SalMar ASA

Investor Presentation • Nov 10, 2022

SalMar ASA Q3 2022 Presentation

10 November 2022

CEO Frode Arntsen CFO Ulrik Steinvik

Frode Arntsen

CEO in SalMar from 24th of October 2022

• Joined SalMar in 2017 as COO for Sales and Industry.
• Experience from the seafood industry since 2000 and has previously held management positions in Lerøy Midnor, HitraMat and Lerøy Midt.
• Background from the Norwegian Armed Forces and has education as a lecturer with management and leadership studies
• Favourite cultural tenant:
  • We care

Born: 1970 Citizenship: Norway Tel: +47 482 06 665 Email: Frode.Arntsen@salmar.no

Agenda

• Highlights
• Operational Update
• Financial Update
• Strategic Update
• Outlook

Highlights Q3 2022

Solid results due to strong operational performance

• Total Group operational EBIT 1,313 MNOK and 1,309 MNOK from Norway
  • Continued solid results from farming segments in Norway despite cost inflation
  • Increased profitability within Sales & Industry with strong capacity utilization
  • Reduced margins from Icelandic Salmon
  • Upgrade of Ocean Farm 1 progressing according to plan
• Offer for NTS and merger with NRS to be completed in Q4 2022
  • Clearance received from European Commission and Norwegian authorities
  • 51.28 per cent stake in Arctic Fish has been agreed sold for 115 NOK/share, NOK 1.9 billion, subject to EU Commission's approval of the buyer and agreed terms.
  • Strong strategic and operational rationale with significant synergy potential
• Norwegian government proposed new tax from 2023
  • Additional tax on aquaculture of 40% with hearing round until January 2023
  • The proposed tax will have significant negative ripple effects for all adjacent industries of the aquaculture industry and the jobs it creates.
  • SalMar is working vigorously to underline these negative effects to relevant parties
• Frode Arntsen new CEO in SalMar from 24th of October 2022, Ulrik Steinvik new CFO in SalMar from 27th of October 2022

OPERATIONAL UPDATE

Farming Central Norway

Record high harvest volume

• Cost level increased QoQ due to cost inflation on feed
• Continued strong operational performance
• Spring 2021 generation accounted for 80% of the harvest volume and started harvesting of autumn 2021 generation
• More challenging biological situation
• Volume guidance for 2022 increased with 1,000 tonnes to 118,000 tonnes
  • Flexibility to optimize biological performance
• Expect higher cost level in Q4 2022

	Q3 2022	Q3 2021	YTD 2022	YTD 2021
Operating income (NOKm)	2,540	1,940	6,574	4,451
Operational EBIT (NOKm)	977	597	3,115	1,503
Operational EBIT %	38 %	31 %	47 %	34 %
Harvest volume (tgw)	36.0	34.2	81.5	76.0
EBIT/kg	27.17	17.46	38.20	19.77

Farming Northern Norway

Continued solid performance

• Cost level increased QoQ due to cost inflation on feed
• Autumn 2020 accounted for 40% of the volume in the period and started harvesting of spring 2021
• Continuing the trend with solid performance
• Volume guidance for 2022 increased with 4,000 tonnes to 62,000 tonnes
  • Flexibility to optimize biological performance
• Expect higher cost level in Q4 2022

	Q3 2022	Q3 2021	YTD 2022	YTD 2021
Operating income (NOKm)	946	785	3,126	2,320
Operational EBIT (NOKm)	428	272	1,749	813
Operational EBIT %	45 %	35 %	56 %	35 %
Harvest volume (tgw)	13.8	15.5	39.3	42.3
EBIT/kg	31.04	17.53	44.47	19.22

Sales & Industry

Profitability from fixed prices contracts improved and strong capacity utilization

• Improved spot price achievement and increased profitability on fixed price contracts
  • Contract share at 34%
• Solid operational performance from harvesting and processing activities
  • Increased volume through our facilities
  • Increasing activity for harvesting and VAP at InnovaNor
• Contract share currently around 35% for Q4 2022

