Slide 1: SalMar ASA Q4 2021 Presentation
SalMar ASA Q4 2021 Presentation 18 February 2022 CEO Gustav Witzøe CFO & COO Trine Sæther Romuld
Slide 2: Agenda
Agenda • Highlights • Operational Update • Financial Update • Strategic Update • Outlook
Slide 3: Voluntary offer for all outstanding shares in NTS ASA
Voluntary offer for all outstanding shares in NTS ASA Strong strategic rationale with solid track-record from both parties in Central Norway, Northern Norway and West fjords of Iceland • Potential for significant synergies across the value chain in all regions FARMING Aquaservice – Improved utilizat
Slide 4: Key information on the proposed transaction
Key information on the proposed transaction SalMar has offered to purchase NTS ASA for a total equity valuation of ~NOK 15.1 bn • The offer is NOK 24 in cash plus 0.143241 SalMar shares per share in NTS, valuing each Company structure NTS1 NTS share at NOK 120 based on the closing price of the Salma
Slide 5: SalMar leading the way forward in 2021
SalMar leading the way forward in 2021 Strengthening our platform for further sustainable growth Icelandic Scottish SalMar SalMar Salmon Sea Farms Aker Ocean GENETICS & COASTAL INDUSTRY & GREEN SMOLT FARMING SALES FINANCING Main events in 2021 Construction ongoing Increase of MAB Strengthening our S
Slide 6: Results in 2021 improving in key areas
Results in 2021 improving in key areas Room for further improvement across the entire value chain Farming - Norway1 FY 2021 FY 2020 Δ YoY • Record high harvest volume in 2021 due to strong utilization of increased MAB capacity +20.2 Harvest volume 170.5 150.3 – Expect further growth in harvest volum
Slide 7: Highlights Q4 2021
Harvest volume HIGHLIGHTS Q4 2021 (1,000 tons gw) Record high harvest volume but results affected by higher costs and weak price achievement • Total operational EBIT 853 MNOK from Norway, including Icelandic Salmon total operational EBIT 890 MNOK – Northern Norway continuing the solid trend with str
Slide 8: Operational Update
OPERATIONAL UPDATE Co SALMAR
Slide 9: Farming Central Norway
Farming Central Norway KEY RESULTS Record high harvest volume, but higher costs weakens result Q4 2021 Q4 2020 FY 2021 FY 2020 Operating income (NOKm) 2,091 1,086 6,542 5,895 • Increase in cost QoQ related to handling of biological challenges Operational EBIT (NOKm) 615 271 2,118 2,218 – Harvested o
Slide 10: Farming Northern Norway
Farming Northern Norway KEY RESULTS Continuing the solid trend with strong biological and Q4 2021 Q4 2020 FY 2021 FY 2020 operational performance Operating income (NOKm) 1,022 822 3,343 2,613 Operational EBIT (NOKm) 429 156 1,243 848 • Solid biological performance resulting in continued strong resul
Slide 11: Sales & Industry
Sales & Industry KEY RESULTS Large volumes through harvesting and processing facilities, Q4 2021 Q4 2020 FY 2021 FY 2020 but weak price achievement affects results negatively Operating income (NOKm) 4,375 2,857 14,406 12,393 Operational EBIT (NOKm) -106 73 -152 282 • Continued strong utilization of
Slide 12: Icelandic Salmon
Icelandic Salmon KEY RESULTS Improved price achievement and stable cost development Q4 2021 Q4 2020 FY 2021 FY 2020 • Finished harvest of 2019 generation with stable cost development Operating income (NOKm) 357 173 919 662 Operational EBIT (NOKm) 37 -20 74 -50 – Significantly improved biological per
Slide 13: Scottish Sea Farms
Scottish Sea Farms1 KEY RESULTS Biological challenges affecting results Q4 2021 Q4 2020 FY 2021 FY 2020 Operating income (NOKm) 344 427 2,307 1,699 • Acquisition of Grieg Seafood Hjaltland UK Ltd completed 15th of Dec 2021 Operational EBIT (NOKm) -29 76 244 308 – Good status of biomass and assets Op
Slide 14: Financial Update
FINANCIAL UPDATE Ho SALMAR
Slide 15: Operational EBIT deviation analysis (qoq)
