Mowi Q1 2024 Financial Performance Overview
Mowi's Q1 2024 presentation highlighted operational revenues of EUR 1.33 billion and operational EBIT of EUR 201 million. The quarter posed challenges for Farming Norway, while seeing strong performance in other farming countries. Operational highlights included seasonal effects on costs, record-high harvest volumes, and good performance in feed and consumer products. Key financial figures showed a decrease in operational revenue, EBIT, and NIBD compared to Q1 2023.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Q1 2024 presentation CEO: Ivan Vindheim CFO: Kristian Ellingsen 8 May 2024
Forward looking statements This presentation may be deemed to include forward-looking statements, such as statements that relate to Mowi s contracted volumes, goals and strategies, including strategic focus areas, salmon prices, ability to increase or vary harvest volume, production capacity, expectations of the capacity of our fish feed plants, trends in the seafood industry, including industry supply outlook, exchange rate and interest rate hedging policies and fluctuations, dividend policy and guidance, asset base investments, capital expenditures, tax and net working capital guidance, NIBD target, cash flow guidance and financing update, guidance on financial commitments and cost of debt, guidance on anti-trust and competition regulations, and various other matters concerning Mowi's business and results. These statements speak of Mowi s plans, goals, targets, strategies, beliefs, and expectations, and refer to estimates or use similar terms. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties. Mowi disclaims any continuing accuracy of the information provided in this presentation after today. Page 2
Highlights Q1 2024 Operating revenues of EUR 1.33 billion. Operational EBIT of EUR 201 million Challenging quarter for Farming Norway due to winter sores and downgrades, significantly compounded by string jellyfish and an unusually cold winter Strong biological performance in our six farming countries outside Norway Strong demand and prices in Europe, whilst prices in Americas on the soft side Realised farming cost of EUR 6.05 per kg negatively impacted by seasonally low volumes and low dilution of cost, in addition to winter sores in Norway Expect a lower cost level in H2 due to improved biology in Norway in Q2, lower feed prices and scale Cost expected to be stable in Q2 due to seasonally low volumes and knock-on effects of winter sores in Mowi Norway Although gradually diminishing, weakening of the NOK last year hit earnings by EUR 10 million in the quarter Harvested 96.5k GWT in the quarter, harvest volumes of record-high 500k GWT for 2024 maintained Supported by seasonally record-high biomass in sea end of Q1 Feed and Consumer Products with a good operational quarter, however, impacted by seasonality and a slower market in the US Quarterly dividend of NOK 1.50 per share Page 3
Key financials Mowi Group - main figures Q1 2024 Q1 2023 2023 Unaudited EUR million Operational revenue and other income 1,331.3 1,362.4 5,513.4 -2% Operational EBIT1) Operational EBITDA 1) 200.5 248.5 321.8 367.4 1,027.5 1,221.0 -38% Net interest-bearing debt (NIBD)1) 2) Underlying EPS (EUR) 1) Underlying EPS (NOK) 1) Net cash flow per share (EUR) 1) Dividend declared and paid per share (NOK) ROCE 1) Equity ratio 1,824.6 0.21 2.36 0.09 1.90 14.7% 47.9% 1,641.2 0.33 2.99 0.37 1.70 22.4 % 51.3 % 1,790.3 1.30 14.81 0.56 7.20 19.3 % 45.6 % Harvest volume (GWT) 96 495 -6.3% 102 944 474 664 Operational EBIT - EUR per kg1) -Total 2.08 3.13 2.16 Norway Scotland Chile Canada Ireland Faroes Iceland 2.52 2.19 0.95 -0.24 3.90 3.50 3.79 3.73 2.34 1.51 2.17 1.68 3.30 2.12 2.82 1.39 0.87 0.66 0.27 2.94 1.14 1) Notes in report 2) NIBD excluding IFRS 16 effects. NIBD including IFRS 16 effects of EUR 2,346 million Page 4
