Mowi ASA

Investor Presentation • Sep 26, 2024

Capital Markets Day: Mowi is positioning itself for continued volume growth and further cost improvement

Capital Markets Day: Mowi is positioning itself for continued volume growth and further cost improvement

(Bergen, 26 September 2024) Mowi is today hosting a Capital Markets Day where

the company presents its plans for continued volume growth from 500,000 tonnes

to 600,000 tonnes in its farming division as well as further cost improvement in

the order of EUR 300-400 million.

The world's largest farmer and value-added processer of salmon, Mowi, today

hosts a Capital Markets Day in Trøndelag, Norway, where the company is

presenting its plans and strategy to cement its leading position in the industry

in the coming years.

"After reaching a milestone 500,000 tonnes of salmon harvested in 2024, we are

now looking ahead to the next milestone of 600,000 tonnes which we aim to fulfil

in 2029," Mowi CEO Ivan Vindheim said. "We will achieve this through better

utilisation of license capacity, while also improving productivity and

biological performance of existing production through our investment in

postsmolt," Vindheim continued.

Furthermore, Mowi plans to reduce costs by EUR 300-400 million during the same

period through an ambitious cost improvement programme.

600,000 tonnes and EUR 8.5 billion in 2029

Mowi's strategy is built on three pillars - volume growth, competitive costs and

sustainability. The company has grown from producing 375,000 tonnes of salmon in

2018 to an expected 500,000 tonnes in 2024. Now Mowi plans to continue that

trend.

"We have grown faster than the rest of the industry in recent years, and our

goal is to continue to do so in the future. By releasing more smolt and

increasing our use of postsmolt we will be able to harvest 600,000 tonnes of

salmon in 2029 thereby reinforcing our position as the world's top producer of

Atlantic salmon," Vindheim said.

Continued growth in Mowi's farming operations will in turn lead to growth in its

two other divisions, namely Consumer Products and Feed.

"The rest of the supply chain will grow in line with farming going forward. To

produce more salmon we need more feed, and more salmon means more raw material

for our 20 secondary processing plants around the world," Vindheim said

The company estimates revenue growth of 7-8% per year over the next five years,

resulting in revenue of EUR 8.5 billion in 2029, compared with EUR 5.5 billion

in 2023.

Mowi's focus has been and will continue to be sea-based salmon farming and

related technology. The company is nonetheless closely observing developments in

other technologies and is prepared to adopt new technologies as and when the

time is right and they show themselves to be profitable. Mowi is also looking to

grow through selective acquisitions, provided they fit into the company's

operational strategy.

EUR 300-400 million in cost improvements

Mowi launched a cost improvement programme in 2018. Since then the company has

saved over EUR 300 million through 1,700 different initiatives.

"It is imperative for Mowi to be the cost leader throughout the value chain,"

Ivan Vindheim said. "Today we are best or second best on cost in all the regions

where we farm salmon, and we are also ahead in our downstream operations.

However, in a world where our input costs are always increasing, and more and

more is being demanded of us, we cannot rest on our laurels - cost improvements

are more important than ever. We therefore plan to strengthen our position

through a series of new measures, both biological and more general, through

which we will cut EUR 300-400 million in the next five years," Vindheim

continued.

In addition to the company's postsmolt venture and the improvements in

biological performance that it brings, Mowi's digitalisation and automation

strategy is also central to the company's plans.

"We launched Mowi 4.0 in 2021 and since then have invested heavily in a range of

measures to introduce greater efficiency and automation across our value chain.

We are already seeing the positive impact this has had on sustainability,

productivity and cost reduction, and we expect to reap further benefits in the

years to come," Vindheim said.

Postsmolt strategy has huge effect on fish welfare

The third and final pillar of Mowi's strategy is sustainability. Earlier this

year TIME Magazine listed Mowi as one of the 500 most sustainable companies for

2024, and highlighted the company's corporate responsibility and sustainable

practices. Mowi also emerged ahead of a strong field to be ranked the world's

most sustainable animal protein producer for the fifth consecutive year in the

prestigious Coller FAIRR Protein Producer Index which assesses the

sustainability performance of 60 of the largest publicly listed animal protein

producers

"Sustainability is a central theme all across Mowi's value chain. That said,

there is a particular focus on fish health and conditions in sea at this time.

Mowi is investing heavily in postsmolt and Smart Farming solutions to improve

fish health and survival rates," Vindheim said.

