, and we expect the cost to be lower for the '24 generation.

That being said, we are not giving any guidance on cost per kilo. But '24 is looking better than '23, and '25 is looking better than '24.

The generations are benefiting from substantial investments in in recent year in recent years, each generation is is improving.

Yeah.

Yeah. Is it possible to quantify the cost initiatives you have conducted so far?

Yes, we are quantifying them and keeping a close eye on the cost initiatives. However, we are not going to share any further information on those ongoing initiatives as of now.

What is the average harvest weight in third quarter, and your expectations for coming quarters?

Is that...

The average weight, it varies between generations, obviously. We were close to, yeah, roughly 4 kilos in Q3, wasn't it?

Yeah.

Yeah. Then on the harvest guidance for '26: Why is the harvest volume guidance for '26 not higher than 17,000 tonnes, given the release of 5.8 million smolts of the '24 generation and 8.2 million of the '25 generation?

Of course with the challenges we've seen in the '23 generation particularly, we do guide lower due to that, but also we believe that this is a more realistic guiding, and hopefully we'll keep on with a more realistic guiding going forward.

What's the driver behind low superior share of 65% in Q3?

We are still struggling with wounds. We do see that the vaccine is doing its job by removing the Moritella bacteria, but we still have wounds related to other bacterial issues, and we will be working to improve this going forward.

A final question, it seems: How should we think about the '27 volume growth? What does your smolt release schedule look like in '26?

If I answer the question regarding the volume growth, with increased smolt output, we are anticipating a, yeah, substantial volume increase. On top of that, the '25 generation is looking very good.

It's exceeding our expectations, I would say. Without giving any specific numbers regarding the guidance, as we're not guiding for '27, only '26, you should anticipate higher volumes with increased smolt output, '26 volume should go up.

Regarding the smolt release, what's the schedule for '26?

We'll, yeah, come back to that.

Yeah. To reiterate the guidance for this year, which was 7.5 million smolts.

The capacity of the company is between 7 and 8 million smolts from our own facilities. This year we released 7.5 million, and we externally sourced 500,000.

Total of 8.2 million smolts with significantly improved survival rate. We are hopeful for the output in '26 as well.

I don't believe that there are any further questions. If there are, please send an email, and I will try and answer after this session.

Thank you so much.

Thank you very much.