	Q3 2022	Q3 2021	YTD 2022	YTD 2021
Operating income (NOKm)	4,734	3,929	13,126	10,031
Operational EBIT (NOKm)	-34	-28	-1,186	-46
Operational EBIT %	-0.7 %	-0.7 %	-9.0 %	-0.5 %

Icelandic Salmon

Reduced margins driven by reduction in spot price level

• Continued trend on good price achievement in period compared to spot price
  • Market prices lower compared to level in Q2
  • Low harvest volume in the beginning of the period
• 2020 generation accounted for harvest volume in the period
  • Cost level increased due to cost inflation
  • Continue stable biological performance, but reevaluation of biological stock had an impact on operational EBIT by ~5 NOK/kg
• Increased smolt capacity through acquisition of 100% of the shares in Eldisstødin Isthor Ehf
• Expect higher volume and stable cost level in Q4 2022
  • Continue harvest of 2020 generation in Q4 and will start with 2021 generation
• Volume guidance for 2022 kept unchanged at 16,000 tonnes, expect same level in 2023
  • Expect significant increase in 2024 following the investments in smolt capacity in 2021/22

	Q3 2022	Q3 2021	YTD 2022	YTD 2021
Operating income (NOKm)	340	202	1,056	562
Operational EBIT (NOKm)	39	5	268	37
Operational EBIT %	11 %	2 %	25 %	7 %
Harvested volume (tgw)	3.8	2.4	10.1	7.3
EBIT/kg	10.16	2.02	26.42	5.06

SalMar Aker Ocean

Upgrade of Ocean Farm 1 progressing according to plan

• Maintenance and upgrade of Ocean Farm 1 progressing according to plan
  • Ocean Farm 1 currently at Aker Solutions yard Aker Verdal for upgrades
  • Next production cycle planned to commence in spring 2023
• Committed to new offshore investments as soon as a sustainable regulatory framework is in place
  • Continued collaboration with Norwegian authorities, the aquaculture industry, and other interested parties for the establishment of regulatory frameworks for offshore and semi-offshore salmon farming.
  • 8 th of November 2022 the Norwegian Government announced new rules for establishment of offshore aquaculture
  • Company working towards final investment decision of a new semi-offshore unit, final investment decision postponed from 2022 to 2023
• Strong strategic partnership with Aker working well

	Q3 2022	Q3 2021	YTD 2022	YTD 2021
Operating income (NOKm)	-	-	-	-
Operational EBIT (NOKm)	-34	-34	-107	-107
Operational EBIT %	-
Harvested volume (tgw)	-	-	-	-
EBIT/kg	-	-	-	-

Ocean Farm 1 approaching Aker Verdal – April 2022

Scottish Sea Farms¹

Results affected by biological challenges

• Results negatively impacted by environmental issues related to micro-jellyfish and gill health
  • Low average weight of harvested fish
• Results impacted negatively by contract level
  • 44% of volume sold on contract
• Volume guidance for 2022 reduced with 8,000 tonnes to 38,000 tonnes
• Expect to harvest 43,000 tonnes in 2023

	Q3 2022	Q3 2021	YTD 2022	YTD 2021
Operating income (NOKm)	972	773	2,495	1,963
Operational EBIT (NOKm)	47	80	342	273
Operational EBIT %	4.9 %	10.4 %	13.7 %	13.9 %
Value adjustments biomass	-172	-58	149	8
Profit before tax	-145	17	439	269
SalMar's share after tax	-55	7	164	104
Harvest volume (tgw)	11.3	10.1	28.6	27.4
EBIT/kg	4.20	7.93	11.95	9.94

Ulrik Steinvik

CFO in SalMar from 27th of October 2022

• Joined SalMar in 2006
• Held several leading positions in the executive management where he has been Director of Business Improvement the latest years
• Before Steinvik joined SalMar, he served with Arthur Andersen Norway and Ernst & Young from 1998 to 2006.
• Graduate from the Norwegian School of Economics and Business in 2002 and holds the title as Norwegian state authorized public accountant.

