Salmar Asa · OSL:SALM
Salmar Asa — Q1 2024 Earnings Presentation
23 slides from Salmar Asa's earnings presentation, May 14, 2024
Slide 1: Q1 2024 Presentation
1 4 M AY 2 0 2 4 Q1 2024 Presentation CEO FRODE ARNTSEN CFO ULRIK STEINVIK
Slide 2: Agenda
Q 1 2 0 2 4 P R E S E N TAT I O N Agenda Highlights Q1 2024 Operational Update Financial Update Strategic Update Outlook 2
Slide 3: Highlights Q1 2024
Highlights Q1 2024 Harvest volume (1,000 tons gw) Group Norway1 • Results impacted by challenges in farming segments 52.9 Δ QoQ Δ YoY 45.4 Δ QoQ Δ YoY – Low superior share and average weight impacting farming segments in -30.2 +4.4 -28.3 +3.4 Norway – Flexible operational set-up in Sales & Industry
Slide 4: Operational Update
Q1 2024 Operational Update Farming site Humulen in Central Norway
Slide 5: Farming Central Norway
Farming Central Norway Key Results Q1 2024 Q1 2023 Operating income (NOKm) 2,786 2,326 • Satisfactory results despite challenges Operational EBIT (NOKm) 1,186 1,109 – Continued harvest of autumn 2022 generation and started harvest from spring 2023 generation Harvest volume (tgw) 27.8 22.2 – One-off
Slide 6: Farming Northern Norway
Farming Northern Norway Key Results Q1 2024 Q1 2023 Operating income (NOKm) 1,455 1,883 • Weak results due to impact from string jellyfish Operational EBIT (NOKm) 476 837 – Low average weight and low superior share impacting both cost and price achievement Harvest volume (tgw) 17.5 19.8 – One-off co
Slide 7: Sales & Industry
Sales & Industry Key Results Q1 2024 Q1 2023 Operating income (NOKm) 6,449 6,239 • Reduced capacity utilization of facilities in value chain due to Operational EBIT (NOKm) -37 -81 seasonality in volume Operational EBIT-margin (%) -0.6 % -1.3 % • Flexible operational set-up handling volume from chall
Slide 8: Icelandic Salmon
Icelandic Salmon Key Results Q1 2024 Q1 2023 Operating income (NOKm) 314 765 • Harvest volume decreased compared to last year Operational EBIT (NOKm) -6 204 • Results affected by biological challenges Harvest volume (tgw) 2.8 6.6 – High cost of fish harvested EBIT/kg (NOK) -2.3 31.0 – One-off costs
Slide 9: SalMar Aker Ocean
SalMar Aker Ocean Key Results Q1 2024 Q1 2023 Operating income (NOKm) 428 0 • Arctic Offshore Farming harvested in January Operational EBIT (NOKm) -28 -45 – Impact from string jellyfish affecting price achievement Harvest volume (tgw) 4.8 • Ocean Farm 1 harvested in March EBIT/kg (NOK) -5.9 – Low ca
Slide 10: Scottish Sea Farms
Scottish Sea Farms1 Key Results Q1 2024 Q1 2023 Operating income (NOKm) 848 506 • Increased harvest volume YoY and QoQ Operational EBIT (NOKm) 138 9 • Improved biological status in all regions Harvest volume (tgw) 7.3 5.2 • 45% of volume sold on contracts with negative contribution EBIT/kg (NOK) 18.
Slide 11: Financial Update
Q1 2024 Financial Update Farming site Setevika in Central Norway
Slide 12: Group Profit & Loss
Group operational EBIT - QoQ Group Profit & Loss - 646 • Decrease in operational EBIT QoQ driven by lower volume Norway – Price and cost achievement impacted by challenges Group P&L NOK million Q1 2024 Q4 2023 ΔQoQ% Q1 2024 Q1 2023 ΔYoY% Comments related to Q1 2024 Operating revenues 6,555 8,019 -18
Slide 13: Group Balance Sheet
Group Balance Sheet Assets Equity ratio • Ongoing investments in the value chain progressing according to plan • Lower standing biomass QoQ and YoY • Equity ratio increased to 46% • Net interest-bearing debt (NIBD) including lease liabilities decreased to NOK 14.4 billion Equity & liabilities NIBD i
Slide 14: Net interest bearing debt
Net interest bearing debt Change in NIBD incl. leasing - QoQ • Cash flow from operations impacted by working capital -508 • Net investments NOK 429 million – Farming NOK 223 million – Smolt NOK 45 million – Sales & Industry NOK 73 million – Icelandic Salmon NOK 21 million – SalMar Aker Ocean NOK 17
Slide 15: Strengthening our cost focus
Strengthening our cost focus • Strong strategic and operational focus – Corporate culture – Operational concept – Strategic framework • Salmon farming is all about the details Launch of last Launch of new strategy period strategy period – New strategy period started Development production cost – Opt
Slide 16: Strategic Update
Q1 2024 Strategic Update
Slide 17: Strengthening our value chain
Strenghtening our value chain Improved Fish Welfare Vaccines Technology VAP Smolt Capacity 17
Slide 18: Sustainability in everything we do
Sustainability in everything we do Fish We work systematically to create an Survival rate environment in which the salmon Antibiotic use GSI thrives and remains healthy 94% 0 Environment & Technology 10th We minimize our footprint with measures and routines throughout the Scope 1+2+3 GHG target year
Slide 19: Salmon Living Lab innovation center
Salmon Living Lab will be an innovation center for improving the salmon farming value chain Adjust Learn Genetics Egg Fry Smolt On-growing Harvest Product Measure → Understand → Knowledge Process to find An innovation Strong and close Received very Already operating Milestones will be Salmon Livin
Slide 20: Outlook
Q1 2024 Outlook Children visiting our visitor center in Molde, Central Norway
Slide 21: Outlook
Outlook Guiding Q2 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 Slightly Norway ~50% 237,000 ~30% Lower lower Central Slightly Lower 146,000 • SalMar well equipped
Slide 22: Thank you for your attention
Thank you for your attention Passion for Salmon For more information, please visit www.salmar.no FINANCIAL CALENDAR: Annual General Meeting – 6 June 2024 Q2 2024 presentation – 20 August 2024 – Oslo Q3 2024 presentation – 12 November 2024 – Oslo INVESTOR CONTACT: Håkon Husby, Head of IR Tel: +47 936
Slide 23: 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