SalMar ASA

Investor Presentation • May 12, 2021

SalMar ASA Q1 2021 Presentation

12 May 2021

CEO Gustav Witzøe CFO & COO Trine Sæther Romuld

Agenda

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

HIGHLIGHTS

Good results due to continued solid operational performance and increasing salmon prices

• Total operational EBIT 624 MNOK from Norway, including Icelandic Salmon total operational EBIT 627 MNOK
• Central and Northern Norway with stable development and good results
• Solid operational performance from sales & industry giving a strong result
• Icelandic Salmon with significantly lower cost compared to previous year
• Volume guiding for 2021 kept unchanged
• Secured green funding for further sustainable growth
• Upgrade of Vikenco finalized, InnovaNor close to completion with expected start-up summer 2021

OPERATIONAL UPDATE

Farming Central Norway

Continuing the trend with solid results

• Autumn 19 accounted for 70% of the volume in the period, Spring 2020 30%
• Autumn 2019 finished in the period
• High harvest volume at the end of the period
• Stable cost level
• Expect similar volume and costs at same level in Q2 2021
• Will continue harvest from spring 20 generation
• Guiding kept unchanged at 107,000 tons in 2021

	Q1 2021	Q1 2020	FY 2020
Operating income (NOKm)	1,169	1,584	5,895
Operational EBIT (NOKm)	386	742	2,218
Operational EBIT %	33 %	47 %	38 %
Harvest volume (tgw)	20.8	22.2	100.4
EBIT/kg	18.54	33.50	22.10

Farming Northern Norway

Continuing to deliver good results

• Autumn 2019 generation accounted for the volume in the period
• High harvest volume at the end of the period
• Autumn 2019 with slightly higher cost compared to previous generation
• Cost affected by high harvest and well boat cost
• Cost elements which will be reduced when InnovaNor is up and running
• Expect similar volume and slightly lower cost level in Q2 2021
• Continue harvesting from autumn 2019 and will start with spring 2020
• Guiding maintained at 56,000 tons in 2021

	Q1 2021	Q1 2020	FY 2020
Operating income (NOKm)	700	896	2,613
Operational EBIT (NOKm)	195	389	848
Operational EBIT %	28 %	43 %	32 %
Harvest volume (tgw)	13.5	13.6	49.9
EBIT/kg	14.45	28.68	16.99

Sales & Industry

Strong results due to solid operational performance

• Good capacity utilization and solid operational performance
• Covid-19 underlines the importance of our strategic focus on local processing
• Positive contribution from fixed price contracts
• Contract share at 24% in the period
• Contract share currently at 25% for Q2 2021 and FY 2021 20%
• Construction work on InnovaNor close to completion
• First harvest in the summer of 2021

	Q1 2021	Q1 2020	FY 2020
Operating income (NOKm)	3,032	3,350	12,393
Operational EBIT (NOKm)	118	-17	282
Operational EBIT %	3.9 %	-0.5 %	2.3 %

Icelandic Salmon

Positive results driven by improved operations and increasing salmon prices

• Improved margins driven by lower cost level, good capacity utilization at harvest plant and increasing salmon prices
• 2019 generation has accounted for the volume
• Significantly improved biological performance compared to last year
• Expect similar volume and stable cost level in Q2 2021
• Continue harvesting from 2019 generation
• Significantly improved biological status of fish in sea compared to last year
• Guiding maintained at 14,000 tons in 2021
• Increasing smolt capacity
• Signed agreement for two smolt facilities at Hallkelshólar and in Þorlákshöfn in May 2021
• Expect total output of 0,8 million smolt in 2022 and 1,5 million smolt from 2023
• Strengthening the foundation for future growth

	Q1 2021	Q1 2020	FY 2020
Operating income (NOKm)	178	280	662
Operational EBIT (NOKm)	4	22	-49
Operational EBIT %	2 %	8 %	-7 %
Harvest volume (tgw)	2.5	4.3	11.2
EBIT/kg	1.48	5.05	-4.36

Scottish Sea Farms¹

Continuing the trend with solid results

• Harvest volume increased compared to last year
• Cost improvements YoY
• Good biological status and low sea lice levels in all regions
• Guiding maintained at 36,000 tons harvest volume in 2021

				Q1 2021	Q1 2020	FY 2020
Operating income (NOKm)			396	264	1,699
	Operational		EBIT (NOKm)	74	42	308
	Operational	EBIT %		18.6 %	15.9 %	18.2 %
	Value adjustments		biomass	47	-74	-143
	Profit before	tax		116	-38	143
	SalMar's	share after	tax	46	-27	49
	Harvested volume (tgw)			5.9	2.9	24.0
	EBIT/kg			12.39	14.36	12.87
Harvest volume EBIT/kg (1,000 tons gw) (NOK)

