Slides
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Q4 2024 Presentation 1 8 F E B R U A R Y 2 0 2 5 C E O F R O D E A R N T S E N C F O U L R I K S T E I N V I K
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Agenda Q 4 2 0 2 4 P R E S E N T A T I O N Highlights FY & Q4 2024 Operational Update Financial Update Strategic Update Outlook 2
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Norway • Volume and results impacted by environmental challenges • Operational set-up in value chain showcasing its strength • Improved biological performance at the end of the year SalMar Aker Ocean • Harvest from both semi-offshore projects with strong biological performance Icelandic Salmon • Weak results affected by biological challenges Scottish Sea Farms2 • Significant improvement in operational results Financial position • Continued robust position with strong access to sustainable financing facilities • Board of Directors proposes a dividend of 22.00 NOK per share for the financial year 2024 2024 a challenging year Δ YoY = FY 2024 vs. FY 2023 1) Norway = Group results excluding Icelandic Salmon and SalMar Aker Ocean 2) Scottish Sea Farms – Joint venture, ownership 50% Harvest volume (1,000 tons gw) Group 231.8 Δ YoY -17.8 Norway1 213.2 Δ YoY -17.6 Operational EBIT/kg (NOK) Group 23.4 Δ YoY -8.7 Norway1 26.1 Δ YoY -8.0 Operational EBIT (NOKm) Group 5,429 Δ YoY -2,730 Norway1 5,575 Δ YoY -2,414 3
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• Farming segments in Norway with improved performance throughout the period • Set-up in Sales & Industry continue to showcase strength but financial results reduced due to lower contribution from contracts • SalMar Aker Ocean with both semi-offshore projects in operation • Icelandic Salmon with improved results, but continue to be affected by challenges • Scottish Sea Farms with continued good performance • Optimizing structure and strengthening our presence in Norway – Sale of Osan Settefisk AS in December 2024 – Acquisition of controlling interest in AS Knutshaugfisk completed in Q1 25 – SalMar ASA and Wilsgård Sea Service AS have agreed to work together to further develop their ownership interests in Wilsgård. This includes a consolidation with SalMar. • Volume guidance FY 25 kept unchanged in all regions Highlights Q4 2024 Δ QoQ = Q4 2024 vs. Q3 2024 Δ YoY = Q4 2024 vs. Q4 2023 1) Norway = Group results excluding Icelandic Salmon and SalMar Aker Ocean Harvest volume (1,000 tons gw) Group 73.8 Δ QoQ +13.5 Δ YoY -9.3 Norway1 67.3 Δ QoQ +10.9 Δ YoY -6.3 Operational EBIT/kg (NOK) Group 20.2 Δ QoQ +2.9 Δ YoY -6.2 Norway1 22.1 Δ QoQ +2.9 Δ YoY -7.3 Operational EBIT (NOKm) Group 1,489 Δ QoQ +448 Δ YoY -704 Norway1 1,485 Δ QoQ +403 Δ YoY -678 4
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Operational Update Q 4 2 0 2 4 Farming site Humulen in Central Norway
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• Results affected by early harvest of fish – Continued harvest from autumn 2023 generation and started harvest from spring 2024 generation – Safeguarding fish welfare due to sporadic cases of string jellyfish – Volume reduced at the end of the period due to weather constraints and to optimize biological performance Outlook • Continue harvest of autumn 2023 and spring 2024 generation • Overall satisfactory biological status • Expect similar cost level in Q1 25 compared to Q4 24 • Expect low volume in Q1 2025 in order to optimize MAB utilization • Guidance FY 2025 kept unchanged at 154,000 tonnes Farming Central Norway Key Results Q4 2024 Q4 2023 FY 2024 FY 2023 Operating income (NOKm) 3,149 3,424 11,323 12,419 Operational EBIT (NOKm) 622 1,178 3,402 4,597 Harvest volume (tgw) 39.7 42.3 132.7 141.1 EBIT/kg (NOK) 15.7 27.9 25.6 32.6 Harvest volume (1,000 tons gw) EBIT/kg (NOK) 6
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• Significantly improved results compared to earlier in 2024 – Continued harvest of the spring 2023 generation – Strong biological development in the period – Reduced cost level and improved price achievement – Some volume pushed into 2025 due to weather constraints Outlook • Continue harvest from spring 2023 generation and will start with autumn 2023 generation • Good biological status • Expect slightly lower cost level in Q1 25 compared to Q4 24 • Expect slightly lower volume in Q1 2025 compared to Q1 24 • Guidance FY 2025 kept unchanged at 100,000 tonnes Farming Northern Norway Key Results Harvest volume (1,000 tons gw) EBIT/kg (NOK) 7 Q4 2024 Q4 2023 FY 2024 FY 2023 Operating income (NOKm) 2,347 2,436 6,495 7,894 Operational EBIT (NOKm) 773 840 1,947 3,402 Harvest volume (tgw) 27.7 31.4 80.5 92.8 EBIT/kg (NOK) 27.9 26.8 24.2 36.7
