Slide 1: Q3 2024 presentation
Q3 2024 presentation CEO: Ivan Vindheim CFO: Kristian Ellingsen 6 November 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 Q3 2024: Record high revenues, volumes and continued growth
Highlights Q3 2024: Record high revenues, volumes and continued growth Farming volume growth of 145k GWT since 2018 to 520k GWT in 2025E (CAGR 4.8%) • Record-high Q3 2024 revenues of EUR 1.44 billion on 650 all-time high harvest volumes of 161k GWT, and operational profit of EUR 173 million 600 600
Slide 4: Key financials
Key financials Mowi Group - main figures Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Unaudited EUR million Operational revenue and other income 1 443.7 6% 1 358.6 4 115.0 1% 4 085.5 5 513.4 Operational EBIT 1) 173.0 -15% 203.1 603.0 -27% 824.4 1 027.5 Operational EBITDA 1) 223.6 252.6 750.9 967.9 1 221.0
Slide 5: Salmon prices – weekly reference prices
Salmon prices – weekly reference prices • Lower prices on seasonal high industry supply • Expecting tighter market balance in the coming months on lower supply Americas Europe Chilean D-trim lbs, Canadian GWE 10-12 lbs 14 14 6 5.21 12 12 10.62 4.51 4.44 5 USD per GWE 10-12 lbs (Seattle) 9.55 9.60 9.
Slide 6: Price achievement and contract share
Price achievement and contract share 160% • Price achievement 146% 14% above 140% 127% reference price 120% 111% 114% 108% 108% 103% positively impacted 102% 100% by 21% contract share 80% 60% • Price achievement 40% negatively impacted 20% by lower harvest 0% weights in Norway Norwegian Scottish Ch
Slide 7: Norway
Norway SALMON OF NORWEGIAN ORIGIN Operational EBIT Salmon of Norwegian Origin EUR million Q3 2024 Q3 2023 YTD 2024 YTD 2023 Q3 2023 vs Q3 2024 Operational EBIT 145.5 185.1 432.8 635.8 EBIT 63.7 186.1 331.4 641.4 Harvest volume (GWT) 105 776 86 228 219 852 213 324 Operational EBIT per kg (EUR) 1.38 2
Slide 8: Norway: Operational EBIT/kg per region
Norway: Operational EBIT/kg per region 2.0 • Region South: Good performance and improved operational and biological metrics 1.5 • Region West: Another good quarter EUR per kg • Region Mid: Negatively impacted by gill 1.0 issues and increased lice pressure compounded by record-high sea temperatures 0
Slide 9: Norway: Sales contract portfolio
Norway: Sales contract portfolio 25,000 20,000 Contracted volumes (GWT) 15,000 10,000 5,000 0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Realised contract volumes Contracted volumes (including prospects) • 16% contract share for the third quarter • 21% contract share for the fourth quarter Page 9 Note:
Slide 10: Scotland
Scotland SALMON OF SCOTTISH ORIGIN Operational EBIT Salmon of Scottish Origin EUR million Q3 2024 Q3 2023 YTD 2024 YTD 2023 Q3 2023 vs Q3 2024 Operational EBIT 12.7 9.2 87.4 77.6 EBIT 24.4 16.3 73.9 72.7 Harvest volume (GWT) 15 227 14 730 49 023 44 381 Operational EBIT per kg (EUR) 0.83 0.63 1.78 1.
