Slide 1: Q1 2024 presentation
Q1 2024 presentation CEO: Ivan Vindheim CFO: Kristian Ellingsen 8 May 2024
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 Q1 2024
Highlights Q1 2024 • Operating revenues of EUR 1.33 billion. Operational EBIT of EUR 201 million • Challenging quarter for Farming Norway due to winter sores and downgrades, significantly compounded by string jellyfish and an unusually cold winter • Strong biological performance in our six farming c
Slide 4: Key financials
Key financials Mowi Group - main figures Q1 2024 Q1 2023 2023 Unaudited EUR million Operational revenue and other income 1,331.3 -2% 1,362.4 5,513.4 Operational EBIT 1) 200.5 -38% 321.8 1,027.5 Operational EBITDA 1) 248.5 367.4 1,221.0 Net interest-bearing debt (NIBD)1) 2) 1,824.6 1,641.2 1,790.3 1)
Slide 5: Salmon prices – weekly reference prices
Salmon prices – weekly reference prices • Two-way division of European and American prices continued in the quarter • Record high European spot prices on strong demand and low supply • Prices in Americas on the soft side partly due to temporarily lower demand Americas Europe Chilean D-trim lbs, Cana
Slide 6: Price achievement and contract share
Price achievement and contract share • Price achievement 120% 106% 102% 11% lower than 99% 100% 96% 100% 93% reference price, 91% 83% mainly due to quality 80% downgrading in Norway 60% 40% 20% 0% Norwegian Scottish Chilean Canadian Q1 2023 Q1 2024 Norwegian Scottish Chilean Canadian Q1-24 Contract
Slide 7: Norway
Norway SALMON OF NORWEGIAN ORIGIN Operational Operational EBITEBIT Salmon Salmon of of NorwegianOrigin Norwegian Origin EUR million Q1 2024 Q1 2023 Q1 Q120232024 vs Q1 vs Q1 2023 2024 Operational EBIT 138.0 244.7 300 EBIT 171.2 267.1 250 Harv est v olume (GWT) 54 711 65 627 200 Operational EBIT per
Slide 8: Norway: Operational EBIT/kg per region
Norway: Operational EBIT/kg per region 5.0 4.48 • Region West stands out on good biology 4.5 and less impacted by winter sores and 4.0 3.72 3.93 3.73 downgrades 3.5 3.20 EUR per kg 3.0 2.53 2.52 2.5 2.35 2.17 2.0 1.91 1.5 1.0 0.5 0.0 South West Mid North Total Q1 2023 Q1 2024 Page 8 Note: Operationa
Slide 9: Norway: Sales contract portfolio
Norway: Sales contract portfolio 25,000 20,000 Contracted volumes (GWT) 15,000 10,000 5,000 0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Realised contract volumes Contracted volumes (including prospects) • 32% contract share for the first quarter • Maintained contract strategy for 2024 Page 9 Note: Mow
Slide 10: Scotland
Scotland SALMON OF SCOTTISH ORIGIN Operational EBIT Operational EBITSalmon Salmonof of Scottish Origin Scottish Origin EUR million Q1 2024 Q1 2023 Q1Q12023 2024vsvsQ1 Q12024 2023 Operational EBIT 31.1 26.6 40 EBIT 43.8 39.1 30 Harv est v olume (GWT) 14 205 11 373 Operational EBIT per kg (EUR) 2.19 2
Slide 11: Chile
Chile SALMON OF CHILEAN ORIGIN Operational EBIT Salmon of Chilean Origin Operational EBIT Salmon of Chilean Origin EUR million Q1 2024 Q1 2023 Q1 2023 vs Q1 2024 Q1 2024 vs Q1 2023 Operational EBIT 11.9 15.9 25 EBIT 24.8 29.1 20 Harv est v olume (GWT) 12 546 10 588 15 Operational EBIT per kg (EUR) 0
Slide 12: Canada
