Slide 1: Q3 2021 presentation
Q3 2021 presentation CEO: Ivan Vindheim CFO: Kristian Ellingsen 10 November 2021
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
Highlights • Record high revenues for a third quarter • Q3 operational EBIT of EUR 131 million in line with trading update • Strong demand and seasonally high volumes – Significantly improved spot prices YoY • Blended Farming cost of EUR 4.59/kg negatively impacted by environmental incidents in Cana
Slide 4: Key financials
Key financials Mowi Group - main figures Q3 2021 Q3 2020 YTD Q3 2021 YTD Q3 2020 2020 Unaudited EUR million Operational revenue and other income 1 034.9 8 % 958.2 3 057.6 2 753.7 3 761.4 Operational EBITDA 1) 172.5 121.5 502.0 411.0 504.6 Operational EBIT 1) 130.5 62 % 80.4 376.8 288.3 337.7 EBIT 44
Slide 5: Salmon prices – weekly reference prices
Salmon prices – weekly reference prices • Prices in Q3 2021 up by 19% YoY in Europe and 55% in North America 10 7 9 6 8 USD per lbs (Miami and Seattle) 7 5 6 EUR per kg (Oslo) 4 5 3 4 3 2 2 1 1 0 0 2016 2017 2018 2019 2020 2021 Ref. price Norway EUR (NASDAQ average superior Oslo, GWT/kg) Ref. price
Slide 6: Price achievement, contract & superior share
Price achievement (1), contract & superior share 140 % 127 % 125 % 121 % 120 % 105 % 102 % 98 % 95 % 96 % 100 % 80 % 60 % 40 % 20 % 0% Norwegian Scottish Chilean Canadian Q3 2020 Q3 2021 Norwegian Scottish Chilean Canadian Q3-21 Contract share 22 % 46 % 54 % 8% Superior share 95 % 96 % 91 % 85 % 1)
Slide 7: Operational EBIT comparison
Operational EBIT comparison 180 160 61.5 -8.7 140 0.3 -0.8 130.5 • Farming effect: 120 – Price: EUR 114m EUR million 100 – Cost: EUR -42m 80.4 -2.2 80 – Volume: EUR -10m 60 40 20 0 Op EBIT Feed Farming Markets Consumer Other Op EBIT Q3 2020 Products Q3 2021 Page 7
Slide 8: Norway
Norway SALMON OF NORWEGIAN ORIGIN Operational EBITEBIT Operational Salmon of Norwegian Salmon Origin of Norwegian Origin EUR million Q3 2021 Q3 2020 Q3 Q3 2020 vs Q3 2021 2021 vs Q3 2020 Operational EBIT 98.4 66.6 120 EBIT 92.3 87.7 100 Harv est v olume (GWT) 71 024 76 453 80 Operational EBIT per kg
Slide 9: Norway: Operational EBIT/kg per region
Norway: Operational EBIT/kg per region 2.5 1.94 2.0 1.39 EUR per kg 1.5 1.10 1.05 0.95 0.87 1.0 0.72 0.5 0.19 0.0 South Mid North Total Q3 2020 Q3 2021 • Region North: Very low cost. Good biological performance • Region Mid: Costs slightly up and stable volumes – New organisational structure in plac
Slide 10: Norway: Sales contract portfolio
Norway: Sales contract portfolio 25 000 20 000 Contracted volumes (GWT) 15 000 10 000 5 000 0 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Realised contract volumes Contracted volumes (including prospects) • No material changes for 2021. For 2022 negotiations are ongoing Page 10 Note: Mowi Norway
Slide 11: Scotland
Scotland SALMON OF SCOTTISH ORIGIN Operational EBIT Operational Salmon EBIT Salmonofof Scottish ScottishOrigin Origin EUR million Q3 2021 Q3 2020 Q3Q32020 vs vs 2021 Q3Q32021 2020 Operational EBIT 13.4 5.7 20 EBIT -6.3 -0.7 15 Harv est v olume (GWT) 14 968 16 114 Operational EBIT per kg (EUR) 0.90 0
