SalMar ASA

Investor Presentation • Aug 24, 2023

2 4 A U G U S T 2 0 2 3

Q2 2023 Presentation

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

SalMar & Aqua Nor

• Aqua Nor The world's largest aquaculture technology exhibition
• One of the most important meeting places for the industry
• Held biannually in Trondheim, Central Norway
• Natural for SalMar as the leading aquaculture company from the region to present its results at the exhibition
• Strong collaboration between suppliers and producers crucial to drive the industry forward

Highlights Q2 2023

• Strong results driven by continued high salmon prices
• Central Norway with good operational performance results impacted by one-off costs
• Strong results from Northern Norway
• Continued solid performance from Sales & Industry
• Very low harvest volume from Iceland as expected
• Resource rent tax in Norway approved by Norwegian Parliament
• SalMar continues open and fact-based dialogue with authorities and is open to pursue legal steps in due course
• Sale of Frøy completed in August 2023
• New financing in place
• The Board of SalMar propose to cancel 13.1 million treasury shares
• Two offshore units in operation
• Tjuin smolt facility in operation

Harvest volume (1,000 tons gw)
Group	Norway1
44.3	44.3
Δ QoQ Δ YoY -4.2 +12.0	Δ QoQ Δ YoY +2.3 +14.8
Operational EBIT/kg (NOK)

Operational EBIT/kg (NOK)
Norway1
40.5
Δ QoQ Δ YoY
-0.7 +13.7
Operational EBIT (NOKm)
Norway1
1,790

Δ QoQ -139 Δ YoY +862 Δ QoQ +65 Δ YoY +1,003

Q 2 2 0 2 3

Operational Update

Farming Central Norway Key Results

• Good operational performance
• Increased cost QoQ
• Lower average weight
• Write-down of biomass related to incident at cleaner fish facility
• SalmoNor volume accounted for 28%
• Finished harvesting of autumn 2021 and continued with spring 2022

Outlook

• Continue to harvest from spring 2022
• Good biological status
• Expect lower cost level and higher volume in Q3 23
• Guidance FY 2023 kept unchanged at 148,000 tonnes

	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Operating income (NOKm)	2,852	2,073	5,179	4,034
Operational EBIT (NOKm)	1,108	1,213	2,217	2,138
Harvest volume (tgw)	28.3	20.7	50.5	45.6
EBIT/kg (NOK)	39.1	58.6	43.9	46.9

EBIT/kg (NOK)

Farming Northern Norway Key Results

• Good operational performance
• Cost level reduced QoQ
• NRS volume accounted for 15%

• Autumn 2021 accounted for 90% of the volume and started harvest from spring 2022

• Continue to harvest from spring 2022 and will finish autumn 2021

• Good biological status
• Expect slightly higher cost level and higher volume in Q3 23
• Guidance FY 2023 kept unchanged at 95,000 tonnes

	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Operating income (NOKm)	1,542	917	3,424	2,180
Operational EBIT (NOKm)	858	605	1,694	1,320
Harvest volume (tgw)	16.0	8.7	35.7	25.5
EBIT/kg (NOK)	53.7	69.1	47.4	51.7

Sales & Industry Key Results

• Continued solid operational performance
• Operational set-up showcasing its strength
• Further improved price achievement from spot sales
• Contracts¹ with negative contribution
• Considerable improvement from 2022

• Lower contract share and higher price point

• Value chain rigged for increase in volume H2 23

• Contract share currently around 15% for Q3 23 and 16% for FY 2023

	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Operating income (NOKm)	6,003	3,947	12,242	8,392
Operational EBIT (NOKm)	-67	-781	-148	-1,153
Operational EBIT-margin (%)	-1.1 %	-19.8 %	-1.2 %	-13.7 %

Icelandic Salmon Key Results

• As expected very low harvest volume

• Optimizing biological performance

• Expect higher volume in Q3 23

• Guidance FY 2023 kept unchanged at 16,000 tonnes
• EUR 100 million financing agreement
• Expected to be in place in Q3 23
• Gives financial flexibility for growth ambitions
• Dual listing on First North stock exchange in Iceland

	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Operating income (NOKm)	26	349	791	716
Operational EBIT (NOKm)	-35	135	169	229
Harvest volume (tgw)	0.1	3.0	6.7	6.3
EBIT/kg (NOK)	-384.6	45.5	25.4	36.2

SalMar Aker Ocean Key Results

• Third production cycle at Ocean Farm 1 commenced early May 2023
• Large potential for future value creation and volume growth
• Timelines delayed as a consequence of the proposed resource rent tax