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• Flexible operational set-up optimizing handling of volume in the period • Strong capacity utilization of facilities • 30% contract share1 with positive contribution – Contribution lower than previous quarter due to higher spot prices • Good price achievement from spot sales Outlook • Seasonally lower volume in Q1 25 • Strong demand for our products in all markets • Contract share currently around 45% for Q1 25 and 25% for FY 25 – Price points of contracts increased compared to 2024 Sales & Industry Key Results Q4 2024 Q4 2023 FY 2024 FY 2023 Operating income (NOKm) 7,202 7,617 25,661 27,094 Operational EBIT (NOKm) 131 168 468 256 Operational EBIT-margin (%) 1.8 % 2.2 % 1.8 % 0.9 % Contract share1 (%) EBIT-margin (%) 1) Physical and financial fixed price contracts8
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• Both semi-offshore units in operation – 2nd production cycle in Arctic Offshore Farming started in Q3 24 – 4th production cycle in Ocean Farm 1 started in Q2 24 Outlook • Guidance FY 2025 kept unchanged at 9,000 tonnes – Volume from Arctic Offshore Farming expected to be harvested in Q1 25 • Strong biological performance give confidence in future potential – Additional site approved at Frohavet in Central Norway – International expansion is progressing according to plan SalMar Aker Ocean Key Results Harvest volume (1,000 tons gw) EBIT/kg (NOK) 9 Q4 2024 Q4 2023 FY 2024 FY 2023 Operating income (NOKm) 0 173 573 173 Operational EBIT (NOKm) -12 3 -77 -60 Harvest volume (tgw) 2.3 6.9 2.3 EBIT/kg (NOK) 1.4 -11.2 -26.2
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• Improved results with stable biological situation – Results still affected by high cost base – Harvest volume at the end of the period reduced to optimize biological performance Outlook • Guidance FY 2025 unchanged at 15,000 tonnes – Expect a high cost level and low volume in the first half of 2025 Icelandic Salmon Key Results Harvest volume (1,000 tons gw) EBIT/kg (NOK) 10 Q4 2024 Q4 2023 FY 2024 FY 2023 Operating income (NOKm) 586 605 1,182 1,871 Operational EBIT (NOKm) 16 26 -69 230 Harvest volume (tgw) 6.5 7.2 11.7 17.9 EBIT/kg (NOK) 2.4 3.6 -5.9 12.8
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• Significant increase in profitability in 2024 • Continued strong performance in Q4 24 – Significant increase in harvest volume YoY with good harvest weights in the quarter – Strong biological development, with next generation of fish performing well in all regions Outlook • Good biological status in seawater in all regions • Guidance FY 2025 unchanged at 32,000 tonnes – Impacted by re-organising site structure. Long term potential significantly higher Scottish Sea Farms1 Key Results Q4 2024 Q4 2023 FY 2024 FY 2023 Operating income (NOKm) 965 497 4,403 2,561 Operational EBIT (NOKm) 93 -47 555 -304 Harvest volume (tgw) 9.0 4.6 40.4 24.9 EBIT/kg (NOK) 10.3 -10.3 13.7 -12.2 Fair value adjustments (NOKm) -56 -5 -25 16 Profit after tax (NOKm) 23 -101 179 -482 NIBD (NOKm) 2,562 2,803 2,562 2,803 1) Joint venture Scottish Sea Farms LTD through Norskott Havbruk, ownership 50% Harvest volume (1,000 tons gw) EBIT/kg (NOK) 11
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Financial Update Q 4 2 0 2 4 Farming site Setevika in Central Norway
