SalMar ASA

Q3 2021 Presentation

17 November 2021

CEO Gustav Witzøe

CFO & COO Trine Sæther Romuld

COO Industry & Sales Frode Arntsen

Agenda

  • Highlights
  • Operational Update
  • Financial Update
  • Strategic Update
    • Northern Norway
    • InnovaNor
    • SalMar Aker Ocean
  • Outlook

HIGHLIGHTS

Record high harvest volume and continued solid operational performance has led to good results

  • Total operational EBIT 743 MNOK from Norway, including Icelandic Salmon total operational EBIT 748 MNOK
  • Northern Norway with solid results driven by strong biological performance and operational performance
  • Central Norway with stable development and good results
  • Record high activity at harvesting and processing facilities, but increased cost weakens results from Sales & Industry
  • Stable cost development due to continue good operational performance for Icelandic Salmon, but lower spot price and one-off costs weakens results
  • Increasing volume guidance with 6,000 tons to 169,000 tons for 2021 in Norway due to strong utilization of increased MAB capacity
  • Expect increased volume in 2022, Norway 175,000 tons, Iceland 16,000 tons and Scotland1 46,000 tons
  • InnovaNor, Northern Norway most efficient and modern harvesting and processing plant, in operation from Q4 2021
  • Increasing MAB capacity in Central Norway through strategic acquisitions
  • Entered partnership with Aker to create world leading offshore farming operations through SalMar Aker Ocean

Harvest volume

(1,000 tons gw)

EBIT/kg

(NOK)

Operating income

(NOKm)

  1. Includes volume from Acquisition of Grieg Seafood Hjaltland UK Ltd . The Transaction is subject to certain customary closing conditions. It is expected to close within Q4 2021, depending on processing time with relevant authorities.

OPERATIONAL UPDATE

Farming Central Norway

Record high harvest volume and stable cost development

  • Continuing the trend with stable cost development from previous quarter
    • Due to solid operational performance despite biological challenges and increased number of sea lice treatments
  • Spring 20 accounted for 89% of the volume in the period
    • Slightly higher cost level compared to previous generations due to slightly weaker biological performance
  • Started harvesting of autumn 2020 generation with good biological performance
  • Expect similar volume and cost level in Q4 2021
    • Will finish harvest of spring 20 generation and continue harvest of autumn 20
  • Guiding for 2021 increased with 3,000 tons to 110,000 tons due to M&A and strong utilization of increased MAB capacity

KEY RESULTS

Q3 2021

Q3 2020

YTD 2021 YTD 2020

Operating income (NOKm)

1,940

1,623

4,451

4,810

Operational EBIT (NOKm)

597

526

1,503

1,947

Operational EBIT %

31 %

32 %

34 %

40 %

Harvest volume (tgw)

34.2

30.1

76.0

79.5

EBIT/kg

17.46

17.51

19.77

24.51

Harvest volume

EBIT/kg

(1,000 tons gw)

(NOK)

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SalMar ASA published this content on 17 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 05:46:05 UTC.