Hi everyone. I am Vidar Austebø, CEO of Kaldvik, and I am pleased to welcome you to the presentation of our first quarter results for 2026 here from our offices in Reykjavik.

Joining me today is our CFO, Hjalti Hvítklett, and together we will walk you through the key highlights and developments from the past quarter. After the presentation, we will open the floor for questions, and as before, you are welcome to submit them by email to [email protected].

This disclaimer, we do not have to pause for a long time at that, we continue. Today we will begin with some key highlights from the last quarter and continue by covering operational updates, financial results, and strategic updates.

Then we will look ahead with a brief outlook and summary before wrapping up with the Q&A session. As said, if you have questions, please send to [email protected].

We start off with the key highlights from this quarter, and throughout the presentation we have put the respective '25 numbers in brackets behind the '26 numbers to give you some reference. In the first quarter we harvested 6,441 tonnes with a group operational EBIT of negative €26.5 million.

The main reasons for the negative results are the completion of the early harvest of the '24 generation that was initiated due to winter wounds, resulting in lower average weight and a superior share of 30%, combined with a challenging market situation. I will comment more on this later.

Looking ahead in '26, we will be harvesting 1,900 tonnes in Q2 this year, and all will be from the '25 generation, and we're maintaining our full harvest guidance of 17,000 tonnes. As announced to the market, the company is going through a challenging financial situation, and in Q1 '26 we identified a risk of breaching financial covenants and thus obtained a waiver from our banking partners, combined with a subordinated shareholder loan of €20 million from our main shareholder, Eidsvaag.

Strategically, the new aquaculture bill was submitted to parliament in March, and I will bring some more detail on this later in the presentation. The license that we have been awaiting approval on in Seyðisfjörður is still pending.

I will also come back with an update on the strategic review in this presentation. Starting with our farming operations, and as presented in our Q4 report last year, our '24 generation experienced severe challenges with winter wounds, and we decided to initiate early harvest of this generation.

We were very optimistic for the '24 generation as this was the first generation to receive the tailor-made vaccine towards winter ulcers, but that was not enough to solve our problems with wounds. As previously communicated, part of the '24 generation had a challenging release in late fall due to delays and a dramatic and early drop in sea temperature.

Further, the winter '24/'25 was extreme, with an unusually early start of the winter temperatures and significantly lower temperatures than normal throughout Q4 '24 and Q1 '25. The figure on the right illustrates this, showing the temperature for the last quarter of '24 compared to the average temperature for the same period since 2010, shown in blue.

As a result of this, we decided to harvest the '24 generation, aiming to harvest the complete generation as soon as possible. By the end of Q1 this year, we finalized the harvest of the complete '24 generation, approximately 6 months earlier than originally planned.

The consequence is that the '24 generation generated approximately 5,500 tonnes less harvest volume than anticipated, mainly due to lower average weight. Also, the superior share ended at 27% for the total generation, and 30% in Q1, affecting the price achievement.

The disappointing results with the '24 generation has had a major impact on the financial situation of Kaldvik, and is pretty much the main reason for the financial challenges that we are in currently. Thus, we are happy now to have put this generation behind us and look ahead with a promising '25 generation and a new production strategy aiming to avoid similar situations in the future.

Regarding the '25 generation, things are looking better. This was a milestone output for Kaldvik, reaching 8.25 million smolts, which was higher than our target of 7.5 million, and we had a successful transfer with acceptable mortality.

Even though the '25 generation has had the same vaccine as the '24 generation, we have had a much more favorable winter temperatures this winter, closer to normal temperatures in the Eastfjords of Iceland. You can see in the blue line in the figure to the right that illustrates this, showing that we had normal to above average temperatures in the period, and as a result, we have experienced relatively good growth throughout the winter.

Also, the '25 generation is distributed across three sites in Reyðarfjörður, which is our warmest fjord, providing good biological performance and operational flexibility. As of now, we are seeing better performance in the '25 generation than we saw at the same time for the '24 generation, and despite some challenges related to the autumn fish during the period, fish health has remained good, and at the end of Q1 we had a cumulative mortality in the '25 generation of 13.2%, compared to 27.8% in the '24 generation at the same time last year.

