Slide 1: Q3 2023 Presentation
9 NOVEMBER 2023 Q3 2023 Presentation CEO: FRODE ARNTSEN CFO: ULRIK STEINVIK
Slide 2: Agenda
Q 3 2 0 2 3 P R E S E N TAT I O N Agenda Highlights Q3 2023 Operational Update Financial Update Strategic Update Outlook 2
Slide 3: Highlights Q3 2023
Highlights Q3 2023 Harvest volume (1,000 tons gw) Group Norway1 • Strong results driven by solid operational performance 78.1 Δ QoQ Δ YoY 74.0 Δ QoQ Δ YoY – Strong results from farming segments in Norway driven by +33.7 +24.5 +29.8 +24.3 increased volume and reduced cost level – Continued solid perf
Slide 4: Operational Update
Q3 2023 Operational Update
Slide 5: Farming Central Norway
Farming Central Norway Key Results Q3 2023 Q3 2022 YTD 2023 YTD 2022 Operating income (NOKm) 3,817 2,540 8,996 6,574 • Record high harvest volume Operational EBIT (NOKm) 1,218 978 3,434 3,115 • Solid operational performance with reduced cost QoQ Harvest volume (tgw) 48.4 36.0 98.9 81.5 – SalmoNor vo
Slide 6: Farming Northern Norway
Farming Northern Norway Key Results Q3 2023 Q3 2022 YTD 2023 YTD 2022 Operating income (NOKm) 2,033 946 5,458 3,126 • Continued strong operational performance Operational EBIT (NOKm) 868 428 2,562 1,749 – Slight increase in cost QoQ as expected – NRS volume accounted for 24% Harvest volume (tgw) 25.
Slide 7: Sales & Industry
Sales & Industry Key Results Q3 2023 Q3 2022 YTD 2023 YTD 2022 Operating income (NOKm) 7,236 4,734 19,477 13,126 • Continued solid operational performance Operational EBIT (NOKm) 236 -34 88 -1,186 – Operational set-up showcasing its strength Operational EBIT-margin (%) 3.3 % -0.7 % 0.5 % -9.0 % – St
Slide 8: Icelandic Salmon
Icelandic Salmon Key Results Q3 2023 Q3 2022 YTD 2023 YTD 2022 Operating income (NOKm) 476 340 1,267 1,056 • Harvest started again in July after stop in Q2 Operational EBIT (NOKm) 35 39 204 268 – Results affected by high cost level Harvest volume (tgw) 4.0 3.8 10.7 10.1 EBIT/kg (NOK) 8.7 10.2 19.1 2
Slide 9: SalMar Aker Ocean
SalMar Aker Ocean Key Results Q3 2023 Q3 2022 YTD 2023 YTD 2022 Operating income (NOKm) 0 - 0 - • Two semi-offshore projects in operation Operational EBIT (NOKm) -8 -34 -63 -107 – Arctic Offshore Farming a part of SalMar Aker Ocean Harvest volume (tgw) - - - - • Site approval for open ocean unit Sma
Slide 10: Scottish Sea Farms
Scottish Sea Farms1 Key Results Q3 2023 Q3 2022 YTD 2023 YTD 2022 Operating income (NOKm) 867 972 2,065 2,495 • Seasonally low harvest volumes due to previously Operational EBIT (NOKm) -121 47 -257 342 mentioned biological challenges – Biological challenges affecting average harvest size, cost and H
Slide 11: Financial Update
Q2 2023 Financial Update
Slide 12: Resource rent tax in Norway
Resource rent tax in Norway • Estimated tax for the first 9 months of 2023 included in the financial statement for Q3 2023 Subject for resource tax – Only commercial licenses a part of the resource rent tax Tax rate Tax rate Tax rate – Consideration paid in previous traffic light auctions deductable
Slide 13: Group Profit & Loss
Group operational EBIT - QoQ + 555 Group Profit & Loss • Increase in operational EBIT QoQ driven by increased harvest volume and lower cost in value chain in Norway Norway – Offsetting effects of lower salmon prices Group P&L NOK million Q3 2023 Q2 2023 Δ % YTD 2023 YTD 2022 Δ % Operating revenues 7
Slide 14: Group Balance Sheet
Group Balance Sheet Assets Equity ratio • Sale of Frøy and new financing agreement strengthening financial position • Ongoing investments in the value chain progressing according to plan • Higher standing biomass QoQ and YoY • Equity ratio increased to 40% Equity & liabilities NIBD incl. lease liabi
Slide 15: Net interest bearing debt
Net interest bearing debt Change in NIBD incl. leasing - QoQ • Sale of assets reducing NIBD with NOK 4.8 billion -4,817 -1,998 • Cash flow in the period reducing NIBD with NOK 2.0 billion • Strong cash flow from operations • Net investments at NOK 429 million – Farming NOK 225 million – Smolt NOK 61
Slide 16: Synergy realization progressing according to plan
Synergy realization Synergy realization as of Q3 2023 progressing according to plan • 75% of synergies with NTS, NRS and SalmoNor realized at the end of Q3 23 – Realized 635 of 844 MNOK in yearly recurring cost savings – Estimated total restructuring cost NOK 103 million unchanged • Yearly recurring
Slide 17: Strategic Update
Q3 2023 Strategic Update
Slide 18: Our story
Our story Q3 2023 highest recorded volume & A history of growth Merger with NTS, NRS and operational EBIT Untapped potential Reached new milestones in 2023 and has strong SalmoNor ambitions for further growth InnovaNor & Senja 2 in Tjuin & two operation offshore Harvest volume1 projects in 1st produ
Slide 19: Our story
Our story Is built on a passion for salmon Fish welfare throughout the value chain crucial for production of healthy, nutritious and sustainable food Our growth will always be on the terms of the salmon Always Invested to be Access to Rigged with producing the Strong access self sufficient optimal l
Slide 20: Significant volume growth in 2024 with further growth potential in all regions
Harvest volume Significant volume growth ‘000 tons gw +21% in 2024 with further growth +9% potential in all regions 2024E: 257,000 tons Δ2023: +18,000 tons / +8 % NORWAY1 Unutilized potential starting to materialize 2024E: 7,000 tons Δ2023: +3,000 tons / +75 % OFFSHORE2 Third harvest from Ocean Farm
Slide 21: New offshore units in Norway currently on hold
Key components in a sustainable regulatory framework New offshore units in Tax Area Norway currently on hold • Focus on continued growth within semi- offshore and continue to utilize the potential in existing semi-offshore assets Technology Licenses • Will continue to explore opportunities abroad •
Slide 22: Outlook
Q3 2023 Outlook
Slide 23: Outlook
Outlook Guiding Q4 2023 FY 2023 FY 2024 • No global supply growth in 2023 Cost Harvest Contract Harvest Harvest Level1 Volume1 share2 Volume Volume • Expect low global supply growth in 2024 Same Same Norway ~15% 239,000 257,000 – Continued good demand for sustainable proteins level level Central Sam
Slide 24: Thank you for your attention
Thank you for your attention Passion for Salmon For more information, please visit www.salmar.no FINANCIAL CALENDAR: Q4 2023 presentation – 15 February 2024 – Oslo Annual Report 2023 – 19 April 2024 Q1 2024 presentation – 14 May 2024 – Oslo Annual General Meeting – 6 June 2024 Q2 2024 presentation –
Slide 25: 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