Born: 1974 Citizenship: Norwegian Tel: +47 900 84 538 Email: Ulrik.Steinvik@salmar.no

FINANCIAL UPDATE

Operational EBIT deviation analysis (qoq)

-7.84 NOK per kg

• Reduced margins from both Norwegian and Icelandic operations

Group profit and loss

NOK million	Q3 2022	Q3 2021	Δ%	YTD 2022	YTD 2021	Δ%
Total operating revenues	4,898	4,019	22 %	13,753	10,371	33 %
EBITDA	1,550	947	64 %	4,153	2,628	58 %
Depreciations and write-downs	237	199		695	592
Operational EBIT	1,313	748	76 %	3,458	2,037	70 %
Production tax	-23	-21		-58	-49
Onerous contracts	205	4		118	-18
Fair value adjustment	-592	221		1,185	934
Operating profit (EBIT) Income from investments in associates and	903	952	-5 %	4,703	2,903	62 %
joint ventures	-51	4		168	103
Net financial items	-2	-44		-87	-113
Net interest expenses	-64	-45		-165	-121
Other financial items	62	1		78	8
Profit before tax	850	912	-7 %	4,784	2,894	65 %
Income tax expense	181	201		999	622
Profit for the period	669	711	-6 %	3,785	2,272	67 %
Other comprehensive income	-95	-33		-2	-162
Total comprehensive income	575	678		3,783	2,110
Earnings per share (NOK)	4.75	5.85		29.53	19.15
Harvested volume (tgw)	53.6	52.1	3 %	131.0	125.6	4 %
EBIT per kg (NOK)	24.51	14.35	71 %	26.40	16.21	63 %
Nasdaq spot price (average)	71.55	55.48	29 %	85.71	57.20	50 %

Q3 2022 vs. Q3 2021

• Revenue and operational EBIT increased following higher salmon prices and higher volume
• Onerous contracts positive due to improved prices on contract portfolio
• Fair value adjustment negative due to cost inflation despite high forward prices in calculation
• Income from associates negative due to weak results from Scottish Sea Farms
• Net interest costs increased due to higher interest rates

Group balance sheet

Equity ratio

Equity & liabilities NIBD incl. lease liabilities

• Ongoing investments in the value chain progressing according to plan
• Higher standing biomass QoQ and lower YoY
• Net Interest-bearing debt incl. lease liabilities decreased with NOK 470 million during the quarter
  • NIBD incl. lease liabilities at NOK 6,423 million
• Solid financial position with equity ratio at 52.5% and NIBD incl. lease/EBITDA at 1.22
  • Strong financial capacity for growth

Movement in net interest-bearing debt

• Net investments² at NOK 833 million
  • Smolt and hatchery NOK 188 million
  • Farming¹ NOK 289 million
  • Sales & Industry NOK 30 million
  • Icelandic Salmon² NOK 193 million
  • SalMar Aker Ocean NOK 130 million
  • Other NOK 4 million
• NIBD incl. leasing decreased with NOK 470 million

1) Investment in increased production capacity purchased in Q2 and Q3 2022 has been withdrawn, amount will be derecognized in Q4 2022. See notes in report for further details.

2) Includes investment of remaining 50% ownershare in Isthor. See notes in report for further details.

