Mowi ASA

Annual Report (ESEF) • Mar 22, 2023

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Mowi is also by far the world’s largest Atlantic salmon farmer with harvest volumes of 464 000 tonnes in 2022, equivalent to a global market share of approximately 20%. The company has a fully integrated value chain from roe to plate and produces its own environmentally certified feed specifically designed for the Mowi salmon strain. This integrated report sets out how we run our business and describes our vision, our ambition, our successes and our improvement areas in an open and transparent way. At every stage of the value chain, we all work towards one shared aim: To provide a growing world population with delicious, healthy and nutritious food from the ocean, in a way that respects our planet and allows local communities to flourish. A product everyone at Mowi is proud of, every day. To gain industry insights please read Mowi’s “Salmon Farming Industry Handbook”. This document gives an overview of supply, demand and market dynamics, including factors that Mowi believes are the most important value drivers. Salmon Farming Industry Handbook Read Mowi’s Salmon Farming Industry Handbook 002 Integrated Annual Report 2022 Leading the Blue Revolution Deep history of value chain investments Since our pioneering days in 1964, we have continued to invest in our value chain and today enjoy full control of our product, from the parental broodstock to sales. It’s a remarkable story. Just a few decades ago our founders were growing salmon in netted bays and mixing fish feed by hand. The adventure of Mowi begins. Salmon came from the rivers Vosso and Årøy. 1964 First stocking of salmon smolt in seawater. Hydro buys 50% of Mowi. 1969 The Marine Harvest Group is established from three independent companies (Pan Fish, Marine Harvest, Fjord Seafood). 2006–2007 Mowi becomes a recognised local brand. The Mowi breeding adventure starts. 1975–1976 Several M&As and Norsk Hydro takes 100% ownership of Mowi and changes name to Marine Harvest. 1980–2005 MOWI’s integrated value chain Feeding Breeding Smolt Farming Harvesting Processing Products and customers 003 Integrated Annual Report 2022 Leading the Blue Revolution Nearly 60 years later, our investments in areas such as genetics, feed, value-added processing and smart technology have transformed our business and now place us in a leading position that few food-producing companies can match. Recognised as the world’s most sustainable animal protein producer by Coller FAIRR four years running. Morpol becomes a part of the Group. 2013 2019–2022 Marine Harvest once again becomes Mowi. MOWI brand successfully launched. 2018 Mowi enters Iceland with the acquisition of 51% of Arctic Fish. 2022 The Group establishes its own feed division with factory, strengthening a fully integrated value chain. 2012 Watch for more about Mowi’s integrated value chain. 004 Integrated Annual Report 2022 Leading the Blue Revolution Business areas Mowi is the world's largest producer of farm-raised salmon measured by both volume and turnover. We offer seafood products to more than 70 countries, are represented in 26 countries and employ 11 500 people. Mowi is organised in three business areas: Feed, Farming and Sales & Marketing. CONSUMER PRODUCTS Volume sold, tonnes prod wt Country 2022 2021 2020 2019 2018 Europe 169 071 183 920 179 928 155 673 144 360 Americas 31 317 30 684 29 687 30 633 22 368 Asia 29 046 32 973 29 812 9 965 11 602 Total 229 434 247 577 239 427 196 271 178 330 Country Capacity 2022 2021 2020 2019 2018 Produced Norway 400 000 371 876 358 769 389 750 353 310 348 402 Produced Scotland 240 000 143 140 123 133 150 576 51 883 — Total 640 000 515 016 481 902 540 326 405 193 348 402 Sales and Marketing Feed Farming Feed Comprises our feed plants in Norway and Scotland. Sales & Marketing Includes our secondary processing and value added operations in Europe, the US and Asia, and the sales and delivery of our products. (Tonnes) Production 005 Integrated Annual Report 2022 Leading the Blue Revolution Country Guidance 2023 2022 2021 2020 2019 2018 Norway 290 000 293 720 273 204 262 016 236 880 230 427 Chile 72 000 65 737 65 958 64 570 65 688 53 165 Canada 28 000 41 095 45 311 43 953 54 408 39 267 Scotland 64 000 48 374 64 405 52 739 65 365 38 444 Ireland 4 500 6 845 6 790 7 961 6 650 6 238 Faroes 10 500 7 864 9 932 8 590 6 913 7 697 Iceland 15 000 Total 484 000 463 635 465 600 439 829 435 904 375 237 Sales by geography headquarters Bergen, Norway Providing our customers with 8 million meals a day Farming Incorporates our farming operations and some primary processing and filleting activities in Norway, Scotland, Canada, Chile, Ireland, the Faroe Islands and Iceland. (Tonnes) Harvest volume GWT 006 Integrated Annual Report 2022 Leading the Blue Revolution Dear stakeholder 2022 was a record year for Mowi financially with Operational EBIT of EUR 1 005 million, and the company crossed the EUR 1 billion earnings mark for the first time in its 60-year history. The all-time high financial results were brought about by strong operational performance across the Board and good market conditions for salmon. In Farming, relative seawater production was the best ever and harvest volumes of 463 600 GWT were close to all-time high. At year-end, Mowi entered Iceland, the last spot missing from our geographical footprint, with the acquisition of 51% of Arctic Fish. Consumer Products and Feed also had their best year ever. These achievements were only made possible by the dedication and hard work of Mowi’s employees. The financial and operational records achieved during 2022 were unfortunately overshadowed by the proposed resource rent tax on salmon farming in Norway. With regards to market conditions, demand for salmon improved significantly in 2022 on Covid-19-related re-opening of the foodservice segment and continued strong retail demand. Better demand and global market supply contraction of 1% led to all-time high spot prices, and Mowi also benefited from a reduced contract share for Norwegian origin. With improved achieved prices and volumes close to record-high levels, group revenue was the highest ever at EUR 4 946 million (EUR 4 208 million). In Farming, harvest volumes for 2022 were 463 600 GWT (465 600 GWT). Survival rates and feed conversion ratios improved from 2021 and relative growth performance in sea was all-time high. In Mowi Norway, our largest and most important farming entity, harvest volumes reached a record-high level of 293 700 GWT. This was up by 8% from 273 200 GWT in 2021 on increased smolt stocking and strong growth performance. Group volume guidance for 2023 is a record-high 484 000 GWT, meaning growth over five years of 109 000 GWT or 5.2% CAGR, which is an impressive volume growth trajectory, surpassing that of the wider industry at 4%. Towards the end of the year, we received approval for the acquisition of 51% of the shares in Icelandic salmon farmer Arctic Fish. Iceland is Mowi’s seventh farming country and was the last spot missing from our geographical footprint. Iceland is one of the few areas left that offers extensive organic growth opportunities in conventional farming. On top of that, Icelandic waters also provide excellent growth and living conditions for the salmon. Consumer Products delivered its best year ever financially with Operational EBIT of EUR 112.1 million (EUR 95.5 million) on strong operational performance and continued good retail demand. Volumes of 229 400 tonnes product weight (247 600 tonnes) were the highest ever for a normal year, only beaten by the Covid-19 pandemic years of 2020 and 2021 when home consumption was particularly high. 007 Integrated Annual Report 2022 Leading the Blue Revolution The Feed division produced feed which performed very well and contributed to outstanding growth performance for the salmon in sea. Operational EBITDA of EUR 47.0 million (EUR 34.5 million) was a new record for Mowi Feed. Mowi continues to be the best or the second best cost performer vs. peers in the regions in which the company operates, and Farming blended cost per kg has been stable since 2017, adjusted for inflation, as underlying cost pressure has been offset by cost cut initiatives. However, significant post-Covid inflation negatively impacted the cost level in 2022. This was first and foremost driven by feed inflation, as feed prices have increased by approx. 