Our land operations have been going through several upgrades over the last 2 years, and having reached a milestone of production capacity of 7.5 million smolts, our focus is now on optimizing the production. The target for '26 is to release 7.5 million smolts, and the first outputs have already been executed with good results.

In accordance with our new production strategy, which I will comment further on later in the presentation, we are now completing 80% of our outputs before the end of July, compared to 60% last year. Also, we are receiving smolt from several external parties this year as part of our strategy to utilize synergies from partners to give more flexibility, optimize our production plan, and reduce the overall risk.

As examples of improvement initiatives ongoing in land, our land station in the south is on target in their production and have successfully tested improvements in their smoltification routines using new light regimes. Also, our land site in the north is on track, and we experienced that the new water treatment system at Kópasker is performing as expected, and the new freshwater ongrowing facility in Rifós, which is the big building in the picture, is running full speed.

Then some information on harvesting and sales in Q1 '26. We harvested 6,441 tonnes, of which all was from the troublesome '24 generation.

Despite reaching a superior share of only 30%, the overall price achievement ended at €5.59 per kilo for the quarter. As we're all aware, there have been and still is a volatile market situation with respect to salmon prices.

For the second half of 2026, we have secured a fixed-price contract for approximately 35% of our volume, providing revenue predictability and downstream protection. As part of our production and sales strategy update, and after a detailed assessment of the cost and complexity of certification requirements relative to the commercial benefits, we have decided to gradually phase out and discontinue our Whole Foods Market certification.

That concludes the operational updates. Now I will pass the word to Hjalti, who will run you through the financial updates.

Thank you, Vidar. First off, we have highlights from the quarter, which was marked by high cost and low superior share from the '24 generation.

As Vidar already mentioned, challenging year, operational EBIT for the group was negative by €26.4 million, and EBIT per kilo amounted to negative 4.1. This is driven by different factors, mainly the end harvest of the '24 generation with high cost price, lower market prices, and lower superior rates.

Revenue reached approximately €36.5 million. Despite low superior share of 30% and end harvest of the '24 generation, the overall price achievement ended at €5.6 per kilo.

Total assets have lowered by €44 million during this quarter. This was primarily driven by harvest and therefore also lowered biological assets.

Total liabilities decreased by €10 million in the quarter, and this was primarily driven by a decrease in trade and other payables. You see equity ratio there at 53% at the end of the quarter, slightly down from the previous quarter.

In Q1, we identified a potential risk of breaching our financial covenants under the senior bank debt facility and we started a constructive dialogue with our lenders. Following these discussions, we secured a waiver from the financial parties.

This included a waiver of the EBITDA covenants for '26 and also a reduction in the minimum liquidity requirements down from €10 million to €5 million. We also got an increased availability under the revolving facility for the year, bringing the headroom to around €5 million on top.

As part of the overall solution, our largest shareholder also stepped in and provided a subordinated loan of €20 million. Net interest-bearing debt decreased by €11 million during the quarter.

EBITDA was negative at 23. The change in working capital amounted to €32 million, primarily due to lower biomass at the end of the quarter.

CapEx investment was €2.9 million, and financial items amounted to €4.5 million. We have postponed the publication of the '24 '25 annual report to June 12th.

This decision was made to allow additional time to complete the remaining audits and review procedures. The audit process has been more prolonged than anticipated.

This is driven by several factors. As communicated in our Q4 update, '25 has been a challenging year, particularly related to the '24 generation, which also impacted the Q1 '26 performance.

These complexities have required additional audit work and validation. In addition, there's also been a change in CFO during the reporting period, which also affects the timing.

Overall, the delay is procedural in nature and not due to any single issues, but rather the combined effect of a complex operating year and a thorough audit process. Regarding the financial calendar, we have communicated before that we will provide quarterly company updates, while financial reports are issued semi-annually, with a half-year report and an annual report.

Next company update is first half, which is scheduled for August 27th. We also have further information on the financials for the first quarter in the appendix, where we have the income statement, the balance sheet, cash flow statement, and also alternative performance measures.

