Slide 1: Q1 2022 presentation
Q1 2022 presentation CEO: Ivan Vindheim CFO: Kristian Ellingsen 11 May 2022
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: Highlights
Highlights • Significantly increased earnings on all-time high Q1 revenue driven by strong demand and reduced supply • Q1 operational EBIT of EUR 207 million at record-high levels – almost doubled YoY • Blended Farming cost of EUR 4.78/kg, up from EUR 4.62/kg in Q4 2021, on lower seasonal volumes an
Slide 4: Key financials
Key financials Mowi Group - main figures Q1 2022 Q1 2021 2021 Unaudited EUR million Operational revenue and other income 1,095.3 7% 1,022.4 4,207.6 Operational EBITDA 1) 248.9 151.3 690.3 Operational EBIT 1) 206.7 89% 109.2 522.6 EBIT 264.1 268.3 602.2 Cash flow from operations 1) 208.9 168.7 627.6
Slide 5: Salmon prices – weekly reference prices
Salmon prices – weekly reference prices • Prices in Q1 2022 up by 55% YoY in Europe, and 33% in Miami and 40% in Seattle/Boston for Chilean and Canadian salmon, respectively, in the American market 16 8 14 7 USD per lbs (Miami and Seattle) 12 6 10 5 EUR per kg (Oslo) 8 4 6 3 4 2 2 1 0 0 2018 2019 20
Slide 6: Price achievement and contract share
Price achievement (1) and contract share 140% 120% 120% 98% 97% 98% 96% 102% 100% 90% 89% 80% 60% 40% 20% 0% Norwegian Scottish Chilean Canadian Q1 2021 Q1 2022 Norwegian Scottish Chilean Canadian Q1-22 Contract share 31% 77% 50% 0% 1) Starting from Q2 2021, price achievement includes margins from C
Slide 7: Operational EBIT comparison
Operational EBIT comparison • Op EBIT nearly doubled on increased realised prices Page 7
Slide 8: Norway
Norway SALMON OF NORWEGIAN ORIGIN Operational Operational EBITEBIT Salmon Salmon of of Norwegian Norwegian Origin Origin EUR million Q1 2022 Q1 2021 Q1 Q120212022 vs Q1 vs Q1 2021 2022 Operational EBIT 151.4 73.2 200 180 EBIT 199.9 149.0 160 Harv est v olume (GWT) 59 424 74 992 140 120 Operational E
Slide 9: Norway: Operational EBIT/kg per region
Norway: Operational EBIT/kg per region 3.5 3.0 2.93 2.61 2.55 2.5 2.35 2.07 EUR per kg 2.0 1.49 1.5 1.23 0.98 1.0 0.88 0.35 0.5 0.0 South West Mid North Total Q1 2021 Q1 2022 • Region North: Stands out yet again as margin winner on the lowest cost, however, issues with winter sores and a less favora
Slide 10: Norway: Sales contract portfolio
Norway: Sales contract portfolio 20,000 18,000 16,000 Contracted volumes (GWT) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Realised contract volumes Contracted volumes (including prospects) • Contracts on the low side in 2022 at 26%, equivalent to 7
Slide 11: New expansion projects in Farming Norway
New expansion projects in Farming Norway New primary processing plant in Region Mid Postsmolt expansion in Region West • Decision taken for construction of a new primary • Further to the postsmolt investment programme in processing plant at Jøsnøya, Hitra Norway, postsmolt expansion at Haukå • State
Slide 12: Scotland
Scotland SALMON OF SCOTTISH ORIGIN Operational OperationalEBIT EBITSalmon Salmon of of Scottish Origin Scottish Origin EUR million Q1 2022 Q1 2021 Q1Q12021 2022vs vsQ1 Q1 2022 2021 Operational EBIT 10.7 26.6 40 EBIT 1.2 40.2 35 Harv est v olume (GWT) 10 541 18 273 30 25 Operational EBIT per kg (EUR)
Slide 13: Chile
Chile SALMON OF CHILEAN ORIGIN Operational EBIT Operational EBITSalmon Salmon of ChileanOrigin of Chilean Origin EUR million Q1 2022 Q1 2021 Q1Q1 2022vsvsQ1 2021 Q1 2022 2021 30 Operational EBIT 20.1 7.8 25 EBIT 19.3 5.8 Harv est v olume (GWT) 16 017 19 405 20 Operational EBIT per kg (EUR) 1.26 0.40
Slide 14: Canada
Canada SALMON OF CANADIAN ORIGIN Operational EBIT Operational Salmon EBIT Salmon ofofCanadian CanadianOrigin Origin EUR million Q1 2022 Q1 2021 Q1Q12021 vs vs 2022 Q1Q12022 2021 30 Operational EBIT 22.5 -3.9 25 EBIT 17.1 -10.9 20 Harv est v olume (GWT) 8 759 10 741 15 Operational EBIT per kg (EUR) 2