70% since the beginning of 2021 on significantly higher feed raw material costs. Accordingly, cost-cutting initiatives are important to combat the underlying pressures from not only feed prices, but also costly biological measures and more complex regulations. In 2022, the organisation delivered on its cost-cut targets for 2022, achieving EUR 48 million in annualised savings. A total of EUR 230 million in annualised savings have been achieved since the start of the cost savings programmes in 2018. Addressing cost has become engrained in Mowi’s workflow, and the company has initiated another global cost savings programme for 2023 with a target of EUR 25 million of savings during the year. Energy savings is a new dedicated category from 2023 where Mowi aims to realise projects contributing to 28 GWh of annualised net savings on electricity and fuel, equivalent to 3% of Mowi's annual energy usage. In addition to the cost saving potential this will have a positive ESG impact. Mowi decided in 2020 to include a productivity programme in the cost savings programme, targeting a 10% reduction in FTEs for the company as-is by 2024. By year-end 2022, FTEs had been reduced by a total of 1 346 people, equivalent to a 9% reduction even as volumes increased by 6%, testament to the organisation’s commitment to operational excellence. Further reductions are targeted in 2023. For the fourth consecutive year, Mowi was ranked the most sustainable animal protein producer in the world in the 2022 Coller FAIRR Protein Producer Index. Mowi's mission to provide sustainable and healthy food to a growing world population is crucial. To yet again occupy the top position in the prestigious Coller FAIRR ranking is extremely encouraging and demonstrates that Mowi is at the forefront of sustainable food production. Salmon has superior sustainability credentials, including carbon footprint, compared with other animal proteins. Mowi's salmon production saves the world 2 million tonnes of CO2 emissions annually by replacing the Ivan Vindheim, Mowi CEO 008 Integrated Annual Report 2022 Leading the Blue Revolution corresponding amount of land animal protein production. In addition to the positive ESG credentials with regards to the product itself, Mowi has ambitious targets for further reducing the carbon footprint related to the company's activities. Mowi's scope 1 and 2 emissions were reduced by 9% in 2022, and by 33% since 2019. Scope 3 emissions were reduced by 3% in 2022, and by 10% since 2019. The company is on track to deliver on its targets. Mowi is by far the largest producer of salmon, a scientifically proven natural superfood. Salmon is versatile and appeals to people of all ages with its highly appetising taste, look, texture and colour. The megatrends driving salmon demand are strong and driven by health trends and a growing need for more low-carbon diets. With its size, integrated value chain, global market presence and focus on operational excellence, Mowi is well positioned to capitalise on these megatrends. The company is also working on many important initiatives that will further develop the company and bring it into the future. In Farming, we are working along three main pillars; volume growth, cost and sustainability. In Sales & Marketing, we are putting the customer at the core of all our activities related to products, branding and operational excellence. As regards the Feed division, we continue to work on operational improvements and cost optimisation, and it is encouraging to see that our feed is performing very well. The ongoing trend for using smart technology to automate production and industrial practices, often referred to as the fourth industrial revolution, offers significant opportunities for Mowi. Mowi 4.0 is the company's strategy to leverage these opportunities, where the aim is to digitalise and automate our value chain from roe to plate. This work is set to continue over the coming years. The Norwegian government has proposed to raise the tax level on Norwegian salmon farming from 22% to 62%. The political process is ongoing and we do not expect to have a formal clarification until after Easter, and most likely not until close to the summer. From the very beginning Mowi has been clear that this tax level is not sustainable and that it will impose major limitations on future growth and development of the Norwegian salmon industry, and thereby lead to the loss of current and future jobs in their thousands along the Norwegian coastline if implemented. Furthermore, the tax model as such is not fit for purpose as it is very bureaucratic and handles margins and deductibles asymmetrically. The standard deduction discriminates against larger salmon farmers and thus undermines the traffic light auction system in addition to potentially violating the Norwegian state’s obligations under the EEA agreement. Notwithstanding the negative effects from the proposed resource rent tax, we believe in a positive market outlook for the company. Although the global macro-economic environment is currently difficult, salmon normally fares well also in challenging economic times. The supply growth estimate for 2023 is modest and this would under normal circumstances be supportive of good salmon prices. In the coming years, we expect global megatrends to continue to drive demand for salmon and we expect demand growth to outpace supply growth. With good operational performance as a backdrop, the organisation is well set to deliver on its ambitious targets over the coming years. Key achievements in 2022 Operational •Harvest volumes of 463 635 tonnes, close to all-time high •Highest revenues ever at EUR 4.9 billion •Best ever relative seawater growth performance in Farming •Iceland becomes Mowi's seventh farming country with the acquisition of 51% of Arctic Fish •Consumer Products with highest ever Operational EBIT of EUR 112.1 million. Sold volumes of 229 434 tonnes •Record-high Operational EBITDA for Feed of EUR 47.0 million. Sold volumes of 517 260 tonnes •Strong feed performance, and Mowi self-sufficient for feed in Europe •FTEs reduced by a total of 1 346 since the start of the productivity programme in 2020, equivalent to a 9% reduction despite 6% volume increase •MOWI Brand launched in Germany, Brazil, Argentina, Colombia, China and South Korea during 2022 Financial •Best ever Operational EBIT of EUR 1 005.1 million and Financial EBIT of EUR 1 053.8 million •Return on capital employed (ROCE) of 23.7% •Completed 2022 cost savings programme with annual savings of EUR 48 million and initiated new global EUR 25 million cost savings programme for 2022 •Strong financial position with covenant equity ratio at 52.2% •Dividends of NOK 7.35 per share paid out in 2022 Sustainability •Mowi ranked the most sustainable animal protein producer in the world (FAIRR index) for the fourth year in a row •Improved safety record with all-time low rolling LTIs per million hours worked at 2.34 down from 2.52 in 2021 •Reduced scope 1 and 2 GHG emissions by 33% and scope 3 emissions by 10% since 2019 Priorities going forward •Volume growth •Continued cost and FTE focus •Sustainability •Improved volumes and profitability for Branding •Digitalisation and automation – Mowi 4.0 •Develop our people and leaders 009 Integrated Annual Report 2022 Leading the Blue Revolution Feed Our feed performs very well, an essential quality as feed is the most important input factor in salmon production. Mowi is self-sufficient for feed in Europe with our state-of-the-art plants in Valsneset, Norway and Kyleakin, Scotland. Feed sales reached 517 260 tonnes for the year, an increase of 6% from 2021. Operational EBITDA came in at EUR 47.0 million (EUR 34.5 million), equivalent to a return on sales of 4.8% and ROCE of 13.1%. Market prices for feed increased during the year, and this was connected to increased feed raw material prices. Mowi will continue to work on producing high-performing feed and optimising feed ingredients while maintaining our focus on sustainability and high quality. With two modern facilities strategically located close to our largest farming operations, Mowi Feed is well positioned to streamline operations and improve costs. Farming Volume growth, costs, and sustainability are the three main pillars we are working along in Farming. With regards to cost, Mowi Farming is competitive and is the best or the second best cost performer vs. peers in the regions in which the company operates. On sustainability, Mowi has been ranked #1 amongst animal protein producers for the fourth consecutive year. When it comes to volume growth, Mowi Farming has grown more than the industry and with volume guidance of 484 000 GWT for 2023, volumes are up by as much as 109 000 GWT over five years, equivalent to 5.2% CAGR, and well above the corresponding figure of 4.1% for the industry. Mowi's goal is to continue to capture market share in the salmon category in the coming years by growing its farming volumes, both organically and acquisitively. Mowi harvested volumes of 463 635 tonnes GWT in 2022, slightly below the record year of 2021. Survival rates and feed conversion ratios improved from 2021 and relative growth performance in sea was all-time high. Mowi Norway, our largest farming unit, is now at the top of license utilisation and production efficiency in the industry and this is the result of a clear strategy and systematic work in recent years. Harvest volumes for Mowi Norway reached a record-high level of 293 700 GWT in 2022, up 8% from 2021 on increased smolt stocking and