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• Increase in operational EBIT QoQ driven by increased volume and improved price achievement Comments related to FY 2024 • Production tax increased due to higher fee • Non-recurring items* positive driven by gain of sale of Osan Settefisk • Fair value adjustments** positive due to improved prices on contract portfolio and higher biomass • Income from associates & JV increased following improved results in Scottish Sea Farms • Taxes in 2024 includes corporate tax and resource rent tax Group Profit & Loss Group operational EBIT - QoQ Group P&L +448 Norway NOK million Q4 2024 Q3 2024 ΔQoQ% FY 2024 FY 2023 ΔYoY% Operating revenues 7,876 6,158 28 % 26,426 28,219 -6 % EBITDA 1,942 1,462 33 % 7,120 9,578 -26 % Operational EBIT 1,489 1,041 43 % 5,429 8,159 -33 % Production tax -82 -60 -241 -208 Non-recurring items* 128 -76 58 -71 Fair value adjustments** -213 273 137 630 Income from associates & JV 39 -20 122 -27 Net financial items -450 -319 -1,214 -1,203 Profit before tax 910 839 4,201 7,279 Tax -139 579 1,096 4,534 Profit for the period 1,049 260 3,105 2,746 EPS – adjusted* (NOK/share) 7.3 2.8 22.5 33.5 Harvest volume (tgw) 73.8 60.3 22 % 231.8 254.1 -9 % EBIT per kg (NOK/kg) 20.2 17.3 17 % 23.4 32.1 -27 % *) See notes in the financial report for details **) Includes onerous contracts and fair value adjustments 13
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• Total assets decreased following sale of Osan Settefisk AS • Higher standing biomass YoY – Both number of fish and biomass • Equity ratio increased to 37% • Net interest-bearing debt (NIBD) including lease liabilities decreased to NOK 18.5 billion – NIBD incl. lease/EBITDA at 2.6 – NIBD/EBITDA at 2.4 • Available liquidity NOK 6.8 billion • Aquisition of controlling interest in Knutshaugfisk completed in February 2025 – NIBD effect NOK 211 million – New shares issued 716 651 Group Balance Sheet Assets Equity ratio NIBD incl. lease liabilitiesEquity & liabilities All figures in NOK million Lease LiabilitiesNIBD 14
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• Sale of Osan Settefisk AS in December 2024, net effect NOK -648 million • Cash flow from operations impacted by taxes paid • Net investments NOK 531 million – Net other investments* NOK 36 million – Capex NOK 488 million – Farming NOK 381 million – Smolt NOK 24 million – Sales & Industry NOK 5 million – Icelandic Salmon NOK 12 million – SalMar Aker Ocean NOK 63 million • Expect higher debt level in Q1 2025 following payment of taxes and working capital Net interest bearing debt Change in NIBD incl. leasing - QoQ All figures in NOK million 15 -578 *) Acquisition of non-controlling interest See notes in the financial report for further details.
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• Succesful issuance of NOK 4.35 billion in senior unsecured green bonds in January – 5 year – NOK 3.25 billion – NIBOR3M + 115 bps – 7 year – NOK 1.10 billion – NIBOR3M + 135 bps • Danske Bank, DNB Markets, Nordea and SEB acted as Global Coordinator and Joint Lead Managers and Rabobank acted as Joint Lead Manager. • Funds from the green bonds to be used in accordance with the green bond framework published in August 2024 Sustainable and flexible financing 16 Long-term facilities2 Maturity profile All figures in NOK billion 1) Green Bond Framework and second party opinion available from SalMars website 2) Long-term facilities in SalMar ASA Overview 100% Sustainable & UnsecuredTerm Loan NOK6bn Green Bond NOK 7.85 bn RCF NOK10bn Green Bond Framework Available on www.salmar.no
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• Board of Directors propose a cash dividend of NOK 22.00 per share • Results in 2024 shows that SalMar has maintained a solid financial position despite a challenging year operationally • Important for SalMar to provide shareholders a competitive return on invested capital • Proposed cash dividend to be approved at AGM 18th of June 2025 Dividend for the financial year 2024 17 Dividend (NOK/share) Share of EPS* (%) * DPS vs. adjusted EPS
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Strategic Update Q 4 2 0 2 4
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• Largest portion of investments in 2025 related to fish welfare • Effects – Reduced amount of treatments – Reduced mortality – Improved quality – Reduced cost – Increased volume • From individual sites with preventive technology to entire zones in 2025 Investing in value chain to improve fish welfare and reduce cost 19 Slide presented in Q3 24 presentation Sites with preventive technology in Norway 2024 20% 2025 40%
