2025 ANNUAL REPORTFISH, PEOPLE, OCEAN

Salmon Evolution ASA is a Norwegian public limited liability company listed on Oslo Stock Exchange. Salmon Evolution ASA and its subsidiaries, Salmon Evolution Norway AS, Salmon Evolution International AS, Salmon Evolution Dale AS, Salmon Evolution Technology AS and Salmon Evolution Sales AS (the “Company”, “SE” or “the Group”) is a Norwegian business headquartered in Hustadvika kommune in Møre og Romsdal. SE is building a land-based salmon farming facility at Indre Harøy, with a planned annual production of 36,000 tons HOG fully developed of which phase 1 has a planned annual production of 7,900 tons HOG.

The build-out consists of three phases, with the first phase consisting of 12 large grow out tanks with corresponding infrastructure. SE will operate a hybrid flow-through (HFS) system, utilizing fresh seawater from the Norwegian coast. Construction start of phase 1 was in Q2 2020 and was completed mid-April 2023. The first smolt batch was released at Indre Harøy late March 2022 as per original timeline, and the Group completed its first harvest in November 2022. Phase 2 consists of build out of an additional 12 grow out tanks with first smolt expected H1 2026. The last construction phase, phase 3, consists of build-out of an additional 24 grow out tanks.

These consolidated statements for the period ended 31 December 2025 include Salmon Evolution ASA together with its subsidiaries Salmon Evolution Norway AS, Salmon Evolution International AS, Salmon Evolution Sales AS, Salmon Evolution Technology AS and Salmon Evolution Dale AS.

Subsidiaries are all entities over which the Group has control. The Group controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. The accompanying consolidated financial statements include the accounts of the subsidiaries mentioned above. When necessary, adjustments are made to the local financial statements of the Group subsidiaries to conform with the consolidated Group’s accounting policies presented under IFRS. All intercompany balances, transactions, and unrealized gains from intercompany transactions are eliminated upon consolidation. Unrealized losses from intercompany transactions are also eliminated upon consolidation unless the transaction provides evidence of impairment of the transferred asset. The assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date in which the Group gains control until the date in which the Group ceases to control the subsidiary.

The consolidated financial statements of the Group for the year ended 31 December 2025, and are prepared in accordance with IFRS® Accounting Standards as adopted by the EU. The consolidated financial statements ended 31 December 2025 comprise the income statement, statement of comprehensive income, statement of financial position, statement of cash flow, statement of changes in equity and note disclosures.

The Group has prepared the consolidated financial statement on a going concern basis. When assessing this assumption, management has assessed all available information about the future. After making such assessments, management has a reasonable expectation that the Group has adequate resources to continue its operational existence for the foreseeable future.

The financial statements have been prepared on historical cost basis, except for the following items:

- Financial derivatives, measured at fair value through profit or loss.

- Biological assets, measured at fair value through profit or loss.

Critical accounting judgments and estimates are disclosed in note 2.

Items included in the financial statements are presented in the currency of the primary economic environment in which the entity operates (“the functional currency”). The financial statements are presented in Norwegian kroner (NOK), which is the Parent company, and substantial subsidiaries, functional and presentation currency.

Revenue from contracts with customers as defined in IFRS 15 is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the group expects to be entitled in exchange for those goods.

Revenue for the Group derives both from the sale of smolt from contract with customers and sale of whole and processed salmon in the spot marked. It has not been made any forward sales contracts. The Group recognised revenue at the point in time when control of the goods is transferred to the customer at an amount that reflects the expected amount that the group is entitled to have for the goods. The sales price is based on available market price where the price will vary with both quality and size.

Normal credit terms of the sales transactions are 30 days. If the delivered products have discrepancies compared to the agreed sales contract, cash refunds are given to the customer. Up until now, refunds are not material.

Government grants are recognized when there is reasonable assurance that the grant will be received and when the Group is compliant with all conditions attached. When the grant relates to an expense item, it is recognized as income over the period that the costs it is intended to compensate are expensed. When the grant relates to an asset, it is deducted from the carrying amount of the asset - the grant is then recognized in profit or loss over the useful life of a depreciable asset by way of a reduced depreciation charge. Government grants are presented in the accompanying statements of profit and loss as other income. See note 16 for further details.

Liabilities for wages and salaries, including equity settled share based payments, non-monetary benefits, annual leave and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on hand and deposits held at call with financial institutions.

Trade receivables, loans and other receivables are recognized at invoiced amounts and subsequently measured at amortized cost using the effective interest method, less provision for impairment. See notes 3, 17, 18 and 22 for further information about the Group’s accounting for trade receivables, loans, other receivables and credit risk.

