Salmar Asa · OSL:SALM
Salmar Asa — Investor Day (September 2023)
140 slides from Salmar Asa's investor day presentation, Sep 6, 2023
Slide 1: Capital Markets Day 6-7 September 2023
CAPITAL MARKETS DAY 6-7 SEPTEMBER 2023
Slide 2: Video 1 - Intro
VIDEO 1 - INTRO 2
Slide 3: This is SalMar
SalMar CMD 2023 THIS IS SALMAR SPEAKER: FRODE ARNTSEN CEO SALMAR
Slide 4: Agenda
SalMar CMD 2023 Agenda D AY 1 D AY 2 COMPANY PRESENTATIONS SITE VISIT • 13:00 – 14:00: Lunch • 07:00: Departure with boat from Tromsø • 14:00 – 17:40: Company Presentation – Farming site and remote feeding center – This is SalMar - CEO Frode Arntsen – Senja 1 & 2 smolt facility – Biology Norway - CO
Slide 5: Executive Management SalMar
Executive Management SalMar Experienced team with strong experience from the aquaculture industry and SalMar Frode Arntsen CEO Joined SalMar: 2017 Ulrik Steinvik Roger Bekken Simon Søbstad CFO COO Biology COO Sales & Industry Joined SalMar: 2006 Joined SalMar: 2014 Joined SalMar: 2007 Arthur Wisniew
Slide 6: Speakers at today's presentation from Group companies
Speakers at today's presentation from Group companies Roy Reite Bjørn Hembre Jim Gallagher CEO SalMar Aker Ocean CEO Icelandic Salmon Managing Director Jim Scottish Sea Farms Joined SAO: 2022 Joined ISLAX: 2019 Joined SSF: 1998 Subsidiary Subsidiary Joint Venture Owner share 85% Owner share 51% Owne
Slide 7: Additional representatives from SalMar at CMD
Additional representatives from SalMar at CMD Board of Directors Representatives from Northern Norway Gustav Witzøe Ingvild Kim S. Johansen Karoline Sandberg Board Chair & Kindlihagen Director Farming Manager visitor Founder Employee Rep. Northern Norway centers Joined SalMar: 1991 Joined SalMar: 20
Slide 8: Our story
Our story is about Produce healthy, always on the terms of the utilizing the nutritious & sustainable food Salmon with potential in for the world’s growing population minimal footprint while we maximize the ocean value creation 8
Slide 9: Our story: a history of growth
Our story Norway A history of growth Offshore Offshore 2017 Northern Norway Iceland Frøya, Central Norway 2000 2015 1991 UK Iceland 2001 From a small processing plant on Frøya, to the UK world’s 2nd largest salmon producer 273 Harvest volume 198 212 155 159 166 174 150 154 116 128 131 104 64 65 77 7
Slide 10: Growth has outperformed the industry
Our growth has outperformed the industry – and we have delivered more than what we said at last CMD CMD 2012: “ Withto 2025 6% growth, p.y. we see a potential doubling of total harvest volumes ” 273 212 198 Harvest volume 166 174 155 150 154 159 128 131 104 116 77 79 64 65 2007 2008 2009 2010 2011 2
Slide 11: Largest acquisition completed in 2022
Largest acquisition completed in 2022 Successfully integrated NTS, NRS and SalmoNor Strategically attractive for many years Presence in optimal location Strong synergy potential confirmed
Slide 12: Strategically located in the best regions to produce salmon
SalMar strategically located in the best regions to produce salmon Central and Northern Offshore Iceland UK Norway Operating in the best Pioneering and Largest producer UK’s second regions in Norway leading the in the West Fjords largest salmon development producer Significant untapped growth potent
Slide 13: Consistently delivering strong margins
SalMar consistently delivering strong margins EBIT-margin (NOK/kg) – 12 month rolling 30.0 Diff vs. peers Norway ex. SalMar 25.0 SalMar Norway 20.0 15.0 10.0 5.0 0.0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2007 2008 2009 2010 2011 2012 20
Slide 14: Key ESG KPIs are moving in the right direction
Key ESG KPIs are moving in the right direction Injuries: Survival Rate: H-factor = LTIs per million working hours 12.1 2017 2022 93% 95% 9.1 7.3 5.9 Reduction GHG emissions: 3.0 Absolute Intensity GHG target Scope 1+2+3 Scope 1+2+3 aligned with -22% -23% 1.5°C 2018 2019 2020 2021 2022 since 2020 sin
Slide 15: Strong market outlook for sustainable proteins
Strong market outlook for sustainable proteins Strong demand for healthy and sustainable proteins The growing world population wants to eat healthy, organic and sustainable food, with low carbon footprint Market and authorities require sustainable food production Eu farm to fork strategy, aiming to
Slide 16: Growth potential, but supply growth lagging demand