Salmon prices weekly reference prices Two-way division of European and American prices continued in the quarter Record high European spot prices on strong demand and low supply Prices in Americas on the soft side partly due to temporarily lower demand Americas Europe Chilean D-trim lbs, Canadian GWE 10-12 lbs 14 6 14 5.21 12 12 5 10.62 4.514.44 USD per GWE 10-12 lbs (Seattle) 4.09 9.60 4.07 9.559.12 3.983.85 USD per lbs D-trim (Miami) 10 10 3.653.84 3.69 4 3.57 3.51 8.07 3.39 3.24 EUR per kg (Oslo) 8 8 6.897.04 6.786.99 2.93 6.71 6.19 3 2.412.59 6.04 5.30 5.24 5.20 6 6 6.906.97 6.81 6.48 4.444.05 6.025.755.47 5.995.88 5.955.965.50 2 5.19 5.16 4 4 4.033.873.87 1 2 2 0 0 0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Ref. price Chile USD (UB avg D-trim 3-4 lbs FOB Miami), LHS Ref. price Norway EUR (NASDAQ average superior Oslo, GWT/kg) Ref. price North America, West Coast USD (UB avg. superior GWE 10-12 lbs FOB Seattle), RHS Page 5 Prices up to week 15 in 2024
Price achievement and contract share 120% Price achievement 11% lower than reference price, mainly due to quality downgrading in Norway 106% 102% 100% 96% 99% 100% 93% 91% 83% 80% 60% 40% 20% 0% Norwegian Scottish Chilean Canadian Q1 2023 Q1 2024 Norwegian 32% Scottish 73% Chilean 44% Canadian 0% Q1-24 Contract share Page 6
Norway Operational EBIT Salmon of Norwegian Origin Q1 2024 vs Q1 2023 Operational EBIT Salmon of Norwegian Origin Q1 2023 vs Q1 2024 SALMON OF NORWEGIAN ORIGIN EUR million Q1 2024 Q1 2023 300 Operational EBIT 138.0 244.7 250 EBIT Harvest volume (GWT) 171.2 54 711 267.1 65 627 200 150 Operational EBIT per kg (EUR) - of which Feed - of which Markets - of which Consumer Products 2.52 0.05 0.94 0.30 3.73 0.06 0.58 0.37 100 50 0 Op EBIT Q1 2023 Price Volume Feed Other SW costs Non SW costs Op EBIT Q1 2024 Price achievement/reference price Contract share 83% 32% 93% 26% Earnings negatively impacted by winter sores and downgrades, significantly compounded by string jellyfish and an unusually cold winter Improved biology in the second quarter on higher sea water temperatures Smolts now vaccinated with an improved winter sore vaccine promising results Preventive measures at sea and increased upgrading capacity on land Page 7
Norway: Operational EBIT/kg per region 5.0 Region West stands out on good biology and less impacted by winter sores and downgrades 4.48 4.5 3.93 4.0 3.73 3.72 3.5 3.20 EUR per kg 3.0 2.52 2.53 2.35 2.5 2.17 1.91 2.0 1.5 1.0 0.5 0.0 South West Mid North Total Q1 2023 Q1 2024 Note: Operational EBIT/kg per region includes contribution from all business areas Page 8
Norway: Sales contract portfolio 25,000 20,000 Contracted volumes (GWT) 15,000 10,000 5,000 0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Realised contract volumes Contracted volumes (including prospects) 32% contract share for the first quarter Maintained contract strategy for 2024 Note: Mowi Norway s fixed price/fixed volume contracts with third party customers and Mowi s processing entities. Mowi s processing entities cover a large proportion of their sales exposure through third party end-product contracts. Page 9
Scotland Operational EBIT Salmon of Scottish Origin Q1 2023 vs Q1 2024 Q1 2024 vs Q1 2023 SALMON OF SCOTTISH ORIGIN EUR million Operational EBIT Salmon of Scottish Origin Q1 2024 Q1 2023 40 Operational EBIT 31.1 26.6 EBIT Harvest volume (GWT) 43.8 39.1 30 14 205 11 373 Operational EBIT per kg (EUR) - of which Feed - of which Markets - of which Consumer Products 2.19 -0.04 0.14 0.18 2.34 -0.16 0.13 0.31 20 10 0 Op EBIT Q1 2023 Price Volume Feed Other SW costs Non SW costs Trans- lation Op EBIT Q1 2024 Price achievement/reference price Contract share 106% 73% 99% 66% Strong earnings on improved biological performance, good quality and strong prices for Scottish salmon Second quarter developing well so far with high volumes and continued strong prices Page 10
Chile SALMON OF CHILEAN ORIGIN Operational EBIT Salmon of Chilean Origin Q1 2023 vs Q1 2024 Q1 2024 vs Q1 2023 Operational EBIT Salmon of Chilean Origin Q1 2024 Q1 2023 EUR million 25 Operational EBIT 11.9 15.9 EBIT Harvest volume (GWT) 24.8 29.1 20 12 546 10 588 15 Operational EBIT per kg (EUR) - of which Markets - of which Consumer Products 0.95 0.12 0.33 1.51 0.02 0.68 10 5 0 Price achievement/reference price Contract share 102% 44% 100% 46% Op EBIT Q1 2023 Price Volume Feed Other SW costs Non SW costs Trans- lation Op EBIT Q1 2024 Mowi Chile delivered once again strong biological metrics in the first quarter However, soft prices weighed on earnings Entered winter season in Chile which normally means lower biological risk Page 11