Ocean Farm 1 at its location Håbranden on Frohavet in Central Norway

Scottish Sea Farms¹ Key Results

• Low harvest volumes, harvesting from biologically challenged sites affecting average harvest size, cost and price achievement
• High-cost base affected by sites with biological challenges H2 22 and continued in 2023
• Incident based mortality in the quarter of £13.2mill or £2.09/kg

• 60% of volume sold on contracts

• Q3 still biological challenges but improvements in fish size and cost base

• Guidance FY 2023 reduced to 27,000 tonnes

	Q2 2023	Q2 2022	YTD 2023	YTD 2022
Operating income (NOKm)	692	884	1,197	1,523
Operational EBIT (NOKm)	-144	190	-135	295
Harvest volume (tgw)	6.3	9.5	11.5	17.3
EBIT/kg (NOK)	-22.8	20.0	-11.8	17.0
Fair value adjustments (NOKm)	16	139	-5	320
Profit after tax (NOKm)	-156	245	-189	437
NIBD (NOKm)	2,647	2,067	2,647	2,067

Q 2 2 0 2 3

Financial Update

Resource rent tax on aquaculture in Norway

• Tax approved 31 May 2023 in the Norwegian Parliament with a tax rate at 25%
• High uncertainty regarding how the tax shall be calculated
• Rules for tax calculation not finalized
• Material implementation effect estimated in the financial statement for Q2 2023
• Tax for the period not included
• SalMar strongly opposes both the proposed tax model and level
• Will continue open and fact-based dialogue with authorities
• SalMar is open to pursue legal steps in due course

Group Profit & Loss

• Continued high salmon prices and slightly higher cost in value chain in Norway
• Reduction in operational EBIT QoQ driven by very low harvest volume from Iceland
• Fair value adjustments* positive due to higher biomass in calculation
• Income from associates & JV affected by weak results from Scottish Sea Farms
• Estimated implementation effect from resource rent tax NOK 2,303 million

Group operational EBIT - QoQ
	- 139
			Norway
			Group P&L
NOK million			Q2 2023	Q1 2023	Δ %	YTD 2023	YTD 2022	Δ %
Operating revenues			5,895	6,792	-13 %	12,687	8,855	+43 %
EBITDA			2,088	2,227	-6 %	4,316	2,603	+66 %
Operational	EBIT		1,745	1,884	-7 %	3,630	2,145	+69 %
Production tax			-25	-32		-57	-34
Fair value	adjustments*		375	635		1,010	1,689
Income from associates		& JV	-71	27		-44	219
Net financial	items		-259	-279		-538	-85
Profit before	tax		1,766	2,235		4,001	3,934
Tax			2,705	490		3,195	819
Profit for the period from continuing operations			-939	1,744		806	3,166
Profit after tax for the period from discontinued operations			161	108		269
Profit for the	period		-778	1,853		1,075	3,116
Earnings per share (NOK/share)			-6.4	13.2		6.8	24.8
Harvest volume	(tgw)		44.3	48.5	-9 %	92.9	77.4	+20 %
EBIT per kg (NOK/kg)			39.4	38.8	+1 %	39.1	27.7	+41 %

Group Balance Sheet Assets Equity ratio

• Ongoing investments in the value chain progressing according to plan
• Higher standing biomass QoQ and higher YoY
• Dividend paid at 20 NOK/share
• Equity ratio decreased to 35%
• Net Interest-bearing debt (NIBD) including lease liablities increased with NOK 1,483 million
• NIBD incl. lease/EBITDA at 3.1
• NIBD/EBITDA at 2.9
• Frøy classified as assets held for sale at Q2 23
• Frøy sold in August 2023
• Increasing equity ratio to 40%
• Reducing NIBD/EBITDA to 2.2

Net interest bearing debt

• Net investments at NOK 584 million
• Smolt NOK 145 million
• Farming NOK 323 million
• Sales & Industry NOK 101 million
• Icelandic Salmon NOK 80 million
• SalMar Aker Ocean NOK 15 million
• Dividend received from Frøy NOK 47 million
• Dividend paid at 20 NOK/share
• Sale of Frøy in August reducing NIBD with NOK 4.8 billion

Change in NIBD incl. leasing - QoQ

Synergy realization and sale of Frøy

Progressing according to plan

76% of synergies with NTS, NRS and SalmoNor realized at the end of Q2 23

• Realized 508 of 671 MNOK in yearly recurring cost savings
• Estimated total restructuring cost NOK 103 million unchanged
• Yearly recurring cost savings achieved through:
• Improved operational set-up
• Increased efficiency
• Scale advantages
• Unutilized potential in licenses materializing from 2024

