Good morning, everyone. Thank you for joining Salmon Evolution's presentation for the second quarter.

We are currently at a true inflection point, where we are now transitioning from a period dominated by construction and investment towards now scale-up and, ultimately, cash flow generation, with Phase 2 at Indre Harøy now in operation. This is something we've looked forward to for a long time, and as I've said many times before, this will be a game changer for the company.

In land-based salmon farming, you need scale, and by the end of this year, scale is exactly what we will have. Also, while the salmon market has been challenging for some time and impacting our financial results, we are now seeing a more positive market outlook emerging, which is also very encouraging.

Coupled with a substantial increase in production over the coming year, this is arguably the most interesting period in Salmon Evolution's history. My name is Trond Håkon Schaug-Pettersen, I'm the CEO of the company.

Together with our CFO, Trond Vadset Veibust, I will take you through this presentation. As normal, we will start this presentation by going through the highlights, then I will take you through the operations and our ongoing growth initiatives, before CFO will take us through the financials, and finally, we will end the presentation with a Q&A session.

For those of you who are attending virtually, you can submit questions via the webcast. As mentioned, the company is at an inflection point, where we, over the coming year, will fundamentally transform the scale of our business.

Key to this is Phase 2, which is now in operation. The ramp-up is progressing according to plan.

The fish is performing well, and we've completed the third Phase 2 smolt release now in July. The building project is also nearing completion, with the remaining 8 tanks to be gradually handed over and taken into operation throughout this year and enabling a significant increase in production going into 2027.

In Phase 1, we are seeing continued progress from the new feed and updated operating protocols that we implemented earlier this year, particularly around water quality, translating into better growth. Although we expect the full effect still to be ahead of us, the recent development gives us increased confidence in the underlying production potential.

Clearly, the weak salmon prices impacted our financial results in the second quarter, where we saw revenues of 67 million NOK, a farming EBITDA of -3 million, and a group EBITDA of -11 million. However, on the positive side, harvest volumes are up 50% year-to-date, and also year-to-date farming EBITDA is up from -8 million last year to +15 million NOK this year, and also despite a challenging salmon market.

I think to sum up, our production will increase significantly over the coming quarters, which in turn will reduce unit cost, combined with a market looking increasingly attractive into next year, we believe that we are in a quite good position. Moving over to the operations.

In the second quarter, we harvested 945 tonnes gutted, with harvest taking place in May and early June. The superior grade share and tight weight distribution was in line with previous quarters, and harvest weights was up from 3.2 kilo gutted in Q1 to 3.5 kilo gutted in the second quarter.

All-in price realization ended at 70 NOK per kilo, reflecting a fairly backloaded harvest profile and also weak salmon prices in the quarter. We have updated our guidance for 2026 and expect to harvest approximately 6,000 tonnes this year compared to the previous guidance of 7,000 tonnes.

The adjustment reflect lower than anticipated biomass production during the first part of the year. While this impact 2026 volumes, we continue to see positive operational development and remain confident in our production outlook and targets.

Operationally, the quarter marked another step forward. We continue to see stable operations across the farm, minimal mortality.

Net biomass growth increased to 1,706 tonnes. This is up from 1,357 tonnes in Q1.

We had good appetite across the farm in April. Production in May and early June was somewhat impacted by a suboptimal fish logistic operation and longer than normal adaptation period for a new smolt group stocked in Phase 1.

Towards the second half of June and going into July, we saw good development across all groups. We are seeing that the changes implemented earlier this year are beginning to deliver, and that better water quality is providing a stronger biological foundation to take out the full potential of the system.

At the same time, Phase 2 continues to ramp up according to plan, although the contribution to biomass growth was limited during the quarter, but this will increase significantly over the coming months. I think the key takeaway is that the biological trends are moving in the right direction.

We are building the foundation for higher harvest volumes, larger harvest weights, and also improved unit economics. This slide is to highlight why we are increasingly confident in the operations and performance.