*) all figures in NOK million

Proposed new tax from 2023 in Norway

• Proposal announced by Norwegian Government 28th of September 2022
  • Additional tax on aquaculture of 40% for volumes above 4-5,000 tonnes MAB, up from 22 per cent to 62 per cent
  • Cash flow based taxation model with taxation subject commercial farming assets in sea
  • While many details are known, some that are important from an accounting point of view are still missing or ambiguous.
• Hearing round on proposal until 4th of January 2022
• Major impact on the capacity for innovation and investments in the Norwegian aquaculture industry
  • Significant negative ripple effects for all adjacent industries of the aquaculture industry
  • Need for heightened caution with respect to investments and the signing of new contracts.
  • Particularly severe impact on Norwegian secondary processing
  • Strengthened the need to seek efficiency and economies of scale

Saksor 22/4080	FINANSDEPARTEMENTET
28.9.30(22	Høringsnotat - Grunnrenteskatt på havbruk

STRATEGIC UPDATE

The principles of the transaction¹

NRS acquires SalmoNor and is merged with SalMar, Voluntary offer for NTS

and 51.28% stake in Arctic Fish to be sold

1) For further details see separate stock exchange notices, voluntary offer document and merger plan

Clearance received from competition authorities

Transactions completed in November 2022

• Consideration payable in voluntary offer for NTS and merger with NRS¹
  • The voluntary offer for NTS is NOK 26.86482 in cash plus 0.143241 SalMar shares
  • The merger of NRS is NOK 52.84 in cash plus 0.303933 SalMar shares
  • As part of the transactions SalMar will issue 27.3 million new shares in SalMar and pay approx. NOK 6.6 billion in cash to shareholders of NTS and NRS
• As part of the transaction the 51.28 per cent stake in Arctic Fish has been agreed sold for 115 NOK/share, NOK 1.9 billion, subject to EU Commission's approval of the buyer and agreed terms¹ .
• Following completion of the transactions SalMar will have approx. NOK 18.6 billion in NIBD³
• SalMar ASA has secured financial capacity to cover the transactions including mandatory offer
  • NOK 11.5 billion secured in 24 months bridge facility with DNB, Nordea and Danske Bank
  • Includes guarantee for mandatory offer
• Increased existing sustainability linked RCF facility with NOK 3 billion
  • This gives SalMar increased financial flexibility after transactions is closed
  • Approx. NOK 6 billion in available liquidity in SalMar after the transactions
• Following completion of the voluntary offer for NTS a cash offer will be made for the remaining outstanding shares in NTS in accordance with applicable legislations
• 1) For further details see separate stock exchange notices, voluntary offer document and merger plan
• 2) Includes SalmoNor transaction
• 3) Estimated net interest bearing debt (NIBD) as of Q3 2022 following completion of the voluntary offer and merger. Note that contribution from NIBD in NTS/NRS is net after cash consideration to NTS in the transavtions. Reduction due to sale of Arctic Fish also includes estimated NIBD as of Q3 2022.

Overlapping industrial interest across the value chain

Potential for significant synergies across the value chain in all regions

GENETICS & SMOLT FARMING HARVESTING & VAP¹ SALES

1) Value added processing

Strong strategic and operational rationale

Catalyst for further sustainable growth in the local communities where both parties operate

• SalMar has consistently delivered stronger margins
  • Over time new assets can perform at the same level as SalMar
  • Expect gradual improvements in line with the production cycle of the salmon
  • SalMar will pursue ambitious synergy targets and expects the transaction to increase shareholder value going forward.
• Potential for significant synergies across the value chain in all regions
  • Improved utilization of MAB and site portfolio
  • Improved biological performance and lower production costs
  • Improved utilization of smolt- harvesting- and processing facilities
  • Strong expertise within sales and distribution; and improved reliability to customers worldwide
• The combination will be in the forefront for the most developed offshore farming initiatives in the world
• Broadening our resource base with Frøy, the largest aquaservice provider to the industry