Canada SALMON OF CANADIAN ORIGIN Operational EBIT Salmon of Canadian Origin Q1 2023 vs Q1 2024 Q1 2024 vs Q1 2023 Operational EBIT Salmon of Canadian Origin Q1 2024 Q1 2023 EUR million Operational EBIT -2.1 16.4 20 EBIT Harvest volume (GWT) -18.6 8 796 27.7 7 579 15 10 Operational EBIT per kg (EUR) - of which Markets - of which Consumer Products -0.24 0.16 0.01 2.17 0.06 0.00 5 0 -5 Price achievement/reference price Contract share 91% 0% 96% 0% -10 Op EBIT Q1 2023 Price Volume Feed Other SW costs Non SW costs Trans- lation Op EBIT Q1 2024 Financial figures impacted by weak prices and a high share of harvest volumes from Canada East which still carries a higher cost level Biological performance good in the quarter Page 12
Ireland and Faroes SALMON OF IRISH ORIGIN SALMON OF FAROESE ORIGIN Q1 2024 Q1 2023 Q1 2024 Q1 2023 EUR million EUR million Operational EBIT 4.2 1.3 Operational EBIT 9.2 7.0 EBIT Harvest volume (GWT) 9.8 3.2 EBIT Harvest volume (GWT) 8.7 5.3 1 078 781 2 627 2 130 Operational EBIT per kg (EUR) - of which Feed - of which Markets - of which Consumer Products 3.90 -0.09 0.44 0.06 1.68 -0.26 0.28 0.41 Operational EBIT per kg (EUR) - of which Feed - of which Markets - of which Consumer Products 3.50 0.00 0.13 0.02 3.30 0.00 0.05 0.00 Price achievement/reference price Contract share n/a 1% n/a 78% Price achievement/reference price Contract share 101% 0% 95% 0% A strong quarter on good biology, partly driven by egg sales Strong operational and financial results from Mowi Faroes High achieved price, improved volumes and good cost Page 13
Iceland (Arctic Fish) SALMON OF ICELANDIC ORIGIN Q1 2024 Q1 2023 EUR million Operational EBIT 9.6 10.3 EBIT Harvest volume (GWT) 9.9 5.7 2 531 4 866 Operational EBIT per kg (EUR) - of which Feed - of which Markets - of which Consumer Products 3.79 -0.02 -0.03 0.01 2.12 0.00 0.00 0.00 Price achievement/reference price Contract share 95% 0% n/a 0% A good start to the year on strong biological and financial performance Strong prices Page 14
Consumer Products CONSUMER PRODUCTS Q1 2024 Q1 2023 EUR million Operating revenues 896.5 854.5 Operational EBIT Operational EBIT % Operational EBIT % VAP only EBIT 24.4 2.7% 3.0% 23.1 37.2 4.3% 4.8% 37.0 Volume sold (tonnes prod. weight) 55 335 53 184 Good operational performance Earnings reduced due to a slower market in the Americas and tighter margins in Europe Mowi stand at the Seafood Expo Global 2024 in Barcelona, Spain Continue to see strong demand and strong prices for our European salmon whilst we expect a market recovery in the Americas Page 15
Norway Feed FEED EUR million Q1 2024 Q1 2023 Operating revenues 197.4 196.0 Operational EBITDA Operational EBIT Operational EBITDA % Operational EBIT % EBIT 5.7 1.7 6.1 2.2 2.9% 0.9% 1.7 3.1% 1.1% 2.2 Feed sold volume Feed produced volume 97 918 115 494 93 994 108 577 Scotland Seasonally record-high sold volumes Good start to the year which lays the foundation for another record-breaking year for Mowi Feed Page 16
Q1 2024 presentation Financials, Markets and Harvest volumes
Profit and Loss Mowi Group EUR million Q1 2024 Q1 2023 2023 Operational revenue and other income 1,331.3 -2% 1,362.4 5,513.4 Positive net fair value adjustment on higher salmon prices Operational EBIT 1) 200.5 -38% 321.8 1,027.5 Change in unrealized internal margin Gain/loss from derivatives Net fair value adjustment of biomass, onerous contracts provision Restucturing costs Production/license/sales taxes Other non-operational items Income from associated companies Impairment losses 7.4 -3.8 3.4 1.1 -0.9 -2.9 Associated companies: EBIT/kg of EUR 3.20 on 9.8k tonnes from Nova Sea (49% ownership and largest shareholder) 60.8 -2.8 -12.1 -11.8 5.5 -4.8 53.7 -1.1 -8.4 -1.9 12.4 0.0 19.1 -4.9 -45.1 -16.6 28.4 -23.5 Includes temporary FX gain from weakening of NOK EBIT 238.9 381.1 981.0 Net financial items -32.7 -19.7 -82.3 Earnings before tax 206.3 361.4 898.7 Profit or loss for the period 170.4 280.9 439.5 Basic EPS (EUR) Underlying EPS (EUR) Underlying EPS (NOK) Net cash flow per share (EUR) Dividend declared and paid per share (NOK) 0.32 0.21 2.36 0.09 1.90 0.54 0.33 2.99 0.37 1.70 0.86 1.30 14.81 0.56 7.20 Operational EBIT margin Harvest volume, GWT (salmon) Operational EBIT per kg incl margin 1) ROCE 1) 15.1% 96 495 -6.3% 2.08 14.7 % 23.6% 102 944 3.13 22.4 % 18.6% 474 664 2.16 19.3 % 1) Notes in report Page 18