Still growth potential – but supply growth is lagging the demand Expect a supply growth of 2-3% from conventional farming until 2030 Global harvest volume per region Demand vs. supply growth thousand tonnes WFE 3,500 Demand Norway UK Chile Canada Others 3,000 Supply 2,500 2,000 1,500 1,000 500 0 200
Slide 17: Strong industry development in recent decades
The industry has gone through a strong development the last decades Grøntvedt brothers first net pen Ocean Farm 1 worlds first offshore unit SalMars first InnovaNor harvesting & processing plant harvesting & processing plant 17
Slide 18: In the forefront of innovation and development
SalMar in the forefront of innovation and development in the aquaculture industry New farming • Smolt: Smolt technology – New RAS facilities in operation • New farming technology: – Closed, semi-closed, submersible • Harvesting & processing – InnovaMar, InnovaNor, Vikenco - Modern harvest & processi
Slide 19: Two offshore projects in operation
Two offshore projects in operation SalMar pioneering and leading the development offshore Ocean Farm 1 Arctic Offshore Farming • 3rd production cycle started in May • Development project - 1st production cycle started in July • Located at Håbranden on Frohavet in Central Norway • Located at Fellesho
Slide 20: Robust value chain equipped for further sustainable growth
Robust value chain equipped for further sustainable growth Strong growth potential and dedicated employees with a Passion for Salmon FARMING HARVESTING & VAP Optimal locations with Great benefits from minimal enviromental local processing footprint FRY & SMOLT SALES & DISTRIBUTION Self sufficient wi
Slide 21: Our ambition is to be the world's best aquaculture company
Our ambition is to be the world’s best aquaculture company Vision Passion for Salmon Ambition The World’s Best Aquaculture Company Innovate for Strategic Focus Operational Efficiency Sustainable Growth the Future Sustainable business Goal One SalMar Growth in optimal locations development Continuous
Slide 22: Sustainability an integrated part of our strategy
Sustainability an integrated part of our strategy Sustainability in everything we do Fish We work systematically to create an environment in which the salmon thrives and remains Highest survival rate healthy among listed peers People & Society We believe in creating local value and safe workplaces a
Slide 23: Untapped organic growth potential within existing value chain
Untapped organic growth potential within existing value chain – without any large investments projects NORWAY OFFSHORE ICELAND UK TOTAL1 2023 243 000 - 16 000 27 000 273 000 Potential 300 000 13 000 26 000 45 000 362 000 Δ2023: +23% Δ2023: N/A Δ2023: +63% Δ2023: +67% Δ2023: +33% 23 *) all figures ar
Slide 24: A sustainable regulatory framework needed
A sustainable regulatory framework needed to utilize the potential Tax Area Licenses Technology Sustainability Local communities 24
Slide 25: InnovaMar 2.0
InnovaMar 2.0 Box factory Next generation Adm, R&D & harvesting & processing facility feeding • Plans were ready to double capacity at InnovaMar Logistics – Estimated investment NOK 2.5 billion InnovaMar – Significant local ripple effects • Project currently on hold due to resource rent tax & regula
Slide 26: Video 2 - InnovaMar 2.0
VIDEO 2 - INNOVAMAR 2.0 26
Slide 27: Significant investments awaiting a regulatory framework
Significant investments awaiting a sustainable regulatory framework NOK 5-7 billion in investments still on hold InnovaMar 2.0 Expansion of smolt facilities New offshore units 27
Slide 28: Always exploring ways for further sustainable growth
In SalMar we are always exploring ways for further sustainable growth • Where, how soon and M&A Traffic light how much depends to a large degree on a sustainable regulatory framework • Key factors for further growth: – Biological conditions – Regulatory framework International expansion New technolo
Slide 29: Ambition to grow at least as much as the industry
Our ambition is to grow at least as much as the rest of the industry Further growth potential Strong potential, but dependent on regulatory NORWAY framework and political ambitions Organic growth potential Dependent on regulatory framework and access within existing value chain OFFSHORE to areas ->
Slide 30: Culture is vital for us to succeed
Culture is vital for us to succeed WHAT WE DO TODAY WE DO BETTER THAN YESTERDAY THE JOB IS NOT DONE UNTIL THE PERSON YOU ARE DOING IT FOR IS SATISFIED FOCUS ON THE SOLUTION THE JOB WE DO TODAY IS VITAL TO THE SUCCESS OF US ALL SUSTAINABILITY IN EVERYTHING WE DO WE CARE!
