Slide 1: Q4 2023 Presentation
15 FEBRUARY 2024 Q4 2023 Presentation CEO: FRODE ARNTSEN CFO: ULRIK STEINVIK
Slide 2: Agenda
Q 4 2 0 2 3 P R E S E N TAT I O N Agenda Highlights FY & Q4 2023 Operational Update Financial Update Strategic Update Outlook 2
Slide 3: When the going gets tough - the tough get going
Example of farming sites in Northern When the going gets tough - Norway affected by the tough get going jellyfish ENVIRONMENTAL CHALLENGES BILDE • String jellyfish • Harsh weather conditions REGULATORY BILDE • Accusations of breach of EU competition law Management present at farming site affected by
Slide 4: 2023 a strong year
Harvest volume (1,000 tons gw) 2023 a strong year Group Norway1 Potential in value chain starting to showcase itself 254.1 Δ YoY 233.9 Δ YoY Norway +60.4 +56.4 • Successfully integrated NRS, NTS and Salmonor Operational EBIT/kg (NOK) • Record high harvest volume in 2023 with further growth potential
Slide 5: Highlights Q4 2023
Highlights Q4 2023 Harvest volume (1,000 tons gw) Group Norway1 • Continued good results despite challenges 83.1 Δ QoQ Δ YoY 73.6 Δ QoQ Δ YoY – Challenges impacting farming segments +5.0 +20.5 -0.4 +17.0 – Operational set-up in Sales & Industry continuing to showcase its strength – Iceland with reco
Slide 6: Operational Update
Q4 2023 Operational Update
Slide 7: Farming Central Norway
Farming Central Norway Key Results Q4 2023 Q4 2022 FY 2023 FY 2022 Operating income (NOKm) 3,424 2,298 12,419 8,872 • Harvest volume slightly reduced QoQ Operational EBIT (NOKm) 1,178 484 4,612 3,599 • Continued solid operational performance with reduced cost QoQ Harvest volume (tgw) 42.3 32.6 141.1
Slide 8: Farming Northern Norway
Farming Northern Norway Key Results Q4 2023 Q4 2022 FY 2023 FY 2022 Operating income (NOKm) 2,436 1,757 7,894 4,883 • Challenging quarter due to impact from string jellyfish Operational EBIT (NOKm) 840 777 3,402 2,526 – One-off costs related to incident 4 NOK/kg increasing cost QoQ – Harvest of fish
Slide 9: Sales & Industry
Sales & Industry Key Results Q4 2023 Q4 2022 FY 2023 FY 2022 Operating income (NOKm) 7,617 6,015 27,094 19,141 • Continued solid operational performance Operational EBIT (NOKm) 166 -100 254 -1,286 – Operational set-up showcasing its strength by handling volume from Operational EBIT-margin (%) 2.2 %
Slide 10: Icelandic Salmon
Icelandic Salmon Key Results Q4 2023 Q4 2022 FY 2023 FY 2022 Operating income (NOKm) 605 539 1,871 1,595 • Record high harvest volume Operational EBIT (NOKm) 26 98 230 366 • Results affected by biological challenges Harvest volume (tgw) 7.2 6.0 17.9 16.1 – One-off costs of 5.2 MEUR / ~8 NOK/kg inclu
Slide 11: SalMar Aker Ocean
SalMar Aker Ocean Key Results Q4 2023 Q4 2022 FY 2023 FY 2022 Operating income (NOKm) 173 32 173 32 • Two semi-offshore projects in operation Operational EBIT (NOKm) 11 -48 -53 -155 – Arctic Offshore Farming a part of SalMar Aker Ocean Harvest volume (tgw) 2.3 - 2.3 - • First harvest from Arctic Off
Slide 12: Scottish Sea Farms
Scottish Sea Farms1 Key Results Q4 2023 Q4 2022 FY 2023 FY 2022 Operating income (NOKm) 497 693 2,561 3,188 • Low harvest volume Operational EBIT (NOKm) -47 -128 -304 214 • Previously mentioned biological challenges affecting Harvest volume (tgw) 4.6 7.3 24.9 35.9 average harvest size, cost and pric
Slide 13: Financial Update
Q4 2023 Financial Update
Slide 14: Group Profit & Loss
Group operational EBIT - QoQ - 143 Group Profit & Loss • Decrease in operational EBIT QoQ driven by higher cost in value chain in Norway – Impacted by challenges in Northern Norway Norway Comments related to FY 2023 Group P&L NOK million Q4 2023 Q3 2023 Δ% FY 2023 FY 2022 Δ% • Strong financial resul