Then I give the word back to you, Vidar.

Thank you, Hjalti. Then a short status on our strategic updates.

The strategic review of our production model is not completely concluded, but some of the main findings are already being implemented in our production plan going forward. The purpose of the review has been to analyze the entire Kaldvik value chain and identify how we can optimize production, utilize license capacity, and make effective use of our assets given the specific conditions 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. Initially, a project analyzing all of our production data, combined with a review of scientific data, discussions with other producers and suppliers, was performed to clarify the assumptions for a new production model adapted to the environmental conditions of the Eastfjords of Iceland.

Further, several scenarios have been simulated as potential production models, including scenarios with reduced, stable, and increased smolt outputs. Although the output plan for '26 now has been concluded, the complete plan for the coming years has not been finally concluded yet.

However, as a result of this work, we are now adapting our output plan going forward to increase the share of fish grown with only one winter at sea. We are implementing concrete measures to reduce the risk of disease, and we are utilizing the opportunity to combine external smolt supply with our in-house smolt capacity.

Further work is still ongoing to investigate opportunities to optimize harvest capacity and flexibility, and our goal is to reduce mortality to below 10% and to increase the superior share to above 90%. We believe that we are now in the process of implementing measures that will take us long steps in the right direction.

A core principle of our production strategy will be to have most of the fish only one winter at sea, but still utilizing the growth season. We can still have sites spanning two winters, but only sites then that are characterized from experience to be good two-winter production sites.

Also, Kaldvik has been active in the research ongoing to better understand the infection dynamics of the parasite Parvicapsula pseudobranchicola that has been causing increased mortality and reduced superior share in our production. After analysis of our production data and compared to Norwegian experiences, we now know that by avoiding transfers of smolt to sea in August and beginning of September, we can reduce the risk of this disease significantly.

Thus, we are aiming to completely avoid transfers in this period going forward, and most of our smolt transfers will be completed by end of July going forward. As already mentioned, 80% of our transfers will be completed by end of July this year, compared to 60% last year.

This also supports our one-winter-main strategy, and as mentioned, we are now in land focusing on optimizing the production in our land sites and have implemented an improvement program where several ongoing projects will contribute to further improve the quality of our smolt to strengthen the biological performance at sea. The transition to a one-winter-mainly strategy means that we will be transferring larger smolts, excluding the groups we have been struggling the most with previously, namely the smallest fish late in autumn.

After having completed the construction projects that we have been having ongoing in our land sites for several years, we are now changing focus to optimize operations and are optimistic that we will see improvements in smolt quality and reduced biological risk going forward. Also, as already mentioned, we will have a hybrid smolt sourcing strategy, teaming up with some of the great new smolt and land-based producers in Iceland to fully utilize the combined strength of our internal smolt capacity and post-smolt production capacity with external capacity to optimize timing, sizing, and performance in accordance with our new production model at sea.

Although we are not presenting a final production here in this presentation, we are already implementing the most important findings from the strategic review of our production model into our ongoing production, transitioning into the new production strategy. So 80% of our smolt will be at sea before end of July, we will avoid the high-risk output period in August and early September, and we will avoid the output of small smolt in autumn, strengthening our total smolt output by utilizing a hybrid smolt sourcing strategy.

We will focus on finalizing the new production plan now in the coming weeks and will present some more details from the new production strategy at our half-year report in August. The new aquaculture bill was submitted to Iceland's parliament in March '26.

The industry has since submitted a formal response during the parliamentary process addressing both the operational and tax framework proposed in the bill, focusing on amendments to taxation, operational flexibility, and regulatory predictability. Dialogue with the government and parliament has continued throughout Q2 '26, and the industry is working constructively with the legislative process to support a balanced framework that enables sustainable growth, investment, and competitiveness.

Further discussions and potential amendments are expected before the bill is finalized. Then the new licenses in Seyðisfjörður is still pending.

Then a bit about what to expect going forward. As already mentioned and as you're aware, the market situation for salmon is volatile and hard to predict, and in view of the total market situation, we have chosen to enter fixed-price contracts for the next two quarters of about 30% 35% of our production at prices that we believe are favorable, aiming to provide revenue predictability and downside protection.

