Slide 1: SalMar ASA Q3 2021 Presentation
SalMar ASA Q3 2021 Presentation 17 November 2021 CEO Gustav Witzøe CFO & COO Trine Sæther Romuld COO Industry & Sales Frode Arntsen
Slide 2: Agenda
Agenda • Highlights • Operational Update • Financial Update • Strategic Update – Northern Norway – InnovaNor – SalMar Aker Ocean • Outlook
Slide 3: Highlights
Harvest volume HIGHLIGHTS (1,000 tons gw) Record high harvest volume and continued solid operational performance has led to good results • Total operational EBIT 743 MNOK from Norway, including Icelandic Salmon total operational EBIT 748 MNOK • Northern Norway with solid results driven by strong bio
Slide 4: Operational Update
OPERATIONAL UPDATE Co SALMAR
Slide 5: Farming Central Norway
Farming Central Norway KEY RESULTS Record high harvest volume and stable cost development Q3 2021 Q3 2020 YTD 2021 YTD 2020 Operating income (NOKm) 1,940 1,623 4,451 4,810 • Continuing the trend with stable cost development from previous quarter Operational EBIT (NOKm) 597 526 1,503 1,947 – Due to s
Slide 6: Farming Northern Norway
Farming Northern Norway KEY RESULTS Strong biological and operational performance Q3 2021 Q3 2020 YTD 2021 YTD 2020 Operating income (NOKm) 785 250 2,320 1,791 • Solid results driven by reduction in cost level Operational EBIT (NOKm) 272 61 813 692 – Strong biological and operational performance res
Slide 7: Sales & Industry
Sales & Industry KEY RESULTS Record high volume, but increased cost weakens results Q3 2021 Q3 2020 YTD 2021 YTD 2020 Operating income (NOKm) 3,929 2,903 10,031 9,536 • Record high volume through our harvesting and processing plants Operational EBIT (NOKm) -28 156 -46 209 – Strong capacity utilizati
Slide 8: Icelandic Salmon
Icelandic Salmon KEY RESULTS Stable cost development, but lower spot price and one-off Q3 2021 Q3 2020 YTD 2021 YTD 2020 costs weakens results Operating income (NOKm) 202 110 562 489 Operational EBIT (NOKm) 5 -22 37 -31 • 2019 generation has accounted for the volume Operational EBIT % 2% -20 % 7% -6
Slide 9: Scottish Sea Farms
Scottish Sea Farms1 KEY RESULTS Biological challenges affecting results Q3 2021 Q3 2020 YTD 2021 YTD 2020 Operating income (NOKm) 773 543 1,963 1,271 • Biological challenges due to gill health affecting results negatively Operational EBIT (NOKm) 80 101 273 233 – Early harvest of fish impacting both
Slide 10: Financial Update
FINANCIAL UPDATE Ho SALMAR
Slide 11: Operational EBIT deviation analysis (qoq)
Operational EBIT deviation analysis (qoq) Norway EBIT per kg (NOK) Δ QoQ -3.49 • Net sales price decreased due to lower spot prices partially NOK per kg offset by positive effect from contracts • Cost reduced due to lower cost in Northern Norway Group EBIT per kg (NOK) Δ QoQ -3.70 NOK per kg • Group
Slide 12: Group profit and loss
Group profit and loss NOK million Q3 2021 Q3 2020 Δ% YTD 2021 YTD 2020 Δ% Q3 2021 vs. Q3 2020 Operating income 4,019 2,930 37 % 10,371 9,863 5% • Revenue increased following higher volume and higher EBITDA 947 846 12 % 2,628 3,172 -17 % spot prices Depreciations and write-downs 199 199 592 578 Opera
Slide 13: Group balance sheet
Group balance sheet Assets Equity ratio • Acquisition of Nekton Havbruk AS and Refsnes Laks AS consolidated from Q3 2021 – Increasing total assets with 2,5 billion NOK • Investments in the value chain progressing according to plan 53.0% • Higher standing biomass YoY and QoQ • Net Interest-bearing de
Slide 14: Movement in net interest-bearing debt
Movement in net interest-bearing debt • Acquisition of Nekton Havbruk AS and Refsnes Laks AS included from Q3 2021 – Investment NOK 745 million +537 – NIBD + leasing NOK 70 million • Net other investments at NOK 642 million – Farming and Ocean NOK 215 million – Smolt and hatchery NOK 299 million – S
Slide 15: Strategic Update
STRATEGIC UPDATE CH SALMAR
Slide 16: Video from Northern Norway
VIDEO FROM NORTHERN NORWAY 16
Slide 17: SalMar the leading salmon farmer in Northern Norway
