Masoval AS — Earnings Release 2021

Feb 17, 2022

2021-Q4 presentation

Frøya, February 17th, 2021 Asle Rønning, CEO Gunnar Aftret, CFO

Highlights Q4-2021

• Q4 harvested volumes 4,813 tonnes (3,597)
• 2021 harvested volume 16,888 tonnes (16,253)

• Farming

• Q4 Operational EBIT per kg NOK 21.6 (-3.0)
• 2021 Operational EBIT per kg NOK 18.8 (15.4)

• Sales and processing

• Q4 EBIT 1.1 pr kg sold salmon, EBIT MNOK 4

• Vartdal Group – Acquisition

• Increase share capital MNOK 600 completed Q4.
• Transaction completed end 2021.
• Coordination of operations in process.

Segment information

Farming

Key figures Consolidated 000 NOK numbers in 1	Q4 2021	Q4 2020	2021	2020
Sales revenues salmon	284 724	940 148	979 203	176 858
Operational EBIT	106 104	-10 910	318 089	250 107
Harvested volume (tonnes HOG)	4 813	3 597	16 888	16 253
Operational EBIT per kg salmon	21 6 ,	-3 0 ,	18 8 ,	4 15 ,
Operational EBIT - %	36 6 % ,	-7 3 % ,	32 5 % ,	29 1 % ,

Operations Q4 2021

• Harvested volume of 4,813 (3,597)
• Operational EBIT NOK 21.6 pr kg ( -3.0)
• Operational EBIT MNOK 104 ( -11)

Operations 2021

• Harvested volume of 16,888
• Operational EBIT NOK 18.8 pr kg (15.4)
• Operational EBIT MNOK 318 (250)

Sales & Processing (Pure Norwegian Seafood)

Key figures Consolidated numbers 1 000 NOK in	Q4 2021	Q4 2020*	2021*	2020*
Sales revenues salmon	219 080	115 973	521 772	456 883
Other operating revenues	931 11	12 575	43 323	45 676
Sum operating revenues	231 011	128 549	565 095	502 560
Operational EBIT	3 579	002 5	12 858	13 284
EBIT/kg Operational sold GW	1 1 ,	2 4 ,	6 1 ,	1 7 ,
Operational % EBIT	% 1 5 ,	3 9 % ,	2 3 % ,	2 6 % ,

* Q4 2020, 2020, 2021 refer to the result of segment Sales & Processing as if the Group owned a majority of Pure Norwegian Seafood AS in 2020 and Q1 2021.

• Sales MNOK 231 (129)
• Higher supply from salmon farmers
• Higher prices achieved in quarter
• Operational integration
• Sales of salmon from Måsøval will increase significantly from 2022
• Harvesting of salmon from Måsøval will increase significantly in 2023
• Closed waiting pen Harvesting plant
• In operation Q3 2022
• Improved logistics and cost

Group financials

Key income statement items

Group Operational revenues Group Operational EBIT EPS (earnings/share)

Income statement

Consolidated numbers in NOK 1000	Note	Q4 2021	Q4 2020	2021	2020
Operating income and expenses
Revenue	2	364 690	148 940	1 116 773	858 176
Other operating income	2, 5	28 675	15 368	118 781	69 935
Total operating revenues		393 365	164 308	1 235 555	928 111
Total operating expenses		307 954	184 168	955 914	706 640
EBITDA		106 854	-7 938	348 101	271 988
Operational EBIT		85 411	-19 860	279 641	221 471
Production tax		1 925	-	6 755	-
EBIT		83 485	-19 860	272 886	221 471
Profit sharing with co-location partners		5 310	-2 745	20 654	16 424
Net financial items		-22 526	50 909	-62 837	20 973
Profit before income tax		60 959	31 049	210 049	242 444
Income tax expense		12 951	-3 201	45 750	43 305
Net profit or loss for the period		48 009	34 251	164 299	199 139
Profit attributable to:
Group contributions (net of tax)		-	35 276	-	35 276
Owners of parent company		53 574	-93 705	142 214	71 183
Non-controlling interests		-5 565	16	22 085	16
Total allocations		48 009	-58 413	164 299	106 475

• Revenue increased due to higher volumes and significantly higher sales prices, both for Farming and Sales&Processing.
• Group Operational EBIT improved from same period last year due to higher volumes and lower costs
• Group Operational EBIT per kg of NOK 18.5 (-5.5)