Slide 11: Chile
Chile SALMON OF CHILEAN ORIGIN Operational EBIT Salmon of Chilean Origin EUR million Q3 2024 Q3 2023 YTD 2024 YTD 2023 Q3 2023 vs Q3 2024 Operational EBIT 13.6 8.5 38.1 49.7 EBIT 6.4 8.2 35.7 39.2 Harvest volume (GWT) 23 211 17 651 50 413 42 036 Operational EBIT per kg (EUR) 0.59 0.48 0.76 1.18 - of
Slide 12: Canada
Canada SALMON OF CANADIAN ORIGIN Operational EBIT Salmon of Canadian Origin EUR million Q3 2024 Q3 2023 YTD 2024 YTD 2023 Q3 2023 vs Q3 2024 Operational EBIT -3.6 -4.6 1.0 23.9 EBIT -15.4 -10.2 -46.7 -7.6 Harvest volume (GWT) 6 684 7 485 25 187 24 417 Operational EBIT per kg (EUR) -0.54 -0.61 0.04 0
Slide 13: Ireland and Faroes
Ireland and Faroes SALMON OF IRISH ORIGIN SALMON OF FAROESE ORIGIN EUR million Q3 2024 Q3 2023 YTD 2024 YTD 2023 EUR million Q3 2024 Q3 2023 YTD 2024 YTD 2023 Operational EBIT 4.3 1.5 15.9 5.1 Operational EBIT 1.8 4.8 21.5 24.9 EBIT -3.8 -1.5 17.6 5.2 EBIT 3.3 3.6 15.5 19.8 Harvest volume (GWT) 3 66
Slide 14: Iceland (Arctic Fish)
Iceland (Arctic Fish) SALMON OF ICELANDIC ORIGIN Operational EBIT Salmon of Icelandic Origin EUR million Q3 2024 Q3 2023 YTD 2024 YTD 2023 Q3 2023 vs Q3 2024 Operational EBIT 1.3 0.9 12.1 10.7 EBIT 2.6 -17.4 8.7 -8.3 Harvest volume (GWT) 3 407 4 383 7 211 9 349 Operational EBIT per kg (EUR) 0.37 0.2
Slide 15: Consumer Products
Consumer Products CONSUMER PRODUCTS EUR million Q3 2024 Q3 2023 YTD 2024 YTD 2023 Operating revenues 911.6 876.2 2 697.2 2 616.5 Operational EBIT 43.5 39.7 93.0 113.9 Operational EBIT % 4.8% 4.5% 3.4% 4.4% Operational EBIT % VAP only 5.2% 4.8 % 3.7% 5.1% EBIT 47.8 39.7 95.3 113.2 Volume sold (tonnes
Slide 16: Feed
Norway Feed FEED EUR million Q3 2024 Q3 2023 YTD 2024 YTD 2023 Operating revenues 363.3 344.0 813.8 773.1 Operational EBITDA 25.2 20.3 41.7 36.1 Operational EBIT 21.5 16.1 30.0 23.6 Operational EBITDA % 6.9% 5.9% 5.1% 4.7% Operational EBIT % 5.9% 4.7% 3.7% 3.1% EBIT 21.5 16.1 30.0 23.6 Feed sold vol
Slide 17: Financials, Markets and Harvest volumes
Q3 2024 presentation Financials, Markets and Harvest volumes
Slide 18: Profit and Loss
Profit and Loss Mowi Group Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 (EUR million) Operational revenue and other income 1 443.7 6% 1 358.6 4 103.5 0% 4 085.5 5 505.7 • Negative net fair Operational EBIT1) 173.0 -15 % 203.1 603.0 -27 % 824.4 1 027.5 value adjustment on Change in unrealised internal marg
Slide 19: Financial position
Financial position Mowi Group EUR million 30.9.2024 30.09.2023 31.12.2023 • Strong financial position Non-current assets 4 430.9 4 165.9 4 259.5 Current assets 3 560.1 3 527.6 3 979.5 Total assets 7 991.1 7 693.5 8 239.0 Equity 3 798.6 3 671.4 3 754.7 Non-current liabilities 2 904.0 2 757.5 3 219.3
Slide 20: Cash Flow and Net Interest Bearing Debt
Cash Flow and Net Interest Bearing Debt Mowi Group EUR million Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 • Strong cash flows NIBD beginning of period * -1 882.1 -1 665.8 -1 790.3 -1 758.9 -1 758.9 impacted by release Operational EBITDA* 223.6 252.6 750.9 967.9 1 221.1 of working capital in Change in wo
Slide 21: 2024 Cash Flow Guidance improved by EUR 30 million for the year vs Q2
2024 Cash Flow Guidance improved by EUR 30 million for the year vs Q2 • Working capital build-up of EUR 100m due to biomass growth and growth through the value chain • Capital expenditure EUR ~290m • Interest paid EUR ~115m (ex IFRS 16 effects) • Taxes paid EUR ~285m (including resource rent tax of
Slide 22: Overview financing - unchanged
Overview financing - unchanged • 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, Rabo
Slide 23: Lower EUR interest rates to reduce financing cost going forward
Lower EUR interest rates to reduce financing cost going forward EUR financing is superior to NOK funding in terms of cost and hedging (25 years consistent track record) • Mowi’s financing is in EUR 3M EURIBOR vs 3M NIBOR • Currently, 100% floating rate 5 % 4.7 4.7 • To capitalise on lower forward in
Slide 24: Prices for marine ingredients down 6% YTD and continue to decline
