Slide 1: Q2 2024 presentation
Q2 2024 presentation CEO: Ivan Vindheim CFO: Kristian Ellingsen 21 August 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 Q2 2024
Highlights Q2 2024 • Operating revenues EUR 1.34 bn. Operational EBIT EUR 230 million 550 • Strong quarter biologically – Seasonally record-high growth and harvest volumes of 110.4k GWT – Biomass all-time high 327k LWT end Q2; Δ28k LWT Y/Y or 9.4% 500 500 – 2024 harvest volume guidance of 500k GWT r
Slide 4: Key financials
Key financials Mowi Group - main figures Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Unaudited EUR million Operational revenue and other income 1,340.0 -2% 1,364.5 2,671.3 2,726.9 5,513.4 Operational EBIT 1) 229.5 -23% 299.5 430.0 621.3 1,027.5 Operational EBITDA 1) 278.7 348.0 527.2 715.3 1,221.0 Net in
Slide 5: Salmon prices – weekly reference prices
Salmon prices – weekly reference prices • Strong prices for the European salmon following the usual seasonal pattern • American prices temporarily lagging behind due to somewhat muted demand Americas Europe Chilean D-trim lbs, Canadian GWE 10-12 lbs 14 14 6 5.21 12 12 10.62 4.514.44 5 USD per GWE 10
Slide 6: Price achievement and contract share
Price achievement and contract share 120% 114% • Strong price 104% 109% 102% achievement outside 100% 95% 97% 99% Norway 84% 80% • Price achievement for Norwegian 60% salmon negatively impacted by 40% contracts and still 20% some downgrading – Quality improved 0% substantially in June, Norwegian Sco
Slide 7: Norway
Norway SALMON OF NORWEGIAN ORIGIN Operational EBITEBIT Operational Salmon of of Salmon Norwegian Origin Norwegian Origin EUR million Q2 2024 Q2 2023 YTD 2024 YTD 2023 Q2 Q2 2023 2024 vs Q2 vs Q2 2023 2024 Operational EBIT 149.3 206.0 287.3 450.7 250 EBIT 96.5 188.1 267.7 455.3 200 Harv est v olume (
Slide 8: Norway: Operational EBIT/kg per region
Norway: Operational EBIT/kg per region 3.5 • Region Mid stands out on good biology 3.0 and focus on operational improvements as part of the ongoing turnaround process 2.5 • Region West and Region North with fairly EUR per kg 2.0 similar margin 1.5 – Region West good biology and cost – Region North m
Slide 9: Norway: Sales contract portfolio
Norway: Sales contract portfolio 25,000 20,000 Contracted volumes (GWT) 15,000 10,000 5,000 0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Realised contract volumes Contracted volumes (including prospects) • 30% contract share for the second quarter • 16% contract share for the third quarter Page 9 Note:
Slide 10: Scotland
Scotland SALMON OF SCOTTISH ORIGIN Operational EBIT Operational Salmon EBIT Salmon ofofScottish ScottishOrigin Origin EUR million Q2 2024 Q2 2023 YTD 2024 YTD 2023 Q2 Q2 2023 vs Q2 2024 2024 vs Q2 2023 Operational EBIT 43.6 41.8 74.6 68.4 60 EBIT 5.7 17.3 49.5 56.4 50 Harv est v olume (GWT) 19 591 1
Slide 11: Chile
Chile SALMON OF CHILEAN ORIGIN Operational EBIT Salmon Operational of Chilean EBIT Salmon Origin of Chilean Origin EUR million Q2 2024 Q2 2023 YTD 2024 YTD 2023 Q2 2023 vs Q2 2024 Q2 2024 vs Q2 2023 Operational EBIT 12.5 25.3 24.4 41.2 30 EBIT 4.6 1.9 29.4 31.0 25 Harv est v olume (GWT) 14 656 13 79
Slide 12: Canada
Canada SALMON OF CANADIAN ORIGIN Operational EBIT Salmon of Canadian Origin Operational EBIT Salmon of Canadian Origin EUR million Q2 2024 Q2 2023 YTD 2024 YTD 2023 Q2 Q2 2023 vs vs 2024 Q2Q2 2024 2023 Operational EBIT 6.8 12.0 4.6 28.5 20 EBIT -12.7 -25.1 -31.3 2.6 15 Harv est v olume (GWT) 9 707 9