Slide 15: Ireland and Faroes
Ireland and Faroes SALMON OF IRISH ORIGIN SALMON OF FAROESE ORIGIN EUR million Q1 2022 Q1 2021 EUR million Q1 2022 Q1 2021 Operational EBIT 2.5 5.3 Operational EBIT 1.8 0.4 EBIT 10.8 4.8 EBIT 0.4 3.2 Harv est v olume (GWT) 667 1 157 Harv est v olume (GWT) 1 192 901 Operational EBIT per kg (EUR) 3.71
Slide 16: Consumer Products
Consumer Products CONSUMER PRODUCTS EUR million Q1 2022 Q1 2021 • A good quarterly result considering the Operating rev enues 725.4 685.5 record high raw material prices, by means Operational EBIT 21.3 32.2 of sound operational performance and raw Operational EBI T % 2.9% 4.7% material management Op
Slide 17: Mowi Ustka (Morpol) – extension of value chain
Mowi Ustka (Morpol) – extension of value chain • Brand new factory opened in Poland to upcycle by-products from Mowi Ustka (Morpol) – Waste going into the circular economy to utilize 100% of the raw material • End-products are oil and meal for use in human supplements, pet foods and aquafeed Oil and
Slide 18: Feed
Norway Feed FEED EUR million Q1 2022 Q1 2021 Operating rev enues 135.3 119.9 Operational EBIT -3.5 -3.0 Operational EBI T % -2.6% -2.5% EBIT -3.5 -3.0 Feed sold v olume 88 184 93 938 Feed produced v olume 87 762 100 296 Scotland • Stable earnings and production in low season for feed • Feed performa
Slide 19: Financials, Markets and Harvest volumes
Q1 2022 presentation Financials, Markets and Harvest volumes
Slide 20: Profit and Loss
Profit and Loss Mowi Group EUR million Q1 2022 Q1 2021 2021 • Positive net fair value adjustment of Operational revenue and other income 1,095.3 7% 1,022.4 4,207.6 biomass of EUR 55 million due to Operational EBIT 1) 206.7 89% 109.2 522.6 improved prices Change in unrealized internal margin 5.1 10.2
Slide 21: Financial position
Financial position Mowi Group EUR million 31.03.2022 31.03.2021 31.12.2021 • Strong financial position Non-current assets 3 522.6 3 448.7 3 542.2 Current assets 2 812.3 2 547.7 2 717.5 Total assets 6 335.0 5 996.5 6 259.5 Equity 3 272.7 3 051.2 3 131.4 Non-current liabilities 2 064.6 2 191.7 2 155.3
Slide 22: Cash Flow and Net Interest Bearing Debt
Cash Flow and Net Interest Bearing Debt Mowi Group EUR million Q1 2022 Q1 2021 2021 • Good operational cash flow on NIBD beginning of period* -1 257.3 -1 458.4 -1 458.4 improved earnings Operational EBITDA* 248.9 151.3 690.3 Change in working capital -10.9 34.9 -26.8 Taxes paid -22.2 -24.2 -42.6 Oth
Slide 23: 2022 Cash Flow Guidance
2022 Cash Flow Guidance • Working capital build-up EUR ~90m – Support further organic growth across the value chain • Capital expenditure EUR ~300m – Freshwater investments EUR ~ 80m – Seawater investments EUR ~ 50m – Processing / Sales & Marketing: Upgrade processing factory in Scotland. Automation
Slide 24: Overview financing
Overview financing • Bank Facility: EUR 1,800m sustainability-linked facility Share of sustainable funding – Covenant: 35% equity ratio (adjusted for IFRS 16 leasing effects) – Accordion option: EUR 300m – Lenders: DNB, Nordea, ABN Amro, Rabobank, Danske Bank, SEB and Crédit Agricole • Senior unsecu
Slide 25: Supply development
Supply development Estimated volumes Compared to Q1 2021 Est. volumes Suppliers Q1 2022 Q1 2021 Volume % Q4 2021 Norway 305,500 319,100 -13,600 -4.3% 400,900 Scotland 33,500 43,100 -9,600 -22.3% 36,200 Faroe Islands 20,800 20,300 500 2.5% 30,400 Other Europe 13,700 14,900 -1,200 -8.1% 13,200 Total E
Slide 26: Global volume development