SalMar the leading salmon farmer in Northern Norway Strong platform for further sustainable growth across the entire value chain built on a strong historic fundament in the region Smolt Farming Harvesting & processing Senja 1 in operation Farming sites in InnovaNor in operation from Q4 2021 Senja 2
Slide 18: Strong strategic and operational focus throughout the value chain
Strong strategic and operational focus throughout the value chain Always on the terms of the salmon Flexibility and … for local … to deliver the capacity to deliver processing with the best fish through the right smolt at right capacity at good fish welfare… the right time … strategic locations… … f
Slide 19: Improved performance from Northern Norway
Improved performance from Northern Norway Showcasing the importance of operational focus on the terms of the salmon Farming Northern Norway Q3 2019 Q3 2021 Δ • Over the last years our employees have showcased a fantastic effort to Harvest volume (tgw) 5.4 15.5 turnaround weaker results from Northern
Slide 20: InnovaNor – from concept to reality
InnovaNor – from concept to reality The largest and most modern processing facility in Northern Norway
Slide 21: Largest and most modern processing facility in Northern Norway
Largest and most modern processing facility in Northern Norway Built with scalability in mind • 20,000 square meters with a capacity of 75,000 tons harvest volume of salmon per year per shift – Incorporates landing, harvesting, processing, packaging, freezing and storage capabilities including an of
Slide 22: InnovaNor a key factor for further sustainable growth
InnovaNor a key factor for further sustainable growth Securing a robust platform for further sustainable development of Northern Norway • Reducing biological risk – Large harvesting capacity in close proximity to farming operations reduces biological BIOLOGY risk in sea and optimizes biological prod
Slide 23: Significant local value creation to the local community
Significant local value creation to the local community SalMar will be one of the largest employers on Senja with prospects for further growth in the region • Attractive, exciting and sustainable jobs – Together with the expansion of Senja smolt facility significant amount jobs created in the region
Slide 24: SalMar Aker Ocean
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Slide 25: Creating a world leading offshore farming company
Creating a world leading offshore farming company SalMar Aker Ocean has an ambition to build a series of units for offshore production EXPOSED Ocean Farm (OF) • SalMar Aker Ocean established in November – Joint ownership between SalMar (66,6%) and Aker (33,4%) – Closing completed earlier than previo
Slide 26: Outlook
OUTLOOK Co SALMAR
Slide 27: SalMar has a solid track record for growth
SalMar has a solid track record for growth Strong utilization of existing production capacity with further growth potential in all regions • Volume guiding for 2021 increased with 6,000 tons in Norway – Strong utilization of increased MAB capacity and M&A – Solid biological performance especially in
Slide 28: Outlook
Outlook • SalMar has strong operational and financial flexibility and is well equipped to build an even more robust platform for further sustainable growth – Continued strong strategic and operational focus – Dedicated employees and strong corporate culture set for growth – InnovaNor in operation fr
Slide 29: Capital Market Day 2022
Capital Market Day 2022 22nd and 23rd of June 2022 • We are looking forward to welcome you to a capital markets day in June 2022 – You will get the opportunity to visit our state-of-the art facilities across the entire value chain – In addition, the executive management will give insights into the s
Slide 30: Thank you for your attention
THANK YOU FOR YOUR ATTENTION Next event Q4 2021 presentation 18 February 2022 For more information see www.salmar.no