Slide 13: Ireland and Faroes
Ireland and Faroes SALMON OF IRISH ORIGIN SALMON OF FAROESE ORIGIN EUR million Q2 2024 Q2 2023 YTD 2024 YTD 2023 EUR million Q2 2024 Q2 2023 YTD 2024 YTD 2023 Operational EBIT 7.3 2.3 8.9 11.5 3.6 Operational EBIT 10.5 13.0 19.7 20.0 EBIT 11.6 3.5 21.4 6.7 EBIT 3.6 10.8 12.2 16.1 Harv est v olume (G
Slide 14: Iceland (Arctic Fish)
Iceland (Arctic Fish) SALMON OF ICELANDIC ORIGIN EUR million Q2 2024 Q2 2023 YTD 2024 YTD 2023 Operational EBIT 1.2 -0.5 10.8 9.8 EBIT -3.8 3.4 6.1 9.1 Harv est v olume (GWT) 1 273 100 3 804 4 966 Operational EBIT per kg (EUR) 0.94 n/a 2.84 1.97 - of w hich Feed -0.02 0.00 -0.02 0.00 - of w hich Mar
Slide 15: Consumer Products
Consumer Products CONSUMER PRODUCTS EUR million Q2 2024 Q2 2023 YTD 2024 YTD 2023 Operating rev enues 889.2 885.8 1,785.7 1,740.3 Operational EBIT 25.1 37.1 49.5 74.3 Operational EBI T % 2.8% 4.2% 2.8% 4.3% Operational EBI T % VAP only 3.1% 4.8% 3.0% 4.7% EBIT 24.4 36.7 47.5 73.7 Volume sold (tonnes
Slide 16: Feed
Norway Feed FEED EUR million Q2 2024 Q2 2023 YTD 2024 YTD 2023 Operating rev enues 253.1 233.0 450.5 429.0 Operational EBITDA 10.8 9.7 16.5 15.8 Operational EBIT 6.7 5.4 8.5 7.6 Operational EBI TDA % 4.3% 4.2% 3.7% 3.7% Operational EBI T % 2.7% 2.3% 1.9% 1.8% EBIT 6.7 5.4 8.5 7.6 Feed sold v olume 1
Slide 17: Financials, Markets and Harvest volumes
Q2 2024 presentation Financials, Markets and Harvest volumes
Slide 18: Profit and Loss
Profit and Loss Mowi Group Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 EUR million Operational revenue and other income 1,340.0 -2% 1,364.5 2,671.3 2,726.9 5,513.4 • Negative net fair value Operational EBIT 1) 229.5 -23% 299.5 430.0 621.3 1,027.5 adjustment on lower salmon Change in unrealized internal m
Slide 19: Financial position
Financial position Mowi Group EUR million 30.06.2024 30.06.2023 31.12.2023 • Strong financial position Non-current assets 4 408.5 4 106.1 4 259.5 Current assets 3 675.0 3 401.2 3 979.5 Total assets 8 083.8 7 507.4 8 239.0 Equity 3 842.7 3 623.8 3 754.7 Non-current liabilities 3 065.7 2 853.0 3 219.3
Slide 20: Cash Flow and Net Interest Bearing Debt
Cash Flow and Net Interest Bearing Debt Mowi Group EUR million Q2 2024 Q2 2023 YTD 2024 YTD 2023 • Q2 earnings partly offset NIBD beginning of period* -1 824.6 -1 641.2 -1 790.3 -1 758.9 by tax payments Operational EBITDA* 278.7 384.0 527.2 715.4 • Capex reduced from 2023 Change in working capital -
Slide 21: 2024 Cash Flow Guidance overall unchanged
2024 Cash Flow Guidance overall unchanged • Working capital build-up of EUR 140m due to biomass growth and growth through the value chain • Capital expenditure EUR ~290m – Freshwater investments EUR ~35m – Seawater investments EUR ~45m – Processing / Sales & Marketing: New processing plants/upgrades
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: Strong focus on cost leadership – expect lower cost in H2
Strong focus on cost leadership – expect lower cost in H2 • Recent easing of the significant post-Covid Realised blended Farming cost per kg for Mowi group inflationary pressure 6.05 5.84 – Driven by feed prices which increased significantly 2021-2023 but have been reduced by ~5% YTD Q2 2024 vs 2023