The release of larger smolt to sea leads to increased productivity, higher

survival rates and generally better fish welfare. Next year, 25% of Mowi's smolt

will be postsmolt. In the relevant regions in Norway as many as 50% of all smolt

released will be postsmolt in 2025, rising to 75% by 2029.

"All indications are that releasing larger and more robust smolt to sea can

increase survival rates by up to 50%, and reduce the number of lice treatments

in certain areas by 40%," Vindheim said.

Smart Farming also has a positive effect on fish welfare according to Mowi's

CEO.

"We are continuing to roll out our Smart Farming concept in Norway, meaning we

are able to monitor far more closely each salmon's behaviour and wellbeing, and

can implement more targeted measures much faster than in the past. With the

large numbers of sensors now installed at our many farming sites up and down the

coast, we now have enormous quantities of data at our fingertips giving us

growing insight and knowledge of our salmon and the conditions in sea in real

time," he said.

Demand keeps on growing

"One of the factors underpinning our industry's success has been and will

continue to be high consumer demand for salmon. The megatrends that in part are

driving demand are stronger than ever. The trend for healthy living, increasing

demand for sustainable proteins and not least the unique universal appeal of

salmon make our product the natural choice for a steadily growing number of

consumers," Vindheim said.

Mowi expects growth in demand for salmon to continue to exceed supply growth.

"We constantly strive to improve and develop our products to keep up with

consumers' changing habits and tastes. Through our MOWI brand we aim to

transform the way salmon is sold. At the same time it is important to recognise

that salmon is still primarily sold as a commodity in a highly competitive

market and it is essential for us to be the cost leader downstream as well. Our

Smart Factory concept is therefore extremely important for our more than 30

factories worldwide. Our target is to cut EUR 60 million of costs in this part

of the value chain in the coming years," Vindheim said.

Mowi's Capital Markets Day will be broadcast live from 08:00 at

mowi.com/investors, where it will also be possible to send questions to group

management.

For further information, please contact:

Kristian Ellingsen, CFO, +47 905 14 275

Kim Galtung Døsvig, IR Officer & Head of Treasury, +47 908 76?339

Ola Helge Hjetland, Group Communications Director, +47 970 67 932

About Mowi ASA

Mowi is one of the world's leading seafood companies and the largest producer of

farm-raised Atlantic salmon in the world, with an estimated harvest for 2024 of

500,000 tonnes from seven farming countries including Norway, Scotland, Ireland,

Faroes, Iceland, Canada and Chile.

Mowi is a fully integrated global seafood company, bringing salmon and other

seafood of supreme quality to consumers around the world, partly under its own

MOWI brand.

With headquarters in Bergen, Norway, Mowi employs 11 500 people in 26 countries

worldwide, and is listed on the Oslo Stock Exchange. Turnover was EUR 5.5

billion in 2023.

For more information, please visit www.mowi.com (http://www.mowi.com).

Forward looking statements

This release may be deemed to include forward-looking statements, such as

statements that relate to Mowi's goals and strategies, salmon prices, ability to

increase or vary harvest volume, production capacity, trends in the seafood

industry, restructuring initiatives, exchange rate and interest rate

fluctuations, expected research and development expenditures, business prospects

and positioning with respect to market, demographic and pricing trends,

strategic initiatives, and the effects of any extraordinary events and various

other matters (including developments with respect to laws, regulations and

governmental policies regulating the industry and changes in accounting

policies, standards and interpretations) on Mowi's business and results.

Forward-looking statements are typically identified by words or phrases, such as

"believe," "expect," "anticipate," "intend," "estimate," "may increase," "may

fluctuate," "plan," "goal," "target," "strategy," and similar expressions or

future or conditional verbs such as "may," "will," "should," "would," and

"could." Forward-looking statements are Mowi's current estimates or expectations

of future events or future results. 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 ASA's Annual

Report contains additional information about factors that could affect actual

results, including: changes to the price of salmon including the value of our

biological assets; hedging risks; risks related to fish feed; economic and

market risks; environmental risks; operational risks; risks related to escapes,

disease and sea lice; product risks; risks related to our acquisitions;

financing risks; regulation risks including relating to food safety, the

aquaculture industry, processing, competition, anti-trust and anti-corruption;

trade restriction risks; litigation risks; tax and accounting risks; strategic

and competitive risks; and reputation risks. All forward-looking statements

included in this release are based on information available at the time of the

release, and Mowi assumes no obligation to update any forward-looking

statement.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act