strong growth performance. In 2021, Mowi launched a postsmolt programme with the aim of producing more and larger smolt. Three postsmolt projects are ongoing, while the rest of the programme has been temporarily halted due to the proposed resource rent tax proposal in Norway. Plans are also underway to significantly increase the average smolt size in our Scottish farming operations through Farming investments. Mowi Scotland is also developing new sites to utilise new licenses awarded in recent years. In Chile, Mowi expects to grow in line with the traffic light system. In Canada East, Mowi has experienced several environmental and biological set-backs since the acquisition of Northern Harvest in 2018 and we have temporarily reduced smolt stocking there to ensure proper biological control before returning to the planned growth trajectory. Mowi has many unused licenses in this region and there is significant potential for growth in the coming years. Towards the end of the year, we received approval for the acquisition of 51% of the shares in Icelandic salmon farmer Arctic Fish. Iceland is Mowi’s seventh farming country and was the last spot missing from our geographical footprint. Overall intrinsic harvest capacity for Mowi Farming as a whole is well beyond 500 000 tonnes. In addition to this Mowi Farming also aims to grow volumes by applying new farming technologies as well as purchasing additional capacity and undertaking M&A activities. Adjusted for inflation, blended Farming cost per kg has been stable for Mowi Farming since 2017 despite the underlying cost pressure related to biological measures, costly treatments and more complex regulations. Mowi's Farming cost relative to peers has, over time, been the best or second best in all of the geographical regions where the company operates. A number of successful cost-reduction measures have been introduced in recent years. However, significant post-Covid inflation has impacted the cost level in 2022, driven first and foremost by higher feed prices. Mowi continues to work on cost through the further development of farming technologies and new cost-cutting initiatives. The ongoing implementation of Smart Farming technologies in Mowi Farming is expected to have a positive impact not only on productivity and costs, but also on fish welfare and sustainability. This work is part of Mowi 4.0, our overall plan to transform the value chain and make it more efficient through digitalisation and automation. In Farming, this includes implementation of remote operations centres, automatic feeding, real-time monitoring of biomass, tracking of fish welfare, and machine learning among other initiatives. Farming Norway is leading the way with this work and we expect to have completed the roll-out of Smart Farming in our largest farming unit by 2025. In the coming years, we expect global megatrends to continue to drive demand for salmon and we expect demand growth to outpace supply growth. With good operational performance as a backdrop, the organisation is well set to deliver on its ambitious targets over the coming years. 010 Integrated Annual Report 2022 Leading the Blue Revolution Mowi Rundereimstranda, Norway 011 Integrated Annual Report 2022 Leading the Blue Revolution Sales & Marketing This division contains all our downstream activities, including our steadily growing production of consumer-ready products. Operational results for Consumer Products were all-time high in 2022, with Operational EBIT of EUR 112.1 million, equivalent to a return on sales of 4.5% adjusted for trading volumes and an impressive ROCE of 16.5%. Demand was good in all markets, and Consumer Products sold 229 434 tonnes. This was higher than before the pandemic, but lower than in 2020 and 2021 when home consumption and demand for value-added products were particularly strong due to Covid-19 restrictions. Mowi’s relentless focus on operational excellence has improved productivity in Consumer Products by 20% since the launch of the productivity programme. Furthermore, putting the customer at the core of everything we do downstream bears fruit and creates unique customer experiences. Mowi will further enhance our value proposition downstream in the years to come and our branding strategy, with its ultimate goal of de-commoditising the salmon category, plays a key part in this context. Although the launch of the MOWI brand is progressing it has been significantly delayed by Covid-19. An important part of our launch strategy is to have sales representatives present in-store, and this was not possible for an extended period of time due to the pandemic. Following lifting of restrictions, we were able to carry out several new launches in 2022, including in Germany, Brazil, Argentina, Colombia, China and South Korea. Feedback continues to be positive, and demand for our MOWI-branded products is increasing. We have great belief in our MOWI brand strategy, and our long-term target of EUR 1 billion in turnover at 10% earnings margin remains in place. Within our Sales & Marketing division there is a strong focus on automation and digitalisation, where our cross-border Processing Excellence team has been tasked with realising improvements in our processing plants. By establishing benchmarks and best practices, the team will continue to focus on automation and the right use of technology to further improve our processing operations, ensuring efficient and lean factories. We are the largest value-added operator in the salmon sector with 33 primary and secondary facilities in 19 countries and our plans to realise further operational improvements continue unabated. Sustainability Farming the ocean holds the key to providing nutritious food with a smaller climate footprint than land-based food production. It is a triple win: for People, for the Planet and for the Economy. Our ultimate goal is to unlock the potential of the ocean to produce more food for a growing world population in a way that respects our planet and allows local communities to flourish while offering consumers products that are tasty, healthy and of the highest quality. In combination, this is Leading the Blue Revolution. In 2022, the FAO report, State of World Fisheries and Aquaculture, was released with updated data. The evidence clearly shows that Aquaculture is key to feeding and nourishing the world’s growing population. Aquatic animal production is forecast to grow another 14% by 2030. However, such growth needs to go hand in hand with safeguarding ecosystems, reducing pollution, protecting biodiversity and ensuring social equity. We believe salmon farming is well positioned to deliver food from the ocean in a sustainable way. We remain committed to the principles of the United Nations' Global Compact and to maximising our contribution to its Sustainable Development Goals (SDG). At Mowi, we pursue an integrated sustainability strategy where long-term targets have been established for all our guiding principles: Planet, People, Product and Profit. Transparency reporting according to global standards such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and the Taskforce on Climate-related Financial Disclosures (TCFD) is, and will continue to be, an important piece of our sustainability work. Our sustainability strategy, Leading the Blue Revolution Plan, reflects Mowi's commitments to sustainable development. In 2022, we continued the implementation of our sustainability strategy, and demonstrated significant progress in key strategic programmes such as a further reduction in Mowi's carbon footprint in alignment with our Science Based targets (SBT). We continue to develop new policies and update existing ones to reflect the input we get from our stakeholders. It is encouraging that our work in this area has been recognised, including the top ranking in the Coller FAIRR Protein Producer Index for the fourth consecutive year. The index assesses 60 of the largest listed global meat, dairy and aquaculture companies on ten environmental, social and governance themes aligned with the Sustainable Development Goals (SDGs). Overall, Mowi was rated ‘Industry Best’ against many of the criteria aligned to the SDGs including greenhouse gas emissions, deforestation and biodiversity, working conditions, food safety and sustainability governance. 