Historically, we have delivered strong performance up to, say, 2.5 to 3 kilo. The challenge has been to maintain that growth momentum through the later part of the production cycle.

The improvements implemented earlier this year geared around feed and operating protocols have had a positive effect on water quality, and we see that this also translate into a positive effect on growth. As you can see from the right-hand chart, the last two groups that we have harvested have had a significantly better feeding in the last part of the production cycle compared to the previous two groups prior to implementing those changes.

While it's still early, the data is encouraging and supports our view that the biological potential of the system is improving, and going forward, I think it's all about building on that positive momentum. When it comes to Phase 2, the first months of operation have gone according to plan.

We completed the third smolt release in July. All groups have adapted well, with minimal mortality, good appetite, and growth in line with expectations.

Importantly, also, the technical upgrades that we have in Phase 2 are performing as intended, with further improvements in water quality, which has been a key focus in Phase 2, and that means improvements in particles, gas levels, tank hydraulics, and overall more capacities throughout the system. Over the coming months, the contribution to biomass growth from Phase 2 will materially increase, and we are planning for 2 full-size smolt releases in the fourth quarter, meaning that for 2026 as a whole, we plan to stock around 2.8 million smolt, which is up 65% compared to last year.

I would say, in short, Phase 2 is delivering operationally, the ramp-up is on track, and we are now building the foundation for substantial production growth over the coming quarters. Delivering on the production ramp-up, that is the primary focus for us now, and we remain confident in achieving our mid-2027 run-rate production target of 14,600 tonnes.

That means continued improvement in Phase 1, so that we, as a first step, get to 85% capacity utilization, and also getting Phase 2 to full run-rate production. This will fundamentally transform the company.

It will give us critical mass, also a fully competitive production cost, and stable weekly harvest, which will again enable further initiatives on the commercial side. Moving over to our growth initiatives, we believe that we are entering a very attractive phase for the company, where years of execution are now translating into clear and scalable growth.

Our strategy is very clear and disciplined. It's now all about execution on the current operation, delivering Phase 2, and also ensuring that we have a compelling pipeline.

Phase 3 at Indre Harøy is the natural next step that will double the capacity towards 36,000 tonnes. This is on one site, a platform, and also with an organization that is already proven.

Also, this is growth that leverage the existing infrastructure and experience that we have, reducing risk and boosting returns. Important, as to Phase 2, we firmly believe that that will set a new benchmark for land-based salmon farming.

As previously mentioned, things are looking very good. We have taken out 4 years of operating experience from Phase 1 and incorporated those learnings into Phase 2.

Improvements are especially centered around water quality, robustness, and reliability. We are introducing around 20% more fresh seawater, we are upgrading the degassing systems, better water hydraulics, particle filtration on the water that we reuse, and these are targeted and experience-driven upgrades designed to support strong growth through the full production cycle.

At the same time, we've also simplified the systems. We have further strengthened the biosecurity to ensure predictable operations at higher volumes.

I think the takeaway is clear: Phase 2 is not just more volume, it's also better biology, it's lower risk, and together with Phase 1, we believe that we have a very solid operational platform. This is just to illustrate the strength and scale and long-term potential of Indre Harøy.

Phase 1 been operating now for several years. We now have Phase 2 in operation, that will eventually take production capacity to 18,000 tonnes gutted.

Additionally, Phase 3 is, in our view, a highly attractive project, building on the same proven site, infrastructure, and organization. Beyond that, we also have a potential Phase 4 that represents meaningful long-term optionality.

I think to sum up, this is a very capable and unique platform. It offers significant volume growth in the near term.

We have very tangible medium-term expansion opportunities and also long-term growth optionality. As to Phase 2, disciplined project execution and cost control have enabled Phase 2 milestone to be delivered in line with plan.

We have now taken over 4 out of 12 grow-out tanks, with the remaining 8 tanks to be taken over during the course of this year. The project is nearing completion, gives us good visibility on remaining capex and milestones.