Slide 15: Synergy realization progressing according to plan
Synergy realization progressing according to plan • 97% of synergies with NTS, NRS and SalmoNor realized at the end of 2023 Synergy realization as of Q4 2023 – Realized 821 of 844 MNOK in yearly recurring cost savings • Yearly recurring cost savings achieved through: – Improved operational set-up –
Slide 16: Taxes
Taxes • Resource rent tax included in the financial statement for FY 2023 Subject for – Only commercial licenses a part of the resource rent tax resource tax Tax rate Tax rate Tax rate – Consideration paid in previous traffic light auctions deductable, 22% 22% 22% + 25% = 47% NOK 245 million per yea
Slide 17: Group Balance Sheet
Group Balance Sheet Assets Equity ratio • Financial position significantly strengthened during 2023 – Sale of Frøy & strong cash flow from operations – New financing agreement – 13.1 million treasury shares cancelled • Ongoing investments in the value chain progressing according to plan Equity & lia
Slide 18: Net interest bearing debt
Net interest bearing debt Change in NIBD incl. leasing - QoQ • Strong cash flow from operations • Net investments at NOK 731 million -770 – Farming NOK 377 million – Smolt NOK 114 million – Sales & Industry NOK 101 million – Icelandic Salmon NOK 76 million – SalMar Aker Ocean NOK -37 million – Icrea
Slide 19: Expect to invest NOK 1.9 billion in 2024
Investments 2024 Expect to invest NOK 1.9 billion in 2024 • Expect to invest NOK 1,6 billion in Norway – Maintenance investments NOK 0,7 billion (~2,8 NOK/kg) – Capacity investments NOK 0,9 billion – Finalizing construction of Tjuin and upgrade of Dåfjord – Expansion of Vikenco largest single invest
Slide 20: Dividend for the financial year 2023
Dividend (NOK/share) Dividend for the financial 35.0 year 2023 23.0 • Board of Directors propose a cash dividend of 19.0 20.0 20.0 20.0 NOK 35.00 per share 12.0 13.0 10.0 10.0 8.0 • Results in 2023 shows that SalMar has delivered 1.1 0.4 2.2 4.0 - - strong financial results and has a robust financia
Slide 21: Strategic Update
Q4 2023 Strategic Update
Slide 22: Volume potential unchanged despite challenges at the end of 2023
Volume potential unchanged despite challenges at the end of 2023 Untapped Rigged with growth potential flexible harvesting OFFSHORE in optimal and processing ICELAND locations facilities Organic growth potential Self sufficient Strong access NORWAY with high quality smolt 362 000 to customers worldw
Slide 23: Investing for further growth and improvement to unlock potential
Investing for further growth and improvement to unlock potential Harvesting & Smolt Farming processing 23
Slide 24: Outlook
Q4 2023 Outlook
Slide 25: Outlook
Outlook Guiding Q1 2024 FY 2024 • Expect limited global supply growth in 2024 Δ Cost Δ Volume Contract Volume Contract QoQ1 YoY2 share3 share3 – Continued good demand for sustainable proteins Same Same Norway ~40% 237,000 ~25% level level Central Same Slightly 146,000 • Volume guidance FY 2024 reduc
Slide 26: Thank you for your attention
Thank you for your attention Passion for Salmon For more information, please visit www.salmar.no FINANCIAL CALENDAR: Annual Report 2023 – 19 April 2024 Q1 2024 presentation – 14 May 2024 – Oslo Annual General Meeting – 6 June 2024 Q2 2024 presentation – 20 August 2024 – Trondheim Q3 2024 presentatio
Slide 27: Forward looking statements
Forward looking statements The statements contained in this presentation may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect current expectations and assumptions as to future events and circumstances that may not prove