Good morning, everyone. Welcome to Nordic Aqua's presentation of the Q2.

Today we present myself, Ragnar, CEO, and with me here in China is Andreas, our Managing Director, and from Oslo is Tom, CFO, also joining. If we go to the agenda today, then we will start with some highlights.

Our Andreas will come in and present the market. I'll come back with operations and project, and then our CFO Tom will come in with the financials, and I will sum up in the end.

Remember also when we have this session that it is a possibility to come in and ask on the questions in writings during the presentation, and then we will answer them in the end of the presentation. First starting with highlights, if we look at how things are going, we are quite satisfied, I think we can say, with many things.

If we look at the production, we are, you could say, at the goal where we wanted to be when we have stage 1 and stage 2 together, aiming for 8,000 tonnes harvest, and then we have just under 2,300 tonnes in production for the quarter. If we just continue what we are producing right now, we will be at the level where we should be.

Total biomass is quite high, and the cost is coming down. The harvest has been ramped up during Q2, and we will further ramp up during Q3 and further going on.

Sales price is €7, and especially a strong achievements for the 5+ area, where we are just under €8 per kilo. Farming cost during the quarter has been taken out with 6 just over €6, and operating EBIT is just under break-even.

In stage 2, we have completed, we are producing at full now, just some minor issues still ongoing. We have also started to design the stage 3.

Our Managing Director in China will come just after me and explain more about the market, but we can still see that the market is just getting stronger and stronger in China. Hereby, I'd just like to give the word to you, Andreas.

Thank you for that, Ragnar. Yes, we are pleased to announce the Q2 results when it comes to the market performance and the harvest.

The volume in the Q2 quarter ended up at 1,362 tonnes. We've done some research on that, and we see that according to third party [Kontali?]

, that is the first land-based salmon farmer that actually harvest more than 1,000 tonnes at an average weight about 4 kilo in a single quarter. That just underlines the trajectory we are in, which also Ragnar gave in his introduction.

The actual numbers for the quarter was 4.4 kilo HOG, which is 5.3 kilo live weight, and we had an solid superior share of 96%. The average sales price achieved was around €7, 6.94 a kilo.

We were obviously somewhat impacted by the softening spot prices that we saw in this Q2, and which was also a trend through the first half year of this year, which was also somewhat below the initial forecast that were given late last year. It's also worth noting that some of the harvest volumes were skewed towards the end of the quarter as we were ramping up.

I think it's also good to highlight, and this is something we are tracking closely, is that for the 5+ superior grade we have, we are at a 21% price premium to the [Sitagri?] export prices from Norway.

The prices for the quarter came in at 7.85 kilo euro per kilo. I think if you also look at the average harvest weight in general, we are tracking now closely what is the average harvest size from traditional salmon farming in Norway.

That is something which we think is important here in the local market to be able to make sure that we get sizes that are attractive for our price achievement. If we look on the actual size stocking, this is a topic we've talked about before, but we think is worth mentioning, that there is a price span in China.

We know there is a preference for larger size fish. There are some local reasons for that in terms of taste and texture, yield, and also that there is sashimi consumption.

There is a bigger sensitivity in terms of the pricing. I think it's important to note here that we are improving when it comes to the premium we get, especially now if we compare it to earlier quarter.

If we see all our sales and we look at it towards the [Sitagri?] index, and we weigh this and we do it week to week so we have an apple-to-apple comparison, we're at 8% above [Sitagri?]

, which was an improvement from last quarter. We see that being steady now in the market, being a player that is our customers getting used to, they like our stability, they like our product.

We see that that is now gradually yielding results, and it also gives some encouragement for the future and the further building of the market. We also participate at various events throughout the year.

In Q2, we were at some customer tasting events where we also put our salmon Nordic Pure Atlantic, the brand, in the spotlight. We also received some award during the quarter.