FINANCIAL UPDATE

Operational EBIT deviation analysis (qoq)

EBIT per kg (NOK)

• Group EBIT per kg increased QoQ following higher spot prices
• Positive margin from Icelandic Salmon

Group profit and loss

NOK million	Q1 2021	Q1 2020	Δ%	FY 2020
Operating income	3,184	3,626	-12 %	12,912
EBITDA	820	1,251	-34 %	3,821
Depreciations and write-downs	193	185		812
Operational EBIT	627	1,066	-41 %	3,009
Production tax	-14	-0.5		-1.4
Fair value adjustment	298	-480		-180
EBIT	911	585	56 %	2,828
Income from investments in associates	49	-22		42
Net financial items	-23	-168		-299
Net interest costs	-36	-42		-140
Other financial items	13	-125		-159
Profit before tax	937	395	138 %	2,572
Tax	199	91		563
Net profit for the period	739	304	143 %	2,008
Other comprehensive income	-101	303		212
Total comprehensive income	638	607	5 %	2,220
Earnings per share (NOK)	6.33	3.58	77 %	17.52
Harvested volume (tgw)	36.9	40.0	-8 %	161.5
EBIT per kg (NOK)	17.02	26.62	-36 %	18.62
Nasdaq spot price (average)	52.78	68.50	-23 %	54.34

Q1 2021 vs. Q1 2020

• Revenue and operational EBIT decreased following lower volume and lower spot prices compared to last year
• Production tax included from Q1 21 at NOK 0.40 NOK/kg in Norway
• Production tax includes resource tax in Iceland
• Fair value adjustment positive due to higher forward prices
• Increased income from associates due to improved results from Scottish Sea Farms
• Other financial items positive due to lower currency movements compared to same quarter last year
• Other comprehensive income negative due to strengthening of NOK

Group balance sheet

Equity ratio

Equity & liabilities NIBD incl. leasing

• Investments progressing according to plan
• Higher standing biomass YoY and lower QoQ
• Net Interest-bearing debt incl. leasing liabilities increased with NOK 402 million during the quarter
• NIBD incl. leasing at NOK 6 228 million
• Solid financial position with equity ratio at 50.9% and NIBD incl. leasing/EBITDA at 1.84
• Proposed dividend of 20 NOK/share to be approved by AGM 8th of June 2021

Movement in net interest-bearing debt

• Cash flow from operations impacted by increase of working capital
• Driven by reduction in accounts payable
• Net cash flow from investments at NOK 490 million
• Farming and Ocean NOK 145 million
• Smolt and hatchery NOK 122 million
• Sales & Industry NOK 170 million
• Upgrade of Vikenco NOK 34 million
• Capex Iceland NOK 7 million
• Other NOK 12 million
• NIBD incl. leasing increased with NOK 402 million

Secured green funding for further sustainable growth

• Secured 7,500 MNOK in green financing in the beginning of 2021
• A- Credit rating with stable outlook received from Nordic Credit Rating
• Successful placement of first green bond in April
• Senior unsecured green bond at NOK 3,500 million priced at NIBOR 3m + 135 bps with maturity in January 2027
• Representing largest green bond issue in NOK from a Norwegian company
• Green funding to be allocated to projects across the entire value chain from roe to plate
• Green bond framework rated with a "Medium Green" shading and with a governance score of "Excellent" from second party opinion provider CICERO
• Secured financial flexibility by strengthening our credit facilities
• Completed refinancing of existing credit facilities in February
• New Sustainability linked revolving credit facility of NOK 4,000 million
  • 4 ESG KPI's linked to the RCF
• Overdraft facility of NOK 1,000 million

STRATEGIC UPDATE

Sustainability in everything we do

Has been a key postulate for SalMar for over 20 years

FISH

Good fish welfare is the foundation of SalMar's business. We work systematically to create an environment in which the salmon thrives and remains healthy.

ENVIRONMENT & TECHNOLOGY

SalMar believes in preserving the seas and environment for future generations. We minimize our biological footprint with measures and routines throughout the entire value chain.

PEOPLE & SOCIETY

SalMar acts as a responsible corporate citizen. We believe in creating local value, safe workplaces and support the communities in which we operate.