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• Expect to invest NOK 1,7 billion in Norway – Maintenance investments NOK 0,7 billion (~3,0 NOK/kg) – Capacity investments NOK 1,0 billion – Investments to improve fish welfare and reduce cost – Upgrade of harvesting & VAP capacity • Expect to invest NOK 0,13 billion in Icelandic Salmon – Unlocking potential within existing licenses • Expect to invest NOK 0,07 billion in SalMar Aker Ocean – Maintenance capex and upgrade of net AOF Expect to invest NOK 1.9 billion in 2025 20 All figures in NOK billion Investments in 2025 ΔYoY -0.8 -0.1 +0.1 -0.7 - -0.7 Submerged Net Pens Sea Lice Lasers Upgrade of Harvesting & V AP Largest single investments in 2025
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Harvesting & VAP facility Coastal Farming Site Smolt Facility Semi-Offshore Farming Site Visitor Centre Operations in the value chain2 Wilsgård SalMar • Wilsgård AS with operations in PO10 and PO11 in Northern Norway – 5,844 MAB tonnes in farming licenses – Operations in one of SalMars core areas • SalMar ASA and Wilsgård Sea Service AS have agreed to work together to further develop their ownership interests in Wilsgård. – Together they own 75% of the shares in Wilsgård – This includes a consolidation with SalMar • Expect strong synergies in the value chain Strengthening our presence in Northern Norway 21 MAB capacity in Northern Norway1 tonnes MAB 1) SalMar includes maximum allowable biomass (MAB) for segments fish farming central Norway and SallMar Aker Ocean. 2) In addition Wilsgård & SalMar have operations not depicted on the map SalMar Wilsgård Total ∆ PO10 15,723 2,922 18,645 19 % PO11 17,746 2,922 20,668 16 % PO12 34,763 - 34,763 0 % PO13 10,167 - 10,167 0 % Total 78,399 5,844 84,243 7 %
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Outlook Q 4 2 0 2 4 Children visiting our visitor center in Molde, Central Norway
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• Expect low global supply growth in 2025 – Continued good demand for sustainable proteins • SalMar well equipped for further sustainable growth – Strengthening value chain to ensure farming on the terms of the salmon – Dedicated employees and strong corporate culture – Strong growth potential in optimal locations – Robust value chain with unutilized potential Outlook 1) ΔQoQ = Change from Q4 2024 2) ΔYoY = Change from Q1 2024 3) Physical and financial fixed price contracts 4) Joint venture Scottish Sea Farms LTD through Norskott Havbruk, ownership 50%, figure depicts 100% share 5) Includes expected volume from Knutshaugfisk, not including expected volume from Wilsgård Q1 2025 FY 2025 Δ Cost QoQ1 Δ Voume YoY1 Contract share3 Volume5 Contract share3 Norway Same level Significantly Lower ~45% 254,000 ~25% Central Norway Same level Significantly Lower 154,000 Northern Norway Slightly lower Slightly lower 100,000 SalMar Aker Ocean Significantly Lower 9,000 Icelandic Salmon Significantly Lower 15,000 Scottish Sea Farms4 32,000 Guiding 23
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Thank you for your attention INVESTOR CONTACT: Håkon Husby, Head of IR Tel: +47 936 30 449 Email: hakon.husby@salmar.no FINANCIAL CALENDAR: Annual Report 2024 – 25 April 2025 Q1 2025 presentation – 20 May 2025 – Oslo Annual General Meeting – 18 June 2025 Q2 2025 presentation – 21 August 2025 – Trondheim Q3 2025 presentation – 6 November 2025 – Oslo Passion for Salmon For more information, please visit www.salmar.no
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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 accurate. Although SalMar believes that the assumptions and expectations implied in any such forward-looking statements are reasonable, no assurance can be given that such assumptions or expectations will prove to be correct. A number of material factors could cause actual results, performance or developments to differ materially from those expressed or implied by these forward-looking statements. Factors that may cause such a difference include but are not limited to: biological situation in hatcheries and sea farms; fish escapes; fluctuations in salmon prices; foreign exchange, credit and interest rate fluctuations; changes in the competitive climate; changes in laws and regulations. SalMar assumes no obligation to update any forward-looking statement. Forward looking statements