Slide 31: We need all of our employees to succeed
We need all of our employees to succeed Quality Operations Factory VAP IT Fish Welfare Management Controller Worker Production of sustainable food for the world made by people with Freeze Labratory Canteen Cleaning HR advisor Data Analyst strong competence, storage Technician Manager Manager dedicat
Slide 32: 2023 the year of culture in SalMar
2023 the year of culture in SalMar • All employees gathered under one roof in May – Corporate culture and team building – One united SalMar • New round of the SalMar School implemented – All parts of the value chain and all segments/regions – Cocreating and ensuring ownership for the road ahead • Em
Slide 33: We care about our local communities
We care about our local communities supported Food donation >300 to Matsentralen initiatives in 2022 Seminar on mental health with Nidaros Hockey Reflective vests Finnmarksløpet 6 Nordkinn Visitors centers football club Kolvereid- dagene Visitor center 33
Slide 34: With a passion for salmon we will continue to lead the industry
WITH A PASSION FOR SALMON WE WILL CONTINUE TO LEAD THE DEVELOPMENT OF THE INDUSTRY 34
Slide 35: Video 3 - Northern Norway
VIDEO 3 - NORTHERN NORWAY 35
Slide 36: Biology Norway
SalMar CMD 2023 BIOLOGY NORWAY SPEAKER: ROGER BEKKEN COO BIOLOGY
Slide 37: Strong strategic and operational focus through our value chain
Strong strategic and operational focus through our value chain Always on the terms of the salmon Flexibility and … for production … with flexibility … to deliver the capacity to at the optimal to handle the best fish deliver the right locations with volume when the through good smolt at the right mi
Slide 38: Own genetic breeding programme based on the Rauma strain
Own genetic breeding programme based on the Rauma strain • Working long-term to develop a more genetically robust strain of salmon – Genetics and the development of a more robust salmon are important preventive measures to reduce biological risk Central Norway Production area 5 & 6 • Focus on the de
Slide 39: Self sufficient with high quality smolt
Self sufficient with high quality smolt Northern Norway 2 smolt production facilities Dåfjord Senja 1&2 • Large investments completed over the last years – Senja 2 completed in 2022, Tjuin to be finished in 2023 • Strong capacity to produce the right smolt – Overcapacity gives flexibility to adapt s
Slide 40: Exploring circular opportunities from smolt facilities
Exploring circular opportunities from our smolt facilities Waste from our smolt facility can be used as a vital element for both biogas and aquaponics Livestock manure Agriculture Biogas Biogas Soil improvement Nutrient-rich water SalMar Salads, fruits Aquaponic Smolt Purified water and greens 40
Slide 41: Largest salmon producer from Møre to Finnmark
Northern Norway Production area 10-13 SalMar the largest salmon producer 49 farming sites from Møre to Finnmark 2 visitor centers 1 remote feeding center • Strong presence along the coast MAB tonnes – SalMar has a key role in local communities 67 505 Commercial – Operate 6 visitor centers open to th
Slide 42: NRS and SalmoNor integrated into existing operations
NRS and SalmoNor integrated into our Biology existing operational set-up Farming Smolt • Farming structure expanded with two new regions – Support functions merged into existing structure +Dåfjord +Osan Central Northern Norway Norway • Strong synergy potential +Region +Region – NRS with unutilized l
Slide 43: Feed our most important input factor
Feed our most important input factor Vital for optimizing fish health, welfare and growth • Recent cost inflation driven by increase in cost of raw materials in feed basket – Novel ingredients more attractive when cost has increased – Seeking to include more novel feed ingredients both to reduce cos
Slide 44: Creating an environment in which the salmon thrives
We work systematically to create an environment in which the salmon thrives and remains healthy • Fish welfare crucial for production of healthy, nutritious and sustainable food – SalMar with strong performance compared to peers, but see Survival 2017 2022 large potential for improvement Rate: 93% 9
Slide 45: Limiting use of sea lice treatments
Working actively to limit use of sea lice treatments • Actively using new technology and methods – Both for preventive measures and corrective – Rigged with large capacity for sea lice treatments • Own internal employees operating our units – Strong operational procedures and competent employees wit
Slide 46: Increasing our well boat capacity
Increasing our well boat capacity • Both to handle harvest transportation, but also treatment capacity • Two new vessels in operation from 2023 – RoSenja and Gåsø Odin • Two new vessels to be delivered in 2024 – Rigged with the latest technology • Reduced environmental footprint through use of batte