Slide 24: Prices for marine ingredients in feed down from peak levels
Prices for marine ingredients in feed down from peak levels • Cash cost-to-stock in Mowi Farming down in Q2-24 Anchovy catch in Peru last 10 years vs Q4-23 and Q1-24 driven by reduced feed prices 2.0 3.9 3.1 3.2 5.5 3.3 4.8 4.7 4.5 1.5 4.2 3.7 of ~5% YTD 2024 6.0 2nd season to start in • About 20% o
Slide 25: Realised cost savings of EUR 307 million 2018-2024 YTD Q2
Realised cost savings of EUR 307 million 2018-2024 YTD Q2 • Realised EUR 22 million in annualised cost Cost savings per year and business area (EUR million) savings in 2024 YTD Q2 22 307 • Ahead of schedule to deliver on the 55 207 EUR 25 million target for 2024 full year 48 • Total cost savings of
Slide 26: Delivering on the productivity programme – 2,447 FTEs so far
Delivering on the productivity programme – 2,447 FTEs so far • Productivity programme FTE reductions based on “as is” volumes ,000 – Salary and personnel expenses second largest cost item in Mowi; EUR 648 million in 2023 5,000 4,998 Number of FTEs 4,000 – Productivity increase of 18% vs 2019, i.e. 0
Slide 27: Ocean-based Atlantic salmon farming is on the right side of sustainability
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 largest 60 animal protein producers in
Slide 28: Mowi recognised by TIME Magazine
Mowi recognised by TIME Magazine • TIME Magazine covered Mowi on two recent occasions • In June, TIME, in partnership with Statista, named Mowi in its list of the World's 500 Most Sustainable Companies for 2024, highlighting corporate responsibility and sustainable practices • In October last year,
Slide 29: Supply development
Supply development Estimated volumes Compared to Q2 2023 Est. volumes Suppliers Q2 2024 Q2 2023 Volume % Q1 2024 Norway 278,800 283,500 -4,700 -1.7% 272,200 Scotland 50,900 42,300 8,600 20.3% 35,700 Faroe Islands 16,700 15,800 900 5.7% 21,200 Other Europe 8,800 4,300 4,500 104.7% 12,900 Total Europe
Slide 30: Global volume development
Global volume development Estimated volumes Compared to Q2 2023 Est. volumes 12 month comparison Markets Q2 2024 Q2 2023 Volume % Q1 2024 LTM PTM % EU+UK 245,000 237,600 7,400 3.1% 234,900 1,105,800 1,102,000 0.3% Russia 7,400 12,500 -5,100 -40.8% 11,700 54,500 57,700 -5.5% Other Europe 20,400 21,80
Slide 31: Development in reference prices
Development in reference prices Q2 2024 Change vs Q2 2024 Change vs Market Q2 2023 EUR Q2 2023 • Strong prices for the European salmon following the Norway (1) EUR 9.37 2.7% EUR 9.37 2.7% usual seasonal pattern Chile (2) USD 6.22 3.2% EUR 5.77 4.3% Chile, GWT (3) USD 7.09 1.7% EUR 6.59 2.9% • Americ
Slide 32: Industry supply growth 2024e
Industry supply growth 2024e 2021 2022 2023 2024 Estim ates 2024 GWT (1,000) Norw ay 1,380 1,365 1,331 Estim ate 1,357 Low 1,347 Y/Y grow th 1% High 1,367 Y/Y grow th 3% • Expect low supply growth of 1% in 2024 re- UK Faroe Islands 179 95 145 90 137 80 157 88 154 86 12% 7% 160 90 17% 12% iterated Ot
Slide 33: Mowi volume guidance maintained at all-time high
Mowi volume guidance maintained at all-time high Atlantic salmon 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 GWT (1,000) Act ual Act ual Act ual Act ual Act ual Act ual Act ual Act ual Guidance Guidance Guidance Norway 293.7 65.6 61.5 86.2 81.2 294.5 54.7 59.4 105.
