Slide 1: Q2 2024 Presentation
20 AUGUST 2024 Q2 2024 Presentation CEO FRODE ARNTSEN CFO ULRIK STEINVIK
Slide 2: World's Most Sustainable Companies
WORLD’S MOST F SALMAR SUSTAINABLE Passion for Salmon 7 COMPANIES =: 5 t a statista % ~ - _ “2 me im a = © Suman
Slide 3: Agenda
Q 2 2 0 2 4 P R E S E N TAT I O N Agenda Highlights Q2 2024 Operational Update Financial Update Strategic Update Outlook 3
Slide 4: Highlights Q2 2024
Highlights Q2 2024 Harvest volume (1,000 tons gw) Group Norway1 • Farming segments in Norway affected by low superior share 44.8 Δ QoQ Δ YoY 44.1 Δ QoQ Δ YoY – Improved biological situation in the sea during the quarter -8.1 +0.5 -1.2 -0.1 • Sales & Industry with high contract share and continue to
Slide 5: Operational Update
Q2 2024 Operational Update Farming site Humulen in Central Norway
Slide 6: Farming Central Norway
Farming Central Norway Key Results Q2 2024 Q2 2023 H1 2024 H1 2023 Operating income (NOKm) 2,656 2,852 5,441 5,179 • Satisfactory results despite some challenges Operational EBIT (NOKm) 1,110 1,108 2,296 2,217 – Finished harvest of autumn 2022 generation and continued harvest from spring 2023 genera
Slide 7: Farming Northern Norway
Farming Northern Norway Key Results Q2 2024 Q2 2023 H1 2024 H1 2023 Operating income (NOKm) 1,447 1,542 2,902 3,424 • Weak results due to biological challenges Operational EBIT (NOKm) 508 858 984 1,694 – Low superior share impacting price achievement – Finished harvest from spring 2022 and continue
Slide 8: Sales & Industry
Sales & Industry Key Results Q2 2024 Q2 2023 H1 2024 H1 2023 Operating income (NOKm) 5,860 6,003 12,309 12,242 • Low capacity utilization of facilities in value chain due to Operational EBIT (NOKm) -90 -67 -127 -148 seasonality in volume Operational EBIT-margin (%) -1.5 % -1.1 % -1.0 % -1.2 % • Flex
Slide 9: Icelandic Salmon
Icelandic Salmon Key Results Q2 2024 Q2 2023 H1 2024 H1 2023 Operating income (NOKm) 113 26 427 791 • Low harvest volume as expected Operational EBIT (NOKm) -43 -35 -49 169 • Results affected by low volume and biological challenges – High cost of fish harvested Harvest volume (tgw) 0.7 0.1 3.5 6.7 –
Slide 10: SalMar Aker Ocean
SalMar Aker Ocean Key Results Q2 2024 Q2 2023 H1 2024 H1 2023 Operating income (NOKm) 0 0 427 0 • Good biological performance from both projects gives confidence Operational EBIT (NOKm) -30 -10 -58 -55 for further potential • New smolt transferred to Ocean Farm 1 in Q2 24 Harvest volume (tgw) 4.8 •
Slide 11: Scottish Sea Farms
Scottish Sea Farms1 Key Results Q2 2024 Q2 2023 H1 2024 H1 2023 Operating income (NOKm) 1,414 692 2,262 1,197 • Increased harvest volumes with good harvest weights Operational EBIT (NOKm) 234 -144 372 -135 • Strong biology in the quarter and next generations of fish performing well in all regions Ha
Slide 12: Financial Update
Q2 2024 Financial Update Farming site Setevika in Central Norway
Slide 13: Group Profit & Loss
Group operational EBIT - QoQ - 119 Group Profit & Loss • Decrease in operational EBIT QoQ driven by lower volume and price achievement Δ Δ Δ Norway • Cost level reduced QoQ Group P&L NOK million Q2 2024 Q1 2024 ΔQoQ% H1 2024 H1 2023 ΔYoY% Comments related to Q2 2024 Operating revenues 5,838 6,555 -1
Slide 14: Group Balance Sheet
Group Balance Sheet Assets Equity ratio • Ongoing investments in the value chain progressing according to plan • Higher standing biomass QoQ and lower YoY • Dividend paid of 35.00 NOK/share for 2023 Equity & liabilities NIBD incl. lease liabilities • Equity ratio decreased to 38% • Net interest-bear
Slide 15: Net interest bearing debt
Net interest bearing debt Change in NIBD incl. leasing - QoQ • Cash flow from operations impacted by working capital +4,202 • Net investments NOK 624 million – Traffic light NOK 117 million – Farming NOK 321 million – Smolt NOK 59 million – Sales & Industry NOK 69 million – Icelandic Salmon NOK 48 m
Slide 16: Sustainable and flexible financing
Long-term facilities2 Sustainable and flexible Overview Maturity profile financing Green Bond NOK 3.5 bn • 4 ESG KPIs included in Sustainability Linked Loan NOK Loan NO n agreement (RCF+Term Loan) 6b RCF bn 100% K 10 Term – Survival Rate – Biological Feed Conversion Ratio Sustainable & – Share of lo
Slide 17: Strategic Update
Q2 2024 Strategic Update
Slide 18: Strong foundation for further growth
Strong foundation for further growth Increased MAB capacity in Norway • Aquired capacity through both fixed price and auction in the MAB capacity in Norway1 tonnes MAB traffic light system • Totalling 3,027 tonnes MAB in PO10,11,12 and 13 – > 2% growth in MAB licenses in Norway Increasing our owners
Slide 19: Granted new capacity in Iceland
Granted new capacity in Iceland Overview farming sites in the Icelandic West Fjords • New capacity in Ísafjarðardjúp New farming sites Current farming sites • 10,000 tonnes maximum allowable biomass (MAB) of sterile salmon MAB capacity in Iceland • 3 new farming sites tonnes MAB 19 Farming site in A
Slide 20: Salmon Living Lab innovation center
Salmon Living Lab an innovation center to create the sustainable aquaculture the world needs Strong and close collaboration with Time to strenghten We need excellence along the value chain Cargill the knowledge about the biology Received very strong interest in the initiative, 100+ Need to close kno
Slide 21: Salmon Living Lab will be an innovation center
Salmon Living Lab will be an innovation center for improving the salmon farming value chain Key work tasks going forward • Former development director in SalMar Aker Ocean • Contact all relevant interested participants • Strong experience with scale-ups, working at the intersection of • Prioritize p
Slide 22: Outlook
Q2 2024 Outlook Children visiting our visitor center in Molde, Central Norway
Slide 23: Outlook
Outlook Guiding Q3 2024 FY 2024 • Expect limited global supply growth in 2024 Δ Cost Δ Volume Contract Volume Contract QoQ1 YoY2 share3 share3 – Continued good demand for sustainable proteins Slightly Norway Lower ~35% 237,000 ~35% higher Central Same Lower 146,000 • SalMar well equipped for further
Slide 24: Thank you for your attention
Thank you for your attention Passion for Salmon For more information, please visit www.salmar.no FINANCIAL CALENDAR: Q3 2024 presentation – 12 November 2024 – Oslo Q4 2024 presentation – 18 February 2025 – Oslo Annual Report 2024 – 25 April 2025 Q1 2025 presentation – 20 May 2025 – Oslo Annual Gener
Slide 25: 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