Slide 47: Reduced environmental footprint through new technology
Worlds first fully electric service boat Reduced environmental footprint through use of new technology • 50% of feed barges with low emission technology • Several vessels in use with low emission technology – Battery hybrid technology – Fully electric technology • SalMar a frontrunner in the industr
Slide 48: Frontrunner in testing new farming technology
SalMar a frontrunner in testing out new Traditional value chain farming technology • Ambition to increase operational efficiency through interaction with our existing value chain – Enhance efficiency of smolt facilities, sites, vessels and harvesting facilities Open Smolt Harvesting net pen • Own in
Slide 49: Closed net pens
Closed net pens Neptun 4 • SalMars first closed net pen • Three production cycles completed Marine Donut • Development project • First production cycle to commence autumn 2023 49
Slide 50: Semi-closed and submersible
Semi-closed and submersible Aquatraz • Semi-closed net pen • Previous development project • Several cycles completed Submersible • In use at several sites in Central Norway 50
Slide 51: Leading farmer in cost position and fish welfare
WITH A PASSION FOR SALMON WE WILL CONTINUE TO BE THE LEADING FARMER WITH RESPECT TO BOTH COST POSITION AND FISH WELFARE
Slide 52: Q&A
SalMar CMD 2023 Q&A
Slide 53: Break
SalMar CMD 2023 BREAK 10 MIN
Slide 54: Video 4 - Frøya
VIDEO 4 - FRØYAS 54
Slide 55: Sales & Industry
SalMar CMD 2023 SALES & INDUSTRY SPEAKER: S I M O N S Ø B S TA D COO SALES & INDUSTRY
Slide 56: Flexible sales & processing capacity to handle the volume
We have flexible sales & processing capacity to handle the volume Always on the terms of the salmon … for local Flexibility to handle … to always processing with the the volume when maximize value right capacity at the salmon is ready creation of the strategic and for harvest… salmon optimal locatio
Slide 57: 1,300 dedicated employees
1 300 DEDICATED EMPLOYEES WITH STRONG COMPETENCE, CULTURE AND A PASSION FOR SALMON 57 57
Slide 58: Largest and most flexible local harvesting and processing capacity
Largest and most flexible local InnovaNor - Senja harvesting and processing capacity • Built large capacity in close proximity to farming operations Capacity – Reduces biological risk in sea and optimizes biological production today InnovaMar - Frøya – Capacity to handle 1/5 of all volume in Norway
Slide 59: Local secondary processing a strategic advantage
Whole fish Fillet Local secondary processing capacity a strong strategic advantage for SalMar • Our facilities rigged with the latest technology for value added processing – Built with scalability in mind – Both post and pre-rigor capacity Reduction in GHG emssions 42% due to local • Flexibility to
Slide 60: 100% utilization of the salmon
100% utilization of the salmon Products Customers worldwide Harvesting and Processing Pharmaceutical Processing of byproducts Feed ingredients 60
Slide 61: Optimizing logistics to customers worldwide
Truck Optimizing logistics to our customers Boat worldwide Train Flight hubs /routes Harvesting & • Facilities in close proximity to farming operations processing – Reduces logistics for inbound well-boat transportation facilities – Box-factory built in connection with InnovaNor facility, reducing n
Slide 62: Exploring new sustainable packaging
Exploring new sustainable packaging • Continuous work to reduce footprint and extend shelf life of our products • Engaged in a wide range of projects – Recyclable styrofoam boxes – Alternative box materials and design – New freezing and chilling methods – Alternatives to plastic 62
Slide 63: Global presence through sales offices close to key markets
Global presence through sales offices close to key markets • All volume produced in Norway sold via in-house sales force – Operational set-up in place to handle increased volume Barcelona Seafood Expo 2023 • Frøya & Ålesund our main sales offices in Norway – Handling all volume excluding volume to A
Slide 64: Go-to-market approach reaches customers worldwide
Our go-to-market approach reaches customers worldwide • 2/3 of volume sold to the European market – Largest and most mature salmon market in the world • 1/3 of volume sold overseas – Split between North America and Asia – High share of VAP to overseas markets • Strong development especially in emerg
Slide 65: Global demand for salmon has been fantastic
Global demand for salmon has been fantastic – the development will continue Global demand for salmon is increasing • Salmon demand is building on super trends – Healthy, nutritous and sustainable proteins Market Size – Focus on sustainability increasingly important for end- 25.0 consumers Thousands