Prices for marine ingredients down 6% YTD and continue to decline • Cash cost-to-stock in Mowi Farming continued Anchovy catch in Peru last 10 years down in Q3-24 vs previous three quarters driven 2.0 3.9 3.1 3.2 5.5 3.3 4.8 4.7 4.5 1.5 5.0 3.7 by reduced feed prices of ~6% YTD 2024 6.0 2nd season s
Slide 25: Supply development in the quarter
Supply development in the quarter Estimated volumes Compared to Q3 2023 Est. volumes Suppliers Q3 2024 Q3 2023 Volume % Q2 2024 Norway 396,300 371,100 25,200 6.8% 278,800 Scotland 40,800 37,000 3,800 10.3% 51,800 Faroe Islands 31,100 22,100 9,000 40.7% 16,700 Other Europe 13,300 12,600 700 5.6% 9,10
Slide 26: Global volume development in the quarter
Global volume development in the quarter Estimated volumes Compared to Q3 2023 Est. volumes 12 month comparison Markets Q3 2024 Q3 2023 Volume % Q2 2024 LTM PTM % EU+UK 331,700 306,500 25,200 8.2% 245,300 1,130,200 1,087,500 3.9% Russia 9,700 19,300 -9,600 -49.7% 8,700 47,600 62,100 -23.3% Other Eur
Slide 27: Development in reference prices
Development in reference prices Q3 2024 Change vs Q3 2024 Change vs Market Q3 2023 EUR Q3 2023 • Lower prices on seasonal high industry supply Norway (1) EUR 6.03 -11.0% EUR 6.03 -11.0% Chile (2) USD 5.49 -4.5% EUR 5.00 -5.5% • Expecting tighter market balance in the coming Chile, GWT (3) USD 5.99 -
Slide 28: Industry supply growth 2024e and 2025e
Industry supply growth 2024e and 2025e 2021 2022 2023 2024 Estim ates 2024 Estim ates 2025 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 1,380 1,365 1,331 1,354 1,350 1% 1,358 2% 1,364 1% 1,382 2% UK 179 145 137 158 157 15% 159 17% 161 1% 166 4% Faro
Slide 29: ~2% supply growth for 2025e
~2% supply growth for 2025e Structural undersupply expected to continue in the coming years 2% supply growth 2025e 8% 4% 2% -1% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024e 2025e 2026e 2027e 2028e 2029e Demand growth avg (2013-2023) Supply growth avg (2013-2024e) Supply growth avg (2
Slide 30: Mowi volume guidance 2024 maintained at all-time high 500k GWT, growing further to 520k GWT in 2025
Mowi volume guidance 2024 maintained at all-time high 500k GWT, growing further to 520k GWT in 2025 Atlantic salmon 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 2025 GWT (1,000) Actual Actual Actual Actual Actual Actual Actual Actual Actual Guidance Guidance Guidanc
Slide 31: Productivity programme revived farming volume growth
Productivity programme revived farming volume growth Mowi Farming volumes since the big merger in 2006 650 600 600 Harvest volumes GWT (1,000) 550 520 500 500 475 450 400 340 350 375 300 250 145k GWT 80k GWT 200 Page 31
Slide 32: From lagging behind to being ahead – farming volume growth vs listed peers
From lagging behind to being ahead – farming volume growth vs listed peers Mowi Farming volumes versus indexed listed peers since 2018 550 520 500 Harvest volumes GWT (1,000) 500 475 450 Mowi Listed peers indexed 400 ? 350 300 2018 2019 2020 2021 2022 2023 2024E 2025E Page 32
Slide 33: Mowi has good track record for delivering on volume guidance last 5 years
Mowi has good track record for delivering on volume guidance last 5 years 2% • Mowi has a good track record 0.2% for delivering on volume Deviation actual harvest volumes vs guidance % 0% guidance in the last 5 years -2% • Listed peers -7.9% vs guidance -3.0% -4% -6% -8% -7.9% -7.9% -10% -9.1% -12%
Slide 34: Outlook
Outlook • Maintaining 2024 farming volume guidance of record-high 500k GWT (Δ 5.3% Y/Y) – Milestone achievement • Mowi harvest volume guidance of 520k GWT in 2025 (Δ 4.0% Y/Y) – First step towards next volume milestone of 600k GWT in 2029 – Since 2018 growth of 145k GWT (equivalent to CAGR of 4.8% v
Slide 35: Appendix
Q3 2024 presentation Appendix
Slide 36: Nova Sea
Nova Sea Harvest volume (GWT) EBIT per kg (EUR) NIBD EURm Ownership % 2022 2023 Q3 2023 Q3 2024 2022 2023 Q3 2023 Q3 2024 Q3 2024 Nova Sea 48.9 % 44 027 39 985 10 345 9 015 2.90 3.01 2.73 1.21 -37.0 • Leading integrated salmon producer in Northern Norway − 33.33 wholly owned licenses − 4 partly owne
