SalMar ASA

Earnings Release • Nov 18, 2024

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

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

* 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.