Slide 66: Consumption still low in most markets
Consumption is still low in most markets – and salmon is not considered expensive compared to other proteins Consumption of salmon Salmon-to-Meat Price Ratio Kg/capita 32 Salmon more expensive than meat 23 14 Average 10 ratio 1.7 2.3 0.4 Meat more expensive than salmon Global USA EU Norway Beef Pork
Slide 67: We provide sustainable food worldwide
WITH A PASSION FOR SALMON WE PROVIDE SUSTAINABLE FOOD WORLDWIDE 67
Slide 68: Q&A
SalMar CMD 2023 Q&A
Slide 69: Video 5 - Captain's Log
VIDEO 5 - CAPTAIN’S LOG
Slide 70: SalMar Aker Ocean
SalMar CMD 2023 SALMAR AKER OCEAN SPEAKER: ROY REITE CEO SALMAR AKER OCEAN
Slide 71: The future is our inspiration
The future is our inspiration Healthy Protein with Growing food lower footprint middle class 2050 Demand Supply 2020 Population New technology growth needed 71
Slide 72: The salmon is the captain of our value chain
The salmon is the 'captain' of our value chain – meaning fish welfare and bio security are the core of everything we do Sea phase in the ocean Sales and Hatchery Smolt Processing distribution An even ocean current and A rigid and large structure Natural and healthy conditions Less temperature variat
Slide 73: Our journey has given crucial experience and insight
Our journey has given crucial experience and insight Completion of Intention to include several upgrades on Arctic Offshore Construction of OF1 including Third smolt release Farming in SAO- Ocean Farm 1 change of net Ocean Farm 1 group 2012 – 2015 2017 – 2020 2022 July 2023 2023 → 2016 – 2017 2021 –
Slide 74: Strong results from first two production cycles at Ocean Farm 1
Strong results from the first two production cycles for Ocean Farm 1 5.39 95.4% 4.10 3.4 2017G 2.95 0.0 93.0% 4.25 2.09 3.21 1.26 5.0 2.20 2019G 0.26 1.59 0.0 0.97 jul. 19 jan. 20 jul. 20 2017G 2019G Actual avg. weight Avg. PO6 OF1 Expected avg. weight Solid growth No lice treatment High survival ra
Slide 75: Another good production cycle underway at Ocean Farm 1
Another good production cycle Growth third production cycle OF1 vs underway at Ocean Farm 1 expected growth 1.910 Growth on track to outperform the first two production cycles 1.584 1.530 Very low mortality – accumulated mortality of only 1,2% 1.300 Low levels of salmon lice 911 905 670 500 623 week
Slide 76: Intention to include Arctic Offshore Farming in SalMar Aker Ocean
Intention to include Arctic Offshore Farming in SalMar Aker Ocean Group Intended company structure Arctic Offshore Farming Intention to include the development licenses and operations of Arctic Offshore Farming in SalMar Aker Ocean Group SalMar ASA Aker Capital AS 85%* 15%* Harvest capacity SalMar A
Slide 77: Experience from exposed farming enables future growth offshore
Experience from exposed farming enables future growth offshore EXPOSED OPEN OCEAN Important steppingstone to go offshore • Larger and more advanced units than traditional • 8 development licenses farming • Expect location mid September in Norskehavet • Two successful production cycles on Ocean Farm
Slide 78: Clarity on tax and regulatory framework crucial
Clarity regarding tax and regulatory framework will be crucial for making investment decisions 2023 2024 2025 2026 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Regulatory framework Area impact assessment Program and hearing Completion Allocation regulations Announcement of areas Application Pr
Slide 79: From pilot to scale: a new value chain
From pilot to scale – development of a new value chain Offshore Harvest & VAP Costal Exposed Distance to OF1: 20 NM Integrated value chain onshore Environmental- friendly logistics 79
Slide 80: Offshore farming opens opportunities around the world
Offshore farming opens opportunities around the world Key factors for establishment Biological conditions Value chain capacity Regulatory framework Proximity to market 80
Slide 81: SalMar Aker Ocean vision and ambition
SalMar Aker Oceans vision and ambition Targets annual production of 150 000 tonnes globally 81
Slide 82: Q&A
SalMar CMD 2023 Q&A
Slide 83: Break
SalMar CMD 2023 BREAK 10 MIN
Slide 84: Video 6 - Iceland
VIDEO 6 - ICELAND
Slide 85: Icelandic Salmon
SalMar CMD 2023 ICELANDIC SALMON SPEAKER: BJØRN HEMBRE CEO ICELANDIC SALMON
Slide 86: This is Icelandic Salmon
THIS IS ICELANDIC SALMON Icelandic Salmon AS is listed on the Farming in seven Euronext Growth market in Oslo. Four smolt facilities, sites in three fjords The company is the sole owner and Current capacity All production parent company of Arnarlax ehf. of 7-8 million smolt, ASC** certified dependin
Slide 87: Where do we operate?
