Good morning, everyone. I'm Vidar Aspehaug, CEO of Kaldvík, and I'm pleased to welcome you to the presentation of our fourth quarter results for 2025.

Joining me today is our new CFO, Hjalti Hvítklett, who will introduce himself shortly. Together, we'll walk you through the key highlights and developments from the past quarter.

After the presentation, we'll open the floor for questions, and as before, you're welcome to submit them by email to [email protected]. This, let's move on.

Here is the updated management team, with Hjalti Hvítklett stepping in as CFO. I will leave the word to him to introduce himself.

Thank you, Vidar. My name is Hjalti Hvítklett.

I started here in Kaldvík in the beginning of February. I live in the Faroe Islands and will be commuting to Iceland.

I have my education in finance from the University of Aarhus in Denmark, and I worked within the fish and aquaculture most of my career, most recently at Nordic Aqua Partners, operating in China. I'm very happy to join Kaldvík at an exciting time for the company.

I have always experienced a strong team with a clear ambition, and I'm looking forward to contributing going forward. I'll hand it back to you, Vidar, and I'll return later with the financials.

Thank you, Hjalti. Today we'll begin with some key highlights from the last quarter, covering operational updates, financial results, and strategic updates.

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

Throughout the presentation, we have put the respective 2024 numbers in brackets behind the '25 numbers to give you some reference. For the Q4 highlights: in the fourth quarter, we harvested 7,943 tonnes with a group operational EBIT of -€10.6 million.

The main reasons for the negative results are early harvest of the '24 generation due to winter wounds, resulting in lower average weights, a low superior share, combined with a challenging market situation. I will comment further on this later.

For the full year '25, we harvested a total of 17,105 tonnes, compared to almost 15,000 tonnes in '24. Looking ahead in '26, we will be harvesting 6,500 tonnes in Q1 this year, mainly from the '24 generation, and we're maintaining our full-year harvest guidance of 17,000 tonnes.

As announced to the market, the company is in a challenging financial situation and has requested a waiver from its banking partners. As of today, we're in a constructive discussion with the banks, and we expect to conclude the issue within the end of Q1.

Strategically, the government's published legislative agenda indicates that the new aquaculture bill is expected to be introduced shortly. We'll comment further on this later.

The license that we have been awaiting approval in Seyðisfjörður is still pending, and the strategic review of our production model, aiming to reduce risk and improve stability in our operations, supporting our long-term goal of producing 30,000 tonnes, is still ongoing and expected to be concluded no later than May this year. To the 2024 generation within our farming operations, and as already mentioned, we decided to initiate early harvest of the '24 generation due to an unacceptable situation with winter wounds.

We were very optimistic for the '24 generation as this was the first generation to receive the tailor-made vaccine towards winter ulcers. However, it's now clear that this has not been enough to solve our problems with wounds.

As previously communicated, part of the '24 generation had a challenging release in the late fall due to delays and a dramatic and early drop in sea temperature. On top of that, the winter '24/'25 was extreme, with an unusually early start of winter temperatures and significantly lower temperatures than normal throughout Q4 '24 and Q1 '25.

The figure on the right illustrates this, showing the temperatures for these quarters for '24/'25 compared to the average temperatures since 2010, shown in blue. Surprisingly, we saw wounds starting to develop in the growth season on rising temperatures in Q3, and the situation escalated in Q4 '25.

As a result of this, we decided to harvest the '24 generation, starting with the most severe cages, aiming to harvest the complete generation as soon as possible. By the end of Q4 in '25, 62% of this generation had been harvested, and by the end of Q1 this year, we expect to have finalized the harvest of almost the complete '24 generation.

The consequence is that the '24 generation will generate approximately 5,200 tonnes less harvest volume than anticipated, mainly due to lower average weight. Also, the superior share ended at 41%, affecting the price achievement.

The disappointing results with the '24 generation had a major impact on the financial situation of Kaldvík, and it's pretty much the main reason for the financial challenges we are in currently. Looking at the '25 generation, things are looking better.

As of now, we are ahead of plan, and the fish is with good health. The '25 generation was a milestone output for Kaldvík, reaching 8.25 million smolt, and we had a successful transfer with acceptable mortality.