It was from the Shanghai Climate Week, Lighthouse Outstanding Case Award for our sustainability efforts, and also our green manufacturing when it comes to using solar panels. The overall value proposition, and we talked about this many times, but it still is something we talk to the market about, we talk with customers marked about, and we feel that the freshness we can supply to the market is a unique feature that is very much a key aspect of seafood in China, where fresh seafood is something that is related to quality.

That we can do it here in the way we do it, locally produced, localized Atlantic salmon with the RAS technology is a strong selling point. Furthermore, for safety, we have no antibiotics use in our facilities, we also do not use any type of medication, and there's no parasite risks, and so on, which is also resonates well with the local market.

We also, by being locally here, we take down the transport costs, and also the transport carbon footprint, which has a sustainability aspect to it. We are agile in terms of developing the market and looking to build more strategic partnerships when it comes to developing both the food service and the retail sector.

Next, for those of you who don't know China that well, we are very well located. It's near Shanghai, the Yangtze River Delta.

It's in an affluent area of China, where you have within a radius of 5 hours 100 million consumers that focused on health, that are increasing the salmon consumption, as you will see in a minute when it comes to how China is developing market-wise. It's also a good location to serve a wider population of China, more than 800 million between within 12 hours.

We think the location we are at at the moment has been a very good starting point when it comes to developing this local market. The actual development in Chinese market, and once we follow it, we'll see that it's been strong growth year on year, especially since 2024.

Far for this quarter, there was a year-on-year 25% increase. We had almost for the first half year touching close to 100,000 tonnes.

It's the growth story of China continues, and there are some obviously some projections that have been made some years ago. 2023, Alibaba predicted 210 tonnes in 2030.

We think that will be exceeded, not in 2030, but before that. There's also other.

Pareto made an suggestion of 300,000 tonnes in year 2030. Who knows where it ends up?

The key factor is that China is a growth story. It's going to continued big growth story as the penetration of salmon continues with Chinese consumers as well as higher frequency.

We see very positively on the market development in China. It's also a market with many origins, and we know that from before.

You have Norway as the clear leader, which has especially these two last years, when you have lower than expected pricing, Norway has been able to capture a lot of market share also in China, and has an impressive growth in China for the first half year of 53%. Pricing, a bit depressed from what we have been used to.

That is reasons that are related to the supply situation from Norway. We think that the prices will, as some analysts also look at, will have an potential for improvement.

Historically, we've seen that it's more than €10 per kilo that's been a local pricing here. That is something which obviously will further strengthen our business case.

Being here in China, which we think is being at the in the right market, at the right time, with the right product. Thank you.

Thank you, Andreas. We continue to go into operational parameters.

As I mentioned to start with, the overall production is going very well. The biomass production was just under 2,300 tonnes, especially in May and June, the production came really up to where we wanted to be month-on-month.

We finished this facility in late February, and already in May after we've come up to full production. We think that is a very good result to achieve.

The total biomass, 5,600 tonnes. If we look at the cost, during the quarter, we have produced at cost of 4.7, while the average cost, because the cost before has been higher, is 5.4.

If we can continue with the cost that we have at the moment, it will gradually come further down. If we look at what we have produced so far in the facility since the start, then it's just over 14,000 tonnes.

Mortality has been on a fairly low level, under 6% in all batches. Of course, some batches are much lower than that.

If we look at harvest, we're just under 6,000 tonnes, and we are guided now going forward that only this year, we will be between 5,500 and 6,000 tonnes. Average weight of the harvest, 4.3.

We have discussed that we wanted to come up to a higher level, but as we can see with the high biomass that we have right now, we don't have so much flexibility to produce the fish that we have in the facility now much larger. We have a very high number, good survival rate, and that means that it will take a little bit longer than we have said before to get up the sizes.

We have already guided now also that the size this next quarter or this quarter that we are in now, Q3, will be around the same level that has been in Q2. We expect the same level in the end of the year.