ICELANDIC SALMON WHERE DO WE OPERATE? Current operation Licence application All production ASC certified SUSTAINABILITY – IT’S IN OUR NATURE 87
Slide 88: Smolt production
ICELANDIC SALMON SMOLT PRODUCTION SMOLT FACILITIES ▪ Have today 3 facilities in operation, and a 4th under reconstruction ▪ Capacity og 7-8 mill smolts, depending on smolt size ▪ Have licences for 3.000 tonnes of MAB ▪ Have sufficient smolt capacity for existing licences in sea SMOLT STRATEGY ▪ Impl
Slide 89: Sea farming
ICELANDIC SALMON SEA FARMING SEA OPERATION OPERATION CENTER – FEEDING ▪ 23.700 tonnes of MAB, in 3 fjords. ▪ Arnarlax operates a high class feeding center in land at Bíldudalur. ▪ 8 sites — Where people are constantly monitoring and feeding the salmon — Split into 5 generation zones. ▪ All productio
Slide 90: Harvesting
ICELANDIC SALMON HARVESTING HARVEST PLANT ▪ Located in Bíldudalur with short distance to sea-water operations ▪ Capacity 30.000 tonnes/year ▪ BRCGS certified ▪ Use super-chill to extend shelf life SUSTAINABILITY – IT’S IN OUR NATURE 90
Slide 91: Sales
ICELANDIC SALMON SALES SALES TEAM ▪ Located in Reykjavik Where are our customers in 2022? ▪ Our internal sales team sell all of our salmon 2% ▪ Working close with premium customers in US and Europe ▪ Focus on Quality, Sustainability and Origin 22% 76% Asia Europe North America SUSTAINABILITY – IT’S
Slide 92: Shift to low-carbon footprint marine transport
92 SHIFT TO LOW-CARBON FOOTPRINT MARINE TRANSPORT STRATEGIC UPDATE Reykjavik 1 day +120 million people London 6-7 days Toronto Paris Boston New York Washington REDUCTION 95 % IN CO2 EMISSIONS SUSTAINABILITY – IT’S IN OUR NATURE 92
Slide 93: The next big region within salmon farming
ICELANDIC SALMON THE NEXT BIG REGION WITHIN SALMON FARMING A FRAMEWORK FOR FUTURE GROWTH MRI RAISED MAB TO 106,500 TONNES ▪ The Marine Research Institute (MRI) recently carried out an updated Risk Assessment IN 2020 — A figure of 106,500 tonnes of fertile salmon was set . 144.500 ▪ Total of 10 fjord
Slide 94: Future possibilities
ICELANDIC SALMON FUTURE POSSIBILITIES Boston Consulting Group Report Critical mass of Production ▪ The minister asked BCG to investigate and make a report on ▪ Most industries are dependent on a critical produced volume the possibilities of aquaculture in Iceland to obtain large scale effects (to be
Slide 95: Comparison with Faroe Islands
ICELANDIC SALMON COMPARISON WITH FAROE ISLAND ▪ Faroe Islands produced with only 56% of the coastline of West Fjords —89.000 tonnes in 2022 FAROE ISLANDS ▪ There are 3 companies operating in Faroe Island —Bakkafrost, Hiddenfjord and MOWI Faroe Islands ICELAND ▪ Export value of DKK 4,68 billion (2022
Slide 96: Outlook
OUTLOOK STRATEGIC STEPS Harvest volumes within existing licences ▪ 2023: 16.000 tonnes ▪ 26.000 tonnes within existing licences Measures for organic growth ▪ Bigger and more smolt of good quality ▪ Best operational practice ▪ 2 more sites in Arnarfjörður ▪ Bigger farming areas on existing sites Pote
Slide 97: Dual listing
DUAL LISTING STRATEGIC STEPS DUAL LISTING ON FIRST NORTH ▪ Group has engaged in advisory service agreement with Arion Bank, with the objective of preparing for listing of the Group’s shares on the First North stock exchange in Iceland. — Depository notes . — No new shares issued. ▪ Expected to be op
Slide 98: "Strandgata Iceland arnarlax.is Bildudalur (354) 100 arnarlax@arnarlax.is
"Strandgata 1 Iceland arnarlax.is 465 Bildudalur (354) 456 0100 arnarlax@arnarlax.is
Slide 99: Q&A
SalMar CMD 2023 Q&A
Slide 100: Scottish Sea Farms
SalMar CMD 2023 SCOTTISH SEA FARMS SPEAKER: JIM GALLAGHER MANAGING DIRECTOR SSF
Slide 101: Premium farmed salmon, grown with care
Premium farmed salmon, een grown with care Sea Farms Capital Markets Day presentation, September 2023 101
Slide 102: About Scottish Sea Farms
About Scottish Sea Farms Growing Scottish salmon for over 50 years GP sold to Norsk igang . Hydro Grow shetiand estate Erboll added New Orkney fr and wm acqustion tomarine Westeracte farm ’ Now Orkney far med Hydro Seafood GSP goes live ‘of MIM, then Hunda goss live No Catch in 2008 New Orkney farm
Slide 103: Our farming locations
About Scottish Sea Farms Our farming locations Three key farming regions SHETLAND ISLES ; (@ 24 marine farms £ 01 freshwater hatchery 57 marine farms @ 1 processing facility Mainland Orkney Shetland ? ORKNEY ISLANDS (@9 marine farms 3 freshwater hatcheries (2x RAS) Barcaldine 10mill Knock 1.5mill Gi
Slide 104: Annual harvest volumes
About Scottish Sea Farms Annual harvest volumes SOkt =—— 27AKt 26,0Kt 27-5kt zon 2012 2013 20 201520162017 % "20222025 act. act. act. act. act. . * act. Heat ’24 guidance given in @3’23 update 104
Slide 105: Supplying customers
About Scottish Sea Farms Supplying customers in over 30 countries . ad “yr i el ” a ad c.60% UK c.40% export Sole supplier, Far East aw since 2006 China : M &S Taiwan ) Japan we — FOOD — us : y 7 Also supplying France i other key UK retailers including WAITROSE SS . a PARTNERS Scottish Sea Farms 105