Property, plant, and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and costs include expenditures that are directly attributable to the acquisition and placement of fixed assets in service. Costs of major replacements and renewals that substantially extend the economic life and functionality of fixed assets are capitalized. Costs associated with normal maintenance and repairs are expensed as they are incurred.

Assets are normally considered property, plant, and equipment if the useful economic life exceeds one year. Straight-line depreciation is applied over the useful life of property, plant, and equipment based on the asset’s historical cost. If a substantial part of an asset has an individual and different useful life, that portion is depreciated separately. The asset’s residual value and useful life are evaluated annually. Gains or losses arising from the disposal or retirement of an asset are determined as the difference between the sales proceeds and the carrying amount of the asset and recognized as part of other income in the accompanying statements of other comprehensive income.

Depreciaton is charged to expense when the property, plant or equipment is ready for intented use. The group considered the test- and verification phase for first phase of its Indre Harøy facility ready for intended use from April 2023, and started depreciations from that time. For the second phase build out, which expected to be ready for intended use during 2026, assets under construction is not depreciated.

Expenses related to research activities are expensed as incurred. Expenses related to development activities are capitalized if the product or process is technically and commercially feasible, and the Group has adequate resources to complete the development.

Patents are capitalized and measured at cost less accumulated amortization and any accumulated impairment losses, if any.

Management reviews long-lived assets for impairment annually, or more frequently, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverable amount is the higher of an asset’s fair value, less costs of disposal and value in use. When such assets are identified, with certain indicators, an impairment test will be carried out.

If an evaluation is required, the estimated future undiscounted cash flows associated with the assets are compared to the asset’s carrying value to determine if an adjustment for impairment to such asset is necessary. The effect of any impairment would be to expense the difference between the fair value of such assets and their carrying value. Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

See note 11 for further description.

Biological assets are, in accordance with IAS 41, measured at fair value. For salmon in the grow-out facility, a present value model is applied to estimate the fair value. For roe, fry and smolt, historical cost is deemed to provide the best estimate of fair value, and hence applied. For further information, please refer to note 6.

Assets are classified as current when they are expected to be realized or sold, or to be used in the Group's normal operating cycle or falls due or is expected to be realized within 12 months after the end of the reporting date. Assets that do not fall under this definition are classified as non-current. Liabilities are classified as current when they are expected to be settled in the normal operating cycle of the Group or are expected to be settled within 12 months after the reporting date, or if the Group does not have an unconditional right to postpone settlement for at least 12 months after the reporting date. Liabilities that do not fall under this definition are classified as non-current.

Trade receivables are initially recognized at amortized cost, less a provision for expected credit losses. Credit loss provisions are based on individual customer assessments over each reporting period and not on a 12-month period.

The Group has procedures to ensure that products are only sold to customers with satisfactory creditworthiness, where credit insurance is used when deemed necessary. This risk is, per 31.12.2025, not considered to be material.

In 2025, except for some sale of smolt and post-smolt to extern customers, all produced fish was mainly sold to Salmon Evolution Sales AS, which in turn sold it to external customers. The sales company secures the bulk of its sales through credit insurance.

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Borrowings are derecognised when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in consolidated statement of profit or loss within the line other financial items, net.

Borrowings are classified as current liabilities unless the Group has a right to defer settlement of the liability for at least 12 months after the reporting period.

The Group offers a defined contribution plan to its employees and pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual, or voluntary basis. The Group has no further payment obligations once the contributions have been made. Contributions are recognized as employee benefit expense when they are due and are included as part of salary and personnel costs in the statement of profit and loss.

The accompanying statements of cash flows are prepared in accordance with the indirect method.

Biological assets comprise of eggs, smolt and live fish in each tank at the grow-out facility at Indre Harøy. These assets are accounted for in accordance with IAS 41 and measured at fair value unless the fair value cannot be measured reliably. The estimation of fair value relies on a series of uncertain assumptions, e.g., biomass volume, quality, size, market prices, expected future costs, remaining time to harvest.

All deviations in biomass volume compared to estimates, is measured when a tank is harvested out. The deviations are normally relatively minor. Similarly, the quality of the fish can normally be estimated with a relatively high degree of certainty, based on historic data and regular controls, given that the fish is kept in a controlled environment in each tank. Categorisation of quality is set at facility level. Given that Salmon Evolution split and grade each batch two times in each production cycle, the size distribution in each batch harvested is normally minor.

The accumulated production cost is based on an allocation of cost to each batch at tank level. The accumulated production cost per kg will normally only deviate from the estimate if the biomass volume is different from the estimate. For estimation of future production costs, there is uncertainty with regards to feed prices, other input costs and biological development. Salmon Evolution tracks and measures cost development vs. expectation for all batches as part of the normal monthly financial closing process. The estimation of future production costs influences the biomass value through the fair value adjustment.