The civil construction scope is largely completed. The project focus is now centered around process installation and final commissioning activities for the remaining tanks.

As to the pre-grow-out tanks we are planning as part of Phase 2, we estimate total investments of around 400 million NOK, including contingencies, but before making any final investment decision, we will run a structured process with contractors with the aim of further reducing risk in cost estimates. With that, I leave the word over to you, Trond.

Thank you, Trond Håkon. Okay.

Let me take you through the financials for the second quarter and the first half of 2026. After harvesting approximately 1,000 tonnes at an all-in realized price of 70 kroner per kilo, farming EBITDA ended at -3 million in Q2, representing a substantial year-on-year improvement driven by lower farming costs.

Farming costs landed at 71 kroner per kilo in Q2, down from Q1 and a 13% year-on-year improvement. With increasing volumes in Phase 1 and scaling effects from Phase 2 driving fixed cost dilution, we expect gradually reducing farming costs in the second half of 2026.

I will go through the farming costs a little bit further in a minute. The Other segment reported an EBITDA of in line with Q1 and an improvement of approximately 35% year-on-year.

As previously highlighted, we have implemented several measures to reduce cash burn and costs in this segment, resulting in meaningful cost reductions, including a reduction of 5 FTEs. Looking ahead, with the volume set to more than double, this cost base will scale significantly, and the relative cost burden of these activities will continue to decline.

At group level, EBITDA was negative with 11 million, representing a solid improvement compared to 2025. Looking at the first half of 2026, harvest volumes was up 50% compared to 2025, farming costs down approximately 10%, and farming EBITDA ended at about 15 million kroner, or 5.4 kroner per kilo, an improvement of over 10 kroner per kilo compared to the same period last year, even in spite of a relatively challenging salmon market.

When it comes to farming costs, we are beginning to see the benefits of scale as Phase 2 ramps up, although these effects are not yet reflected in the financial results. As we have consistently communicated, our cost structure contains a higher proportion of fixed costs than a traditional farming operation, and as a result, attractive unit economics are primarily driven by utilization and the ability to scale production across a largely established cost base.

Over the past several years, we have built the operational platform required to support Phases 1 and 2 at Indre Harøy, effectively front-loading much of the infrastructure and organizational cost base needed for future growth. With substantial production growth underway, we see a material fixed cost dilution ahead.

In other words, our underlying unit economics will improve significantly in the coming 6 to 12 months. To dwell further on cost, a topic that has become increasingly important over the last few quarters, feed costs and the benefits of a low economic feed conversion in a tightening feed market.

As you are all aware, feed accounts for approximately 50% of farming costs, making feed conversion the single most important driver of long-term competitiveness in the industry. Our controlled land-based production system enable a level of feeding precision, monitoring, and data collection that is difficult to replicate elsewhere and act as a natural hedge against feed cost inflation.

Over the last few quarters, we have improved our economic feed conversion ratio by 5% to 6% and remain firmly on track for our 12-month target of 1.1. In fact, the latest group we harvested crossed this threshold.

Going forward, we expect to continue benefiting from the investments made in feeding technology, personnel training, and artificial intelligence to maintain our already sharp economic feed factor going forward. In a market characterized by rising feed costs, every percentage point improvement creates meaningful value and represents a structural competitive advantage over time.

Then finally, let's take a brief look at the balance sheet and cash flow. Most of our assets are related to the grow-out facility at Indre Harøy, biomass and other inventory, and cash.

The net interest-bearing debt decreased slightly compared to Q1, reflecting the cash injection from the private placement in April. With the Phase 2 expansion project being close to completion, as highlighted, investments in the project are decreasing, and we have good visibility on remaining capex and milestone, as mentioned.

Cash flow from operations reflects harvest timing and the ongoing Phase 2 ramp-up. Investments in the quarter are in all material respect tied to Phase 2, and cash flow from financing relates to the mentioned private placement as well as drawdowns on the construction financing.

Thank you, Trond Håkon. Summary?

