Slide 1: SalMar ASA Q4 2022 Presentation
SalMar ASA Q4 2022 Presentation 22 February 2023 CEO Frode Arntsen CFO Ulrik Steinvik
Slide 2: Agenda
Agenda • Highlights FY 22 and Q4 22 • Operational Update • Financial Update • Strategic Update • Outlook
Slide 3: 2022 an eventful year which paves the way forward
2022 an eventful year which paves the way forward Strengthened existing value chain with untapped potential in all regions Joined forces with Strengthened existing NTS, NRS & SalmoNor value chain Smolt • New RAS facility on Senja completed in 2022 • Tjuin to be completed in 2023 • Increasing smolt c
Slide 4: Hard work over time has led to strong results in 2022
Hard work over time has led to strong results in 2022 Significant potential for improvements across the value chain Harvest volume +31% 1,000 tgw Farming Norway1 CAGR +8.3% • Record high harvest volume in 2022 • Continued strong results Sales & Industry • Substantial increase in volume driven by com
Slide 5: Highlights Q4 2022
Harvest volume Highlights Q4 2022 (1,000 tons gw) Transactions with NTS, NRS and SalmoNor completed Biological challenges affecting results in Central Norway • Total group operational EBIT 1,006 MNOK with Norway 956 MNOK – Biological challenges in Central Norway EBIT/kg1 – Northern Norway with conti
Slide 6: Operational Update
OPERATIONAL UPDATE (9 SALMAR
Slide 7: Farming Central Norway
Farming Central Norway KEY RESULTS Biological challenges affecting results Q4 2022 Q4 2021 FY 2022 FY 2021 Operating income (NOKm) 2,298 2,091 8,872 6,542 • Low average weight of harvested fish Operational EBIT (NOKm) 484 615 3,599 2,118 – Resulting in high cost and low price achievement Operational
Slide 8: Farming Northern Norway
Farming Northern Norway KEY RESULTS Continuing the trend with solid performance Q4 2022 Q4 2021 FY 2022 FY 2021 Operating income (NOKm) 1,757 1,022 4,883 3,343 • Volumes from NRS with higher cost base than SalMar Operational EBIT (NOKm) 777 429 2,526 1,243 • Spring 2021 accounted for 70% of the volu
Slide 9: Sales & Industry
Sales & Industry KEY RESULTS Solid operational performance and strong capacity utilization Q4 2022 Q4 2021 FY 2022 FY 2021 Operating income (NOKm) 6,015 4,375 19,141 14,406 • Record high volumes through our facilities Operational EBIT (NOKm) -100 -106 -1,286 -152 • Price achievement affected by chal
Slide 10: Icelandic Salmon
Icelandic Salmon KEY RESULTS Record high harvest volume Q4 2022 Q4 2021 FY 2022 FY 2021 Operating income (NOKm) 539 357 1,595 919 • 2020 and 2021 generation accounted for the harvest volume in the period Operational EBIT (NOKm) 98 37 366 74 – Good results and stable cost development Operational EBIT
Slide 11: SalMar Aker Ocean
SalMar Aker Ocean KEY RESULTS Upgrade of Ocean Farm 1 close to completion Q4 2022 Q4 2021 FY 2022 FY 2021 Operating income (NOKm) 32 - 32 - • Ocean Farm 1 to be transported back to Frohavet in early March Operational EBIT (NOKm) -48 -46 -155 -152 – Unit currently at Aker Solutions yard Aker Verdal O
Slide 12: Scottish Sea Farms
Scottish Sea Farms1 KEY RESULTS Results affected by biological challenges Q4 2022 Q4 2021 FY 2022 FY 2021 Operating income (NOKm) 693 344 3,188 2,307 • Results negatively impacted by issues related to micro-jellyfish and gill health Operational EBIT (NOKm) -128 -29 214 244 – Low average weight of ha
Slide 13: Financial Update
FINANCIAL UPDATE
Slide 14: Operational EBIT deviation analysis (qoq)
Operational EBIT deviation analysis (qoq) Norway* EBIT per kg (NOK) Δ QoQ • Net sales price stable QoQ -9.43 NOK per kg • Higher cost in value chain driven by challenges in Central Norway • One-off costs related to the transactions 120 MNOK / 2.12 NOK/kg Group* EBIT per kg (NOK) Δ QoQ -8.46 NOK per
Slide 15: Group profit and loss
Group profit and loss NOK million Q4 2022 Q4 2021 Δ% FY 2022 FY 2021 Δ% FY 2022 vs. FY 2021 Total operating revenues 6,406 4,673 37 % 20,158 15,044 34 % EBITDA 1,349 1,105 22 % 5,502 3,734 47 % • Results from acquired companies included from Depreciations and write-downs 343 215 1,038 807 November 2
Slide 16: Group balance sheet