'Leading a Blue Revolution' is not easy but we believe Mowi’s unique strengths – our global presence, being fully integrated and being a front runner on innovation and R&D – will make a positive impact in the world. Ivan Vindheim Chief Executive Officer 012 Integrated Annual Report 2022 Leading the Blue Revolution Key figures (EUR MILLION) YEAR Ambition 2022 2021 2020 2019 2018 REVENUES & COST Revenue and other income Profitable growth 4 940.8 4 202.2 3 760.2 4 135.6 3 811.9 Harvest volume of salmonids (GWT) Growth > market 463 635 465 600 439 829 435 904 375 237 Value-added share of sales (salmon) Increased long time share 54.9% 58.1% 56.4% 51.4% 50.9% Cost in box (EUR/kg) Leadership 5.09 4.47 4.37 4.26 4.12 Market price of salmon (EUR/kg) 7.95 5.68 5.00 5.79 6.19 PROFITABILITY Operational EBITDA 1 179.4 690.3 504.6 874.5 906.2 Operational EBIT 1 005.1 522.6 337.7 720.9 752.8 EBIT 1 053.8 602.2 183.5 617.0 925.4 Operational EBIT (EUR/kg) 2.17 1.12 0.77 1.65 2.01 Profit or loss for the year 785.3 487.9 119.1 476.3 567.2 Cash flow from operations 644.8 833.1 502.7 759.0 620.9 Net cash flow per share (EUR) 0.35 0.85 0.01 0.59 0.51 ROCE % Above 12% p.a 23.7% 13.4% 8.3% 19.9% 24.9% BALANCE SHEET Gross investments 335.2 244.7 315.8 292.7 346.2 Total assets 7 531.3 6 259.5 5 846.1 5 840.1 5 145.1 Net interest-bearing debt Long term target 1 400 1 758.9 1 257.3 1 458.4 1 337.2 1 037.2 Covenant equity % Above 35% 52.2% 54.6% 52.0% 53.0% 56.0% Equity (owners of Mowi) 3 687.1 3 131.4 2 764.1 2 892.6 2 879.0 THE SHARE Total market value OSE (NOK million) Long-term value creation 86 461 107 921 98 768 118 005 94 280 Number of shares (million) 517.1 517.1 517.1 517.1 516.0 Earnings per share (EUR) - basic 1.51 0.94 0.23 0.92 1.15 Underlying earnings per share (EUR) 1.42 0.71 0.43 0.99 1.11 Dividend declared and paid per share (NOK) Long-term value creation 7.35 4.45 2.60 10.40 10.40 PEOPLE Number of FTEs Productivity improvement 13 726 13 984 14 645 14 998 14 537 LTI per million hours worked Reduction 2.3 2.5 2.7 4.3 4.8 Absenteeism Below 4 % 5.4% 5.2% 5.1% 4.7% 5.0% PLANET Sustainability certification 100% 99% 98% 100% 99 (37%) 78 (34%) Fish-in Fish-out (FIFO) < 1 0.76 0.80 0.68 0.66 0.75 Greenhouse Gas emission (tonnes CO2e; scope 1 and 2) 35% reduction by 2030 239 570 263 659 322 837 356 762 325 359 Greenhouse Gas emission (tonnes CO2e; scope 3) 35% reduction by 2030 1 774 230 1 825 745 1 941 085 1 979 211 1 950 541 Avoided carbon emissions (million tonnes CO2) y-o-y improvement 2.0 1.9 1.8 1.7 1.4 013 Integrated Annual Report 2022 Leading the Blue Revolution 2017 2016 2015 2014 2013 3 649.4 3 510.2 3 112.4 3 053.2 2 456.2 370 346 380 621 420 148 418 873 343 772 48.3% 46.3% 45.4% 43.2% 35.8% 4.16 4.00 3.68 3.27 3.41 6.31 6.72 4.60 4.80 5.07 942.5 842.7 486.6 624.3 508.5 792.1 700.2 346.8 508.7 411.0 484.9 991.2 345.3 434.5 596.4 2.14 1.84 0.83 1.21 1.20 462.7 539.3 158.3 112.4 321.8 632.4 693.2 233.3 471.5 258.8 0.74 1.23 -0.02 0.80 -0.05 26.7% 28.1% 13.1% 20.9% 18.5% 254.9 211.6 215.8 210.6 251.7 4 330.3 4 810.4 4 196.1 4 119.7 4 023.2 831.9 890.0 999.7 1 032.6 929.3 53.5% 43.0% 45.2% 39.8% 48.5% 2 314.2 2 068.4 1 894.6 1 638.1 1 946.5 68 133 70 078 53 830 42 228 30 306 490.2 450.1 450.1 410.4 410.4 0.97 1.20 0.36 0.27 0.85 1.23 1.13 0.84 0.68 0.68 12.40 8.60 8.30 2.25 2.25 13 233 12 717 12 454 11 715 10 676 6.6 9.9 11.4 11.4 13.8 5.2% 5.7% 4.7% 5.0% 4.8% 72 (31%) 59 (26%) 39(24%) 8(4%) NA 0.73 0.77 0.74 0.80 0.80 294 251 273 587 249 517 146 390 107 809 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 014 Integrated Annual Report 2022 Leading the Blue Revolution Leading the Blue Revolution 1 015 Integrated Annual Report 2022 Leading the Blue Revolution "The world needs more food from the ocean. Blue foods have a key role in providing healthy and climate-friendly food for a growing world population. By providing more than 8 million healthy and sustainable meals every day, Mowi is part of the solution to provide food, nutrition and employment." Ivan Vindheim, CEO Unlocking the potential of the sea Mowi’s double materiality 023 Sustainability ratings, awards and framework 025 Mowi’s contribution to UN Sustainable Development Goals 026 016 Integrated Annual Report 2022 Leading the Blue Revolution Our corporate foundation We believe that by farming the ocean, we can sustainably produce healthy, nutritious and tasty food for society at large. 70% of our planet is covered by water, yet the United Nations Food and Agriculture organisation (FAO) estimates that only around 2% of the world’s food supply comes from the ocean. This includes both farm-raised and wild-caught fish. We know that global consumption of farm-raised seafood will increase in the future, both in terms of overall volumes and as a percentage of the global food supply. The latest FAO report (Sofia, 2022) on the state of world fisheries and aquaculture estimates that rising incomes and urbanisation, improvements in post-harvest practices and changes in dietary trends are projected to drive a 15% increase in aquatic food consumption, to supply on average 21.4 kg per capita in 2030. The Mowi way - From Vision to Action Our financial results are created through interaction between people, the natural environment and technology. Our goal is to find an optimal combination of these elements to create long-term success, whilst understanding that our growth must be environmentally, socially and financially sustainable. To manage the risks that may prevent us from reaching our goals and delivering on our strategy, we have developed the “Mowi Way”. The Mowi Way combines our vision, values, strategy, leadership, and our guiding principles. Our vision Our vision, “Leading the Blue Revolution”, gives direction and outlines possibilities. The possibilities lie in the increased need for protein to supply a growing and increasingly prosperous world population with healthy, sustainable food products. We believe the most efficient way to produce more protein is by farming the ocean. Guiding Principles The way we operate our business is centred around our four guiding principles that underpin our vision and behaviour: Planet, Product, People and Profit. Balancing the four principles is a prerequisite for Leading the Blue Revolution and creating long-term value. This ensures that we continue to deliver a premium product with minimal negative impact to the environment that also generates value for the local communities in which we operate, as well as focusing upon delivering healthy shareholder returns and ensuring access to capital. Our strategy We aim to be an integrated provider of proteins from the ocean, taking the lead in all key areas, from the production of fish feed to meeting the needs of the market. By integrating the entire value chain, we can control our products from roe to plate, and be more proactive in addressing challenges related to sustainable feed, breeding and genetics, farming and secondary processing. We see research and development as an integral part across our value chain, which differentiates Mowi within the industry. UN, 2022. World Population Prospects 2022. BFA, 2021 Home | BFA (bluefood.earth) SOFIA, 2022. The state of the world fisheries and aquaculture. The State of World Fisheries and Aquaculture 2022 (fao.org) Ocean panel 2021. Home | High Level Panel for a Sustainable Ocean Economy (oceanpanel.org) 017 Integrated Annual Report 2022 Leading the Blue Revolution From Vision to Action 018 Integrated Annual Report 2022 Leading the Blue Revolution Vertical Integration We believe there are benefits to vertical integration, due to the greater capacity it gives us to control the production process. We refer to activities which occur after farming (i.e. secondary processing) as downstream operations, and activities occurring prior to farming (i.e. feed production) as upstream operations. Our integrated production helps us stabilise costs, control the quality of our products and improve efficiency. Over time, vertical integration is expected to result in more stable earnings and unlock future growth. We expect to be less exposed to the cyclical nature of salmon prices, and to be better able to control the quality of our products. An important prerequisite for building the MOWI brand and gaining brand awareness is to gain consumer trust, and through Mowi's integrated value chain, we believe that the company can differentiate the way our products are perceived, positioned and sold. Our leadership principles Taking the lead is about setting a course and taking responsibility, and our leadership principles provide an important guide for managers’ behaviour: Inspire people: We recruit the very best and build talent for the future. We strive to create winning teams and challenge people to succeed. Make it happen: We challenge existing thinking and promote change and innovation. We encourage people to propose solutions and learn from mistakes. Live the values: We want our leaders to be role models and build our culture; leaders should show direction and engage with stakeholders. Think and act: We want our leaders to think and act as if the company was their own. Leaders should do what is best for the company, bearing in mind both our short- and long-term goals. Our Values Our global values - Passion, Change, Trust and Share - inspire us to act in the right way and are key enablers for reaching our goals. Passion for the company and the product: Passion is the key to our success and how we make a difference. Change is the new “normal”: We are ready for change and work continuously to improve our operations. Trust is essential in everything we do: Our operations provide