Thank you, Trond. Let me end where we started.

The company is at a true inflection point. For years, our focus has been on building the platform, proving the technology, and developing the operational capabilities needed to succeed at scale.

Today, that foundation is in place. We have a proven operation, we have a capable team, and a platform that is now entering its next phase, with Phase 2 now online and ramping up according to plan.

I would say the heavy lifting is largely behind us. What lies ahead is about unlocking the value of what we have built through higher production, stronger economics, and, ultimately, also a significant cash flow generation.

At the same time, we are seeing encouraging biological development across the farm, which in turn increase our confidence in the production potential of our system. We also believe that the market backdrop is becoming increasingly supportive.

After a prolonged period of pressure, the outlook for salmon prices is finally improving, I have to say, and we are uniquely positioned to benefit from that as our production growth now accelerates. I think the combination of improving operational performance, substantial volume growth ahead, and a strengthening market outlook gives us confidence that the most exciting period in the company's history lies ahead of us.

I think with that, thank you all for your attention, and we're now happy to open up for questions. Yes, and we can start with the audience first and then move on to the webcast.

Thanks. Herman Dahl, Nordea.

Two questions from my side. Firstly, on the pre-grow-out tanks, could postponement of that investment also mean that it will take longer time to ramp up to 18,000 tonnes?

A second one on feed, could you just comment briefly on the composition of your feed basket compared to sort of an average industry feed basket?

I think as to start with the pre-grow-out tanks, the 18,000 tonnes, there's a component of that relates to the pre-grow-out tanks, obviously, that's sort of part of the 18,000 tonnes, so that, I think, goes without saying that we have on the pre-grow-out tanks, the design is basically completed, and it's about just getting started. We haven't made a final investment decision yet, but obviously, that's something we are working on.

Also, we are now in a phase where, yeah, the grow-out tanks are finished by the end of this year, that will also free up capacity. As to the feed composition, I would say we have what I would say is a high-performance feed.

I think there are unique features in terms of technical specifications, but also we have sort of prioritized a high energy content and so forth. We have a very close cooperation with our feed supplier, and obviously, are monitoring the situation closely as to the increasing feed prices.

Does that mean a higher inclusion of marine ingredients compared to an average basket?

We have prioritized a high marine inclusion.

Okay. Thanks.

Kristoffer Haugland, Arctic Securities. With improvements you're seeing on the feeding protocols and water quality, do you expect to see average harvest weights of 4 kilos this year, or is that a milestone for '27?

As soon as possible. Basically, we are stocking fish every second month, now with Phase 2, we will be stocking fish every month.

We have a certain window, and the harvest weight is basically just a function of the growth we are able to achieve within that window. Now you saw that the harvest weight was up from 3.2 to 3.5, and obviously, the ambition for us is to continue to lift those.

It's not a problem growing large fish, it's just being able to do that within the time you have sort of allocated. That is what we're working for.

I cannot give an exact date, I wish I could, but I think we are seeing positive things across the system, and it's all just building on that momentum and get there as soon as possible. But 4 kilo gutted plus, that is definitely the target.

We are also seeing that, as I think we've mentioned many times before, we have a very tight weight distribution, because we grade the fish during the sort of production process a couple of times. Even in the second quarter, where we had an average weight of 3.5 kilo, it's sort of very limited with small fish.

That is a big advantage, and if we are able to get the average to north of 4 kilo, then we basically don't have any fish below 3 kilo. Then it's 4-plus, that's the main category, and then we have some 3 to 4.

Thank you.

Anyone else, or should we move to the questions submitted via the webcast? Let's do that.

All right. First and foremost, okay.

What specific biological and operational milestones do you need to demonstrate over the next 6 to 12 months to be comfortable that Phase 1 and 2 can collectively deliver around 18,000 tonnes HOG? Based on what you're seeing today, do you believe you are on track for this?

All right. As we highlighted in the presentation, we have a clear plan to reach our mid-2027 run-rate production target of 14, about 14 and a half thousand tonnes gutted salmon.

