SalMar ASA

Earnings Release • Nov 10, 2022

SalMar - Continuing the solid trend with strong operational and financial performance

SalMar - Continuing the solid trend with strong operational and financial performance

* Continued solid operational performance have led to strong results in the

third quarter. Total Group operational EBIT was NOK 1,313 million and total

harvest was 53,600 tonnes. This resulted in an operational EBIT of NOK

24.51 per kg.

* Total operational EBIT for Norway for the third quarter was NOK 1,309

million (NOK 26.29 per kg).

* Fish Farming Central Norway and Northern Norway continued to deliver solid

results despite general cost inflation.

* Sales and Industry had high levels of activity at its harvesting and

processing plants and increased its results significantly from the previous

quarter.

* The underlying operational performance of the Icelandic operation was

stable, but lower spot prices reduced the margins.

* Upgrade of Ocean Farm 1 is progressing according to plan.

* 31st of October 2022 clearance was received from the European Commission for

the acquisition of a majority of the shares in NTS ASA, and consequently

also the merger between SalMar and Norway Royal Salmon ASA (NRS). As part of

the transactions Arctic Fish to be sold for 115 NOK/share, NOK 1.9 billion.

* Following completion of the transactions SalMar increases volume guiding in

Norway with 5,000 tonnes to 180,000 tonnes for 2022. Volume guidance Iceland

is kept unchanged and for Scottish Sea Farms the volume guidance is reduced

with 8,000 tonnes.

* In 2023 SalMar expects significant volume growth from 215,000 tonnes up to

over 280 000 tonnes including its relative share in Scottish Sea Farms.

* The Norwegian government proposed to introduce a resource tax on aquaculture

of 40% with effect from the tax year 2023 for volumes above 4-5,000 tonnes

MAB. A hearing is underway with feedback due in January 2023. If this

proposal is adopted this will have major impact on the capacity for

innovation and investments in the Norwegian aquaculture industry

Continued solid performance

"Our committed and highly skilled employees have continued to deliver solid

operational performance in key areas, resulting in yet another quarter with

strong results. The whole aquaculture industry is experiencing inflationary

pressure, but we remain committed to our strategy, operating on the terms of the

salmon and delivering products of excellent quality," said SalMar's CEO Frode

Arntsen.

"Despite cost inflation on feed, Fish Farming Central Norway and Fish Farming

Northern Norway continue to deliver solid results, driven by a consistently good

operational performance. The operational performance is particularly impressive

in Northern Norway, which posts yet another very good result", Arntsen added.

Sales and Industry maintained a high level of activity through the quarter,

reversing the negative effects of high contract share seen in the previous

quarter.

- Through the third quarter, we have had a record high volume through our

harvesting and processing facilities. And I am particularly pleased to see that

the development in our new facility at Senja in northern Norway, InnovaNor,

improves with each passing week. This strengthens our belief in our growth

ambitions going forward, says SalMar's CEO Frode Arntsen.

Icelandic Salmon delivered solid performance, but results were affected by the

lower spot prices compared with the previous quarter.

Robust platform for further sustainable growth, despite uncertainty caused by

new resource tax proposal

For over 30 years, sustainable food production has been SalMar's hallmark, and

the company has led the way for the development of a forward-looking Norwegian

aquaculture sector. Despite an uncertain situation caused by the new tax system

proposed by the Government, the strategic and operational for the transaction of

NRS and NTS remains. The combination will strengthen the activities in the

regions where we operate which are core regions in an industry where Norway is

world leader.

The position has been created through creativity, effort and passion over

decades, from employees, management and shareholders. We believe, in spite of a

tax proposal creating uncertainty in this industry, that striving for continued

sustainability, operational excellence, and efficient use of resources remains

the best path to protect jobs and value creation in Norways most important

export industry after petroleum. This is crucial for the further development of

the industry and the supplier industry along the coast in Norway. This means

that the Norwegian Government need to establish competitive framework conditions

in an industry which has a large potential all over the world. Norway today

accounts for around 50% of the global production of salmon and trout.

"In the light of the uncertainty surrounding the Norwegian government's tax

proposal, SalMar has decided to put future investments on hold. And has already

cancelled investments. SalMar works actively with relevant actors to ensure that

predictable framework conditions are put in place that do not inhibit the

innovative power and value creation in the local communities of the aquaculture

industry," says SalMar's CEO Frode Arntsen.

"The proposal that has been submitted for consultation involves an increase on

the tax on seafood production, from 22 to 62 per cent. No other country has

introduced a tax of this kind and at this level on its food production. Both

level and structure will divert investments from aquaculture in Norway to other

countries and other industries. This will strongly affect innovation power and

investments on the Norwegian coast. The tax will mean a sharp confiscation of

investment capital for innovation and industrial construction in both

aquaculture as well as adjacent and other industries," adds Arntsen.

Completion of merger with NRS and voluntary offer for shares in NTS

In October, the European Commission cleared SalMar's acquisition of a majority

of the shares in NTS ASA, and consequently also the merger between SalMar and

Norway Royal Salmon ASA (NRS).

"The strategic and operational rationale linked to the transaction is still

good, and even if the industry has to scale back and reduce other planned

investments, the need for increased efficiency and economies of scale has now

become even greater. We are therefore very happy to have completed this

important transaction," says SalMar's CEO Frode Arntsen.

Outlook

In accordance to estimates from Kontali Analyse one expects low supply growth

for Atlantic salmon in 2023.

Following completion of the transactions SalMar increases volume guiding in

Norway with 5,000 tonnes to 180,000 tonnes for 2022. Volume guidance on Iceland

is kept unchanged and for Scottish Sea Farms the volume guidance is reduced with

8,000 tonnes.

In the fourth quarter, costs are expected to be higher than in the third

quarter. SalMar expects a contract rate of around 35 per cent in the fourth

quarter 2022.

In 2023 SalMar expects significant volume growth following completion of the

transactions with NRS, SalmoNor and NTS. SalMar expects to harvest 243,000

tonnes in Norway, 16,000 tonnes in Iceland and 43,000 tonnes in joint venture in

UK.

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 in Hotel Continental, Stortingsgata 24-26, Oslo, Norway today at 8am

CET. 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 Norway, at

InnovaMar in Frøya, InnovaNor in Senja and Vikenco in Aukra. In addition, the

company is operating within offshore aquaculture through the company SalMar Aker

Ocean. SalMar also 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.