SalMar - Satisfactory financial results despite a period marked by biological challenges

18 Nov 2024 06:30 CET

* Operational EBIT for Norway was NOK 1,082 million in the third quarter of
2024. The harvest volume was 56,400 tonnes, and operational EBIT per kg was
NOK 19.2.
* Operational EBIT for the group was NOK 1,041 million in the third quarter of
2024. The harvest volume was 60,300 tonnes, and operational EBIT per kg was
NOK 17.3.
* The farming segments in Norway were affected by biological challenges during
the quarter, and volume expectations for 2024 have been reduced.
* Sales and industry reported historically strong results, where the efficient
and flexible operational setup, along with the contract share, positively
impacted the results.
* SalMar Aker Ocean completed the harvest of the remaining volume in 2024, and
the production cycles for both Ocean Farm 1 and Arctic Offshore Farming are
well underway, with planned harvesting in 2025.
* Icelandic Salmon continued to be affected by low volume and high costs.
* Scottish Sea Farms reported another good quarter with increased harvest
volume, higher harvest weight, and good biological status in the sea across
all regions.

"Although the results are affected by challenges at sea, the results also show
that the structure we have at SalMar is solid and rigged to handle challenging
periods, which makes the financial results acceptable during the period. Going
forward, we are fully focused on improving performance and realizing the
potential we see in the value chain", says Frode Arntsen, CEO of SalMar ASA.

Strengthening our presence in Norway

In November 2024, SalMar entered into an agreement to acquire a controlling
interest in AS Knutshaugfisk through a combination of shares and cash. AS
Knutshaugfisk currently has 3,464 tonnes MAB in licenses and four farming sites
in production area six in Central Norway.

"Knutshaugfisk is a well-run family company with which we have developed a close
and value-creating collaboration over many years. SalMar's acquisition of a
significant stake in the company is a natural continuation of this
collaboration", says Arntsen.

The completion of the transaction is subject to regulatory approvals and is
expected to be completed in January 2025.

Significant potential for cost savings identified in the value chain

After realizing synergies following the acquisition of NRS, NTS, and SalmoNor in
2023, SalMar analyzed the entire value chain in 2024 to optimize the new company
further. This work has identified NOK 1.2 billion in potential savings in the
value chain. Through improved operational structure and increased efficiency,
this is expected to be realized by 2029.

" The work ahead to further improve operations and increase efficiency in all
parts of the company will make us even stronger going forward. We see strong
demand for our products, and our job is to produce them as efficiently and
sustainably as possible", says Arntsen.

Volume guidance and outlook

Volume guidance for 2024 has been reduced due to the biological challenges
experienced, and it is now expected to be 217,000 tonnes in Norway. SalMar Aker
Ocean has completed harvesting for the year and lands at 6,900 tonnes. Iceland
remains unchanged at 13,000 tonnes. Scottish Sea Farms increases volume guidance
for 2024 by 3,000 tonnes and expects 40,000 tonnes (100% basis). Considering the
relative share in Scottish Sea Farms, a total of 257,000 tonnes is expected for
the group.

For 2025, it is expected 254,000 tonnes in Norway, 9,000 tonnes from SalMar Aker
Ocean, 15,000 tonnes in Iceland, and 32,000 tonnes in Scottish Sea Farms (100%
basis). Considering the relative share from Scottish Sea Farms, a total of
294,000 tonnes is expected for the group, a 14 percent increase in harvest
volume compared to 2024.

As a result of the acquisition of Knutshaugfisk and the purchase of volume on
the traffic light earlier this year, the volume potential for SalMar has
increased to 370,000 tonnes, considering the relative share in Scottish Sea
Farms.

"We consider ourselves well-positioned to realize the potential we have in the
value chain going forward. Although we have experienced challenges in 2024 that
have affected harvest volumes, we are adapting to the challenges we have
experienced through measures across the value chain and are confident in
reaching our volume potential", concludes Arntsen.

The complete report and presentation for the third quarter is attached.

SalMar's CEO Frode Arntsen and CFO Ulrik Steinvik will present the company's
results today at 08:00 CET at Hotel Continental in Oslo. The presentation will
also be available on webcast on www.salmar.no.

For further information, please contact:

Frode Arntsen, CEO
Tel: +47 482 06 665
Email: frode.arntsen@salmar.no

Ulrik Steinvik, CFO
Tel: +47 900 84 538
Email: ulrik.steinvik@salmar.no

Håkon Husby, Head of Investor Relations
Tlf: +47 936 30 449
Email: hakon.husby@salmar.no

About SalMar

SalMar is one of the world's largest and most efficient producers of salmon. The
Group has farming operations in Central Norway, Northern Norway and Iceland, as
well as substantial harvesting and secondary processing operations. In addition,
the company is operating within offshore aquaculture through the company SalMar
Aker Ocean and SalMar owns 50% of the shares in Scottish Sea Farms Ltd.

See www.salmar.no for more information about the company.

This information is subject to the disclosure requirements stipulated in section
5-12 of the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

632455_SalMar Q3 24 - Presentation.pdf
632455_SalMar Q3 24 - Report.pdf