Financial position Mowi Group EUR million Strong financial position 31 03 2024 31 03 2023 31 12 2023 Non-current assets Current assets Total assets 4 340.5 3 710.7 8 051.4 4 054.8 3 414.7 7 469.7 4 259.5 3 979.5 8 239.0 Equity Non-current liabilities Current liabilities Total equity and liabilities 3 857.7 2 964.1 1 229.5 8 051.4 3 829.9 2 379.1 1 260.7 7 469.7 3 754.7 3 219.3 1 264.8 8 239.0 Net interest-bearing debt 1) Equity ratio Covenant equity ratio 1 824.6 47.9% 51.2% 1 641.2 51.3% 54.4% 1 790.3 45.6% 48.4% 1) NIBD excluding IFRS 16 effects. NIBD including IFRS 16 effects of EUR 2,346 million Page 19
Cash Flow and Net Interest Bearing Debt Mowi Group EUR million Q1 2024 Q1 2023 2023 Q1 earnings partly offset by working capital tie-up and tax payments NIBD beginning of period* -1 790.3 -1 758.9 -1 758.9 Operational EBITDA* Change in working capital Taxes paid Other adjustments Cash flow from operations* 248.5 -19.9 -63.8 -9.8 155.0 367.4 15.8 -40.2 -2.7 340.2 1,221.1 -173.5 -219.4 -46.1 782.1 Capex reduced from 2023 Net Capex Other investments and dividends received Cash flow from investments -67.6 -0.5 -68.1 -90.3 -41.3 -131.6 -388.5 -25.3 -413.8 Net interest and financial items paid* Other items Dividend / return of paid in capital Currency effect on interest-bearing debt -30.0 -6.9 -86.8 2.5 -20.0 5.2 -82.3 6.3 -89.5 10.0 -326.1 6.1 NIBD end of period* -1 824.6 -1 641.2 -1 790.3 *Excluding effects of IFRS 1 6 NIBD distribution: EUR USD GBP Other currencies 100% 1% 2% -3% 96% 1% 2% 1% 98% 2% 0% 0% Page 20
Prices for marine ingredients in feed down ~20% from peak levels Anchovy catch in Peru last 10 years Cost-to-stock in Mowi Farming down in Q1-24 vs Q4-23 driven by reduced feed prices of ~5% 2.0 3.9 3.1 3.2 5.5 3.3 4.8 4.7 4.5 1.5 2.7 3.7 6.0 About 20% of total farming cost-in-box cost is marine ingredients used in feed 5.0 1st 2.1 season only Million tonnes 4.0 2.1 2.5 2.0 A good start to Peruvian anchovy wild catch season with 0.7 million tonnes caught so far (quota @ 2.7 million tonnes), after an El Ni o disrupted fishery last year 1.1 3.0 1.5 0.7 1.0 2.0 2.0 2.0 3.4 2.8 2.6 2.5 2.5 2.4 2.3 2.2 1.0 2.0 1.3 1.1 0.7 0.2 2023 0.0 FM and FO prices down more than 20% from peak 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 Avg 10 yrs 1st season 2nd season Fish meal price down 22% from peak Biology improved for Mowi Norway in Q2, and Peak @ USD 2,350 2,500 prospects of lower feed prices 2,091 2,021 Expect lower cost level for Mowi Farming in H2 2,000 1,772 USD/tonne 1,653 1,570 However, Q2 to be impacted by seasonally low volumes and knock-on effects of winter sores in Norway Spot @ USD 1,840 1,500 1,000 2020 2021 2022 2023 2024 Source: Bloomberg. Peru Super Prime FOB Fishmeal Spot Price Page 21
2024 Cash Flow Guidance unchanged from Q4-23 Working capital build-up of EUR 140m due to biomass growth and growth through the value chain Capital expenditure EUR ~300m (share higher in H1 vs H2 due to phasing of projects) Freshwater investments EUR ~35m Seawater investments EUR ~45m Processing / Sales & Marketing: New processing plants/upgrades, automation projects across plants, digitalisation, efficiency initiatives. EUR ~20m Interest paid EUR ~100m (ex IFRS 16 effects) Taxes paid EUR ~280m (including resource rent tax of EUR ~55m) Quarterly dividend of NOK 1.50 per share Payable in second quarter Page 22
Successful issuance of green bonds of EUR 298 million BBB+ Investment Grade Credit Rating Mowi has the lowest cost of bond financing in the salmon industry Senior unsecured green bonds: BBB+ Long-term / Unsecured rating EUR 213 million, 5-year tenor, coupon 3M EURIBOR + 1.19% (swapped to EUR from NOK 2.5 billion, NIBOR + 1.13%) EUR 85 million, 8-year tenor, coupon 3M EURIBOR + 1.47% (swapped to EUR floating from NOK 1 billion, 5.407% fixed) Stable Outlook Issue amount and coupons swapped into floating EUR Proceeds used for green projects, ref Mowi's Green and Sustainability-Linked Financing Framework Purpose to refinance the EUR 200 million bond that matures next year and also provide additional liquidity N2 Short-term rating Page 23