Canada SALMON OF CANADIAN ORIGIN Operational EBIT Salmon of Canadian Origin Operational EBIT Salmon of Canadian Origin EUR million Q1 2024 Q1 2023 Q1Q12023 vs Q1 2024 2024 vs Q1 2023 Operational EBIT -2.1 16.4 20 EBIT -18.6 27.7 15 Harv est v olume (GWT) 8 796 7 579 10 Operational EBIT per kg (EUR)
Slide 13: Ireland and Faroes
Ireland and Faroes SALMON OF IRISH ORIGIN SALMON OF FAROESE ORIGIN EUR million Q1 2024 Q1 2023 EUR million Q1 2024 Q1 2023 Operational EBIT 4.2 1.3 8.9 Operational EBIT 9.2 7.0 EBIT 9.8 3.2 EBIT 8.7 5.3 Harv est v olume (GWT) 1 078 781 Harv est v olume (GWT) 2 627 2 130 Operational EBIT per kg (EUR)
Slide 14: Iceland (Arctic Fish)
Iceland (Arctic Fish) SALMON OF ICELANDIC ORIGIN EUR million Q1 2024 Q1 2023 Operational EBIT 9.6 10.3 EBIT 9.9 5.7 Harv est v olume (GWT) 2 531 4 866 Operational EBIT per kg (EUR) 3.79 2.12 - of which Feed -0.02 0.00 - of which Markets -0.03 0.00 - of which Consumer Products 0.01 0.00 Price achieve
Slide 15: Consumer Products
Consumer Products CONSUMER PRODUCTS EUR million Q1 2024 Q1 2023 Operating rev enues 896.5 854.5 Operational EBIT 24.4 37.2 Operational EBI T % 2.7% 4.3% Operational EBI T % VAP only 3.0% 4.8% EBIT 23.1 37.0 Volume sold (tonnes prod. weight) 55 335 53 184 • Good operational performance • Earnings red
Slide 16: Feed
Norway Feed FEED EUR million Q1 2024 Q1 2023 Operating rev enues 197.4 196.0 Operational EBITDA 5.7 6.1 Operational EBIT 1.7 2.2 Operational EBI TDA % 2.9% 3.1% Operational EBI T % 0.9% 1.1% EBIT 1.7 2.2 Feed sold v olume 97 918 93 994 Feed produced v olume 115 494 108 577 Scotland • Seasonally reco
Slide 17: Financials, Markets and Harvest volumes
Q1 2024 presentation Financials, Markets and Harvest volumes
Slide 18: Profit and Loss
Profit and Loss Mowi Group Q1 2024 Q1 2023 2023 EUR million Operational revenue and other income 1,331.3 -2% 1,362.4 5,513.4 • Positive net fair value adjustment on Operational EBIT 1) 200.5 -38% 321.8 1,027.5 higher salmon prices Change in unrealized internal margin 7.4 3.4 -0.9 Gain/loss from deri
Slide 19: Financial position
Financial position Mowi Group EUR million 31 03 2024 31 03 2023 31 12 2023 • Strong financial position Non-current assets 4 340.5 4 054.8 4 259.5 Current assets 3 710.7 3 414.7 3 979.5 Total assets 8 051.4 7 469.7 8 239.0 Equity 3 857.7 3 829.9 3 754.7 Non-current liabilities 2 964.1 2 379.1 3 219.3
Slide 20: Cash Flow and Net Interest Bearing Debt
Cash Flow and Net Interest Bearing Debt Mowi Group Q1 2024 Q1 2023 2023 EUR million NIBD beginning of period* -1 790.3 -1 758.9 -1 758.9 • Q1 earnings partly offset Operational EBITDA* 248.5 367.4 1,221.1 by working capital tie-up Change in working capital -19.9 15.8 -173.5 and tax payments Taxes pa
Slide 21: Prices for marine ingredients in feed down ~20% from peak
Prices for marine ingredients in feed down ~20% from peak levels • Cost-to-stock in Mowi Farming down in Q1-24 vs Anchovy catch in Peru last 10 years Q4-23 driven by reduced feed prices of ~5% 2.0 3.9 3.1 3.2 5.5 3.3 4.8 4.7 4.5 1.5 2.7 3.7 6.0 • About 20% of total farming cost-in-box cost is 5.0 ma
Slide 22: 2024 Cash Flow Guidance unchanged from Q4-23
