Nordic Aqua Partners – Results for the second quarter 2022

• Project development on time and on budget, fixed capex on RAS contract
• Installation of RAS 02 completed, fish transferred from RAS 01 to RAS 02 in July
• Biological performance better than planned, the fry is now ~3 grams
• Salmon prices in China continues the strong development
• Capex of 56 MDKK in period Q2 2022 and 188 MDKK total out of total project capex of 370 MDKK
• Available liquidity of 428 MDKK as of 30.6.2022, including cash and undrawn credit facilities

Stage 1 of the project continues to develop on time and within budget. The Hatchery was completed on time with first inlay of eggs in March 2022. RAS 1 was completed and commissioned on schedule and the first batch was moved into RAS 01 in May. Installation of RAS 02 was completed in July and fish was transferred from RAS 01 to RAS 02 according to schedule. Transfer from to RAS 03 is scheduled for October. Biological performance has so far been good, and both mortality and growth has been at better levels than planned. The fry is now 3 grams. Batch 2 will be introduced to RAS 01, by the end August,

Commenting on the development, Chairman Ragnar Joensen, said:

“Project execution develops well, and both construction and installation of RAS equipment are developing according to schedule. The first batch of salmon is now 3 grams, and biological performance has been better than budgeted. It is still early stages, and we are very much looking forward to watching the fish growing into healthy and robust salmon, ready for harvest in Q1 2024.”

As a local farmer of Atlantic salmon in the Chinese market, Nordic Aqua Partners is focusing on the Chinese domestic salmon market. It is the company’s view that locally produced salmon can achieve premium pricing, when considering freshness and 24/7 delivery capacity, eliminating importer risk of having to place spot orders ahead of sales being secured. This premium will come on top of the cost advantages from producing salmon locally.

China customs statistics has official data on import prices of fresh salmon before customs clearance. By adding import taxes and handling costs it is possible to estimate wholesale prices. In Q2, estimated Wholesale prices in China averaged 200 NOK/kg HOG, and with NOAP’s budgeted EBIT cost/kg of 51 NOK the implied margin would be 149 NOK/kg. Relative to FOB-Oslo prices at 97 NOK/kg HOG in Q2, the extra margin in China was 103 NOK/kg HOG.

Construction of infrastructure and facilities are carried under a lease agreement with the local authorities. The terms under the lease agreement are fixed for Stage 1 and 2 (8,000 t), which significantly reduces the capex risk to Nordic Aqua Partners.

Total capital expenditure during the second quarter was DKK 56 million, mainly related to AKVA Group RAS technology. As per 30 June 2022, accumulated project capex was DKK 188 million. Nordic Aqua Partners’ financial position remains strong, and by the end of the quarter the company has available liquidity of DKK 428 million.

Outlook

The company believes the outlook for salmon prices in China remains solid, with analysts expecting limited global supply growth over the next years combined with solid demand growth for salmon in China. Nordic Aqua Partners therefore expect to see attractive margins for the locally farmed Atlantic salmon in 2024, our first year with full harvest capacity.

At listing in Q4 2020, Nordic Aqua Partners secured equity funding for expansion up to 8,000 tonnes. Since then, site preparations have been completed, and construction of the smolt facility for Stage 1 will soon be completed. The first milestone was completed in early March 2022, with inlay of the first eggs. The first juveniles were moved into RAS 1 and first feed in May, and the second inlay of eggs is scheduled for early June. Production cycle is estimated to two years, which means the company is on time for first harvest in Q1 2024.

The company’s capex assumptions for stage 2 and 3 of NOK125/kg is maintained. However, current uncertain geopolitical conditions and corresponding inflationary pressure may bring about adjustments to capex assumptions going forward. The company is closely monitoring the situation, and budgets are continuously under review. Price increases seen recent 12-18 months is to a large extent expected to be offset by learning and standardization from stage 1, in addition to increased local sourcing of parts and equipment.

Moreover, the recent sharp increase in prices on feed and other operational input factors might indicate some upside risk to the working capital and production cost assumption presented. However, the budget already includes some headroom for inflation mitigating the potential revision.

Result presentation

Ragnar Joensen, Chairman Nordic Aqua Partners, Ove Nodland, CEO Nordic Aqua Ningbo and Hjalti Hvítklett, CFO Nordic Aqua Partners, will present the results live by webcast the same day, August 18, 2022 at 10:00 a.m. CEST.

The webcast can be accessed at www.nordicaquapartners.com, or with the following

link: https://attendee.gotowebinar.com/register/5028898329582423312

For further information please contact

Hjalti Hvítklett, CFO Nordic Aqua Partners

hjalti@nordicaquapartners.com

+298 221222

About Nordic Aqua Partners

Nordic Aqua Partners is a Nordic land-based salmon farming company, using cutting-edge Nordic technology and expertise to set up the first fully integrated and commercially scaled Recirculating Aquaculture System [RAS] farm for Atlantic salmon located in Ningbo, China. With operations in place, Nordic Aqua Partners will be the first local producer of truly sustainable and fresh salmon to the Chinese market. The current business plan is for an annual production of 20,000 tonnes HOG. Nordic Aqua Partners A/S is listed at Euronext Growth under the ticker NOAP.

To learn more, please visit www.nordicaquapartners.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.