A key estimate in the estimation of fair value is the assumed market price, which is the price that Salmon Evolution expects to receive at a future date when the live fish is harvested. Given that Salmon Evolution harvest salmon in Norway, Sisalmoni is used with relevant adjustments (see note 6 for more information).

See note 6 for sensitivity analysis of biomass.

As part of the construction of the Group's production facilities, the Group has capitalized certain costs (such as personnel expenses, rent of premises and equipment and other project-related costs), as "assets under construction" in accordance with IAS 16 based on an allocation key. The allocation key is employee-based and has been calculated based on the employees that are directly involved in the assets under construction's share of the total salary in the Group. Reference is made to note 11 for details of additions to "assets under construction".

The purpose of the Group's risk management activities is to establish an overview of financial risks that exists at any given time. As of this date the Group has chosen to employ both interest rate swap agreements to create interest rate stability.

See note for 19 for more information on classes of financial instruments measured at fair value.

Market risk is linked to both Interest rate- and currency fluctuations.

The Group's interest rate risk relates primarily to borrowings from financial institutions with variable interest rates. As of 31 December 2025, outstanding loans from credit institutions amounted to NOK 1,681 million and is subject to an interest rate of NIBOR 3M plus an agreed margin. The Group also have drawn NOK 198 million of the overdraft facility. In addition, the Group has NOK 41 million in lease liabilities. To reduce exposure to fluctuations in the interest rate Salmon Evolution Norway AS has entered interest rate swap contracts of NOK 550 million with several banks. Salmon Evolution ASA is guarantor for the loan.

This loan is part of a financing package consisting of the following:

• NOK 525 million non-amortizing Term Loan Facility which will refinance the Company’s existing NOK 525 million construction loan relating to phase 1 (the “Term Loan”)
• NOK 250 million RCF Capex Facility available for general corporate purposes including Indre Harøy phase 2 capex (the “RCF Facility”)
• NOK 1,450 million Construction Facility available for financing of capex relating to phase 2 at Indre Harøy (the “Construction Facility”)
• NOK 250 million credit facility dedicated to Indre Harøy and phase 2 investments (the "New facility")

Additionally, the Group has a NOK 200 million Overdraft Facility with Nordea.

The loans are floating interest rate loans denominated in NOK with an interest charge based on NIBOR 3M plus an agreed margin.

Incurred interest expenses and establishing fees during construction period are capitalized as part of assets under construction, see note 11 for further details.

In addition, the Group has a debt financing package of NOK 60 million in relation to Salmon Evolution Dale. As per 31 December 2025 NOK 49 million of the NOK 60 million debt financing package was drawn.

The financial reporting includes other comprehensive income (OCI) effects, as the Group holds financial instruments measured at fair value through OCI, nor do we apply hedge accounting that requires recognition of gains or losses in OCI. All relevant financial instruments are either recognized through profit or loss or directly in equity as applicable.

The Group's foreign currency risk relates to the Group's operating, investing, and financing activities denominated in a foreign currency. This includes the Group's revenues, expenses and capital expenditure. The Group have no other exposure to foreign exchange risk, and therefore not exposed to fluctuation in currencies.

The Group has entered into a price hedging agreement where the valuation is based on expected monthly cash flows calculated as the difference between the agreed fixed price and the expected market price, multiplied by the contracted volume. The cash flows are discounted using a WACC of ~7% (~0.6% per month). Market prices are based on forward curves from Sisalmoni and translated into NOK using an EUR/NOK exchange rate of 11.8.

The net present value of the contract as of 31 December 2025 amounts to NOK -0.4 million.

The Group's presentation currency is Norwegian Kroner ("NOK").

With respect to credit risk arising from the financial assets of the Group, which comprise cash and cash equivalents, and other receivables, the Group's exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. The Group has procedures to ensure that products are only sold to customers with satisfactory creditworthiness, where credit insurance is used when deemed necessary. This risk is, per 31.12.2025, not considered to be material.

In 2025 the majority of produced fish was sold to Salmon Evolution Sales AS, which in turn sold it to external customers. The sales company secures the bulk of its sales through credit insurance. In addition, the Group also sold part of one group of post smolt to an external customer from Salmon Evolution Norway AS.

A lack of liquidity will entail a risk that the Group will not be able to pay its obligations on maturity. Management monitors rolling forecasts of the Group’s liquidity reserve (comprising cash and cash equivalents) based on expected cash flows. The Group’s business plan and growth strategy is capital intensive, and the Group may be dependent upon future equity issues and/or debt financing to finance its current long-term plans.