2024 Cash Flow Guidance unchanged from Q4-23 • Working capital build-up of EUR 140m due to biomass growth and growth through the value chain • Capital expenditure EUR ~300m (share higher in H1 vs H2 due to phasing of projects) – Freshwater investments EUR ~35m – Seawater investments EUR ~45m – Proce
Slide 23: Successful issuance of green bonds of EUR 298 million
Successful issuance of green bonds of EUR 298 million • Mowi has the lowest cost of bond financing in the BBB+ Investment Grade Credit Rating salmon industry • Senior unsecured green bonds: BBB+ Long-term / – EUR 213 million, 5-year tenor, coupon 3M EURIBOR + 1.19% Unsecured rating (swapped to EUR f
Slide 24: Overview financing
Overview financing • Bank Facility: EUR 2,000m sustainability-linked facility Share of sustainable funding – 5 years facility (Maturity: September 2026) – Covenant: 35% equity ratio (adjusted for IFRS 16 leasing effects) – Accordion option: EUR 100m – Lenders: DNB, Nordea, ABN Amro, Rabobank, Danske
Slide 25: Supply development
Supply development Estimated volumes Compared to Q1 2023 Est. volumes Suppliers Q1 2024 Q1 2023 Volume % Q4 2023 Norway 270,800 286,200 -15,400 -5.4% 390,600 Scotland 33,400 32,300 1,100 3.4% 25,300 Faroe Islands 21,200 17,200 4,000 23.3% 25,300 Other Europe 13,300 14,000 -700 -5.0% 17,000 Total Eur
Slide 26: Global volume development
Global volume development Estimated volumes Compared to Q1 2023 Est. volumes 12 month comparison Markets Q1 2024 Q1 2023 Volume % Q4 2023 LTM PTM % EU+UK 228,900 220,400 8,500 3.9% 319,600 1,092,700 1,108,600 -1.4% Russia 12,000 13,500 -1,500 -11.1% 16,200 59,700 51,900 15.0% Other Europe 21,700 24,
Slide 27: Development in reference prices
Development in reference prices Q1 2024 Change vs Q1 2024 Change vs Market Q1 2023 EUR Q1 2023 • Two-way division of European and American prices Norway (1) EUR 9.60 0.6% EUR 9.60 0.6% continued in the quarter Chile (2) USD 6.48 -4.9% EUR 5.97 -6.0% • Record-high European spot prices on strong deman
Slide 28: Industry supply growth 2024e
Industry supply growth 2024e Low supply growth of 1% expected in 2024 2021 2022 2023 2024 2024E GWT (1,000) Low Y/Y grow th High Y/Y grow th • Norw ay 1,380 1,365 1,331 1,343 1,328 0% 1,358 2% UK 179 145 137 151 147 8% 155 14% Faroe Islands 95 90 80 93 90 12% 96 20% Other Europe* 52 53 48 57 55 15%
Slide 29: Mowi volume guidance all-time high – unchanged since Q4-23
Mowi volume guidance all-time high – unchanged since Q4-23 Atlantic salmon 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 2024 GWT (1,000) Actual Actual Actual Actual Actual Actual Actual Guidance Guidance Norway 293.7 65.6 61.5 86.2 81.2 294.5 54.7 59.5 305.0 Scotland 48.4 11.4 18.3 14.7
Slide 30: Harvest volumes GWT (1,000)
Volume growth of 125,000 GWT over 6 years to all-time high 500,000 GWT for 2024E (CAGR 4.9%) 550 • 2024e a continuation of our growth trajectory – Equivalent to 4.9% CAGR vs industry at 2.7% since 500 2018 500 Harvest volumes GWT (1,000) 475 – In practice organic growth 450 400 375 350 300 2018 2023
Slide 31: Postsmolt to give further organic growth and improve biological metrics
Postsmolt to give further organic growth and improve biological metrics ~40 million postsmolt by end of 2024 (25% coverage / Norway 50% excl. Region North) Norway - Fjæra commissioned Norway - Nordheim commissioning Norway - Haukå commissioning Q4-24 Norway - Semi-Closed Containment Syst. Scotland –
