Slide 1: SalMar ASA Q1 2022 Presentation
SalMar ASA Q1 2022 Presentation 12 May 2022 CEO Linda L. Aase CFO Gunnar Nielsen
Slide 2: Linda Litlekalsøy Aase, new CEO
Linda Litlekalsøy Aase New CEO in SalMar from 9th of May 2022 • Over 20 years of industrial experience • Former Executive Vice President in various management positions at Aker Solutions since 2014 and before that at Rolls-Royce Marine • MSc. in Material Technology from Norwegian University of Scien
Slide 3: Agenda
Agenda • Highlights • Operational Update • Financial Update • Strategic Update • Outlook
Slide 4: Highlights Q1 2022
Harvest volume Highlights Q1 2022 (1,000 tons gw) Continued strong operational performance and record high salmon prices has led to solid results • Total operational EBIT 1,201 MNOK from Norway, including Icelandic Salmon and SalMar Aker Ocean total operational EBIT 1,262 MNOK – Strong performance f
Slide 5: Gunnar Nielsen, new CFO
Gunnar Nielsen New CFO in SalMar from 1st of April 2022 • Experience from a number of senior executive positions in the seafood, banking, industrial and auditing sectors • Extensive experience of board and financial management, reporting and communication in listed companies • CFO of Bakkafrost from
Slide 6: Operational Update
OPERATIONAL UPDATE Co SALMAR
Slide 7: Farming Central Norway
Farming Central Norway KEY RESULTS Strong salmon prices and continued strong operational and Q1 2022 Q1 2021 FY 2021 biological performance has given a solid result Operating income (NOKm) 1,914 1,169 6,542 Operational EBIT (NOKm) 925 386 2,118 • Cost level reduced from Q4 2021 Operational EBIT % 48
Slide 8: Farming Northern Norway
Farming Northern Norway KEY RESULTS Solid results driven by continued low cost level and strong Q1 2022 Q1 2021 FY 2021 salmon prices Operating income (NOKm) 1,262 700 3,343 Operational EBIT (NOKm) 716 195 1,243 • Continuing the solid trend with strong biological and operational performance Operatio
Slide 9: Sales & Industry
Sales & Industry KEY RESULTS Underlying operations improving performance from previous Q1 2022 Q1 2021 FY 2021 quarters, but high salmon prices affecting results from Operating income (NOKm) 4,445 3,032 14,406 contracts Operational EBIT (NOKm) -372 118 -152 Operational EBIT % -8.4 % 3.9 % -1.1 % • S
Slide 10: Icelandic Salmon
Icelandic Salmon KEY RESULTS Solid results due to strong price achievement, strong capacity Q1 2022 Q1 2021 FY 2021 utilization at harvest plant and stable cost level Operating income (NOKm) 368 178 919 Operational EBIT (NOKm) 94 4 74 • Strong price achievement and capacity utilization at harvest pl
Slide 11: SalMar Aker Ocean
SalMar Aker Ocean KEY RESULTS Separate reporting segment from 2022 Q1 2022 Q1 2021* FY 2021* • Cost included in segment eliminations in 2021 Operating income (NOKm) - - - Operational EBIT (NOKm) -34 -35 -152 • Upgrade of Ocean Farm 1 progressing according to plan Operational EBIT % - - - – Unit curr
Slide 12: Scottish Sea Farms
Scottish Sea Farms1 KEY RESULTS Strong increase in harvest volume, but results affected by Q1 2022 Q1 2021 FY 2021 contract level and biological challenges Operating income (NOKm) 639 396 2,307 Operational EBIT (NOKm) 105 74 244 • Harvest volume increased with 1,900 tonnes (+32%) from last year Oper
Slide 13: Financial Update
FINANCIAL UPDATE Ho SALMAR
Slide 14: Operational EBIT deviation analysis (qoq)
Operational EBIT deviation analysis (qoq) Norway1 EBIT per kg (NOK) Δ QoQ +11.60 • Net sales price increased due to higher spot prices, but price NOK per kg achievement impacted by profitability on contracts • Cost reduction driven by lower costs in Central Norway Group EBIT per kg (NOK) Δ QoQ +12.2
Slide 15: Group profit and loss
Group profit and loss NOK million Q1 2022 Q1 2021 Δ% FY 2021 Q1 2022 vs. Q1 2021 Total operating revenues 4,682 3,184 47 % 15,044 EBITDA 1,490 820 82 % 3,734 • Revenue and operational EBIT increased following higher Depreciations and write-downs 229 193 807 volume and higher spot prices Operational
Slide 16: Group balance sheet
Group balance sheet Assets Equity ratio • Investments in the value chain progressing according to plan • Lower standing biomass QoQ and YoY • Net Interest-bearing debt incl. lease liabilities decreased with NOK 714 million during the quarter 57.2% – NIBD incl. lease liabilities at NOK 4,829 million
Slide 17: Movement in net interest-bearing debt
Movement in net interest-bearing debt • Cash flow from operations impacted by taxes paid and payment of production tax at NOK 70 million • Net investments at NOK 565 million -714 – Smolt and hatchery NOK 179 million – Farming NOK 174 million – Sales & Industry NOK 132 million – Icelandic Salmon NOK
Slide 18: Strategic Update
STRATEGIC UPDATE — Co SALMAR
Slide 19: Sustainability in everything we do
Sustainability in everything we do Has been a key postulate for SalMar for over 20 years FISH ENVIRONMENT & PEOPLE & TECHNOLOGY SOCIETY Selected reported KPIs: GHG target Share of aligned with Sickness Survival eFCR local H-factor absence rate processing 1.5°C rate scenario 1) Selected reported KPIs
Slide 20: Strategic and operational focus always on the terms of the salmon
Strategic and operational focus always on the terms of the salmon Throughout the value chain from roe to plate 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 loc
Slide 21: Strong platform for further sustainable growth in all regions
Strong platform for further sustainable growth in all regions With strong corporate culture from competent, dedicated and passionate employees NORWAY ICELAND OFFSHORE UK1 Volume 2022E Volume 2022E Ambition for 150,000 Volume 2022E 175,000 tons 16,000 tons tons within 2030 46,000 tons Improved smolt
Slide 22: Strong strategic rationale for offer in NTS ASA
Strong strategic rationale for offer in NTS ASA Solid track-record from both parties in Central Norway, Northern Norway and West fjords of Iceland • Catalyst for further sustainable growth in local communities where both parties operate FARMING Aquaservice – Strengthening local value creation both i
Slide 23: 52.7% accepted the voluntary offer for NTS ASA
52.7% accepted the voluntary offer for NTS ASA A cash offer will be made after completion of the voluntary offer • There are several conditions to the voluntary offer, including regulatory approvals, due diligence and no material adverse change. – The timing of when these conditions have been met/li
Slide 24: Outlook
OUTLOOK Co SALMAR
Slide 25: 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 with dedicated employees and strong corporate culture set for growth – Leading and pioneering
Slide 26: Thank you for your attention
THANK YOU FOR YOUR ATTENTION Financial Calendar: Annual General Meeting - 8 June 2022 Q2 2022 presentation - 25 August 2022 Q3 2022 presentation - 10 November 2022 Investor contact: Håkon Husby, Head of IR Tel: +47 936 30 449 Email: hakon.husby@salmar.no For more information, please visit: www.salma
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