OUTLOOK

SalMar has a solid track record for growth

Significant volume growth in 2023 with further growth potential in all regions

• SalMar has several growth alternatives and untapped potential within existing licenses in all regions
  • Untapped potential in coastal operations in Norway, Iceland and UK
  • Ambitious growth plans offshore with SalMar Aker Ocean
• Norway¹ 243,000 tons (+63,000 tons/ +35%)
  • Significant volume increase following completion of transaction
  • Untapped potential within existing licenses
  • Flexibility to optimize biological performance
• Icelandic Salmon² 16,000 tons
  • Volume expected at same level in 2023
  • Expect significant increase in 2024 following the investments in smolt capacity in 2021/22
• Scottish Sea Farms³ 43,000 tons (+5,000 tons / +13%)
  • Expect an increase in 2023 after biological challenges in 2022
  • Potential for further growth within existing licences
• 1) SalMar Norway, includes NRS and SalmoNor after completion of the transactions in November 2022. Volume 2023 preliminary estimate based on current knowledge of NRS/SalmoNor
• 2) Icelandic Salmon – Ownership 51%, harvest volumes fully consolidated from 2019. Harvest volume in graph depicts SalMar relative share prior to 2019
• 3) Scottish Sea Farms – Associated company through Norskott Havbruk, ownership 50%. Harvest volume in graph depicts SalMar share.

Outlook

• Offer for NTS and merger with NRS approved in Q4 2022
  • Strong strategic and operational rationale
  • Mandatory offer for NTS will be made in accordance with applicable legislation
• Continued strong strategic and operational focus with dedicated employees and strong corporate culture set for growth
  • Untapped potential for growth within existing licenses in all regions
  • Leading and pioneering the way offshore through SalMar Aker Ocean
• Expect higher volume and higher cost level in Q4 2022
  • Contract share for Q4 2022 around 35%
• Significant volume growth in 2023 following completion of the transaction
• Expect low volume growth globally in 2023
• Proposed new tax regime in Norway from 2023
  • This will have a major impact on the capacity for innovation and investments in the Norwegian aquaculture industry
  • Strengthening the need to seek efficiency and economies of scale
  • SalMar will issue a thorough response in the hearing round

THANK YOU FOR YOUR ATTENTION

Financial Calendar:

Q4 2022 presentation – 22 February 2023 Annual Report 2022 – 28 April 2023 Q1 2023 presentation – 11 May 2023 Annual General Meeting – 8 June 2023 Q2 2023 presentation – 24 August 2023 Q3 2023 presentation – 9 November 2023

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

For more information, please visit: www.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.

Appendix Proposed M&A

For further details see separate stock exchange notices, voluntary offer document and merger plan

Financial reporting structure after completion of the transactions

Frøy to be included as a new segment

• Activities within SalmoNor and NRS to be reported into respective similar segments from SalMar in Norway

* For further details of the transactions see separate stock exchange notices, voluntary offer document and merger plan

One of the largest salmon farmers in Norway

Combined potential over 280,000 tonnes¹

• Both parties have long-standing presence in, and considerable competence from, salmon farming in Northern Norway and Central Norway
• A combination will allow for improved utilisation of the combined available MAB and site portfolio as well as implementation of best practices within operations and the cost structure
• Combined the parties will have increased access to smolt and harvesting and processing facilities giving increased capacity and flexibility to optimize performance in the value chain
• The company will be headquartered on Frøya in Trøndelag, and become one of the most important private corporations in Norway that does not have its seat in Oslo

Leading and pioneering the way offshore

Ambition for 150,000 tonnes¹ within 2030

• The combination will be in the forefront for the most developed offshore farming initiatives in the world
• Significant growth opportunities to utilize the potential offshore
• Two units in operation with Ocean Farm 1 and Arctic Offshore Farming
• Committed to new offshore investments as soon as a sustainable regulatory framework is in place
• Ongoing work for design of Ocean Farm 2 and Smart Fish Farm

Development project Arctic Offshore Farming2

Strong potential for further sustainable growth on Iceland

Potential over 25,000 tonnes¹

• Arnarlax have operations in the West Fjords of Iceland
• Combined potential over 25,000 tonnes¹ through unutilized potential in existing licenses
  • Arnarlax² holds licenses of 23,700 tonnes MAB
• Increased capacity and flexibility within smolt production after acquisitions in 2021 and 2022 supporting growth ambitions

Volume 2022E 16,000 tonnes