Slide 12: Chile
Chile SALMON OF CHILEAN ORIGIN Operational Operational EBIT EBIT Salmon Salmon of Chilean of Chilean Origin Origin Q3 2021 vs Q3 2020 vs Q3 2021Q3 2020 EUR million Q3 2021 Q3 2020 30 Operational EBIT 13.9 9.2 25 EBIT 1.2 14.9 Harv est v olume (GWT) 14 945 16 544 20 Operational EBIT per kg (EUR) 0.93
Slide 13: Canada
Canada SALMON OF CANADIAN ORIGIN Operational EBITEBIT Operational Salmon of Canadian Salmon Origin of Canadian Origin EUR million Q3 2021 Q3 2020 Q3 Q3 2020 vs Q3 2021 2021 vs Q3 2020 Operational EBIT -0.1 -6.8 15 EBIT -39.1 26.0 10 Harv est v olume (GWT) 11 065 12 054 5 Operational EBIT per kg (EUR
Slide 14: Ireland and Faroes
Ireland and Faroes SALMON OF IRISH ORIGIN SALMON OF FAROESE ORIGIN EUR million Q3 2021 Q3 2020 EUR million Q3 2021 Q3 2020 Operational EBIT 4.1 5.2 Operational EBIT 2.5 2.3 EBIT 3.4 -3.2 EBIT 2.1 2.6 Harv est v olume (GWT) 2 215 2 764 Harv est v olume (GWT) 2 899 1 844 Operational EBIT per kg (EUR)
Slide 15: Consumer Products
Consumer Products CONSUMER PRODUCTS EUR million Q3 2021 Q3 2020 • Earnings best ever for a Q3 Operating rev enues 674.4 648.1 – Increased salmon prices offset by higher sales Operational EBIT 21.5 21.2 prices Operational EBI T % 3.2% 3.3% Operational EBI T % VAP only 3.9% 4.4% – Improved operations
Slide 16: Feed
Norway Feed FEED EUR million Q3 2021 Q3 2020 Operating rev enues 217.0 220.4 Operational EBIT 10.1 12.4 Operational EBI T % 4.7% 5.6% EBIT 10.1 12.2 Feed sold v olume 156 361 171 319 Feed produced v olume 136 867 143 273 • Third quarter is high season for feed with Scotland high feed production • Go
Slide 17: Financials, Markets and Harvest volumes
Q3 2021 presentation Financials, Markets and Harvest volumes
Slide 18: Profit and Loss
Profit and Loss Mowi Group Q3 2021 Q3 2020 YTD Q3 2021 YTD Q3 2020 2020 EUR million Operational revenue and other income 1 034.9 8 % 958.2 3 057.6 2 753.9 3 761.4 • Negative net fair value Operational EBIT 1) 130.5 62 % 80.4 376.8 288.3 337.7 adjustment of biomass of EUR Change in unrealized interna
Slide 19: Financial position
Financial position Mowi Group 30.09.2021 30.09.2020 31.12.2020 EUR million Non-current assets 3 403.0 3 369.9 3 337.3 Current assets 2 457.3 2 410.1 2 448.7 Assets held for sale 0.0 0.0 60.0 Total assets 5 860.3 5 779.9 5 846.1 Equity 3 053.5 2 721.9 2 764.1 Non-current liabilities 2 006.9 2 327.1 2
Slide 20: Cash Flow and Net Interest Bearing Debt
Cash Flow and Net Interest Bearing Debt Mowi Group Q3 2021 Q3 2020 YTD Q3 2021 YTD Q3 2020 2020 EUR million NIBD beginning of period* -1 151.5 -1 379.7 -1 458.4 -1 337.2 -1 337.2 • Seasonal tie-up of Operational EBITDA* 172.5 121.5 502.0 411.0 504.6 working capital mainly Change in working capital -
Slide 21: 2021 Cash Flow Guidance
2021 Cash Flow Guidance • Working capital build-up EUR ~80m (reduced from EUR 110m) – Support further organic growth • Capital expenditures EUR ~265m • Interest paid EUR ~45m (ex IFRS 16 effects) • Taxes paid EUR ~50m (reduced from EUR 60m) • Quarterly dividend of NOK 1.40 per share (NOK 0.93 ordina