Sometime next year, maybe not the first, but at least the second quarter, we would like to come significantly higher than that. If we could get the size up to live weight up to 6 to 6.5, we think that that would be really beneficial for the prices.

A generally good superior share also. Then just looking briefly to the project.

Now we are in full operations in stage 1 and stage 2. We can say that stage 2 has also been completed.

We still haven't paid all the bills, but that is just a matter of a process that we always have in such projects. As we have mentioned before, the cost of stage 2 was significantly lower than we expected when we started the project.

We are also looking into stage 3 now to design. We have started up on designing.

Always, of course, we find some improvements, we think that stage 3 will become a better facility than stage 2, just like stage 2 was a better facility than stage 1. We continue to improve also on that stage.

We don't know quite yet when the construction will start. There are still some issues to be discussed, and also, of course, we are not alone.

We have also the government, and we have financing partners, and so on, and all that should be in place before we push the final button that we start. From this, I'll just give the word back to our CFO Tom, and to the financials.

Please, Tom.

Thank you, Ragnar. In second quarter, our revenue was €9.4 million, reflecting an 84% increase year-over-year, but perhaps more relevant, a 57% increase since Q1 this year.

Obviously, the key driver for this is increased harvest volume, also increasing 77% to 1,362 tonnes from Q1 to Q2. We have touched upon the prices, which came in lower at €6.94 compared to Q1 due to market conditions, but also due to the fact that we had harvest volumes skewed to the end of Q2.

We are happy to note that we are above [Sitagri?] 8% all over, and 21% for the larger sizes, 5 kilo plus.

Farming cost was €6.1 per kilo, which was down from 6.3 in Q1, and this is due to consistently good growth over time. Thereby, we had an operating EBIT of -€646,000.

We had fair value adjustments during Q2 of -4.2, reflecting the lower price band. We had financial items in Q2 of positive €100,000 basically due to unrealized currency gains.

That gives a loss for the quarter of €4 million. Then we had positive net cash flow of €722,000, €580,000 from operations, and about €140,000 net from investments or capex into stage 2 and financing of the same.

Cash at end of quarter €5.4 million, and equity €108 million, corresponding to 56%. Then we have loan agreements with a broad base of Chinese banks for the long-term project finance and for the working capital.

For the project finance, we have drawn equivalent to €37 million of the €49 million available, leaving €12 million approximately for remaining capex. For the working capital finance, we have currently around €8 million available, and have drawn 5 of those.

For stage 3, we will address the financing with our bank group as we progress our process towards final investment decision. Back to you.

Thank you, Tom. I'll just remind people also once more that if you have any questions, there's a tiny delay in writing comments and questions.

Please write now so we can see them when we end the presentation. We will just have a brief look at the outlook.

As Andreas mentioned also, that the market is growing still as we can see here in China significantly. If you look at harvest volumes for Q3, we expect to be between 1,400, 1,600 tonnes during the quarter, and a similar average weight as we had the quarter before, 4.5 kilo.

We can say that we started to harvest some of the Q3 fish now early in or mid early in the quarter. We will come up to full harvest volumes also in the time to come.

For the year, we now guide 5,500 to 6,000 tonnes. If we look at price achievements, of course, as has been mentioned, we are above the [Sitagri?]

with the bigger fish on 21%, 8% on average, so that the smaller fish is still not really paying a large premium compared with [Sitagri?] .

As we can move forward and get the sizes up as we intend, then the price achievement should further improve from the stage that we are at now. Looking at the cost, we just mentioned it briefly, we are producing in Q2 at a lower rate and the standing biomass, the cost development is going down.

Of course, we know also that there will be some negative effects going forward mainly from increased feed prices. We will see next quarter or the next quarters how the development will be, including some increases also.

The production is still running according to what we call full run rate on stage 2. As I mentioned before, we're working with the stage 3 project, and we'll come back to you with when the final decision will be made.