SalMar's commitment to sustainability is showcased in our KPIs

Where our ambitious targets are leading us in an even more sustainable direction

KPI Target 2020 2019 2018 Fish Survival rate² >97% 95.6% 95.3% 94.1% Economic FCR <1.13 1.16 1.19 1.18 Environment & technology GHG emissions tCO2e - Scope 1+2 35% reduction from 2018 to 2030³ 16,306 15,141 16,173 Intensity - Scope 1+2 87 90 96 tCO2e - Scope 3 35% reduction from 2020 to 2030³ 619,805 n.a. n.a. Share of local processing >42.5% 42.0% 39.3% 37.6% People & society H-factor <6 9.1 7.7 11.9 Sickness absence rate <4.5% 5.3% 5.3% 5.5% Selected reported KPIs¹

More details in sustainability report

Report for 2020 published 23rd of April 2021

Available at www.salmar.no

• Ambitious targets for our key biological KPIs
• Results improved the last years
• More ambitious targets set showcasing our focus what we to today we do better than yesterday
• SalMar has pledged to reduce our GHG emissions
• Target set in accordance with Science Based Targets Initiative methodology, 35% reduction until 2030³
• Ensuring transparency, Scope 3 included in our GHG reporting
• Already contributing to reduced GHG emissions
• 46,000 tonnes CO2e reduced due to our local processing activities, corresponding to emissions from 10,000 cars

Strong strategic and operational focus throughout the value chain

Always on the terms of the salmon

Flexibility and capacity to deliver the right smolt at the right time …

… to deliver the best fish through good fish welfare…

… for local processing with the right capacity at strategic locations…

… for production at the optimal locations with minimal footprint…

… with flexibility to handle the volume when the fish is ready for harvest…

… to maximize value creation of the salmon…

… all handled by fantastic dedicated employees with strong competence & culture and a passion for salmon

Investing in a robust platform for further sustainable growth

GENETICS & SMOLT COASTAL FARMING OFFSHORE FARMING INDUSTRY & SALES ICELANDIC SALMON

• Complete Senja 2
• Closed net pen

• Planning for new RAS facility in Tjuin, Central Norway

• Continuous improvements

• Learning from best practice
• "On the site-managers" terms
• Maintain cost focus

• Seek attractive M&A & growth opportunities

• Build and develop SalMar Ocean organization to handle growth ambition

• Ongoing processes continuing

• Continuous improvements Industry

• Right fish to the right product
• Complete InnovaNor
• Upgrade of Vikenco finalized Sales
• Right product to right customer

• Optimize logistics

• Continuing development and improvements

• Significant potential for future growth

PEOPLE & CULTURE

• Disease prevention measures related to Covid-19
• Corporate social responsibility
• WE@SalMar holistic culture project for all employees
• Focus on contribution from each individual
• Goals, ambitions and values
• SalMar school and leadership training
• Employee satisfaction survey

Planning for a new state-of-the-art RAS smolt facility

Located in Tjuin, Central Norway, expanding around our strong competence cluster at Follafoss

Gives flexibility and capacity to deliver the right smolt with the right size and quality

• Foundation for future growth in production
• Expected annual production capacity 4,000 tons or around 20 mill smolt
• Increased flexibility for production of the right smolt size

Reducing environmental footprint by use of RAS technology and handling of sludge

• Reducing freshwater consumption with more than 97% compared to flowthrough facilities
• Ensuring circular economy all sludge collected for use in fertilizer- or biogas production

Vikenco – upgrade of facility completed in 2021

Increasing our local processing capacity

• Vikenco strategically located in Aukra in the southern part of central Norway
• Facility rigged with the latest technology for value added processing
• Strengthening our flexibility to provide the market with the right product at the right time

InnovaNor – a new cutting edge harvesting and processing facility

In operation from summer 2021 and venue for our next quarterly presentation

Largest and most modern processing facility in northern Norway

• 20,000 square meters with a capacity of 75,000 tons harvest volume of salmon per year per shift
• Rigged with the latest technology for value added processing built with scalability in mind with both post and pre-rigor capacity
• Incorporates landing, harvesting, processing, packaging, freezing and storage capabilities including an office wing
• Box-factory built in connection with the facility

Local processing is a key factor for sustainable growth

• Significant local value creation in the local community through jobs created
• Large harvesting capacity in close proximity to farming operations reduces biological risk in sea and optimizes biological production
• Local processing reduces weight of volume transported thereby reducing climate gas emissions

OUTLOOK

Outlook

• Continued strong strategic and operational focus to build an even more robust platform for further sustainable growth
• InnovaNor in operation from summer 2021
• Dedicated employees and strong corporate culture set for growth
• SalMar pioneering and leading the way both coastal and offshore
• Volume guiding for 2021 maintained
• Expect similar volume and stable cost level in Q2 2021
• Contract share for Q2 2021 25% and FY 2021 20%
• Expect low to moderate increase in global supply in 2021
• Covid-19 has led to significant market uncertainties, but the success of vaccination programs around the world gives an optimistic outlook
• SalMar is well positioned to handle changing market conditions with strong operational and financial flexibility

THANK YOU FOR YOUR ATTENTION

Next event Q2 2021 presentation 26 August 2021

For more information see www.salmar.no