In Phase 1, reaching our next 12 months target encompass a quarter-over-quarter improvement of approximately 4% from the run rate we have today, and for Phase 2, it's all about maintaining the momentum we've seen since inception of operations about 5 months ago, and, of course, to become a little bit better every day. As Trond Håkon also highlighted, delivering on the production ramp-up is the current main focus and priority of the company.

From our perspective, we are definitely on track to reach the targets we've set for the next 6 to 12 months. Okay.

Phase 2 incorporates a lot of operational experience from Phase 1. Which upgrades do you believe the most in?

Trond Håkon?

I think, as we've alluded to in the presentation, water quality has been a core focus in Phase 2, further improving that compared to Phase 1, and that is sort of the foundation for being able taking out the full potential of the fish and also maintaining a good biological performance of the fish. By water quality, we mean particles, gas levels, the flow of water, etc.

That is, in our view, very important.

Okay. How should investors think about the impact of Phase 2 on fixed cost dilution over the next 12 months?

As we also highlighted in the presentation, with Phase 2 gradually coming online and improving performance in Phase 1, we are beginning to see the scaling effects, although it's not yet reflected in our financial results. As we have elaborated, our cost structure contains a high proportion of fixed costs, and it goes without saying that with a high proportion of fixed costs and higher volumes, you get a very meaningful fixed cost dilution, and this translates into improved unit economics.

As we have also highlighted, over the last few years, we have built the operational platform needed to support Phases 1 and 2, we have effectively front-loaded much of the cost base required for future growth. With substantial production growth expected over the next 12 months, we will have a material fixed cost dilution, and we will see significantly improved unit economics in the coming periods.

How many of the tanks in Phase 2 are in operation, and could you just give a little flavor on kind of operational experiences so far? Yeah.

We have taken over 4 tanks in Phase 2. Currently, we have fish in 3 of them, but we're going to split one of the groups in not too long, then there'll be fish in all 4 of them.

Then we are now taking over the last 8 tanks over the course of this year. We're also planning, as mentioned earlier, to stock 2 have 2 full-size smolt releases in the fourth quarter, which means that by going into next year, we will stock fish every month going forward and have a very continuous production.

I think, as I mentioned, the ramp-up in Phase 2 has gone according to plan. We are seeing that the upgrades implemented have had the effects that was intended.

We are seeing good water quality, the fish has adapted very well to the environment. Feeding system is working, very very happy with what we have seen so far, and looking forward to fill up the facility.

Okay. What is your take on the salmon market?

Yeah. No, I think we also I think were a little bit surprised about the market this year.

We expected it to be stronger, but I think what you are seeing now with the market is that demand is actually very good. Demand growth is significant, but obviously, you've had a period with very high supply growth, and then it's sort of hard to sort of being able to increase prices in that kind of scenario.

The good thing about the salmon is that it is very limited storage. If you build cars and don't sell it, it goes to inventory.

The salmon is sold and consumed. Low prices, high volume means that you're building market, and when volume growth eventually comes down, which I think it's just a matter of time before it will, because, I would say, the production in conventional farming has been very strong, and the licensed capacity has not been increased, it's hard to sort of maintain this kind of growth from the high base that we are at now.

We are increasingly confident in the market outlook and think that, yeah, after a period now of a couple of years with a bit of challenging market, 2027 looks very very interesting. All right.

Then finally, a question on Phase 3. I think on that, we can say that Salmon Evolution is laser focused on delivering Phase 2 and the milestones we've set.

That's kind of priority number 1, 2, and 3 in the company. When it comes to Phase 3, we have the land, we have the license, and we have the electricity we need to realize that project when it's time, but for now, our focus is Phase 2 and delivering on the milestones we've set.

I think that concludes today. Thank you for your attendance.

We will release a trading update in early October, and then we have the Q3 quarterly presentation in the end of October. See you then.

Thank you for coming. Thank you.