Slide 22: Overview financing
Overview financing • Bank Facility: EUR 1,800m sustainability-linked facility Share of sustainable funding – Covenant: 35% equity ratio (adjusted for IFRS 16 leasing effects) – Accordion option: EUR 300m – Lenders: DNB, Nordea, ABN Amro, Rabobank, Danske Bank, SEB and Crédit Agricole • Senior unsecu
Slide 23: Mowi ranked #1 on sustainability amongst food producers
Mowi ranked #1 on sustainability amongst food producers Good progress on reducing GHG emissions YTD 2021 (FY 2020) and ambitious long-term targets Scope 1 & 2 GHG emissions Scope 1 & 2 & 3 GHG emissions -32% -35% -72% 300 2 500 Tonnes (1,000) Tonnes (1,000) 2 000 200 1 500 1 000 100 500 0 0 2020 202
Slide 24: 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 farmed animal protein alternative Mowi ranked as the most sustainable animal protein producer in the world (amongst the 1st largest 60 animal protein p
Slide 25: Supply development
Supply development Estimated volumes Compared to Q3 2020 Est. volumes Suppliers Q3 2021 Q3 2020 Volume % Q2 2021 Norway 371 400 322 500 48 900 15.2% 287 500 Scotland 49 200 49 400 -200 -0.4% 53 000 Faroe Islands 21 300 16 000 5 300 33.1% 23 200 Other Europe 11 200 10 100 1 100 10.9% 12 200 Total Eur
Slide 26: Global volume development
Global volume development Estimated volumes Compared to Q3 2020 Est. volumes 12 month comparison Markets Q3 2021 Q3 2020 Volume % Q2 2021 LTM PTM % EU+UK 310 800 295 800 15 000 5.1% 250 500 1 144 300 1 036 900 10.4% Russia 17 000 21 400 -4 400 -20.6% 17 600 85 800 77 000 11.4% Other Europe 29 000 26
Slide 27: Global volume development
Global volume development Q3 2021 Change vs Q3 2021 Change vs Market Q3 2020 EUR Q3 2020 Norway (1) EUR 5.30 19.3% EUR 5.30 19.3% Chile (2) USD 5.96 54.0% EUR 5.06 52.7% Chile, GWT (3) USD 6.84 81.9% EUR 5.80 80.4% Notes: (1) NASDAQ average superior GWE/kg (gutted weight equivalent) North America We
Slide 28: Industry supply growth 2021e and 2022e
Industry supply growth 2021e and 2022e 2018 2019 2020 2021 Estim ate 2021 Estim ate 2022 GWT (1,000) Estim ate Low Y/Y grow th High Y/Y grow th Low Y/Y grow th High Y/Y grow th Norw ay 1 128 1 200 1 232 1 357 1 351 10 % 1 363 11 % 1 400 3% 1 440 6% UK 137 171 160 188 186 16 % 190 19 % 180 -4 % 190 1
Slide 29: Mowi volume guidance
Mowi volume guidance Atlantic salmon 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 2022 GWT (1,000) Actual Actual Actual Actual Actual Actual Actual Actual Actual Guidance Guidance Guidance Norway 236.9 50.5 56.6 76.5 78.5 262.0 75.0 56.1 71.0 62.9 265.0 272.0 Scotla
Slide 30: Outlook
Outlook • We believe the salmon market will continue on its road to full recovery – Retail demand to remain strong and foodservice segment to continue to improve • Global supply growth projected to be 0% for the next 12-months • Mowi well positioned to capitalise on the recovery – Contract levels lo
Slide 31: Appendix
Q3 2021 presentation Appendix
Slide 32: Nova Sea
