Slide 1: Q3 2023 presentation
Q3 2023 presentation CEO: Ivan Vindheim CFO: Kristian Ellingsen 8 November 2023
Slide 2: Forward looking statements
Forward looking statements This presentation may be deemed to include forward-looking statements, such as statements that relate to Mowi’s contracted volumes, goals and strategies, including strategic focus areas, salmon prices, ability to increase or vary harvest volume, production capacity, expect
Slide 3: Milestone achievement of 500,000 GWT in 2024E
Highlights: Milestone achievement of 500,000 GWT in 2024E Volume growth of 125,000 GWT over 6 years to all-time high in 2024 (CAGR 4.9%) 550 • Record-high Q3 2023 revenues of EUR 1.36 billion on all-time high harvest volumes of 135,000 GWT 500 • Harvest volume guidance for 2023 maintained at 500 rec
Slide 4: Highlights Q3 2023
Highlights Q3 2023 • Operational EBIT of 203 million • Realised blended farming cost somewhat up from Q2 negatively impacted by El Niño – Cost-to-stock was down from Q2 on scale effects and stable year-on-year on flattish feed price – Realised blended farming cost expected to be relatively stable in
Slide 5: Key financials
Key financials Mowi Group - main figures Q3 2023 Q3 2022 YTD Q3 2023 YTD Q3 2022 2022 Unaudited EUR million Operational revenue and other income 1,358.6 8% 1,257.1 4,085.5 3,584.2 4,946.0 • Record-high Operational EBIT 1) 203.1 -15% 239.5 824.4 766.2 1,005.1 revenues on all-time Operational EBITDA 1
Slide 6: Salmon prices – weekly reference prices
Salmon prices – weekly reference prices • As expected, prices corrected down in the third quarter from record-levels in the first half of the year – Seasonally higher volumes • Prices at a reasonably good level in Europe, whilst down 4% y-o-y for salmon of Chilean origin Americas Europe Chilean D-tr
Slide 7: Price achievement and contract share
Price achievement and contract share • Price achievement 140% 127% 9% better than 120% 108% 111% 108% reference price due 101% 104% 102% 98% to contracts and 100% contribution from 80% Consumer Products 60% 40% 20% 0% Norwegian Scottish Chilean Canadian Q3 2022 Q3 2023 Norwegian Scottish Chilean Can
Slide 8: Operational EBIT comparison
Operational EBIT comparison • In EUR terms: -15% YoY – From EUR 240 million to EUR 203 million • However, in NOK terms quite stable – From NOK 2.4 billion to NOK 2.3 billion • Farming a mixed bag on seasonal biological issues compounded by El Niño • Strong operational performance in CP and Feed Page
Slide 9: Norway
Norway SALMON OF NORWEGIAN ORIGIN Operational Operational EBIT EBIT Salmon Salmon ofof NorwegianOrigin Norwegian Origin EUR million Q3 2023 Q3 2022 Q3Q320222023 vs vs Q3Q3 2022 2023 Operational EBIT 185.1 221.1 300 EBIT 151.8 171.8 250 Harv est v olume (GWT) 86 228 87 415 200 Operational EBIT per kg
Slide 10: Mowi Norway harvest volumes growth to 2024E
Mowi Norway grown by 95,000 GWT organically since 2017 to record-high 305,000 GWT in 2024E 320 • Increased guidance in 2023 to 295,000 300 305 GWT on strong growth in sea 294 295 280 – Previous guidance of 290,000 GWT Harvest volumes GWT (1,000) 273 260 • Record-high harvest volumes of 305,000 262 G
Slide 11: Norway: Operational EBIT/kg per region
Norway: Operational EBIT/kg per region 3.0 2.83 • Region South: Strong earnings and margin on 2.62 improved production, quality and FCR year-on- 2.61 2.53 2.5 2.48 2.40 year. YTD volumes all-time high. 2.16 2.15 2.0 1.86 • Region West: Improved earnings YoY on higher EUR per kg volumes despite lower
Slide 12: Norway: Sales contract portfolio