Overview financing Bank Facility: EUR 2,000m sustainability-linked facility 5 years facility (Maturity: September 2026) Covenant: 35% equity ratio (adjusted for IFRS 16 leasing effects) Accordion option: EUR 100m Lenders: DNB, Nordea, ABN Amro, Rabobank, Danske Bank, SEB and Cr dit Agricole Share of sustainable funding Current mix: 95% Senior unsecured green bonds: EUR 298m Tenor 5 & 8 years (Maturity: May 2029/2032) EURIBOR + 1.19% (5-yr) / EURIBOR + 1.47% (8-yr) Senior unsecured green bond: EUR 200m Tenor 5 years (Maturity: January 2025) EURIBOR + 1.60% Senior unsecured Schuldschein loan: EUR 150m Target 2026: 100% Tenor 7 years (Maturity: May 2026) EURIBOR + 1.70% Arctic Fish: EUR 170m senior secured facility Long term NIBD target of EUR 1,700m Page 24
Supply development Estimated volumes Q1 2024 Compared to Q1 2023 Est. volumes Volume Suppliers Q1 2023 % Q4 2023 Norway Scotland Faroe Islands Other Europe Total Europe Chile North America Total Americas Australia Other Total 270,800 33,400 21,200 13,300 338,700 139,700 29,300 169,000 19,000 8,400 535,100 286,200 32,300 17,200 14,000 349,700 166,600 20,500 187,100 18,700 7,700 563,200 -15,400 1,100 4,000 -700 -11,000 -26,900 8,800 -18,100 -5.4% 3.4% 23.3% -5.0% -3.1% -16.1% 42.9% -9.7% 1.6% 9.1% -5.0% 390,600 25,300 25,300 17,000 458,200 176,200 30,200 206,400 24,200 9,200 698,000 300 700 -28,100 Source: Kontali Global supply relatively stable adjusted for inventory movements Norway: Winter sore issues and unprecedented string jellyfish issues. Unusually cold winter Scotland: Volume growth as expected driven by seasonally higher survival rates Chile: Reduced volumes as expected on lower biomass. Stable biological developments Note: Atlantic Salmon (GWT) Page 25
Global volume development Estimated volumes Q1 2024 Compared to Q1 2023 Est. volumes Volume 12 month comparison LTM Markets Q1 2023 % Q4 2023 PTM % EU+UK Russia Other Europe Total Europe USA Brazil Other Americas Total Americas China / Hong Kong Japan South Korea / Taiwan Other Asia Total Asia All other markets Total 228,900 12,000 21,700 262,600 140,200 28,900 30,600 199,700 28,700 10,500 13,000 19,000 71,200 23,500 557,000 220,400 13,500 24,500 258,400 144,100 23,800 29,300 197,200 26,700 11,400 12,500 19,800 70,400 28,200 554,200 8,500 -1,500 -2,800 4,200 -3,900 5,100 1,300 2,500 2,000 -900 500 -800 800 -4,700 2,800 3.9% -11.1% -11.4% 1.6% -2.7% 21.4% 4.4% 1.3% 7.5% -7.9% 4.0% -4.0% 1.1% -16.7% 0.5% 319,600 16,200 25,600 361,400 149,300 30,600 36,400 216,300 28,700 12,200 13,700 20,700 75,300 39,800 692,800 1,092,700 59,700 91,900 1,244,300 583,200 109,900 131,700 824,800 118,800 43,700 51,300 73,300 287,100 130,000 2,486,200 1,108,600 51,900 101,200 1,261,700 586,400 96,700 144,800 827,900 89,700 52,500 54,100 84,900 281,200 139,300 2,510,100 -1.4% 15.0% -9.2% -1.4% -0.5% 13.7% -9.0% -0.4% 32.4% -16.8% -5.2% -13.7% 2.1% -6.7% -1.0% Inflow to US from Europe Inflow to EU from Chile Strong demand for salmon of European origin, whilst market for American origin lagging behind US: Temporarily reduced demand should work itself out in due course (US consumption growth of 6% CAGR past 5 years, double global growth) Brazil: Continued good developments in foodservice segment China/Hong Kong recovery continued on strong foodservice demand. Other markets impacted by lack of supply Source: Kontali Note: Atlantic Salmon (GWT), LTM: Last Twelve Months, PTM: Previous Twelve Months 35,000 8,900 41,900 6,300 -6,900 2,600 -16.5% 41.3% 40,100 10,200 149,300 34,500 151,600 29,100 -1.5% 18.6% Source: Kontali Page 26
Development in reference prices Q1 2024 Market EUR 9.60 Change vs Q1 2023 Q1 2024 Change vs Q1 2023 Two-way division of European and American prices continued in the quarter Record-high European spot prices on strong demand and low supply Prices in Americas on the soft side partly due to temporarily lower demand EUR Norway (1) 0.6% EUR 9.60 0.6% Chile (2) Chile, GWT (3) USD 6.48 USD 7.48 -4.9% -7.7% EUR 5.97 EUR 6.89 -6.0% -8.7% North America West Coast (4) North America East Coast (5) North America East Coast, GWT (3) USD 4.07 USD 4.16 USD 8.85 -21.9% -23.6% -22.3% EUR 3.75 EUR 3.83 EUR 8.15 -22.8% -24.6% -23.3% Americas Europe Chilean D-trim lbs, Canadian GWE 10-12 lbs 14 6 14 5.21 12 12 5 4.514.44 10.62 USD per GWE 10-12 lbs (Seattle) 4.09 4.07 9.60 9.559.12 3.983.85 USD per lbs D-trim (Miami) 10 3.653.84 10 3.69 4 3.57 3.51 8.07 3.39 3.24 EUR per kg (Oslo) 8 8 6.897.04 2.93 6.786.99 6.71 3 2.412.59 6.19 6.04 5.30 6 5.24 5.20 6.906.97 6 6.81 6.48 4.444.05 6.025.755.47 5.995.88 5.955.965.50 2 5.19 5.16 4 4 4.033.873.87 1 2 2 0 0 0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Ref. price Chile USD (UB avg D-trim 3-4 lbs FOB Miami), LHS Ref. price Norway EUR (NASDAQ average superior Oslo, GWT/kg) Ref. price North America, West Coast USD (UB avg. superior GWE 10-12 lbs FOB Seattle), RHS Prices up to week 15 in 2024 Page 27