Sale of Frøy completed in August 2023

• Successful strategic review with strong interest
• 72.11% ownershare sold to Goldman Sachs Asset Management for NOK 76.50 per share
• Consideration of NOK 4.8 bn to SalMar
• Strengthening SalMar balance sheet

New financing in place

Ensuring financial flexibility

• NOK 16 billion senior unsecured credit facilities
• 3+1+1 year Term Loan NOK 6 billion
• 5+1+1 year RCF NOK 10 billion
• Accordion option NOK 3 billion
• Lenders: DNB, Danske Bank, Nordea, Rabobank and SEB
• Covenants: Equity ratio 30%2, Interest coverage ratio 3.0
• Intention to be sustainability linked
• Improved terms compared to previous credit facilities
• Additional facilities¹
• NOK 3.5 billion Green Bond, maturity 2027
• NOK 1.6 billion overdraft facilities, annual renewal

2) To be reduced down to 25% if existing green bond are refinanced with lower covenant

Cancellation of treasury shares

• As of Q2 2023 SalMar has 13.7 million treasury shares
• Financial position in SalMar improved during 2023
• Sale of Frøy completed
• New financing agreement in place
• Debt level reduced, financial KPIs improved
• The Board of SalMar propose to cancel 13.1 million treasury shares
• Notice of extraordinary general meeting will be sent at a later point of time

Q 2 2 0 2 3

Strategic Update

Central Norway and SalMar in the forefront of innovation and development in the aquaculture industry

• Central Norway a strong hub for world leading aquaculture industry competence and expertise
• Supplier Industry
• Leading higher education institutes
• R&D Institutions
• Smolt expertise
• Farming expertise
• Value added processing

Tjuin – Worlds largest smolt facility

• RAS facility located at Malm in Steinkjer Municipality – Close to existing smolt facility in Follafoss
• First roe installed 28th of June 2023 – First batch to be transferred to sea in 2024
• Capacity to produce 20 million smolt @200g
• Strengthening smolt capacity and flexibility in SalMar

Several R&D projects in operation

• SalMar a frontrunner in testing out new technology
• Ambition to increase operational efficiency through interaction with our existing value chain
• Aquatraz Semi-closed net pen
• Previous development project several cycles completed
• Neptun 4 SalMars first closed net pen
• Finished with three production cycles
• Marine Donut closed net pen
• Development project first production cycle to commence autumn 2023
• Submersible nets

Aquatraz

Marine Donut

Neptun 4

Submersible nets

Two offshore units in operation – SalMar pioneering and leading the development offshore

Ocean Farm 1

• 3rd production cycle started in May
• Located at Håbranden on Frohavet in Central Norway

Arctic Offshore Farming

• Development project 1st production cycle started in July
• Located at Fellesholmen in Northern Norway

Outlook Q 2 2 0 2 3

Outlook

• Limited supply growth in 2023
• Expect lower prices H2 23 vs. H1 23 due to seasonally higher volume
• Continued good demand for sustainable proteins
• SalMar well equipped for further sustainable growth
• Strong growth potential in optimal locations
• Robust value chain with unutilized potential
• Dedicated employees and strong corporate culture
• Capital Markets Day 6-7 September 2023 in Tromsø & Senja

Guiding

	Q3 2023			FY 2023
	Cost Level1	Harvest Volume1	Contract share2	Harvest Volume	Contract share2
Norway	Same level	Significantly Higher	~15%	243,000	~16%
Central Norway	Lower	Higher		148,000
Northern Norway	Slightly higher	Higher		95,000
Icelandic Salmon		Higher		16,000
Scottish Sea Farms3				27,000

Thank you for your attention

Passion for Salmon

For more information, please visit www.salmar.no

FINANCIAL CALENDAR:

Capital Markets Day – 6-7 September 2023 – Tromsø & Senja Q3 2023 presentation – 9 November 2023 – Oslo Q4 2023 presentation – 15 February 2024 – Oslo Annual Report 2023 – 19 April 2024 Q1 2024 presentation – 14 May 2024 – Oslo Annual General Meeting – 6 June 2024 Q2 2024 presentation – 20 August 2024 – Trondheim Q3 2024 presentation – 12 November 2024 – Oslo

INVESTOR CONTACT: Håkon Husby, Head of IR Tel: +47 936 30 449 Email: hakon.husby@salmar.no

Forward looking statements

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.