The table below presents the maturities on the Group’s financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Operating revenue in the Group for 2025 mainly derives sales of farmed salmon from Salmon Evolution Sales AS (who bought the salmon from Salmon Evolution Norway AS). Salmon Evolution Sales AS has in 2025 sold 4,315 tonnes Atlantic Salmon, and the distribution is as illustrated below. Additionally, 88 tonnes postsmolt (HOG converted) were sold directly from Salmon Evolution Norway AS and 96 tonnes smolt from Salmon Evolution Dale AS to external customers.

The estimated biomass volume is based on the actual number of individuals in the grow-out departments on the balance sheet date, adjusted for projected mortality up to harvest time and multiplied with the estimated harvest weight per individual at harvest time.

The estimated sales price for the fish in the grow-out facility is based on forward prices from Sisalmoni with relevant adjustments. The net sales value is adjusted for expected quality differences and harvesting, logistics and sales expenses.

For personnel expenses and remuneration to the board see our remuneration report for 2025, published on our website salmonevolution.no.

Costs incurred recognised as part of "Other operating expenses" in the "Statement of Profit or Loss" during 2025 has been capitalized as of 31 December 2025 as these costs are deemed to be part of the ongoing assets under construction and qualify for capitalisation in accordance with IAS 16. As a result, the reported "Other operating expenses" in 2025 reflects the cost incurred during this period, net of such capitalized costs related to the entire 12 months period ending 31 December 2025 which amounted to approximately NOK 107.3 million.

During 2024 the Group reached an agreement on the final settlement for the construction of phase 1 at Indre Harøy. As to the ongoing development of phase 2 at Indre Harøy, the Company has started the construction, with the first smolt expected in H1 2026.

The group is working on several development projects aimed at optimizing both biological processes and technical/building designs. This work is carried out using internal resources across the corporate structure and through purchased services. For accounting purposes, expenses related to development projects are partly capitalized and partly expensed. The use of internal employees is primarily expenditure, as we consider that the employees’ time spent on development work also benefits ongoing operations.

External services are capitalized as R&D projects, and the depreciation period for each project will be assessed as the projects are completed, allowing for an estimation of their expected useful life.

The majority of development projects are related to ongoing FOU and Skattefunn projects, and is not amortised.

Investments in associated companies are recognized using the equity method.

Salmon Evolution International AS owns 49% of K Smart Farming Co., Ltd together with Dongwon Industries Co., Ltd.

The Company currently sees the overall project economics as challenging, primarily driven by site specific circumstances at the Yangyang grow-out site, in particular related to the intake and discharge water solution due to a relatively long and shallow shoreline at the grow-out site. Additionally, given that Korea has no existing salmon farming industry, certain other infrastructure items are impacting on the project cost as well as operating cost.

Throughout 2025, work has been carried out on financing and realization of the project. In this connection, the Company and Dongwon Industries have also updated the agreements governing the execution of the project, dated 22 December 2025.

The updated contractual framework consists of a Settlement Agreement and a Technical Advisory Agreement. In brief, Salmon Evolution will be going forward act as an advisor to the project on market-based terms, while retaining existing rights and maintaining an ownership interest of up to 1/3 of K Smart Farming. The acquisition cost of the ownership interest acquired in 2021 amounts to NOK 27,412,505. The investment is recognized at a value corresponding to the ownership interest in the company, amounting to NOK 6,073,450 as of 31 December 2025.

The total cash outflow for leases in 2025 was NOK 13,7 million (NOK 5,4 million in 2024).

The Group has entered into several lease agreements that are considered to qualify as short-term and/or low-value in accordance with IFRS 16. Payments associated with such short-term and low-value leases are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment and small items of office furniture. The total cost of renting equipment not categorized as ROU amounted to NOK 1,6 million in 2025.

The derivative financial assets relate to hedging contracts for the Company’s interest rate exposure and consist of interest rate swap contracts of NOK 550 million with several banks. The contracts are due in 2028 (one in 2030) and have an average swap fixed interest rate of 3.0%. Changes in market value are registered as unrealised profit/loss under financial income and allocated as unrealized profit/loss under other current receivables in the balance sheet.

In addition, in 2025 the Group entered a salmon price hedging agreement whereby the valuation is based on expected monthly cash flows calculated as the difference between the agreed fixed price and the expected market price, multiplied by the contracted volume. The cash flows are discounted using an annual WACC of ~7%. Market prices are based on forward curves from Sismaloni and calculated in NOK using an EUR/NOK exchange rate of 11.8.

The net present value of the contract as of 31 December 2025 amounts to NOK -0.4 million.

See note 3 for further description and more details on valuation method.