Operational EBIT deviation analysis (qoq) Norway EBIT per kg (NOK) Δ QoQ +1.41 • Net sales price increased due to higher spot prices, but price NOK per kg achievement reduced compared with Nasdaq prices • Cost increase driven by higher costs in Central Norway due to handling of biological challenges
Slide 16: Group profit and loss
Group profit and loss NOK million Q4 2021 Q4 2020 Δ% FY 2021 FY 2020 Δ% FY 2021 vs. FY 2020 Operating income 4,673 3,049 53 % 15,044 12,912 17 % • Revenue increased following higher volume and higher EBITDA 1,105 648 70 % 3,734 3,820 -2 % spot prices Depreciations and write-downs 215 234 807 812 Ope
Slide 17: Group balance sheet
Group balance sheet Assets Equity ratio • Investments in the value chain progressing according to plan • Higher standing biomass YoY and lower QoQ • Net Interest-bearing debt incl. leasing liabilities decreased with NOK 400 million during the quarter 55.1% – NIBD incl. leasing at NOK 5,543 million •
Slide 18: Movement in net interest-bearing debt
Movement in net interest-bearing debt • Cash flow from operations impacted by taxes paid • Net investments at NOK 854 million – Investment in associated company Norskott Havbruk1 to -400 finance acquisition of GSF Shetland NOK 306 million – Smolt and hatchery NOK 242 million – Farming and Ocean NOK
Slide 19: Proposed dividend for the financial year 2021
Proposed dividend for the financial year 2021 The Board of Directors proposes dividend of NOK 20.00 per share Dividend policy • Results in 2021 shows that SalMar has delivered strong “SalMar ASA aim to provide shareholders with a competitive return on invested results with a continued solid financia
Slide 20: Strategic Update
STRATEGIC UPDATE — Co SALMAR
Slide 21: Strong strategic and operational focus throughout the value chain
Strong strategic and operational focus throughout the value chain Always on the terms of the salmon Flexibility and … for local … to deliver the capacity to deliver processing with the best fish through the right smolt at right capacity at good fish welfare… the right time … strategic locations… … f
Slide 22: Strengthening our platform for further sustainable growth
Strengthening our platform for further sustainable growth Investing in increased capacity in all regions • Expect to invest NOK 1,7 billion in Norway in 2022 • Maintenance investments NOK 0,4 billion (~2 NOK/kg) • Capacity investments NOK 1,3 billion • Construction of new smolt facilities in Central
Slide 23: Creating a world leading offshore farming company
Creating a world leading offshore farming company SalMar Aker Ocean has an ambition to build a series of units for offshore production EXPOSED • SalMar Aker Ocean established in November 2021 Ocean Farm (OF) – Joint ownership between SalMar (66,6%) and Aker (33,4%) – Together SalMar and Aker have th
Slide 24: Outlook
OUTLOOK Co SALMAR
Slide 25: Outlook
Outlook • SalMar has strong operational and financial flexibility and is well equipped to build an even more robust platform for further sustainable growth – Continued strong strategic and operational focus with dedicated employees and strong corporate culture set for growth – Expect to invest NOK 2
Slide 26: Capital Markets Day 2022
Capital Markets Day 2022 Tuesday 28th and Wednesday 29th of June 2022 • We are looking forward to welcome you to Northern Norway – You will get the opportunity to visit our state-of-the art facilities across the entire value chain – Senja 1&2 smolt facility, conventional farming site and InnovaNor o
Slide 27: Thank you for your attention
THANK YOU FOR YOUR ATTENTION Financial Calendar Annual Report 2021 - 22 April 2022 Q1 2022 presentation - 12 May 2022 Annual General Meeting - 8 June 2022 Capital Market Day - 28-29 June 2022 Q2 2022 presentation - 25 August 2022 Q3 2022 presentation - 10 November 2022 For more information see www.s