Industry supply growth 2024e 2021 2022 2023 2024 2024E Low supply growth of 1% expected in 2024 GWT (1,000) Norway UK Faroe Islands Other Europe* Total Europe Chile North America Total Americas Other Total *Ireland and Iceland Low 1,328 147 Y/Y growth High 1,358 155 Y/Y growth 1,380 179 1,365 145 1,331 137 1,343 151 0% 8% 12% 15% 1% -8% 2% -7% 5% -1% 2% 14% 20% 24% 5% -4% 9% -2% 12% 3% 95 52 90 53 80 48 93 57 90 55 96 59 1,706 646 143 789 109 2,604 1,653 678 137 815 109 2,577 1,597 689 116 805 114 2,516 1,644 648 122 770 123 2,537 1,620 635 118 753 119 2,492 1,668 661 126 787 127 2,582 Q2 2021 Q2 2022 Q2 2023 Q2 2024E Q2 2024E GWT (1,000) Norway UK Faroe Islands Other Europe Total Europe Chile North America Total Americas Other Total Low 276 44 20 13 352 151 29 180 26 557 Q/Q growth High 284 46 22 15 366 159 31 190 28 583 Q/Q growth 288 53 23 12 376 135 42 177 23 575 274 41 18 11 344 153 41 194 24 561 284 42 16 280 45 21 14 359 155 30 185 27 570 -3% 3% 24% 208% 2% -8% -12% -8% 0% -2% 0% 8% 36% 254% 6% -3% -5% -3% 8% 3% 4 346 163 33 196 26 567 H2 2021 H2 2022 H2 2023 H2 2024E H2 2024E GWT (1,000) Norway UK Faroe Islands Other Europe Total Europe Chile North America Total Americas Other Total Low H2/H2 growth 781 70 50 29 930 344 60 404 67 1,400 High H2/H2 growth 803 76 54 31 964 362 66 428 73 1,464 773 84 52 25 933 330 68 398 62 1,393 785 75 50 26 936 364 64 428 59 1,423 762 62 47 30 901 360 63 422 62 1,386 792 73 52 30 947 353 63 416 70 1,432 3% 13% 5% -4% 3% -4% -5% -4% 7% 1% 5% 23% 13% 3% 7% 1% 5% 1% 16% 6% (*) Ireland and Iceland Actual harvest volumes will be affected by e.g. water temperatures, development in biological growth, biological challenges such as diseases, algal blooms etc. and market developments. Page 28
Mowi volume guidance all-time high unchanged since Q4-23 Atlantic salmon GWT (1,000) 2022 Q1 2023 Actual Q2 2023 Actual Q3 2023 Actual Q4 2023 Actual 2023 Q1 2024 Actual Guidance Guidance Q2 2024 2024 Actual Actual Norway 293.7 65.6 61.5 86.2 81.2 294.5 54.7 59.5 305.0 Scotland 48.4 11.4 18.3 14.7 10.6 54.9 14.2 20.0 64.0 Chile 65.7 10.6 13.8 17.7 27.2 69.2 12.5 15.0 74.0 Canada 41.1 7.6 9.4 7.5 4.2 28.6 8.8 10.0 30.0 Ireland 6.8 0.8 1.6 2.0 0.1 4.5 1.1 2.5 7.0 Faroes 7.9 2.1 2.8 2.5 3.5 11.0 2.6 1.8 10.0 Iceland n/a 4.9 0.1 4.4 2.5 11.9 2.5 1.2 10.0 Total 463.6 102.9 107.5 135.0 129.2 474.7 96.5 110.0 500.0 2024 volume guidance of record-high 500,000 tonnes maintained Supported by seasonal record-high biomass in sea end of Q1 Actual harvest volumes will be affected by e.g. water temperatures, development in biological growth, biological challenges such as diseases, algal blooms etc. and market developments. Page 29
Volume growth of 125,000 GWT over 6 years to all-time high 500,000 GWT for 2024E (CAGR 4.9%) 550 2024e a continuation of our growth trajectory Equivalent to 4.9% CAGR vs industry at 2.7% since 2018 500 500 Harvest volumes GWT (1,000) In practice organic growth 475 450 400 375 350 300 2018 2023 2024E Page 30 Page 30
Postsmolt to give further organic growth and improve biological metrics ~40 million postsmolt by end of 2024 (25% coverage / Norway 50% excl. Region North) Norway - Fj ra commissioned Norway - Nordheim commissioning Norway - Hauk commissioning Q4-24 Norway - Semi-Closed Containment Syst. Scotland Loch Etive Faroes - Laxa Page 31 Page 31
Outlook Biology improved for Mowi Norway in Q2, and prospects of lower feed prices Expecting a lower cost level for Mowi Farming in H2 However, Q2 to be impacted by seasonally low volumes and knock-on effects of winter sores in Norway Continue to see strong demand and strong prices for European salmon, whilst the market for American salmon currently a bit sluggish Expect a recovery of US prices in due course Supportive supply side with approx. no growth in 2024, and limited growth in the coming years Mowi harvest volume guidance maintained at 500k GWT, 5.3% growth year-over-year Supported by seasonal record-high biomass in sea end of Q1 Page 32