safe, delicious and healthy food, and we deliver on our promises. Share underpins the performance of our employees: We share knowledge and experience, we are open and transparent, and we cooperate with key stakeholders globally. Stakeholder Engagement As a global seafood company, our activities influence a diverse group of stakeholders. At the same time, our stakeholders' viewpoints and decisions also have an impact of the success of our business. Therefore an ongoing engagement with our key stakeholders is inherent to our way of working. Stakeholders are identified based on their interests being affected by the economical, social and environmental impacts of Mowi's activities. Dialogue helps build trust, and as trust is one of Mowi’s core values, we value every opportunity to listen to our stakeholders, to identify trends, to address critical issues and to build partnerships. Understanding our stakeholders' needs and interests will help us shape our strategy and better meet their expectations. In addition, engagement with sustainability benchmark developers (e.g. Coller FAIRR's Index, Seafood Stewardship Index, Food and Agriculture Benchmark) help us to understand key sustainability and innovation trends. Our Code of Conduct underpins how we interact with stakeholders and our internal standard and publicly available policy on Mowi Eggesbønes, Norway 019 Integrated Annual Report 2022 Leading the Blue Revolution Community Engagement defines our strategy to engage key stakeholders in the communities where we operate. Our community engagement policy also sets minimum requirements on community engagement plans including those related to the Aquaculture Stewardship Council certification. Continuous identification and prioritisation of relevant stakeholders and their topics of interest is done through Mowi’s communication and sustainability global networks. The added insight from such networks contributes to our double materiality assessment (see important and material topics of concern, including environmental, social and economic impact, identified by stakeholders in our materiality assessment). Mowi has identified the following stakeholder groups as key to help us identify the key economic, environmental and social impacts, both positive and negative: Investors and creditors, through road shows, capital markets days and other presentations to share ambitions and concerns. Authorities, to facilitate the development and implementation of smart, fair and enforced industry regulations. Consumers and customers, including key retailers for product and process development and greater understanding of consumer expectations in general. Suppliers, to ensure that we have a shared approach to the delivery of goods and services, sustainability, human rights and ethics in general. Media, including social media, to understand the public perception of seafood in general and our business in particular. NGOs, for the mutual exchange of ideas and information. Employees, utilising their potential for personal and company growth and progress. Local communities and Indigenous Peoples where we operate, to promote healthy cooperation and create win-win solutions. The industry, for a unified approach to common global and local challenges, for greater seafood industry cooperation and continuous progress on global sustainability challenges, and for country-specific challenges, through local industry associations, e.g. Norwegian Seafood Federation (Sjømat Norge). How we interact with our stakeholders is described below. 020 Integrated Annual Report 2022 Leading the Blue Revolution Key partnerships Working in collaboration is key to Mowi's vision of Leading the Blue Revolution. We believe that we can accelerate progress by working together with peers in the seafood sector and other players that share our common interest of using the ocean to add value to humankind. The illustration "Key partnerships" identifies industry associations and international associations in which Mowi participates in a significant role. Our collaboration with other seafood players is key to Mowi. Our contributions to this initiative include increasing transparency and traceability at our own operations, collaborating with governments to improve regulations and to work towards eliminating IUU fishing, and reducing the use of polluting plastics and antimicrobials while ensuring good animal welfare. We also engage with public policy officials to discuss the topic of climate resilience in the seafood sector. One of the task forces of seaBOS is working with governments towards sustainable seafood production and a healthy ocean. Through seaBOS and other global partnerships such as GSSI and FEAP, Mowi also engages with stakeholders such as public policy officials, scientists and NGOs on topics such as sustainable finance (including green bonds and sustainability-linked finance) and ESG disclosure regulation and standards (such as GRI, TCFD and TNFD). With the aim of realising sector-wide improvements on biosecurity, Mowi is a member of the Norwegian Seafood Federation (Sjømat Norge). The Norwegian Seafood Federation represents the interests of approximately 800 member companies and is the largest federation for seafood companies in Norway. We are also a member of various national federations as well as the Federation of European Aquaculture (FEAP) in order to address local, national and European issues. We continue to support the Global Sustainable Seafood Initiative (GSSI, http://www.ourgssi.org), which plays an important role in providing clarity on seafood certification. Mowi is part of the advisory network of the High Level Panel for a sustainable ocean economy which comprises more than 135 private sector, non-governmental organisations and intergovernmental organisations across 35 countries. As a member of the advisory network we aim to share knowledge on existing initiatives and actions within ocean-farming that can contribute to the High Level Panel’s aim of advancing a new relationship between humanity and the sea that protects the ocean and optimises its value to humankind. https://www.oceanpanel.org/. In addition, this network allows a discussion with public policy officials on topics such as climate change and ocean pollution. Managing a sustainable supply chain Mowi's supply chain channels significant volumes of materials and services from thousands of businesses globally. Through these relationships we impact a variety of environments around the world and we recognise that with this comes a significant responsibility. Mowi's healthy products must have a sustainable supply chain. To further this goal, we emphasise transparency in our business 021 Integrated Annual Report 2022 Leading the Blue Revolution conduct in order to uphold and strengthen trust between Mowi and our stakeholders. This obliges everyone in our supply chain to comply with Mowi's standards. Our Global Procurement Policy lays the ground rules for how we conduct ourselves toward our vendors and supply chain. An integral part of this is our Code of Conduct, which specifies our expectations and requirements towards our suppliers and the overall supply chain. The standards we set are built on internationally accepted principles and targets for business ethics, sustainability and human rights. Every business unit has its own supply chain professional who is responsible for monitoring and following up on internal and third-party compliance with our guidelines. To do this efficiently, thoroughly and transparently, Mowi has implemented a standardised due diligence process using a semi-automated system to perform risk assessments on suppliers across the group by analysing several key factors. Through this process, all suppliers have been assessed and given a risk rating, and based on these ratings we prioritise our efforts towards the relevant suppliers. Mowi has an internal governance system in place to evaluate and handle adverse impact and potential risks detected in the due diligence process. This helps ensure that we are able to implement appropriate measures and track both the process and the results. All critical suppliers have to perform a self-assessment, based on principles underpinning the Mowi Code of Conduct. The self-assessment poses specific and detailed questions regarding, among other topics, sustainability, human rights and decent working conditions. Mowi's supply chain monitoring is in compliance with the Transparency Act which came into force on July 1st 2022 with the purpose of promoting businesses' respect for basic human rights and decent working conditions, and ensuring the public's access to information. The Transparency Act imposes a duty to conduct a due diligence assessment on human rights and working conditions. Information found in this assessment is made available on our website. We operate with a risk matrix placing suppliers into one of four risk categories according to their scoring. Category 1 is low risk and category 4 is