Norway: Sales contract portfolio 25,000 20,000 Contracted volumes (GWT) 15,000 10,000 5,000 0 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Realised contract volumes Contracted volumes (including prospects) • 22% contract share for the third quarter • Expect 29% contract share in the fourth quarter on rel
Slide 13: Scotland
Scotland SALMON OF SCOTTISH ORIGIN Operational EBIT Operational Salmon EBIT Salmon ofof Scottish ScottishOrigin Origin EUR million Q3 2023 Q3 2022 Q3Q32022 vs Q3 2023 2023 vs Q3 2022 Operational EBIT 9.2 4.2 40 EBIT 16.3 -37.3 Harv est v olume (GWT) 14 730 14 494 30 Operational EBIT per kg (EUR) 0.6
Slide 14: Chile
Chile SALMON OF CHILEAN ORIGIN Operational EBIT EBIT Operational Salmon of Chilean Salmon Origin of Chilean Origin EUR million Q3 2023 Q3 2022 Q3 2022 vs Q3 2023 Q3 2023 vs Q3 2022 Operational EBIT 8.5 21.5 30 EBIT 8.2 24.5 25 Harv est v olume (GWT) 17 651 16 890 20 Operational EBIT per kg (EUR) 0.4
Slide 15: Canada
Canada SALMON OF CANADIAN ORIGIN Operational EBITEBIT Salmon of of Canadian Operational Salmon CanadianOrigin Origin EUR million Q3 2023 Q3 2022 Q3Q32022 vs Q3 2023 2023 vs Q3 2022 Operational EBIT -4.6 -3.9 10 EBIT -10.2 -11.3 Harv est v olume (GWT) 7 485 11 115 5 Operational EBIT per kg (EUR) -0.6
Slide 16: Ireland and Faroes
Ireland and Faroes SALMON OF IRISH ORIGIN SALMON OF FAROESE ORIGIN EUR million Q3 2023 Q3 2022 EUR million Q3 2023 Q3 2022 Operational EBIT 1.5 -2.6 8.9 Operational EBIT 4.8 1.8 EBIT -1.5 -10.8 EBIT 3.6 0.8 Harv est v olume (GWT) 1 994 2 165 Harv est v olume (GWT) 2 532 1 730 Operational EBIT per kg
Slide 17: Iceland (Arctic Fish)
Iceland (Arctic Fish) SALMON OF ICELANDIC ORIGIN EUR million Q3 2023 Operational EBIT 0.9 EBIT -17.4 Harvest volume (GWT) 4 383 Operational EBIT per kg (EUR) 0.20 - of which Feed 0.03 - of which Markets 0.00 - of which Consumer Products 0.00 Price achievement /reference price n/a Cont ract share 0%
Slide 18: Consumer Products
Consumer Products CONSUMER PRODUCTS EUR million Q3 2023 Q3 2022 Operating rev enues 876.2 776.5 Operational EBIT 39.7 30.3 Operational EBI T % 4.5% 3.9% Operational EBI T % VAP only 4.8% 4.9% EBIT 39.7 30.4 Volume sold (tonnes prod. weight) 59 490 56 022 • Seasonally record-high results • Strong ope
Slide 19: Feed
Norway Feed FEED EUR million Q3 2023 Q3 2022 Operating rev enues 344.0 339.3 Operational EBITDA 20.3 18.9 Operational EBIT 16.1 14.9 Operational EBI TDA % 5.9% 5.6% Operational EBI T % 4.7% 4.4% EBIT 16.1 14.9 Feed sold v olume 168 945 169 484 Feed produced v olume 145 943 149 898 Scotland • Seasona
Slide 20: Financials, Markets and Harvest volumes
Q3 2023 presentation Financials, Markets and Harvest volumes
Slide 21: Profit and Loss
Profit and Loss Mowi Group Q3 2023 Q3 2022 YTD Q3 2023 YTD Q3 2022 2022 EUR million Operational revenue and other income 1,358.6 8% 1,257.1 4,085.5 3,584.2 4,946.0 • Stable fair value adjustment Operational EBIT 1) 203.1 -15% 239.5 824.4 766.2 1005.1 Change in unrealized internal margin -4.2 -13.1 4
Slide 22: Resource rent tax in Norway with effect from 2023
Resource rent tax in Norway with effect from 2023 22% 22% 22% 22% + 25% = 47% 22% 22% 22% Breeding Smolt Feed Sales & Seawater Harvesting Processing Marketing • Updated estimate for effective resource rent tax rate of about 10% for Mowi Norway across the value-chain – Earnings in the seawater phase
Slide 23: Cost to stock in Mowi Farming down 8% YTD 2023