Nova Sea Harv est v olume (GWT) EBI T per kg (EUR) NI BD EURm Ownership % 2019 2020 Q3 2020 Q3 2021 2019 2020 Q3 2020 Q3 2021 Q3 2021 Nova Sea 48.7 % 45 962 42 584 11 465 11 944 2.30 1.60 1.42 1.77 -65.6 • Leading integrated salmon producer in Northern Norway − 33.33 wholly owned licenses − 4 partly
Slide 33: 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 34: Contract coverage and sales contract policy
Contract coverage and sales contract policy SALES CONTRACT POLICY Min hedging rate Max hedging rate (1) • Q4 2021 contract shares (% of guided volume): Norway (2) 0% 50 % Scotland 0% 75 % − Norway 31% Chile (2) 0% 50 % − Scotland 67% Canada 0% 30 % Ireland 0% 100 % − Chile 41% Faroes 0% 30 % − Canad
Slide 35: Quarterly segment overview
Quarterly segment overview SOURCES OF ORIGIN QTD EUR million Norway Scotland Chile Canada Ireland Faroes Other 1) Group OPERATIONAL EBIT FARMING 71.1 8.0 7.6 -1.8 3.0 2.2 90.2 SALES AND MARKETING Markets 4.7 3.0 1.3 1.6 0.4 0.3 0.2 11.4 Consumer Products 13.0 2.0 5.0 0.1 0.6 0.0 0.9 21.5 SUBTOTAL 88
Slide 36: YTD 2021 segment overview
YTD 2021 segment overview SOURCES OF ORIGIN YTD EUR million Norway Scotland Chile Canada Ireland Faroes Other 1) Group OPERATIONAL EBIT FARMING 201.2 54.0 12.6 -16.0 9.6 7.0 268.4 SALES AND MARKETING Markets 14.3 9.2 4.8 4.6 1.0 0.4 0.7 35.1 Consumer Products 35.9 9.1 19.1 0.6 2.4 0.0 2.8 69.9 SUBTO
Slide 37: Development in harvest volumes
Development in harvest volumes GWT 2016 2017 2018 2019 2020 2021E 2022E (1,000) Total Total Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4E Total Total Norway 236.0 210.2 230.5 56.1 51.4 63.4 66.0 236.9 50.5 56.6 76.5 78.5 262.0 75.0 56.1 71.0 62.9 265.0 272.0 Scotland 45.0 60.2 38.4 15.8 15.
Slide 38: Cash flow guidance and historic developments
Cash flow guidance and historic developments Net capital expenditure Net working capital 350 160 Maintenance level 300 140 250 120 200 100 EUR million EUR million 80 150 60 100 40 50 20 0 0 2016 2017 2018 2019 2020 2021E 2016 2017 2018 2019 2020 2021E Financial commitments and cost of debt (*) 60 50
Slide 39: Debt distribution and interest rate hedging
Debt distribution and interest rate hedging CURRENCY DEBT 2021 2022 2023 CURRENCY 30.09.2021(1) Nominal (2) Fixed rate (3) Nominal (2) Fixed rate (3) Nominal (2) Fixed rate(3) EUR m 1 046.0 380.0 2.19 % - - - - USD m 60.0 78.3 2.31 % 60.0 3.72 % - - GBP m 40.0 23.5 2.83 % - - - - Other (EUR m) 78.7
Slide 40: Hedging and long term currency exposure - policies
Hedging and long term currency exposure - policies • EUR/NOK − Mowi shall hedge between 0% and 30% of its assumed annual expenses in NOK against the EUR with a horizon of two years. The annual hedging shall be evenly distributed across the months of the year • USD/CAD − Mowi shall hedge between 0% a
Slide 41: Strategic currency hedging
Strategic currency hedging EUR/NOK USD/CAD STRATEGIC CURRENCY HEDGING MEUR Rate MUSD Rate 2021 49.8 10.57 7.2 1.32 2022 199.2 10.92 42.3 1.33 2023 116.2 10.52 38.3 1.25 P/L effect of contracts realized in Q3 (MEUR) 1.1 Market value 30/06/2021 18.4 Change -2.2 Market value 30/09/2021 16.3 DESIGNATED
Slide 42: Thank you
MOQOWI Thank you