Slide 37: 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 38: 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 39: CMD: Productivity programme revived farming volume growth
CMD: Productivity programme revived farming volume growth Farming volume growth of 100k in the coming 5 years to all-time high 600k GWT Mowi Farming volumes since the big merger in 2006 650 600 600 Harvest volumes GWT (1,000) 550 520 500 500 475 450 400 340 350 375 300 250 145k GWT 80k GWT 200 Page
Slide 40: CMD: Organic revenue growth of 7-8% p.a. until 2029
CMD: Which translates into an organic revenue growth of 7-8% p.a. until 2029 • 2023-2029F: Topline CAGR 7-8% pa – Farming volume CAGR 4.0% pa (475k GWT 2023 to 600k GWT 2029F) – Product enhancement, branding, inflation CAGR 3-4% • 2018-2023: Topline CAGR 7.6% pa – Farming volume CAGR 4.8% pa (375k G
Slide 41: CMD: Further improve our cost-leading position in the seven countries where we operate
CMD: Further improve our cost-leading position in the seven countries where we operate • Mowi #1 or #2 on cost in every farming EBIT per kg – Mowi consistently #1 and #2 in all regions country Mowi ranking by country 2 1 1 1 2 1 • Cost-cutting initiatives are important to 25 22.5 20.0 combat inflati
Slide 42: CMD: Strong focus on cost containment and cost leadership
CMD: Strong focus on cost containment and cost leadership Productivity Mowi 4.0 Mowi 4.0 Cost Savings Postsmolt Programme on Sales & Farming Programme FTEs Marketing • Less treatments • Improved FCR • Cost control • Continued strict • Efficiency FTE focus • Reduced • Lower health cost • Standardisat
Slide 43: CMD: Ocean-based Atlantic salmon farming is on the right side of sustainability
CMD: 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 1st largest 60 animal protein pro
Slide 44: Salmon and land farmed animals have different reproductive strategies
Salmon and land farmed animals have different reproductive strategies External Fertilisation 10-15 000 • R-strategists eggs • higher number of reproductive cells • lower survival rates • more influenced by environmental conditions 250 eggs Internal Fertilisation 36 • K-strategists • lower number of
Slide 45: Farmed salmon have much higher survival rates than wild salmon
Farmed salmon have much higher survival rates than wild salmon Farmed Atlantic salmon Wild Atlantic salmon 82-87% 5-35% survival survival (Directorate of (Charput, 2012) Fisheries) Page 45
Slide 46: Atlantic salmon production time is significantly longer than for most land farmed animals
Atlantic salmon production time is significantly longer than for most land farmed animals, and mortality rates are therefore naturally higher... AVERAGE PRODUCTION TIME (MONTHS) AVERAGE PRODUCTION CYCLE MORTALITY (%) 18 15 15 15 9 6 5 6 3 1.2 Source: Land animals- Animalia Norway (2023). Mortality r
Slide 47: Monthly mortality rates for farmed salmon are significantly lower than for land animal proteins
...however, monthly mortality rates for farmed salmon are significantly lower than for the majority of land animal proteins MONTHLY MORTALITY (%) 2.9 2.2 1.5 0.7 0.3 Source: Animalia (2023) and Mowi’s own data; complete production cycle (freshwater + seawater) Page 47
Slide 48: Mortality rates for Atlantic Salmon relatively stable over the past 30 years
Mortality rates for Atlantic Salmon relatively stable over the past 30 years 35% 30% 25% 20% 15% 10% 5% 0% 92G 93G 94G 95G 96G 97G 98G 99G 00G 01G 02G 03G 04G 05G 06G 07G 08G 09G 10G 11G 12G 13G 14G 15G 16G 17G 18G 19G 20G 21G 22G Loss rate* Linear (Loss rate*) Source: Kontali Page 48 *Loss rate = l
Slide 49: Strategic programmes of Postsmolt and Smart Farming improving biological metrics
Our strategic programmes of Postsmolt and Smart Farming are improving biological metrics and will improve fish survival and welfare Postsmolt strategy Training 100% trained staff; dedicated fish health Reduce the time spent in sea by up to six months, substantially improving biological and welfare t
Slide 50: Thank you
Thank you