Cost to stock in Mowi Farming down 8% YTD 2023 Cost to stock Mowi Farming group • Cost to stock levelled out on stable feed prices • Peruvian second anchovy season announced of 1.7 million tonnes – Could mitigate record-high prices for marine Q1 Q2 Q3 Q4 ingredients, particularly fish oil 2023 2022
Slide 24: FX: Mowi Norway hit in Q3-23 versus NOK peers
FX: Mowi Norway EUR 35 million hit in Q3-23 versus NOK peers • Mowi is a EUR company – removes currency risk EURNOK 13 • Significant weakening of NOK since 2012 12 – EUR 56%, USD 96% 11 EURNOK 10 • Mowi Norway hedged away FX gain related to 56% 9 timing difference between revenues and expenses – con
Slide 25: Financial position
Financial position Mowi Group EUR million 30.09.2023 30.09.2022 31.12.2022 • Strong financial position Non-current assets 4 165.9 3 612.2 4 042.6 Current assets 3 527.6 3 183.6 3 488.7 Total assets 7 693.5 6 796.0 7 531.3 Equity 3 671.4 3 516.5 3 687.1 Non-current liabilities 2 757.5 1 991.2 2 355.7
Slide 26: Cash Flow and Net Interest Bearing Debt
Cash Flow and Net Interest Bearing Debt Mowi Group Q3 2023 Q3 2022 YTD Q3 2023 YTD Q3 2022 2022 EUR million NIBD beginning of period* -1 665.8 -1 237.4 -1 758.9 -1 257.3 -1 257.3 • Good earnings and cash Operational EBITDA* 252.6 283.4 968.0 895.4 1179.4 flows Change in working capital -31.5 -151.1
Slide 27: 2023 Cash Flow Guidance
2023 Cash Flow Guidance • Working capital build-up of EUR 150m in 2023, increased by EUR 50m – Good growth in sea and biomass build-up, and growth in the rest of the value-chain • Capital expenditure EUR ~360m (including Arctic Fish EUR ~ 30m), reduced by EUR 20m • Interest paid EUR ~85m (ex IFRS 16
Slide 28: Overview financing
Overview financing • Bank Facility: EUR 2,000m sustainability-linked facility Share of sustainable funding – 5 years facility (Maturity: September 2026) – Covenant: 35% equity ratio (adjusted for IFRS 16 leasing effects) – Accordion option: EUR 100m – Lenders: DNB, Nordea, ABN Amro, Rabobank, Danske
Slide 29: Supply development
Supply development Estimated volumes Compared to Q3 2022 Est. volumes Suppliers Q3 2023 Q3 2022 Volume % Q2 2023 Norway 372,600 380,100 -7,500 -2.0% 283,500 Scotland 39,400 43,100 -3,700 -8.6% 42,300 Faroe Islands 22,100 23,200 -1,100 -4.7% 15,800 Other Europe 12,600 11,500 1,100 9.6% 4,300 Total Eu
Slide 30: Global volume development
Global volume development Estimated volumes Compared to Q3 2022 Est. volumes 12 month comparison Markets Q3 2023 Q3 2022 Volume % Q2 2023 LTM PTM % EU+UK 306,500 321,000 -14,500 -4.5% 237,600 1,088,300 1,140,500 -4.6% Russia 17,300 13,800 3,500 25.4% 11,400 56,300 61,100 -7.9% Other Europe 22,400 27
Slide 31: Development in reference prices
Development in reference prices Q3 2023 Change vs Q3 2023 Change vs Market Q3 2022 EUR Q3 2022 • As expected, prices corrected down in the third Norway (1) EUR 6.78 -1.7% EUR 6.78 -1.7% quarter from record-levels in the first half of the year Chile (2) USD 5.75 -4.0% EUR 5.29 -11.2% – Seasonally hig
Slide 32: Industry supply growth 2023e and 2024e
Industry supply growth 2023e and 2024e 2020 2021 2022 2023 Estim ate 2023 Estim ate 2024 GWT (1,000) Estim ate Low Y/Y grow th High Y/Y grow th Low Y/Y grow th High Y/Y grow th Norw ay 1,233 1,380 1,365 1,355 1,351 -1% 1,359 0% 1,393 3% 1,429 5% UK 160 179 145 153 152 5% 154 6% 148 -3% 158 3% Faroe
Slide 33: Mowi volume guidance all-time high
Mowi volume guidance all-time high Atlantic salmon 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 2024 GWT (1,000) Act ual Act ual Act ual Act ual Act ual Act ual Act ual Act ual Act ual Guidance Guidance Guidance Norway 273.2 59.4 59.8 87.4 87.1 293.7 65.6 61.5 86.2