Slide 106: Farming challenges 2022 and 2023
About Scottish Sea Farms Farming challenges 2022 and 2023 Biological challenges arising from changing environment 2° Sk DR Prolonged periods Increases in seawater Unseasonably Oceanic of dry weather temperatures mild winters conditions Affecting oxygen, Encouraging plankton, Allowing water-borne Dri
Slide 107: Mitigation measures undertaken
About Scottish Sea Farms Mitigation measures undertaken Using the lessons learned to shape current and future practice Freshwater stage Marine stage Egg quality and survival Advancing work to strip eggs from broodstock known to have thrived at our farms Completing (@4 '23) new £2M incubation facilit
Slide 108: Farming for the future: smolt quality
About Scottish Sea Farms Farming for the future: smolt quality Building on our £58M investment in Barcaldine RAS Hatchery by: eQ: ss Improving egg CP.O quality, survival and °e Kee, security of supply Upgrade of Girlsta New incubation Investment in Scottish- Hatchery, Shetland unit, Barcaldine grown
Slide 109: Farming for the future: marine
About Scottish Sea Farms Farming for the future: marine Streamlining and consolidating in the best farming locations Q Here and now 39 inactive farms with 44kt consent Total 133kt cumulative MAB v Strategic approach Completed extensive hydrodynamic modelling Reconfiguring existing cumulative MAB int
Slide 110: Farming for the future: processing and packing
About Scottish Sea Farms Farming for the future: processing and packing .. Scalloway Two primary processing facilities at Lerwick and South Shian Back-up capacity at ‘Scalloway facility 7 Re-configuring South Shian, Mainland * 140t single shift capacity * 25% increase in gutting throughput + Upgrade
Slide 111: Putting sustainability at the heart of our work
About Scot! tish Sea Farms Putting sustainability at the heart of our work Key areas include: Reducing use of marine ingredients Diet now consists of just 23% marine materials vs 73% plant-based/others Reducing primary processing plastics 2.5M+ polystyrene boxes saved since 2017 Sourcing mains power
Slide 112: Benchmarking our performance
About Scottish Sea Farms Benchmarking our performance Accreditations and awards include: Accreditations First Scottish salmon farmer to gain and retain: INVESTORS IN PEC3PLE™ We invest in people Platinum INVESTORS IN PECSPLE™ We invest in wellbeing Gold i investors Yo INYOUNG Ny PEOPLE Since 2017 Si
Slide 113: The magic ingredient: our people
About Scottish Sea Farms The magic ingredient: our people Striving to be the employer of choice in our communities and sector eat ©, Competitive = A Regular package benchmarking U) Continual learning and development \ ws poss Community- Talent oriented 0 ie) pipeline Wellbeing Inclusive aware cultur
Slide 114: Video 7 - Scottish Sea Farms
VIDEO 7 - SCOTTISH SEA FARMS 114
Slide 115: Q&A
SalMar CMD 2023 Q&A
Slide 116: Break
SalMar CMD 2023 BREAK 10 MIN
Slide 117: Financials
SalMar CMD 2023 FINANCIALS SPEAKER: ULRIK STEINVIK CFO
Slide 118: Key enablers for continued value creation
Key enablers for continued value creation Profitable Operational Growth Efficiency Financial Shareholder Capacity Value Creation 118
Slide 119: A fundamental need for more sustainable proteins
A fundamental need for more sustainable proteins for the growing world population Global demand for salmon is increasing… …but supply growth is lagging the demand Market Size Demand 25.0 Supply Thousands 20.0 10% CAGR 15.0 10.0 5.0 0.0 2020 2030 2040 2050 119
Slide 120: Well positioned to utilize organic growth potential
SalMar is well positioned to utilize the organic growth potential in our value chain Harvesting & Smolt Farming Sales Processing Untapped Rigged with Self sufficient Strong access growth potential flexible harvesting with high quality to customers in optimal and processing smolt worldwide locations
Slide 121: Strong development during the last strategy period
Launch of last Development production cost strategy period SalMar with a strong SalMar Peers development during the last strategy period • Strenghtened position as a leader in the industry – Lower cost increase compared to peers Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
Slide 122: Achieved through strong strategic and operational focus
Achieved this through a strong strategic and operational focus We have believed in a …made strategic moves that … and we have built a strong concept… fit in… culture 122
Slide 123: Rigorous focus on performance throughout the organization
Rigorous focus on performance throughout the organization • Salmon farming is all about the details • SalMar operating a focused value chain to ensure optimal performance at each and every step – Strategic suppliers for key input factors • Focus is on the elements we can impact – Our employees are m
Slide 124: Recent cost inflation related to feed