Save the Date: 25-26 September 2024 Capital Markets Day in mid Norway Smolt & postsmolt: 6,200 tonnes Feed plant: 410,000 tonnes Strategic and operational plans for the coming years Day 1: Early morning start in Kristiansund site-visits of value chain Feed plant Smart Farming Smolt & postsmolt Smart Farming Remote Operation Centre Remote Operation Centre Primary Processing Primary processing: 100,000 GWT Day 2: Company presentations Link to registration at our website www.mowi.com Page 33
Q1 2024 presentation Appendix
Nova Sea Harvest volume (GWT) EBIT per kg (EUR) NIBD EURm Ownership % 2022 2023 Q1 2023 Q1 2024 2022 2023 Q1 2023 Q1 2024 Q1 2024 Nova Sea 48.9 % 44 027 39 985 8 647 9 834 2.90 3.01 3.25 3.20 -40.3 Leading integrated salmon producer in Northern Norway 33.33 wholly owned licenses 4 partly owned licenses Mowi largest owner with 48.9% through direct and indirect shareholdings Dividends Paid dividends of NOK 400m in 2023 (Mowi s share NOK 195m through direct and indirect holdings) Proportion of income after tax reported as income from associated companies in Mowi Norway EUR 5.9m in Q1 2024 Page 35
Ocean-based Atlantic salmon farming is on the right side of sustainability Salmon is the most sustainable animal protein alternative Rating agencies About the rating Score (1) Mowi ranked as the most sustainable animal protein producer in the world (amongst the largest 60 animal protein producers in the world) for five consecutive years 1st 1st Protein retention 28% 37% 21% 13% Mowi recognised as a global leader in climate action A- A- Feed conversion ratio 1.3 1.9 3.9 8.0 A- CDP Water Edible meat per 100 kg feed 56 kg 39 kg 19 kg 7 kg A A Supplier Engagement Rating Carbon footprint (kg CO2/ kg edible meat) 5.1 kg 8.4 kg 12.2 kg 39.0 kg 2nd A ESG reporting amongst the 100 largest listed companies in Norway Water consumption (litre / kg edible meat) 2,0002) 4,300 6,000 15,400 ESGRating,designed to measure a company s resilience to long-term, industry material environmental, social and governance risks. Mowi is inthe Leader category. Blue foods on average have much greater nutritional benefits than terrestrial foods. Many blue foods also have a smaller environmental footprint. AA AA ESG Rating, assessing financially material Environmental, Social and Governance (ESG) data Farmed salmon performed similarly or better than chicken often considered the most efficient terrestrial animal across the considered environmental stressors. Medium- Risk Mowi recognised as Climate Winner in PwC s Climate Index for 2023 1st 1st Quotes from BFA documents Notes: 1) Scores based on most recent ratings, 2) The figure reflects total water footprint for farmed salmonid fillets in Scotland, in relation to weight and content of calories, protein and fat. Source: Fry et al (2018) Feed conversion efficiency in aquaculture: do we measure it correctly?. SINTEF (2020) Greenhouse gas emissions of Norwegian seafood products in 2017. Blue Food Assessment (Environmental performance of blue foods, Gephart et al., 2021) reported GHG emissions for farmed salmon of 5.1 kg CO2/kg edible weight and 8.4 kg CO2/kg edible weight for chicken. Mekonnen, M.M. and Hoekstra, A.Y. (2010) The green, blue and grey water footprint of farm animals and animal products. SARF (2014) Scottish Aquaculture s Utilisation of Environmental Resources Page 36
Dividend policy Mowi s ambition is to create long-term value for the shareholder through both positive share price development and a growing dividend in line with long-term earnings Quarterly ordinary dividend shall under normal circumstances be at least 50% of underlying earnings per share (EPS) Excess capital will be paid out as extraordinary dividends When deciding excess capital the Board of Directors will take into consideration expected cash flow, capital expenditure plans, financing requirements and appropriate financial flexibility. Further to this a long-term target level for net interest-bearing debt is determined, reviewed and updated on a regular basis Shareholder returns are distributed primarily as cash dividends with the option of using share buybacks as a complementary supplement on an ad-hoc basis Page 37