high risk. So far, we have no suppliers, critical or others, in the highest or lowest categories. The distribution for critical suppliers is 76% in category 2 while 24% are placed in category 3. Suppliers in the latter group are followed up on by the relevant business unit according to procedure. For non-critical suppliers, the corresponding numbers are 80% in category 2 and 20% in category 3. Further results from the supply chain due diligence process for 2022 can be found at Mowi.com/sustainability. The due diligence process for suppliers strengthens the risk management activities carried out in our business units today, as well as improving our processes on supplier qualification, risk assessment, management and mitigation, as well as audits, remedy, communication and training. Given the variety and size of Mowi's supplier portfolio and supplier spend, spread over a wide range of countries and industry sectors, it is crucial to have a strong supply chain focus. The building blocks of this focus are agile and unified supply chain organisation, standardised digital infrastructure and a common structured approach to supply chain management and supplier spend. Thus far this work has proved fruitful and it will continue to strengthen our supply chain, reduce cost, increase sustainability focus and add value to our business in the years to come. MATERIALITY ANALYSIS In 2022, we updated the materiality analysis we conducted in 2021. The updates meet the applicable reporting requirements of the Global Reporting Initiative (GRI) and follow the double materiality concept, i.e., an assessment of the impacts of Mowi products and operations on people, environment and society as well as an analysis of sustainability-related commercial risks and business opportunities for Mowi. Mowi's material topics are listed in the double materiality illustration on the top-right quadrant. Throughout 2022, we reviewed our materiality analysis in our global sustainability networks, in the Group Management Team and in the Board of directors. The Board ran a strategic discussion on actual and potential, negative and positive impacts on the economy, the environment and people across Mowi’s own operations and its business relationships. This assessment included impacts on human rights both in our own operations and across our value chain. Material topics identified in 2022, remained largely unchanged. 022 Integrated Annual Report 2022 Leading the Blue Revolution The following three steps were taken to identify and prioritise material sustainability topics for reporting based on interest of our stakeholders and the significance of impacts on the economy, the environment and people: •Identification of sustainable topics based on a stakeholder dialogue process and desktop review of relevant academic literature, media reports, reporting standards, regulations and competitors. Stakeholders and experts involved in informing the process of determining the material topics are identified under “Stakeholder Engagement”. •Prioritisation performed in conjunction with executive management based on how often sustainability topics are raised by stakeholders and their impacts on the economy, the environment and people. •Review is carried out regularly, and our materiality matrix is refreshed with key stakeholders, considering emerging challenges while remaining focused on delivering our sustainability strategy Leading the Blue Revolution Plan. Throughout our review we also align our sustainability topics, targets and performance metrics with the Sustainable Development Goals (SDGs). There is a growing focus from our stakeholders on responsible supply chain and ensuring Human Rights. Such focus is aligned with emerging legislation (such as the EU transparency act) in relation to human rights due diligence and reporting. In 2022, we also reported for the first-time metrics on due diligence in our supply chain which complements our Human Rights Policy, Human Rights Framework, internal training, Code of Conduct for suppliers and the roll out of a global supplier relationship management platform. Although unchanged as a material topic we also recognise an increased focus from our stakeholders on climate reporting and impact, particularly regarding scope 3 emissions. Our Planet-related material topics (climate-friendly food production, prevent fish escapes, responsible sea lice management, sustainable fish feed) relate to protecting Biodiversity. Therefore protecting biodiversity is included in our double materiality analysis and reflects the increased interest from our stakeholders, such as NGOs and investors, in natural capital. For more information on how Mowi addressed biodiversity check our Biodiversity Policy at Mowi.com/sustainability/policies/. Branding and product innovation, Operational Excellence and Reliable shareholder return are considered material topics for both Mowi and our stakeholders but are not part of our GRI disclosure as there is no GRI disclosure that captures these material topics. The materiality assessment is approved by the Board. The Board is the highest governance body in overseeing the management impacts. The Board together with senior executives develop, approve and update Mowi's vision, values, guiding principles, leadership principles, materiality analysis, strategies (including the sustainability strategy), policies and targets related to sustainable development. In addition, the Board is overseeing Mowi's due diligence process in its supply chain with the roll out of a global supplier engagement tool. The Board engages with the stakeholders identified earlier through several activities (see "How we interact and engage with stakeholders"). Such engagement is complemented by additional feedback provided by the group management team who also engage with stakeholders in a similar manner described in our stakeholder engagement section. In this way, the Board can consider stakeholder input to identify and manage Mowi's impacts on the economy, the environment and people. When needed, the materiality analysis, strategies, policies and targets are adjusted to reflect stakeholder input. The Board reviews, on at least a quarterly basis, the effectiveness of the actions being taken to address impacts on the economy, the environment and people. The quarterly financial reports, which also include sections on planet, product and people, are part of this assessment and are approved by the Board prior to publication. Although the Board oversees all management impacts, the social impacts are delegated to the Chief Human Resources Officer and the environmental impacts to the Chief Sustainability Officer. Delegation is done in alignment with a long-term plan (time horizon of five years), reviewed annually together with all Board members and the group management team. Along its entire value chain, Mowi is affected by social issues, such as worker’s rights and public acceptance of fish farming. Climate change, environmental regulations and certification requirements may have an impact on the supply chain, by affecting the availability of raw feed ingredients as well as farming areas. Trade barriers may have a significant impact on our products’ availability in different markets. In turn, Mowi also has an impact on people and the environment along its value chain. Our Feed, Farming and Sales & Marketing operations create jobs and contribute to the economic development of local communities. In addition, the health benefits of our products clearly have a positive impact on people and society in general. Health and safety issues and labour rights are also key components of the social impact we have at both our own operations and our suppliers. Our impact also extends to setting of social and environmental standards. In terms of environmental impacts, we contribute to greenhouse gas emissions along the supply chain and affect local ecosystems in the vicinity of our farming operations. However, the new technology and infrastructure we continue to invest in will lead to more sustainable farming methods that could also be relevant to other fish species. Mowi supports the UN Sustainable Development Goals (SDGs). The alignment of our strategy, guiding principles, material long-term value drivers and the SDGs is provided on the following pages. 