For Q2, we expect to harvest 1,900 tonnes, and the total harvest guiding for the year '26 is maintained at 17,000 tonnes. All harvest for the rest of this year will be from the '25 generation.

To summarize, I will conclude, go through the outlook and key points going forward. In Q1, we completed the harvest of the troublesome '24 generation and we're glad to see the first harvest results from the '25 generation that looks promising, and from Q2 onwards, all harvest will be from this generation.

We harvested and sold 6,441 tonnes last quarter, and as this was the '24 generation, we still had a low superior rate of 30%, contributing to the challenging financial situation of the company. After having identified a risk of breaching financial covenants of the company, the company obtained a waiver from the financial parties in Q1, combined with a subordinated shareholder loan of €20 million from our main shareholder.

On the strategic side, we're already implementing measures resulting from the strategic review that we believe will contribute to stabilize our production and drive our mortality down and superior share up. A final production strategy will be presented at our half-year presentation in August.

We are still awaiting approval of the licenses in Seyðisfjörður. We are still seeing volatility in the market, but have secured a contract share for the next half of the year of approximately 35% of our remaining volume at, in our opinion, very favorable prices.

This will provide revenue predictability and downside protection. We maintain our guiding at 17,000 tonnes for '26 with a harvest volume of 1,900 tonnes for Q2.

We'll conclude our presentation here, and we will be open for questions, and as mentioned initially, please send questions to [email protected], and we'll have a short break before we're back with the questions. Thank you.

We

got some questions here. The new strategy does not seem to directly address what you communicated to be your main problem the last few years, wounds, causing early harvest and down rates.

How do you plan to solve those problems?

The problems with wounds is a complex problem, but I do believe that we are implementing measures to reduce the problem. The losses due to wounds have been biggest and mainly the second winter at sea.

By reducing to one-winter strategy, we should reduce the losses due to wounds significantly. An important exception to that was the '24 generation that started to get wounds already in the summer, and we have identified some challenges related to the production in land in connection to vaccination that we believe will improve that situation as well.

Then we also see that the challenges with Parvicapsula end up with fish getting blind, and we get mortalities eventually due to fish with wounds. Also reducing the output in the high-risk season will reduce the challenges with wounds.

I do believe that we are addressing also the challenges with wounds in this new strategy.

Okay. Seems we have a lot of questions, maybe not be able to answer all.

Is Whole Foods included in the contracts for second half of '26?

Yes, that is included in the fixed-price contract for the remaining year.

Another question, similar to the other one. Any signs of winter wounds on the '25 generation during this winter, for example, on the autumn fish where you say you have some challenges?

Of course we do see some with wounds, but that has not been the main challenge there. The autumn fish that has seen some challenges is the fish in Hafnarnes that went out the latest, and there we've had Parvicapsula in some of the groups that went out in August and beginning of September.

We've also seen losses due to Tenacibaculum, especially in the groups that went out the latest. Wounds have not been the predominant problem in that fish.

What's the available liquidity at the end of Q1?

Cash on hand was, if you look in the appendix, €10 million. Then we have also the subordinate loan and availability, I think, up to around 20.

This again on Whole Foods. How do you end the contract with Whole Foods?

Are the contracts for the rest of '26 with Whole Foods?

I already answered the second part of that question. Why do we end it?

As I said in the presentation, the certification requirements affect our production in a negative manner, and we've made a lot of calculations and assessments on the indirect costs of this certification, and conclusion is that this is not beneficial for our production, and that we will be better off with improving the production, improving the biology, and not having then the certification from Whole Foods.

A question on vaccine. Do you use the standard Norwegian winter wound vaccine on the '26 generation?

We have made adjustments to our vaccination strategy, and we are using the Pharmaq vaccine for the '26 generation, yes. Then

regarding the '25 generation, what is your best estimate for superior share on the '25 generation?

We are estimating 80% at the time. Yes.

Let's see if there's...

This was a combination of... We have addressed...

I think so.

Okay. Then thank you very much for listening and seeing our presentation, and see you next time.

Thank you.