Key balance sheet items

Consolidated numbers in NOK 1000	Note	31 .12 2021	30 09 2021	31 .12 2020
Assets
Total intangible assets	3	2 218 457	1 008 613	790 414
Total plant and equipment property,	3	766 321	445 914	314 986
Total financial non-current assets	1	4 296	12 465	4 059
Total non-current assets		2 989 074	466 992 1	109 459 1
Total inventories	4	765 515	422 093	361 894
Total Receivables		243 395	167 861	174 713
Cash and cash equivalents		121 252	93 560	21 476
Total current assets		880 412	683 514	558 084
Total assets		3 869 487	2 150 506	543 1 667
Consolidated numbers in NOK 1000	Note	31 .12 2021	30 09 2021	31 .12 2020
Total equity		1 350 584	561 714	492 020
Total provisions		191 295	94 532	048 77
Liabilities to financial institutions		865 1 581	926 542	597 972
Total liabilities non-current	6	865 581 1	926 542	597 972
to financial Liabilities institutions		564 180	890 243	198 567
Total liabilities current		462 027	414 871	500 503
Total liabilities		2 518 903	1 435 945	1 175 522
Total equity and liabilities		3 869 487	2 150 506	1 667 543

• Total assets increased with MNOK 1,765 after acquisition of Vartdal Gruppen
• Current assets increased with MNOK 197
• Non-current assets increased with MNOK 1,568
• Booked equity ratio of 35.4%

NIBD development

figures Key	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021
Consolidated numbers 1 000 NOK in
Long debt term	597 972	634 801	931 089	926 542	865 581 1
Short debt term	567 198	158 552	316 233	243 890	564 180
Cash and cash equivalents	21 476	16 855	112 178	93 560	121 252
NIBD	775 062	776 498	1 052 227	1 076 871	1 924 893

• NIBD of MNOK 1 925
• Liquidity: MNOK 291
• Cash + unused credit facilities
• Capex Q4-2021: MNOK 1 597
• Total capex 2021: MNOK 2 203
• Purchase Vartdal Group: MNOK 1 521

Robust production unit in area 5:
	$=$ $\pm$	في	l i r	FD Smolt & post-
	Li censes	MAB 2		Harvest cap. smolt facilities
Måsøval as is	2.0	1,560t	2,900t HOG
Vartdal Gruppen	4.81	3.790t	6,900t HOG	2 units
Total area 5 capacity	6.8	5,350t	9,800t HOG	2 units

Substantial capacity potential in Vartdal Gruppen

Måsøval expect to bring the Vartdal Gruppen-unit to a run-rate production capacity of 6,900t by 2023 and align cost levels to the general performance of Måsøvals current operations

• Utilization of improved post-smolt access on the back of Vartdal Gruppens extensive investments into a top modern and proven facility
• Improved biological flexibility between production sites across Måsøval as a whole
• Adaption of best practice biological planning- and control procedures

• Support from and integration with Måsøvals operational team

• 4,680t of sea-based MAB (3,120t from Vartdal Gruppen and 1,560t from Måsøval as-is), downwards adjusted by 6% to 4,398t due to general biological performance in the area, 2. Licenses and MAB including post-smolt capacity ¹⁰

Vartdal Group – Update

9 1. Downwards adjusted by 6% to 2,932t due to general biological performance in the area.

• Transaction
• Transaction completed Q4 2021
• Share Capital Increase MNOK 600 completed Q4 2021

• Operational Integration

• Low MAB utilisation transaction day
• MAB utilisation across production areas started Q1 2022.
• Biological planning for max utilisation of MAB and post-smolt facilities.
• Management and operational resources transferred to support Vartdal Group
• Action plan for road to 9 800/tons per year in production area 5 (PA5)
• Production Smolt
• Production post-smolt
• Farming sea
• Sales and processing

Other Development Projects Update

Aqua Semi Update

• Delayed engineering
• MSA (Main Scantling approval) expected to be complete Q2- 2022

• Milestones

• Application for licences completed 2017
• 4 development licences (3,120 MAB) granted 2019
• 2019 2022 Design/Project planning
• 2022 2023(4) Construction
• 2024 Release Generation 1
• Financing of project to be concluded with final investment decision.

Post Smolt Frøya Update

• Final approval received Q4 2022
• Engineering will be completed Q2
• CAPEX will be higher than expected earlier (MNOK 70)
• Planned annual capacity
• 2 million post smolt @ 0,5/kg per fish
• Timeline
• Facility in operation 2023

Outlook and summary

Market Outlook/Sales and processing

• We see no COVID effect on pricing
• Analysts expect demand to outpace growth
• We expect strong prices in 2022

Segment Farming – Outlook

• Guiding harvested volumes

• 2022 Total 25 700 tonnes
• 2022 Q1 2 000 tonnes

• Farming PA5

• Reported as separate production area from Q1- 2022
• Includes site Orholmen, 1,466 tonnes MAB (old Måsøval) and Vartdal Group acquisition
• Full operational flexibility among all sites and PA5 and PA6 for Group MAB

Growth potential

Summary

• Segment Farming Strong Quarter/Year
• Q4 4,813 EBIT/Kg 21.6
• 2021 16,888 EBIT/kg 18.8

• Segment Sales and processing

• Sales: 100% integrated from Q1 2022
• Processing: Some increased activity

• Vartdal Group

• Transactions completed Q4
• Integration process off to a good start
• Outlook
• Harvest 202225 700
• Strong market prices
• Considering uplisting 2H-2022