023 Integrated Annual Report 2022 Leading the Blue Revolution Mowi’s double materiality Mowi’s original materiality analysis from 2013 was based upon the guidelines of the GRI (Global Reporting Initiative) and GRI was also used to guide the new integrated materiality analysis along with the integrated reporting council’s integrated reporting framework. The integrated reporting framework involves identifying the key inputs, or capitals, that a company relies upon to carry out its business activities, how these inputs are processed by the business and what are the resultant outputs. These key inputs and outputs and processes were identified by considering Mowi’s value chain from supply of fish feed ingredients through to delivery of products to customers. The GRI materiality process requires identifying the key economic, environmental and social impacts, both positive and negative, that a company has upon its stakeholders throughout its value chain. Our key impacts were originally identified using a stakeholder dialogue process and desktop review of relevant academic literature, media reports, reporting standards, regulations and competitors. To identify the value drivers that have the most material impact on long-term value creation, each value driver has been assessed with regards to current and future stakeholder expectations as well as operational and strategic impact on Mowi. The prioritisation was performed in conjunction with executive management, and material value drivers will be addressed on a regular basis at senior management level to ensure adequate focus. Protecting biodiversity is part of our materiality assessments as the material topics of climate friendly food production, prevent fish escapes, responsible and cost-effective sea lice management, responsible use of medicine and chemicals, efficient and sustainable fish feed and responsible (plastic) waste management, are directly related with protecting biodiversity. For more informatiion see our biodiversity policy. 024 Integrated Annual Report 2022 Leading the Blue Revolution Policies & ASC dashboard – www.mowi.com Green Bond Impact Report Scan the QR code to view the report. Quarterly Financial Reports CDP report Global Compact Report Mowi’s Industry Handbook Transparency Annual Report Transparency builds trust. Being transparent about our environmental, social and product performance is key for building trust with our stakeholders and correcting misinformation. Our sustainability data is audited by third parties and reported according to global standards such as the Global Reporting Initiative (GRI). These are examples of our global sustainability reports: •Annual Report, an integrated report combining our group financial results with environmental, product and social performance. •Mowi’s Industry Handbook, provides financial analysts, investors and other stakeholders with insight into the salmon industry. •Task Force on Climate-Related Financial Disclosures (TCFD) Report, also included in this annual report, summarises climate-related risks and opportunities in accordance with the recommendations of the Task Force on Climate-Related Financial Disclosures. •CDP (formerly the Carbon Disclosure Project) report, provides Mowi’s annual carbon accounting covering scope 1, 2 and 3 emissions as well as risks and opportunities linked with climate change. •Aquaculture Stewardship Council (ASC) audit reports, available at http://asc.force.com/Certificates/ make publicly available the audit reports of all ASC certified farms. •Green Bond Impact report, summarises the projects and the environmental impact of projects which are eligible to be funded with green bond proceeds. •Quarterly Reports, are available at mowi.com and provide quarterly financial updates as well as highlights of our Planet, People and Product principles. •Global Compact Report, provides an assessment of how Mowi is adopting the UN Ten Principles in the areas of human rights, labour, environment and anti-corruption, whilst taking action to deliver on the Sustainable Development Goals. •At mowi.com we share our group policies on sourcing feed raw materials, biodiversity, fish welfare, climate change and responsible plastic use. The sustainability section of our website has been updated in 2022 to match the expectation from our stakeholders on transparency and accessibility of information. 025 Integrated Annual Report 2022 Leading the Blue Revolution Sustainability ratings, awards and framework 026 Integrated Annual Report 2022 Leading the Blue Revolution The Sustainable Development Goals (SDGs) have been agreed by all 193 UN member states and guide governments, civil society and the private sector in a collaborative effort for change towards a sustainable development. The SDGs described below are those considered the most material for Mowi, i.e. those where we can have the greatest impact, but we also contribute to others. SDG 3 Good Health and Well-being Farm-raised salmon is a rich source of omega-3 fatty acids, minerals and vitamins. Its benefits to human health are well-documented (see Product section). Our KPIs that contribute to SDG 3: harvested volumes; nutritional values of our salmon, quality of harvested salmon, contaminant levels, decreasing LTI and absenteeism, global health and safety programme, and employee workplace programmes (see People section). SDG 5 Gender Equality Our business depends on diversity and gender balance among our employees. We focus on building a diverse workforce throughout the value chain, as well as fair employment, and development and equal opportunities for employees (see People section). Our KPIs that contribute to SDG 5: training on diversity and equal rights, gender balance, and parental leave opportunities for both genders. SDG 8 Decent Work and Economic Growth, SDG 10 Reduced Inequalities & SDG 11 Sustainable Cities and Communities Our operations contribute to the development of local communities providing safe and meaningful jobs (see People section). Our KPIs that contribute to SDG 8, 10 and 11: Global Health and Safety Programme, LTI and absence rate, code of conduct training, number of cases raised in the whistle blower channel, training on human rights, non-compliance incidents, risk-assessment/due diligence of suppliers, community engagement and our indigenous workforce. SDG 9 Industry Innovation and Infrastructure We invest significantly in research, development and innovation to solve our challenges and create new growth opportunities (see R&D section). Our KPI that contributes to SDG 9: R&D spending. SDG 12 Responsible Consumption and Production & SDG 13 Climate Change Salmon farming is one of the most efficient ways of using natural resources to produce a healthy protein: it has a low carbon footprint, high energy and protein retention efficiency and low water footprint (see Planet and People section). Our KPIs that contribute to SDG 12: energy use and GHG emissions, % of sites with minimum benthic impact, number of biodiversity projects, number of escape incidents and escaped fish, plastic packaging footprint, GSSI recognised certification, compliance with sustainable feed policy, FFDRm and FFDRo limits, antimicrobial use, sea lice counts and medicine use, Global Health and Safety Programme. SDG 14 Life Below Water Our business depends on a healthy ocean. We minimise our environmental impact by monitoring, applying best practices and following the strictest environmental standards available for aquaculture (see Planet section). Our KPIs that contribute to SDG 14: % of sites with minimum benthic Impact, number of biodiversity projects, number of escape incidents and escaped fish, sustainability certification (ASC, Global GAP, BAP), compliance with sustainable feed policy, FFDRm and FFDRo limits, antimicrobial use, sea lice counts and medicine use. SDG 17 Key Partnerships for the Goals Achieving a sustainable future will require concerted action and new forms of partnership. Examples of our key partnerships are Global Sustainable Seafood Initiative (GSSI), the Norwegian Seafood Federation (Sjømat Norge) and the Chilean Salmon Council (see Planet section). We are also committed to supporting the UN Global Compact Principles. Mowi's contribution to the UN Sustainable Development Goals 027 Integrated Annual Report 2022 Leading the Blue Revolution Coffee break at Mowi’s Remote Operation Center in Måløy, Norway 028 Integrated Annual Report 2022 Strategy and Operational Approach 2 029 Integrated Annual Report 2022 We aim to be an integrated provider of food from the ocean, taking the lead in all key areas, from the production of fish feed to meeting the needs of the market. By integrating the entire value chain, we can control our products from feed to fork, and be more proactive in addressing challenges related to sustainable feed, farming and value-added processing. research & development Continued to develop and validate important building blocks of our SMART Farming concepts. 128 Highlights Guiding Principles PROFIT Strong operational and financial performance with record-high revenues and earnings, volumes close to all-time high levels and competitive cost. 030 PLANET Mowi ranked the most sustainable animal protein producer in the world (FAIRR) for the fourth year in a row. Mowi's scope 1 and 2 emissions were reduced by 9% in 2022, and by 33% since 2019. Scope 3 emissions were reduced by 3% in 2022, and by 10% since 2019. 044 PRODUCT MOWI brand launched in Germany, Brazil, Argentina, Colombia, China and South Korea. 086 PEOPLE Improved safety record with all-time low rolling LTIs per million hours worked at 2.3 down from 2.5 in 2021. 