Even though the '25 generation has the same vaccine as the '24 generation, we have had much more favorable temperatures this winter, closer to normal temperatures for the Eastfjords of Iceland. The red line in the figure at the right illustrates this, showing that we had temperatures above average in Q3 last year and significantly higher temperatures than '24 throughout the period.

As of now, we are seeing good performance with good growth and an overall good health status. At year-end, we had a cumulative mortality in the '25 generation of 9.3%.

In '26, 61% of the total harvest volume will be from the '25 generation. To elucidate a bit further on the importance of the temperature we are seeing in '25 compared to the abnormal '24 temperatures, I have included an illustration to show the difference in growth, given a starting weight of 500 grams and six months growth at the respective temperature profiles for these two years.

The specific growth rate is highly dependent on temperature, and as illustrated in the figure on the right, the specific growth rate in '25 has been higher than in '24 throughout the last two quarters. With an average specific growth rate of 0.58% in '24 and 0.82% in '25, we get 330 grams more growth in '25 compared to 2024.

Given a 5 million fish scenario, this would result in a total difference of 1,655 tonnes production. On top of this, the fish is in better condition.

Then some information on harvesting and sales. In Q4, we harvested almost 8,000 tonnes, which is a record volume for Kaldvík and for our harvest facilities.

We had single-day harvest volumes up to 245 tonnes, which is the highest we have had. The increased harvesting capacity was partly achieved by the addition of stun-and-bleed capacity and partly through operational optimization at the harvest site.

As we're all aware, there have been and still is a volatile market situation with respect to salmon prices. Despite the low superior share of 42% and early harvest of the '24 generation, the overall price achievement ended at €6.01 per kilo for the quarter.

That concludes the operational update. Now I'll pass the word to Hjalti, who will walk you through the financial updates.

Thank you, Vidar. First, we have the highlights from the quarter marked by a relatively high harvest volume, but low prices and low superior share.

As Vidar already mentioned, operational EBIT for the group was negative by €10.6 million, and EBIT per kilo amounted to -€1.33 during the fourth quarter. This is driven by different factors, mainly lower market prices, high cost due to early harvest, and low superior rate.

Revenues reached approximately €48 million. Despite the low superior share of 41% and the early harvest of the '24 generation, the overall price achievement ended at €6 per kilo for the quarter.

Total assets lowered by €22 million during the quarter. This was primarily driven by higher harvest and therefore lower biological assets.

Total liabilities decreased by €10 million in the quarter. This was primarily driven by a significant decrease in trade and other payables.

Equity ratio is 55% and it's the same as we had in Q3. Net interest-bearing debt increased by €6 million during the quarter.

EBITDA was negative by €7.2 million. The change in working capital amounted to €11 million, primarily due to lower biomass at the end of the quarter.

CapEx investment during the quarter amounted to €2.1 million, and financial items amounted to €4.4 million. As we have announced, the company has requested a waiver from its banking partners.

As of today, we are in a constructive discussion with the banks, and we expect to conclude the issues within end of Q1. We will provide quarterly company updates, while financial reports are issued semi-annually with half-year and full-year reports.

Next company update for the first quarter is scheduled for May 21st, and the next financial report will be issued for full financial year '25 on April 30th. For further information about the financials for the fourth quarter and year-to-date numbers, please refer to the appendix section.

In October '25, Sunnlendinga District Court rejected the minority shareholders' request for special investigation regarding the acquisition of certain strategic assets completed in March '25. The decision was not appealed, and the matter is concluded.

Thank you, and now I will hand it back to you, Vidar.

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

Regarding the ongoing process with the new aquaculture bill in Iceland, the government's published legislative agenda indicates that the bill is expected to be introduced shortly. While consultation drafts have circulated, the final text has not been yet formally presented.

We're monitoring developments closely, and once the final framework is publicly available, we will assess its implications carefully and communicate further once we have completed that evaluation. The new license in Seyðisfjörður is still pending, and regarding the ongoing strategic review of our production model, we expect to conclude no later than May this year.

