Slide 1: SalMar ASA Q2 2021 Presentation
SalMar ASA Q2 2021 Presentation 26 August 2021 CEO Gustav Witzøe CFO & COO Trine Sæther Romuld
Slide 2: Agenda
Agenda • Highlights • Operational Update • Financial Update • Strategic Update • Outlook
Slide 3: SalMar leading the way forward
SalMar leading the way forward Strengthening our platform for further growth across the entire value chain in all regions Icelandic Scottish SalMar SalMar Salmon Sea Farms Ocean GENETICS & COASTAL INDUSTRY & SMOLT FARMING SALES Main events in 2021 Construction ongoing Increase of MAB Vikenco in oper
Slide 4: Highlights
Harvest volume HIGHLIGHTS (1,000 tons gw) Continued solid operational performance and increasing salmon prices has led to satisfactory results • Total operational EBIT 633 MNOK from Norway, including Icelandic Salmon total operational EBIT 661 MNOK • Central and Northern Norway with stable developme
Slide 5: Operational Update
OPERATIONAL UPDATE (9 SALMAR
Slide 6: Farming Central Norway
Farming Central Norway KEY RESULTS Continuing the trend with solid operational performance Q2 2021 Q2 2020 H1 2021 H1 2020 Operating income (NOKm) 1,342 1,603 2,511 3,187 • Spring 20 accounted for 84% of the volume in the period Operational EBIT (NOKm) 520 679 906 1,421 – Stable cost development Ope
Slide 7: Farming Northern Norway
Farming Northern Norway KEY RESULTS Continuing to deliver solid results Q2 2021 Q2 2020 H1 2021 H1 2020 Operating income (NOKm) 836 645 1,536 1,541 • Autumn 2019 generation accounted for 77% of the volume in the period Operational EBIT (NOKm) 347 242 542 631 – Autumn 2019 finished in the period with
Slide 8: Sales & Industry
Sales & Industry KEY RESULTS Negative contribution from contracts and higher cost Q2 2021 Q2 2020 H1 2021 H1 2020 weakens result Operating income (NOKm) 3,070 3,284 6,102 6,633 Operational EBIT (NOKm) -136 70 -18 53 • Negative contribution from fixed price contracts due to higher spot prices Operati
Slide 9: Icelandic Salmon
Icelandic Salmon KEY RESULTS Good operational performance and increased price Q2 2021 Q2 2020 H1 2021 H1 2020 achievement improving results Operating income (NOKm) 182 99 360 379 Operational EBIT (NOKm) 28 -30 32 -9 • Improved price achievement, stable cost development and good capacity Operational
Slide 10: Scottish Sea Farms
Scottish Sea Farms1 KEY RESULTS Continuing the trend with good results Q2 2021 Q2 2020 H1 2021 H1 2020 Operating income (NOKm) 793 465 1,190 729 • Record high harvest volume in the quarter Operational EBIT (NOKm) 119 89 193 131 – Highest volume harvest in any quarter in SSF history Operational EBIT
Slide 11: Financial Update
FINANCIAL UPDATE Go SALMAR
Slide 12: Operational EBIT deviation analysis (qoq)
Operational EBIT deviation analysis (qoq) Norway EBIT per kg (NOK) Δ QoQ +0.26 • Net sales price increased due to higher spot prices partially NOK per kg offset by negative effect from contracts • Cost slightly higher due to increased cost in Central Norway and Sales & Industry Group EBIT per kg (NO
Slide 13: Group profit and loss
Group profit and loss NOK million Q2 2021 Q2 2020 Δ% H1 2021 H1 2020 Δ% Q2 2021 vs. Q2 2020 Operating income 3 168 3 308 -4 % 6 353 6 934 -8 % • Revenue decreased due to lower volume EBITDA 861 1 075 -20 % 1 682 2 325 -28 % Depreciations and write-downs 200 194 393 379 • Operational EBIT decreased f
Slide 14: Group balance sheet
Group balance sheet Assets Equity ratio • Investments progressing according to plan • Higher standing biomass YoY and stable QoQ • Net Interest-bearing debt incl. leasing liabilities decreased with NOK 822 million during the quarter – NIBD incl. leasing at NOK 5 406 million 53.8% • Solid financial p
Slide 15: Movement in net interest-bearing debt
Movement in net interest-bearing debt • Cash flow from operations impacted by release of working capital – Driven by increase of accounts payable -822 • Net cash flow from investments at NOK 518 million – Farming and Ocean NOK 86 million – Smolt and hatchery NOK 197 million – Sales & Industry NOK 16
Slide 16: Strong financial flexibility for further sustainable growth
Strong financial flexibility for further sustainable growth Secured green funding and completed successful private placement • A- Credit rating with stable outlook received from Nordic Credit Rating • Secured 7,500 MNOK in green financing in 2021 – Successful placement of first green bond in April •
Slide 17: Strategic Update
STRATEGIC UPDATE ee 9 SALMAR
Slide 18: 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 19: Increasing our smolt capacity
Increasing our smolt capacity Construction ongoing for new RAS facilities in both Central and Northern Norway Illustration Tjuin Gives flexibility and capacity to deliver the right smolt with the Reducing environmental footprint by use of RAS technology and right size and quality handling of sludge
Slide 20: Strengthening our farming operations
Strengthening our farming operations Increasing our MAB capacity in Norway • Increasing our MAB capacity through strategic acquisitions – Nekton Havbruk AS, 1,568 MAB tonnes – Refsnes Laks AS, 3,932 MAB tonnes – Increasing consolidated harvest volume with ~8,000 tonnes annually – Strong synergies wi
Slide 21: Increasing our local processing capacity
Increasing our local processing capacity Upgraded Vikenco in operation from Q2 2021 and InnovaNor in operation from Q4 2021 InnovaNor June 2021 InnovaNor - Largest and most modern processing facility in Local processing is a key factor for sustainable growth northern Norway • Strengthening our flexi
Slide 22: Potential to realize significant synergies through acquisition of NRS
Potential to realize significant synergies through acquisition of NRS Overlapping industrial interests in Northern Norway, West Fjords of Iceland and offshore Voluntary cash offer to aquire all Potential for significant synergies across the Combined large industrial potential outstanding shares in N
Slide 23: Strengthening our presence in UK
Strengthening our presence in UK Acquisition of Grieg Seafood Hjaltland UK Ltd • Aquired 100% of the shares in Grieg Seafood Hjaltland UK Ltd (GSHU) – Purchase price GBP 164 million – The company has currently 21 active seawater sites, a freshwater facility, a processing facility, and harvested appr
Slide 24: Outlook
OUTLOOK @ 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 – Dedicated employees and strong corporate culture set for growth – InnovaNor in operation fr
Slide 26: Thank you for your attention
THANK YOU FOR YOUR ATTENTION Next event Q3 2021 presentation 17 November 2021 For more information see www.salmar.no