Slide 34: Outlook
Outlook • Seasonally record-high growth in the second quarter on good biology • Farming volumes of 500,000 tonnes for the year re-iterated – Record-high standing biomass in sea • Reduced realised blended farming cost in the second quarter and further decrease expected in the third quarter – Good bio
Slide 35: Save the Date: 25-26 September 2024 Capital Markets Day
Save the Date: 25-26 September 2024 Capital Markets Day in mid Norway • Strategic and operational plans for Feed plant: 410,000 tonnes Smolt & postsmolt: 6,200 tonnes the coming years • Day 1: Early morning start in Kristiansund – site-visits of value chain – Feed plant Smart Farming – Smolt & posts
Slide 36: Appendix
Q2 2024 presentation Appendix
Slide 37: Nova Sea
Nova Sea Harv est v olume (GWT) EBI T per kg (EUR) NI BD EURm Ownership % 2022 2023 Q2 2023 Q2 2024 2022 2023 Q2 2023 Q2 2024 Q2 2024 Nova Sea 48.9 % 44 027 39 985 9 614 12 543 2.90 3.01 3.82 3.26 -47.2 • Leading integrated salmon producer in Northern Norway − 33.33 wholly owned licenses − 4 partly
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: Resource rent tax in Norway with effect from 2023
Resource rent tax in Norway with effect from 2023 22% 22% 22% 22% + 25% = 47% 22% 22% 22% Breeding Smolt Feed Sales & Seawater Harvesting Processing Marketing • Estimate for effective resource rent tax rate of about 10% for Mowi Norway across the value- chain – Earnings in the seawater phase subject
Slide 40: Quarterly segment overview
Quarterly segment overview SOURCES OF ORIGIN QTD EUR million Norway Scotland Chile Canada Ireland Faroes Iceland Other 1) Group OPERATIONAL EBIT FARMING 81.6 36.1 6.3 4.8 5.9 10.0 2.3 0.0 147.1 SALES AND MARKETING Markets 46.1 3.4 1.9 1.8 0.8 0.3 -1.2 0.0 53.0 Consumer Products 14.6 4.2 4.4 0.1 0.6
Slide 41: YTD segment overview
YTD segment overview SOURCES OF ORIGIN YTD EUR million Norway Scotland Chile Canada Ireland Faroes Iceland Other 1) Group OPERATIONAL EBIT FARMING 149.3 63.2 12.5 1.2 9.7 18.8 12.0 266.8 SALES AND MARKETING Markets 97.5 5.5 3.3 3.3 1.2 0.6 -1.3 0.0 110.2 Consumer Products 31.0 6.7 8.6 0.2 0.7 0.3 0.
Slide 42: Development in harvest volumes
Development in harvest volumes GWT 2019 2020 2021 2022 2023 2024E (1,000) Total Total Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3E Q4E Total Norway 236.9 262.0 273.2 59.4 59.8 87.4 87.1 293.7 65.6 61.5 86.2 81.2 294.5 54.7 59.4 105.0 85.9 305.0 Scotland 65.4 52.7 64.4 10.5 13.0 14.5 10.4 48.4
Slide 43: 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 300 200 150 200 100 50 100 0 0 2019 2020 2021 2022 2023 2024E 2019 2020 2021 2022 2023 2024E Financial commitments and cost of debt (*) 1
Slide 44: Thank you
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