Contract coverage and sales contract policy SALES CONTRACT POLICY Q2 2024 contract shares (% of guided volume): Max hedging rate (1) Min hedging rate Norway (2) Scotland Chile (2) Canada Ireland Faroes 0 % 0 % 0 % 0 % 0 % 0 % 50 % 75 % 50 % 30 % 100 % 30 % Norway 30% Scotland 41% Chile 36% Canada 0% Notes: (1) Hedging rates for the next quarter, limits dropping over time (2) Contract rate can be increased to 65% under special circumstances Ireland 74% Faroes 0% Iceland 0% Contracts typically have a duration of 3-12 months and are entered into on a regular basis Page 38
Resource rent tax in Norway with effect from 2023 22% 22% 22% 22% + 25% = 47% 22% 22% 22% Sales & Marketing Breeding Smolt Feed Seawater Harvesting Processing Estimate for effective resource rent tax rate of about 10% for Mowi Norway across the value- chain Earnings in the seawater phase subject to 25% resource rent tax in addition to 22% corporate tax However, Mowi has the most diverse value-chain in the industry where a significant part is not subject to the resource rent tax (out of scope) Subject to ordinary 22% corporate tax only o Estimate is still preliminary and subject to material uncertainty Page 39
Quarterly segment overview SOURCES OF ORIGIN QTD Other 1) Norway Scotland Chile Canada Ireland Faroes Iceland Group EUR million OPERATIONAL EBIT FARMING 67.7 27.1 6.3 -3.7 3.8 8.8 9.7 0.0 119.7 SALES AND MARKETING Markets Consumer Products 51.4 16.4 2.1 2.5 1.4 4.2 1.4 0.1 0.5 0.1 0.3 0.0 -0.1 0.0 0.0 1.1 57.1 24.4 SUBTOTAL 135.5 31.7 11.9 -2.1 4.3 9.2 9.7 1.1 201.2 Feed Other entities 1) 2.5 -0.6 -0.1 0.0 -0.1 0.0 -2.4 1.7 -2.4 TOTAL 138.0 31.1 11.9 -2.1 4.2 9.2 9.6 -1.4 200.5 Harvest volume (GWT) 54 711 14 205 12 546 8 796 1 078 2 627 2 531 96 495 Operational EBIT per kg (EUR) 1) - total Group - of which Feed - of which Markets - of which Consumer Products 2.52 0.05 0.94 0.30 2.19 -0.04 0.14 0.18 0.95 n/a 0.12 0.33 -0.24 n/a 0.16 0.01 3.90 -0.09 0.44 0.06 3.50 0.00 0.13 0.02 3.79 -0.02 -0.03 0.01 2.08 0.02 0.59 0.25 ANALYTICAL DATA Price achievement/reference price (%) 1) Contract share (%) GUIDANCE Q2 2024 harvest volume (GWT) 2024 harvest volume (GWT) Q2 2024 contract share (%) 83% 32% 106% 73% 102% 44% 91% 0% n/a 1% 101% 0% 95% 0% 89% 37% 59 500 305 000 20 000 64 000 41% 15 000 74 000 36% 10 000 30 000 2 500 7 000 74% 1 800 10 000 1 200 10 000 110 000 500 000 30% 0% 0% 0% 30% 1) Notes in report Page 40
Development in harvest volumes GWT (1,000) 2019 Total 2020 Total 2021 Total 2022 2023 2024E Q2E Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Total Norway Scotland Chile Canada Ireland Faroes Iceland Total 236.9 65.4 65.7 54.4 n/a 435.9 262.0 52.7 64.6 44.0 n/a 439.8 273.2 64.4 66.0 45.3 n/a 465.6 59.4 10.5 16.0 8.8 0.7 1.2 n/a 96.6 59.8 13.0 14.4 10.4 3.3 1.8 n/a 102.7 87.4 14.5 16.9 11.1 2.2 1.7 n/a 133.8 87.1 10.4 18.4 10.8 0.7 3.1 n/a 130.5 293.7 48.4 65.7 41.1 n/a 463.6 65.6 11.4 10.6 7.6 0.8 2.1 4.9 102.9 61.5 18.3 13.8 9.4 1.6 2.8 0.1 107.5 86.2 14.7 17.7 7.5 2.0 2.5 4.4 135.0 81.2 10.6 27.2 4.2 0.1 3.5 2.5 129.2 294.5 54.9 69.2 28.6 11.0 11.9 474.7 54.7 14.2 12.5 8.8 1.1 2.6 2.5 96.5 59.5 20.0 15.0 10.0 2.5 1.8 1.2 110.0 305.0 64.0 74.0 30.0 10.0 10.0 500.0 6.7 6.9 8.0 8.6 6.8 9.9 6.8 7.9 4.5 7.0 Growth relative to same period in previous year 2019 2020 Total Total 2021 Total 2022 2023 2024E Q2E Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Total Norway Scotland Chile Canada Ireland Faroes Iceland Total 3% 70% 24% 37% 5% -10% n/a 16% 11% -19% -2% -19% 20% 24% n/a 1% 4% 22% 2% 3% -15% 16% n/a 6% -21% -42% -17% -18% -42% 32% n/a -23% 7% 23% -3% 13% 0% -2% -40% n/a 14% 22% -13% 12% 7% -54% -17% n/a 13% 8% 10% 8% -34% -13% 17% 79% n/a 7% 3% 41% -4% -10% -50% 58% n/a 5% -1% 2% 5% -33% -8% 46% n/a 1% -7% 2% 47% -62% -84% 12% n/a -1% 0% 14% 5% -30% -34% 40% n/a 2.38% -17% 25% 18% 16% 38% 23% -48% -6% -3% 9% 9% 7% 52% -37% n/m 2% 4% 16% 7% 5% 54% -9% -16% 5% -32% -5% -22% 78% -23% n/a -5% -25% 0% -9% 1% -21% n/a 0% Page 41
Cash flow guidance and historic developments Net capital expenditure Net working capital 450 600 Maintenance level 400 500 350 300 400 250 EUR million EUR million 300 200 150 200 100 100 50 0 0 2019 2020 2021 2022 2023 2024E 2019 2020 2021 2022 2023 2024E Financial commitments and cost of debt (*) 125 100 75 EUR million 50 25 0 2019 2020 2021 2022 2023 2024E Page 42 (*) Excludes effects of IFRS 16