Change in production cost - farming Recent cost inflation related to feed • Cost of raw materials in feed basket has been the main driver for recent increase in cost – Other cost elements increased due to general inflationary pressure • Continous monitoring of cost development – Systems in place to
Slide 125: Strong synergy potential with NRS, NTS and SalmoNor
Synergi realization as of August 2023 Strong synergy potential with NRS, NTS and SalmoNor confirmed and Realized Planned increased 328 62 96 % 844 69 % • Estimate of total synergies increased to NOK 844 million 454 – Increased 26% from previous target of NOK 671 million 71 % – Estimated total restru
Slide 126: Ongoing investments continuing, large projects on hold
Tjuin Smolt Facility largest single investment in 2023 Ongoing investments continuing – large industrial investments on hold • Expected investment in 2023 unchanged from previous guidance in February – Expect to invest NOK 1,6 billion in Norway in 2023 – Maintenance investments NOK 0,9 billion (~3,7
Slide 127: New financing in place ensuring financial flexibility
Overview facilities1 Available liquidity2 New financing in place ensuring financial flexibility for further growth Green Bond 21.1 NOK 3.5 bn 5.4 • Recently completed refinancing in SalMar ASA 15.7 Ter K 6 bn bn NO mL NOK CF 10 – NOK 16 billion unsecured credit facility R oan – NOK 3 billion in acco
Slide 128: Committed to maintain investment grade ranking
Net Interesting Bearing Debt (NIBD) SalMar committed to maintain Q4 2022 Q2 2023* investment grade ranking 19.1 16.2 NOK bn NOK bn • SalMar with BBB+ credit rating from NCR with stable outlook NIBD/EBITDA Q4 2022 Q2 2023* • Financial position in SalMar improved during 2023 3.5 2.2 – Sale of Frøy com
Slide 129: Cancellation of treasury shares
Cancellation of treasury shares • As of Q2 2023 SalMar has 13.7 million treasury shares • Financial position in SalMar improved during 2023 • The Board of SalMar propose to cancel 13.1 million treasury shares • Extraordinary general meeting to be held at a later point of time 129
Slide 130: Resource rent tax in Norway
Resource rent tax in Norway A new tax regime creates more awareness of internal value creation - Right tax to right place • Tax approved in May with a tax rate at 25% – SalMar strongly opposes both the proposed tax model and level Subject for – Significantly reduces the capacity for growth in the No
Slide 131: Strong track record of competitive shareholder return
Dividend Policy SalMar with a strong track record for providing our shareholders with a SalMar ASA aim to provide shareholders with a competitive return on invested capital. This return shall be achieved through a combination of competitive return share price increase and the payment of a dividend b
Slide 132: Share price, dividend payout and total shareholder return
SalMar with a strong track record for providing Share price development since listing in 2007 Resource tax announcement our shareholders with a 800 competitive return 700 600 500 400 300 200 Since 2007 100 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Dividen
Slide 133: Committed to pole position going forward
Profitable Operational SalMar is committed to still Growth Efficiency be in pole position going forward and be a frontrunner in the future development of the aquaculture industry Financial Shareholder Capacity Value Creation 133
Slide 134: Closing remarks
SalMar CMD 2023 CLOSING REMARKS SPEAKER: FRODE ARNTSEN CEO SALMAR
Slide 135: Regions with optimal conditions to perform
SalMar in regions with optimal Largest Salmon Producer along the coast of Norway from Møre Norway conditions to perform to the north, with the largest processing capacity North Atlantic production with global reach Scottish Sea Farms Icelandic Salmon SalMar Central Norway Pioneered and leads the Sal
Slide 136: Well equipped for further sustainable growth
SalMar well equipped for further sustainable growth With dedicated, passionate and competent employees with a Passion for Salmon Untapped Rigged with OFFSHORE growth potential flexible harvesting ICELAND in optimal and processing locations facilities Organic growth potential NORWAY Self sufficient S
Slide 137: They who often score goals, score goals often
“ They who often score goals, ” score goals often. - Legendary Norwegian football coach Nils Arne Eggen NORWAY OFFSHORE ICELAND UK SalMar from 11 people in 1991 to the worlds 2nd largest salmon producer Photo: Gorm Kallestad / NTB
Slide 138: Q&A
SalMar CMD 2023 Q&A
Slide 139: Next steps on the agenda
Smolt Facility SalMar CMD 2023 Next steps on the agenda Coastal Farming Site Småvær Dåfjord Finnvik Offshore Farming Site D AY 1 Harvesting & processing Fellesholmen facility Arctic Offshore Farming • 19:45: Dinner Visitor Centre Boat route on site visit Ytre Tromsø D AY 2 Baltsfjord Brensholmen Træ
Slide 140: Thank you for your attention
SALMAR CMD 2023 THANK YOU FOR YOUR ATTENTION