Slide 1: Q3 2024 Presentation
18 NOVEMBER 2024 Q3 2024 Presentation CEO FRODE ARNTSEN CFO ULRIK STEINVIK
Slide 2: Agenda
Q 3 2 0 2 4 P R E S E N TAT I O N Agenda Highlights Q3 2024 Operational Update Financial Update Strategic Update Outlook 2
Slide 3: Highlights Q3 2024
Highlights Q3 2024 Harvest volume (1,000 tons gw) Group Norway1 • Farming segments in Norway affected by biological challenges 60.3 Δ QoQ Δ YoY 56.4 Δ QoQ Δ YoY • Sales & Industry with strong results due to high contract share +15.4 -17.8 +12.3 -17.6 • SalMar Aker Ocean with harvest of remaining vol
Slide 4: Operational Update
Q3 2024 Operational Update Farming site Humulen in Central Norway
Slide 5: Farming Central Norway Key Results
Farming Central Norway Key Results Q3 2024 Q3 2023 YTD 2024 YTD 2023 Operating income (NOKm) 2,732 3,817 8,174 8,996 • Results affected by challenges Operational EBIT (NOKm) 483 1,202 2,780 3,419 – Record-high sea temperatures affecting growth – High sea lice pressure in the beginning of the period
Slide 6: Farming Northern Norway Key Results
Farming Northern Norway Key Results Q3 2024 Q3 2023 YTD 2024 YTD 2023 Operating income (NOKm) 1,246 2,033 4,148 5,458 • Improved price achievement compared to previous quarters Operational EBIT (NOKm) 190 868 1,174 2,562 • Results affected by biological challenges – Ripple effects from string jellyf
Slide 7: Sales & Industry Key Results
Sales & Industry Key Results Q3 2024 Q3 2023 YTD 2024 YTD 2023 Operating income (NOKm) 6,150 7,236 18,459 19,477 • Strong financial results with strong capacity utilization Operational EBIT (NOKm) 464 236 337 88 • Flexible operational set-up optimizing handling of Operational EBIT-margin (%) 7.5 % 3
Slide 8: SalMar Aker Ocean Key Results
SalMar Aker Ocean Key Results Q3 2024 Q3 2023 YTD 2024 YTD 2023 Operating income (NOKm) 146 0 574 0 • Remaining volume in FY 24 harvested in Q3 24 Operational EBIT (NOKm) -7 -8 -65 -63 – Volume produced in cooperation with Farming Central Norway Harvest volume (tgw) 2.1 6.9 • Both semi-offshore unit
Slide 9: Icelandic Salmon Key Results
Icelandic Salmon Key Results Q3 2024 Q3 2023 YTD 2024 YTD 2023 Operating income (NOKm) 169 476 596 1,267 • Low harvest volume to optimize MAB utilization Operational EBIT (NOKm) -35 35 -84 204 • Results affected by low volume and high cost • Stable biology in sea during Q3 Harvest volume (tgw) 1.8 4
Slide 10: Scottish Sea Farms Key Results
Scottish Sea Farms1 Key Results Q3 2024 Q3 2023 YTD 2024 YTD 2023 Operating income (NOKm) 1,176 867 3,438 2,065 • Continued strong performance Operational EBIT (NOKm) 90 -121 462 -257 • Increased harvest volumes with good harvest weights Harvest volume (tgw) 11.9 8.8 31.4 20.3 • Strong biology in th
Slide 11: Financial Update
Q3 2024 Financial Update Farming site Setevika in Central Norway
Slide 12: Group Profit & Loss
Group operational EBIT - QoQ - 337 Group Profit & Loss • Decrease in operational EBIT QoQ driven by lower price achievement Norway Comments related to Q3 2024 Group P&L NOK million Q3 2024 Q2 2024 ΔQoQ% YTD 2024 YTD 2023 ΔYoY% • Production tax increased due to higher volume Operating revenues 6,158
Slide 13: Group Balance Sheet
Group Balance Sheet Assets Equity ratio • Total assets increased following purchase of MAB and increase of biomass • Higher standing biomass QoQ and lower YoY – Higher number of fish in sea both QoQ and YoY • Equity ratio 35% following purchase of non- controlling interest Equity & liabilities NIBD
Slide 14: Net interest bearing debt
Net interest bearing debt Change in NIBD incl. leasing - QoQ • Cash flow from operations impacted by +1,073 working capital • Net investments NOK 1,785 million – Net other investments* NOK 1,362 million – Capex NOK 423 million – Farming NOK 282 million – Smolt NOK 34 million – Sales & Industry NOK 6
Slide 15: Strengthening our presence in Norway and optimizing structure
Strengthening our presence in Norway and optimizing structure Aquisition of controlling interest in Knutshaugfisk • Operating in PO6 in Central Norway (3,464 MAB tonnes / 4 farming sites) • Transaction date 1st of January 2025 - dependent on regulatory approval • Settlement 80% SalMar shares / 20% c
Slide 16: Large cost savings identified in the value chain
Large cost savings identified in the value chain Cost savings in the value chain • Focus on optimizing the entire value chain after Efficiency synergy realization from NTS, NRS and SalmoNor was finalized in 2023 • Identified yearly cost savings NOK 1.2 billion • Savings achieved through: Operational
Slide 17: Strategic Update
Q3 2024 Strategic Update
Slide 18: SalMar continuously adapts to farming environments
SalMar continuously adapts to farming environments String jellyfish Negatively affecting This slide contains the following visuals: Nord-Norge ,textbox ,Midt-Norge ,slicer ,slicer ,slicer ,slicer ,textbox ,image. Please refer to the notes on this slide for details • Superior share SalMar adapts to E
Slide 19: Strengthening value chain to ensure farming on the terms of the salmon
Strengthening value chain to ensure farming on the terms of the salmon Harvesting & Broodstock Smolt On-Growing Processing Genetics Smolt Feed & Production technology Harvesting production Nutrition & VAP Semi- Breeding Semi- Closed Traditional Submerged offshore / programs closed Vaccines Feed Offs
Slide 20: Further growth potential in all regions
Harvest volume Further growth potential in ‘000 tons gw +26% all regions 2025E: 254,000 tons NORWAY1 Δ2024: +37,000 tons / +17 % Unutilized potential starting to materialize 2025E: 9,000 tons OFFSHORE2 Δ2024: +2,100 tons / +31 % Ramping up volume to harness potential 2025E: 15,000 tons ICELAND3 Δ202
Slide 21: Outlook
Q3 2024 Outlook Children visiting our visitor center in Molde, Central Norway
Slide 22: Outlook
Outlook Guiding Q4 2024 FY 2024 FY 2025 • Expect limited global supply growth in 2024 Δ Cost Contract Volume Contract Volume QoQ1 share3 share3 Same Norway ~28% 217,000 ~36% 254,000 level • Expect low global supply growth in 2025 Central Same 135,000 154,000 – Continued good demand for sustainable p
Slide 23: Thank you for your attention
Thank you for your attention Passion for Salmon For more information, please visit www.salmar.no FINANCIAL CALENDAR: Q4 2024 presentation – 18 February 2025 – Oslo Annual Report 2024 – 25 April 2025 Q1 2025 presentation – 20 May 2025 – Oslo Annual General Meeting – 18 June 2025 Q2 2025 presentation
Slide 24: 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