Slide 32: Outlook
Outlook • Biology improved for Mowi Norway in Q2, and prospects of lower feed prices – Expecting a lower cost level for Mowi Farming in H2 – However, Q2 to be impacted by seasonally low volumes and knock-on effects of winter sores in Norway • Continue to see strong demand and strong prices for Europ
Slide 33: Save the Date: 25-26 September 2024 Capital Markets Day
Save the Date: 25-26 September 2024 Capital Markets Day in mid Norway • Strategic and operational plans for Feed plant: 410,000 tonnes Smolt & postsmolt: 6,200 tonnes the coming years • Day 1: Early morning start in Kristiansund – site-visits of value chain – Feed plant Smart Farming – Smolt & posts
Slide 34: Appendix
Q1 2024 presentation Appendix
Slide 35: Nova Sea
Nova Sea Harv est v olume (GWT) EBI T per kg (EUR) NI BD EURm Ownership % 2022 2023 Q1 2023 Q1 2024 2022 2023 Q1 2023 Q1 2024 Q1 2024 Nova Sea 48.9 % 44 027 39 985 8 647 9 834 2.90 3.01 3.25 3.20 -40.3 • Leading integrated salmon producer in Northern Norway − 33.33 wholly owned licenses − 4 partly o
Slide 36: 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 animal protein alternative Mowi ranked as the most sustainable animal protein producer in the world (amongst the largest 60 animal protein producers in
Slide 37: 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 38: Contract coverage and sales contract policy
Contract coverage and sales contract policy SALES CONTRACT POLICY Min hedging rate Max hedging rate (1) • Q2 2024 contract shares (% of guided volume): Norway (2) 0% 50 % Scotland 0% 75 % − Norway 30% Chile (2) 0% 50 % − Scotland 41% Canada 0% 30 % Ireland 0% 100 % − Chile 36% Faroes 0% 30 % − Canad
Slide 39: Resource rent tax in Norway with effect from 2023
Resource rent tax in Norway with effect from 2023 22% 22% 22% 22% + 25% = 47% 22% 22% 22% Breeding Smolt Feed Sales & Seawater Harvesting Processing Marketing • Estimate for effective resource rent tax rate of about 10% for Mowi Norway across the value- chain – Earnings in the seawater phase subject
Slide 40: Quarterly segment overview
Quarterly segment overview SOURCES OF ORIGIN QTD EUR million Norway Scotland Chile Canada Ireland Faroes Iceland Other 1) Group OPERATIONAL EBIT FARMING 67.7 27.1 6.3 -3.7 3.8 8.8 9.7 0.0 119.7 SALES AND MARKETING Markets 51.4 2.1 1.4 1.4 0.5 0.3 -0.1 0.0 57.1 Consumer Products 16.4 2.5 4.2 0.1 0.1
Slide 41: Development in harvest volumes
Development in harvest volumes GWT 2019 2020 2021 2022 2023 2024E (1,000) Total Total Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2E Total Norway 236.9 262.0 273.2 59.4 59.8 87.4 87.1 293.7 65.6 61.5 86.2 81.2 294.5 54.7 59.5 305.0 Scotland 65.4 52.7 64.4 10.5 13.0 14.5 10.4 48.4 11.4 18.3 14.7 10
Slide 42: Cash flow guidance and historic developments
Cash flow guidance and historic developments Net capital expenditure Net working capital 450 600 Maintenance level 400 500 350 300 400 250 EUR million EUR million 200 300 150 200 100 50 100 0 0 2019 2020 2021 2022 2023 2024E 2019 2020 2021 2022 2023 2024E Financial commitments and cost of debt (*) 1
Slide 43: Thank you
® MQW! =) oO > ~ Cc \e) <= _