Global volume development Estimated volumes Compared to Q1 2021 Est. volumes 12 month comparison Markets Q1 2022 Q1 2021 Volume % Q4 2021 LTM PTM % EU+UK 247,500 271,200 -23,700 -8.7% 323,600 1,131,900 1,120,700 1.0% Russia 14,000 24,000 -10,000 -41.7% 27,300 76,100 86,500 -12.0% Other Europe 24,100
Slide 27: Development in reference prices
Development in reference prices Q1 2022 Change vs Q1 2022 Change vs Market Q1 2021 EUR Q1 2021 Norway (1) EUR 8.07 55.3% EUR 8.07 55.3% Chile (2) USD 6.90 33.0% EUR 6.15 42.9% Chile, GWT (3) USD 8.14 44.8% EUR 7.26 55.6% Notes: (1) NASDAQ average superior GWE/kg (gutted weight equivalent) North Amer
Slide 28: Industry supply growth 2022e
Industry supply growth 2022e 2019 2020 2021 2022E 2022E GWT (1,000) Low Y/Y grow th High Y/Y grow th Norw ay 1,200 1,232 1,379 1,373 1,360 -1% 1,386 1% UK 171 160 179 172 169 -6% 175 -3% • 2022 guidance: -1% supply growth expected for 2022 Faroe Islands 78 73 95 87 85 -11% 89 -7% Other Europe* 36 42
Slide 29: Mowi volume guidance
Mowi volume guidance Atlantic salmon 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 2022 GWT (1,000) Act ual Act ual Act ual Act ual Act ual Act ual Act ual Guidance Guidance Norway 262.0 75.0 56.1 71.0 71.1 273.2 59.4 55.0 272.0 Scotland 52.7 18.3 19.2 15.0 12.0 64.4 10.5 15.0 60.0 Chile
Slide 30: Outlook
Outlook • Strong market outlook and constrained supply side – Kontali projects 0% supply growth for the remainder of the year • Mowi well positioned to capitalise on its integrated value chain and low contract share • Unprecedented inflationary environment; so far soaring salmon prices have more tha
Slide 31: Appendix
Q1 2022 presentation Appendix
Slide 32: Mowi ranked #1 on sustainability amongst food producers
Mowi ranked #1 on sustainability amongst food producers Good progress on reducing GHG emissions in 2021 (FY 2021) and ambitious long-term targets Scope 1 & 2 GHG emissions Scope 1 & 2 & 3 GHG emissions -35% -72% -18% 400 2,500 Tonnes (1,000) Tonnes (1,000) 300 2,000 1,500 200 1,000 100 500 0 0 2020
Slide 33: 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 34: Nova Sea
Nova Sea Harv est v olume (GWT) EBI T per kg (EUR) NI BD EURm Ownership % 2020 2021 Q1 2021 Q1 2022 2020 2021 Q1 2021 Q1 2022 Q1 2022 Nova Sea 48.7 % 42 584 43 539 10 524 7 114 1.80 1.88 1.56 2.81 -70.9 • Leading integrated salmon producer in Northern Norway − 33.33 wholly owned licenses − 4 partly
Slide 35: 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 36: Contract coverage and sales contract policy
Contract coverage and sales contract policy SALES CONTRACT POLICY Min hedging rate Max hedging rate (1) • Q2 2022 contract shares (% of guided volume): Norway (2) 0% 50 % Scotland 0% 75 % − Norway 29% Chile (2) 0% 50 % − Scotland 60% Canada 0% 30 % Ireland 0% 100 % − Chile 60% Faroes 0% 30 % − Canad
Slide 37: Quarterly segment overview
Quarterly segment overview SOURCES OF ORIGIN QTD EUR million Norway Scotland Chile Canada Ireland Faroes Other 1) Group OPERATIONAL EBIT FARMING 135.7 8.3 12.5 19.5 2.4 1.7 180.1 SALES AND MARKETING Markets 4.2 2.2 1.8 3.2 0.3 0.1 0.3 12.1 Consumer Products 14.2 1.0 5.9 -0.2 -0.1 0.0 0.5 21.3 SUBTOT
Slide 38: Development in harvest volumes
Development in harvest volumes GWT 2017 2018 2019 2020 2021 2022E (1,000) Total Total Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2E Total Norway 210.2 230.5 236.9 50.5 56.6 76.5 78.5 262.0 75.0 56.1 71.0 71.1 273.2 59.4 55.0 272.0 Scotland 60.2 38.4 65.4 9.0 14.6 16.1 13.0 52.7 18.3 19.2 15.0 12.
Slide 39: Cash flow guidance and historic developments
Cash flow guidance and historic developments Net capital expenditure Net working capital 350 160 Maintenance level 140 300 250 120 100 200 EUR million EUR million 80 150 60 100 40 50 20 0 0 2017 2018 2019 2020 2021E 2022E 2017 2018 2019 2020 2021 2022E Financial commitments and cost of debt (*) 60 5
Slide 40: Thank you
MOQOWI Thank you