The review will give us a clearer basis for long-term decisions and support a more robust and predictable production model going forward, lowering risk and lowering cost. 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. Still, forward prices indicate a promising market in Q2 and Q3 of '26 compared to '25.

For Q1 in '26, we expect to harvest 6,500 tonnes, and a majority of the harvest this quarter will be from the '24 generation. We expect to finish the rest of the '23 generation and the majority of the '24 generation this quarter.

In Q2, we will start the first harvest from the '25 generation, which is performing well with good health. The total harvest volume for '26 is expected to be 17,000 tonnes, and from Q2 onwards, we will be mainly harvesting from the '25 generation.

To summarize, I will conclude with the outlook and key points going forward. We have had challenges with winter wounds in our '24 generation and have initiated early harvest that we are looking forward to put behind us by the end of this quarter.

The '25 generation looks much more promising and is ahead of plan with regards to growth, and harvest from Q2 onwards will be mainly from this generation. We harvested and sold a total of 17,105 tonnes last year and ended with a record-high harvest volume of almost 8,000 tonnes in Q4.

As a result of the challenging biology in the '24 generation, the company has requested a waiver from our banking partners, and constructive discussions are ongoing, expected to be concluded within Q1. On the strategic side, we are still awaiting approval of the licenses in Seyðisfjörður, and the strategic review of our production strategy is ongoing and expected to be concluded in May this year.

We are still seeing volatility in the market, but forward prices for Q2 and Q3 are promising compared to '25. We maintain our guiding of 17,000 tonnes for '26 with a harvest volume of 6,500 tonnes for Q1.

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

We have received a question here, Vidar: "What measures are you taking to improve the winter wound situation? What is the root cause, in your view?"

Of course, we are in the process of doing a strategic review where we are evaluating all production parameters, but also specifically we are evaluating the vaccination strategy. Saying that, we have not finally concluded that it's the lack of effect of the vaccine that's the only cause of the problems with wounds.

We did have a very rough winter, the '24/'25, with extremely low temperatures, the lowest we've seen in Iceland on the east coast the last 25 years. We are not certain of the impact of that cold winter temperatures at sea compared to the effect or lack of effect of the vaccine.

We are looking into, well, adjusting production strategy, but also vaccine strategy, and of course evaluating the situation as we go.

We received another question, a similar question: "You say that the '25 generation is with good health. Does this mean that there are no wounds and other health issues with this generation?"

The '25 generation is looking good, yes, but of course we do see normal mortality, and we do have incidence or cages with increased challenges. Also, we do see wounds, especially after mechanical challenges like storms, etc., where we do see an increased development of wounds.

All over, the '25 generation is looking good.

This question is also within the same area with the vaccine: "It seems that the vaccine has not given the protections toward winter wounds that you expected. What is the likelihood that the '25 generation will get similar problems with wounds as the '24 generation?"

Related to the previous question on vaccine, of course, as I said, we're not certain about the cold winters that the '24 generation went through. It was an extreme winter with very low temperatures.

In the '25 generation, we are ahead of plan, and growth has been good, health is looking good, and we are optimistic that with the much calmer winter that we have, we are currently still at 3 degrees, and that that will take the '25 generation through the winter in a much smoother way, and that we will have significantly better performance of the '25 generation than we've seen in the '24.

Another question here: "When do you expect the company to remain sustainably profitable? Can you provide a multi-year guidance and/or a business plan?"

As we are now in the middle of the strategic review of the production plan, as we have communicated, I think it's difficult to comment on this concretely right now. We are planning to finalize the strategic review in May this year, and I think we will be more able then to give some indication of the plan going forward after that.

I think this will be the last question, but this is also on the same area as we have been before: "Could you elaborate on the vaccine situation?" I think we have covered that, but—

Yes. I think we've been on that.

We can say we have used the tailor-made vaccine for the '24 generation and for the '25 generation, and also the first group of '26 received the same vaccine, but we are now testing out alternative vaccination strategies and we'll come back with more information later on this.

As of now, there are no further questions. We have not received any more questions, so.

Then

I guess if you have any further questions, just feel free to send them to the same email and we'll address them directly afterwards or later. Thank you very much.

Thank you.