Slide 34: Outlook
Outlook • Maintaining 2023 farming volume guidance of record-high 484k GWT • Mowi harvest volume guidance of 500k GWT in 2024 – a new milestone – Since 2018 growth of 125k GWT (equivalent to CAGR of 4.9% vs industry at 3.2%) • Continued good supply/demand balance – Reasonably good demand for salmon
Slide 35: Appendix
Q3 2023 presentation Appendix
Slide 36: Ocean-based Atlantic salmon farming is on the right side of sustainability
Ocean-based Atlantic salmon farming is on the right side of sustainability Rating agencies About the rating Score (1) Salmon is the most sustainable farmed animal protein alternative Mowi ranked as the most sustainable animal protein producer in the world (amongst the 1st largest 60 animal protein p
Slide 37: Mowi ranked #1 on sustainability amongst food producers
Mowi ranked #1 on sustainability amongst food producers Good progress on reducing (FY 2022) GHG emissions in 2023 YTD and since 2019 Scope 1 & 2 GHG emissions Scope 3 GHG emissions -10% 400 -36% 2,000 Tonnes (1,000) Tonnes (1,000) -3% 350 1,900 300 -1% 1,800 250 1,700 200 1,600 150 1,500 2019 2020 2
Slide 38: Nova Sea
Nova Sea Harv est v olume (GWT) EBI T per kg (EUR) NI BD EURm Ownership % 2021 2022 Q3 2022 Q3 2023 2021 2022 Q3 2022 Q3 2023 Q3 2023 Nova Sea 48.7 % 43 539 44 027 12 793 10 345 1.84 2.90 2.62 2.73 -116.4 • Leading integrated salmon producer in Northern Norway − 33.33 wholly owned licenses − 4 partl
Slide 39: Dividend policy
Dividend policy • Mowi’s ambition is to create long-term value for the shareholder through both positive share price development and a growing dividend in line with long-term earnings − Quarterly ordinary dividend shall under normal circumstances be at least 50% of underlying earnings per share (EPS
Slide 40: Contract coverage and sales contract policy
Contract coverage and sales contract policy SALES CONTRACT POLICY Min hedging rate Max hedging rate (1) • Q4 2023 contract shares (% of guided volume): Norway (2) 0% 50 % Scotland 0% 75 % − Norway 29% Chile (2) 0% 50 % − Scotland 42% Canada 0% 30 % Ireland 0% 100 % − Chile 20% Faroes 0% 30 % − Canad
Slide 41: Quarterly segment overview
Quarterly segment overview SOURCES OF ORIGIN QTD EUR million Norway Scotland Chile Canada Ireland Faroes Iceland Other 1) Group OPERATIONAL EBIT FARMING 99.8 3.1 2.4 -7.0 1.1 4.1 0.7 -0.2 104.1 SALES AND MARKETING Markets 38.0 3.3 1.4 2.4 0.3 0.5 0.0 -0.2 45.7 Consumer Products 31.5 2.7 4.7 0.0 0.1
Slide 42: YTD 2023 segment overview
YTD 2023 segment overview SOURCES OF ORIGIN YTD EUR million Norway Scotland Chile Canada Ireland Faroes Iceland Other 1) Group OPERATIONAL EBIT FARMING 428.4 61.2 28.0 21.0 4.2 23.3 10.3 576.4 SALES AND MARKETING Markets 101.7 8.1 2.4 2.9 0.9 1.0 -0.2 0.0 116.9 Consumer Products 79.2 11.0 19.3 0.0 0
Slide 43: Development in harvest volumes
Development in harvest volumes GWT 2018 2019 2020 2021 2022 2023E 2024E (1,000) Total Total Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4E Total Total Norway 230.4 236.9 262.0 75.0 56.1 71.0 71.1 273.2 59.4 59.8 87.4 87.1 293.7 65.6 61.5 86.2 81.7 295.0 305.0 Scotland 38.4 65.4 52.7 18.3 19.
Slide 44: Cash flow guidance and historic developments
Cash flow guidance and historic developments Net capital expenditure Net working capital 450 600 400 Maintenance level 500 350 300 400 250 EUR million EUR million 300 200 150 200 100 100 50 0 0 2018 2019 2020 2021 2022 2023E 2018 2019 2020 2021 2022 2023E Financial commitments and cost of debt (*) 1
Slide 45: Thank you
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