It can be made by the end of this year or early next year. We will still wait to announce when exactly we think that we should put on the start button for the stage 3 project.

If we just go briefly through the summary of what we have presented today, then we can say that the financials, €0.6 million loss at EBIT value, and harvest fine, production very good, and project completed number 2, and well away also to get ready for starting on stage 3. With this, we conclude the presentation today.

Thank you for listening. Then I just want to ask my person in Oslo, Tom, are there any questions, comments?

I will read some of the questions we have here a second on computer here. I will start with one here.

"What is expected timeline for ramping up harvest weights beyond Q3 this year?"

I mentioned it in the presentation also that we will come with larger sizes, and I think we can be quite okay with saying at least Q2, and we will see if we are able to take the harvest rates up before that, but at least in Q2 next year, that's when we expect to come now. We could, of course, do some things so that we could get it quicker.

If we just harvested quite a bit of small fish now, then all the fish would be going to the higher size sooner. We think it's better both working with the customers, and also for the total financial picture that we gradually build it up.

On the prices, I think there was a price question also, then I think I will leave it to Managing Director here, Andreas, to answer. Can you repeat the question just what it was on?

Wasn't there a price question also?

The first one was on harvest weights.

Okay.

We have one on price. "On price achievements, should we expect a similar price premium in Q3 as Q2 given flattish average harvest weights?

What do you expect in Q4?"

I think what we have seen so far from the trajectory from Q1 to Q2 was that we had more or less a similar harvest size, but we were able to take up the premium on the total, which was 8% on [Sitagri?] .

With more volumes, we were able to realize a better overall premium. I think that's due to the development we've done in the market.

We have a very dedicated commercial team that is hands-on with the customers. I think our job now is just to continue that trajectory, and to do as best as we can in terms of achieving price achievement also for sizes that are a bit smaller than what is the usual standard in China.

What the actual projection or the result will be on that, it remains to be seen. I think we all feel very confident that we are doing the right things here, and that this should be reflected in also the premium.

Obviously, it's size-related as such, don't expect any big changes to it. We feel positive about the development going on.

Okay. Thank you, Andreas.

I will read one which I think I can answer here. That's "On P&L cost, should we see a similar realized reduction in Q3 as Q2?"

I would suggest that the answer to that is that we'll probably see a similar type of cost, positive movement for continued growth, but a negative movement from increased feed cost. Probably in the same range or same area.

Then there's a question on "Remaining capex and available liquidity?" On that one, I would say that we expect the available project loan to cover the remaining capex for stage 2, so that we expect no cash draw on operational cash for whole capex.

Perhaps on one more on price. "What is your fish sold for in China relative to Norwegian salmon in China at equal harvest weights?"

I guess that'll be Andreas, I guess.

At the moment, we are benchmarking ourselves towards the [Sitagri?] index, and I don't believe there is an average Norwegian price as such in the market.

You will see different prices from different not on the origins, but sometimes suppliers when it comes to at least the wholesale market for the bigger size. We see that we are doing very well when it comes to the 6+ size.

Obviously, as the prices go down, you will not find that much Norwegian salmon in the same price range. In overall on the sizes where we see that basically we're going to get the premium, we feel comfortable with the position we are there.

I think it also reflected already in the [Sitagri?] premium.

Then the last question we have is, "If salmon prices remain at our current level for the next 12-18 months, do you expect to reach positive EBITDA without further cost reductions?" We already have a positive EBITDA.

We had given some, can you say, price and cost indications. Other than that, we don't generally guide on EBITDA other than noting that it's already positive in this quarter.

Yes. Maybe it's confusing when we say we have a loss on the EBIT level.

If we report it on EBITDA level, it would be quite positive. Just because we report on the EBIT level that maybe there's a confusion there since the question was that.

This was the last question, Tom?

It was. Yes.

Excellent. Then we just thank you all for attending, and see you maybe next time on the November 12th.

Thank you so much.