Group balance sheet Assets Equity ratio • Significant changes to the balance sheet following completion of the transactions • Frøy classified as assets held for sale • Total assets ex. Frøy increased with NOK 18.9 billion to NOK 51 billion 39% • Net Interest-bearing debt (NIBD) including lease liabl
Slide 17: Movement in net interest-bearing debt
Movement in net interest-bearing debt Significant movements following completion of the transactions with NTS, NRS and SalmoNor + 13,643 + 439 NIBD Lease Liabilities Acquisitions + NOK 13.6 billion Changes during Q4 2022 + NOK 0.4 billion • Voluntary offer NTS and merger NRS completed in • Taxes pai
Slide 18: Unchanged dividend for the financial year 2022
Unchanged dividend for the financial year 2022 Proposed cash dividend of NOK 20.00 per share • Results in 2022 shows that SalMar has delivered strong financial results • Important for SalMar to provide its more than 24,000 shareholders a competitive return on invested capital • Proposed cash dividen
Slide 19: Proposed new tax from 2023 in Norway
Proposed new tax from 2023 in Norway Outcome still highly uncertain • Public consultation process on proposal ended 4th of January 2023 – More than 400 responses in the process – Vast majority of responses negative • SalMar issued a thorough response – Proposal based on incorrect assumptions and sho
Slide 20: Finalizing already sanctioned projects in 2023
Finalizing already sanctioned projects in 2023 Expect to invest NOK 2.1 billion in 2023 Higher maintenance investments than in a normal year due to aquisition • Expect to invest NOK 1,6 billion in Norway in 2023 • Maintenance investments NOK 0,9 billion (~3,7 NOK/kg) • Capacity investments NOK 0,7 b
Slide 21: Strategic Update
STRATEGIC UPDATE — 9 SALMAR
Slide 22: Transactions with NTS, NRS and SalmoNor completed
Transactions with NTS, NRS and SalmoNor completed Operational structure in place and optimization of operations ongoing New operating structure in Norway CEO • NTS, NRS and SalmoNor merged into existing SalMar operational structure Sales & Biology Support1 Industry • Structure operational from 1st o
Slide 23: Culture vital to succeed with the integration
Culture vital to succeed with the integration In SalMar, we work with both our heart and mind 2023 the cultural year in SalMar Ambitions and targets set • Take care of, develop and enhance the SalMar-culture • Summit for top leaders held early February • Identify and bring with us the best from all
Slide 24: Strong synergy potential confirmed
Strong synergy potential confirmed Yearly recurring cost savings Identified 671 MNOK in yearly recurring cost savings NOK million Estimates validated and confirmed after closing of the transactions • Yearly recurring cost savings achieved through: – Improved operational set-up – Increased efficiency
Slide 25: Strategic review of ownership in Frøy ASA
Strategic review of ownership in Frøy ASA Strong incoming interest • Frøy is a leading integrated provider of aqua services to the aquaculture industry • Through NTS, SalMar currently holds 72.11% of the shares and votes in Frøy • Exploring strategic alternatives in Frøy with the aim of maximizing v
Slide 26: Outlook
OUTLOOK
Slide 27: Outlook
Outlook • Transactions with NTS, NRS and SalmoNor completed – Dedicated employees and strong corporate culture – New operational structure in place – Strong synergy potential confirmed • Strong incoming interest for strategic review of Frøy • SalMar with significant volume growth in 2023 – Untapped
Slide 28: Capital Markets Day 2023
Capital Markets Day 2023 Wednesday 6th and Thursday 7th of September 2023 in Northern Norway • Visit to our state-of-the art facilities across the entire value chain – Senja 1&2 smolt facility, conventional farming site and InnovaNor our new harvesting & processing facility • Executive management wi
Slide 29: Thank you for your attention
THANK YOU FOR YOUR ATTENTION Financial Calendar: Annual Report 2022 – 28 April 2023 Q1 2023 presentation – 11 May 2023 Annual General Meeting – 8 June 2023 Q2 2023 presentation – 24 August 2023 Q3 2023 presentation – 9 November 2023 Investor contact: Håkon Husby, Head of IR Tel: +47 936 30 449 Email
Slide 30: 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