106 Innovation in the value chain 030 Integrated Annual Report 2022 Profit 031 Integrated Annual Report 2022 All time high revenues and operational earnings Our financial success hinges on our ability to provide customer value from healthy, tasty and nutritious seafood that is raised both cost-effectively and in an environmentally sustainable way. Operational EBIT Record-high Operational EBIT of EUR 1 005.1 million. The result is almost doubled from EUR 522.6 million in 2021 on a strong market, volumes close to record-high levels and competitive cost. Financial EBIT is also up from 2021 on improved operational earnings. Dividend and returns Dividend of NOK 7.35 per share paid out to the shareholders in 2022, up from NOK 4.45 per share in 2021. Underlying earnings per share was EUR 1.42, an increase from EUR 0.71 in 2021. M&A Acquisition of 51.28% of the shares in the Icelandic salmon farmer Arctic Fish completed. NIBD and ROCE ROCE was 23.7% (13.4%). NIBD of EUR 1 758.9 million (1 257.3 million) above the long-term target driven by the Arctic Fish acquisition and temporary increased working capital tie-up. NIBD excluding the Arctic Fish acquisition was EUR 1 510.2 million. Attractive financial results Profit Profit 032 Integrated Annual Report 2022 Overall Group Performance in 2022 Total revenues in 2022 amounted to EUR 4 940.8 million, an increase of 17.6% from 2021 on higher sales prices. Spot prices increased in all markets; 40.1% in Europe, 13.9% for Chilean salmon quoted in Miami, 14.1% for Canadian salmon quoted in Seattle and 21.0% for Canadian salmon quoted in Boston/New York. We harvested 463 635 tonnes gutted weight of salmon in 2022, slightly down from 465 600 tonnes for the year ended December 31, 2021. Our Operational EBIT came to EUR 1 005.1 million in 2022, compared with EUR 522.6 million for the year ended December 31, 2021. The increase was mainly due to higher achieved prices. Our earnings before financial items (EBIT), totalled EUR 1 053.8 million in 2022, compared with EUR 602.2 million in 2021. The change is due to higher operational earnings. We achieved a return on capital employed (ROCE) of 23.7% in 2022, well above our long-term target of 12.0%. The comparable figure for 2021 was 13.4%. At year-end, the Group had a net interest-bearing debt (NIBD) of EUR 1 759 million, above the long term NIBD target of EUR 1 400 million driven by the Arctic Fish acquisition and temporarily increased working capital tie-up. Adjusted for the acquisition of Arctic Fish, NIBD was EUR 1 510.2 million. The comparable figure at year-end 2021 was EUR 1 257 million. The Market in General SUPPLY Global harvest volume of Atlantic salmon was approximately 2 581 300 tonnes gutted weight in 2022. This was 25 400 tonnes less than in 2021, a decrease of 1%. Supply from Norway decreased by 14 700 tonnes in 2022 on less biomass going into 2022 compared to the previous year. Supply from Scotland decreased by 28 800 tonnes, equivalent to 16.1% y-o-y, due to adverse biological issues throughout the year. Supply from Chile increased by 29 900 tonnes on early harvesting caused by biological challenges. Standing biomass at the end of December 2022 was estimated to be down by 5% compared to the same period last year, hence Chilean supply growth is expected to be modest in 2023. Supply from other regions decreased by 11 800 tonnes compared with 2021. GLOBAL SUPPLY OF SALMON (GWT) 2022 2021 CHANGE % Norway 1 365 400 1 380 100 (1.1)% Scotland 150 500 179 300 (16.1)% Faroe Islands 89 600 95 000 (5.7)% Other Europe 55 400 51 700 7.2% Total Europe 1 660 900 1 706 100 (2.6)% Chile 676 400 646 500 4.6% North America 136 100 144 900 (6.1)% Total Americas 812 500 791 400 2.7% Australia 79 700 79 000 0.9% Other 28 200 30 200 (6.6)% Total 2 581 300 2 606 700 (1.0)% Material value driver Ambition Reliable shareholder return - profitability ROCE% > 12% (per annum) Reliable shareholder return - solidity Long-term NIBD of EUR 1 400 million Profit 033 Integrated Annual Report 2022 REFERENCE PRICES Prices in 2022 increased compared with 2021 in the various markets. The reference price for salmon of Norwegian origin increased by 40.1% in the market currency compared with 2021. The average price in Miami increased by 13.9% for the year, whilst prices in Seattle and Boston/New York increased by 14.1% and 21.0% respectively. REFERENCE PRICES FOR SALMON 2022 2021 CHANGE 2022 2021 CHANGE MARKET 5) MARKET 5) % NOK NOK % Norway 1) 7.95 5.68 40.1% 80.37 57.69 39.3% Chile 2) 6.43 5.65 13.9% 61.89 48.56 27.4% North America 3) 4.11 3.60 14.1% 39.54 30.96 27.7% North America 4) 4.73 3.91 21.0% 45.55 33.65 35.4% 1) Average superior per kg gutted weight (NASDAQ Oslo) 2) Average D trim per pound (Urner Barry Miami 3-4 pound) 3) Average superior per pound gutted weight (Urner Barry Seattle 10-12 pound) 4) Average superior per pound gutted weight (Urner Barry Boston/New York 10-12 pound) 5) Market price in EUR for Norway, and USD for Chile and Canada MARKET DISTRIBUTION AND DEMAND (GWT) 2022 2021 CHANGE % EU + UK 1 143 700 1 158 000 (1.2)% Russia 48 700 86 100 (43.4)% Other Europe 101 000 114 700 (11.9)% Total Europe 1 293 400 1 358 900 (4.8)% USA 586 700 571 700 2.6% Brazil 97 200 101 300 (4.0)% Other Americas 146 800 141 700 3.6% Total Americas 830 700 814 700 2.0% China/Hong Kong 84 200 80 400 4.7% Japan 55 200 65 300 (15.5)% South Korea/ Taiwan 56 700 68 000 (16.6)% Other Asia 88 600 83 400 6.2% Total Asia 284 700 297 100 (4.2)% All other markets 141 200 130 100 8.5% Total all markets 2 550 000 2 600 800 (2.0)% Global consumption decreased by 2.0% in 2022 compared to 2021 including inventory effects. Despite the supply contraction, the estimated global value of salmon reached a record-high level, demonstrating the strong underlying growth drivers for salmon as a nutritious and sustainable source of protein. Consumption in the retail channel remained considerably above pre-pandemic levels, whereas foodservice activity improved year-on-year. Consumption in the EU and UK decreased by 1.2% compared with 2021 mainly due to lower global supply and less product availability. Underlying demand for salmon in Europe remained strong, and the further reopening of the foodservice segment had a positive effect overall demand. Demand in the US market was impressive and consumption growth was 2.6% compared with 2021 and reached an impressive 586 700 tonnes. The increase in consumption meant that the US continued to gain market share from a global sourcing perspective. Chilean volumes destined for the Russian market were redirected to other markets with particular focus on the US market due to good demand. The retailers' focus on pre-packed salmon continues unabated, and this trend is fuelled by the evolution of e-commerce activity through home-delivery and in-store pick-up. Profit 034 Integrated Annual Report 2022 Our Markets GEOGRAPHIC MARKET PRESENCE Our main source of revenues is the sale of Atlantic salmon. Europe is by far the largest market for our salmon, representing approximately 67% of our total revenues in 2022 (68% in 2021). We experienced good sales growth in the southern part of Europe, while the UK, France and Germany continue to be very important markets. Compared with 2021, the relative share of sales to the American market increased slightly on strong US demand and increased market suppy from Chile. For the Asian market, the relative share of sales compared with the previous year was also stable compared to 2021. SALES BY PRODUCT The share of sales related to salmon products was relatively stable compared to the previous year, at 92.6% and 90.8% of our revenues for the years ended December 31, 2022 and 2021 respectively. Fresh whole salmon (i.e. primary processed salmon) represented 37.0% of our total revenues in 2022, compared to 32.0% in 2021, up from previous years as a result of the increase in the foodservice market from a lower level in 2021 due to Covid-19. In the same periods, elaborated salmon, including smoked/marinated, MAP, sushi and other prepared and value-added products accounted for 63.0% and 68.0% of our revenues respectively. The share of elaborated products was positively impacted by the changed consumption pattern during the Covid-19 pandemic, and consequently the relative share decreased slightly as a consequence of the recovery in the foodservice segment. However, retail volumes were still above pre-pandemic levels. Mowi has an aim of further increasing our capacity to produce elaborated and value-added products, which generally command more stable consumer prices. In line with this strategy, we have opened new value-added plants in several countries in recent years, including USA, Spain and China. We have also expanded several of our existing value-added plants. The strength of our value chain, and capacities in our Consumer Products division, proved its worth through the Covid-19 pandemic in both 2020 and 2021 as the foodservice market was reduced significantly, and the demand for elaborated products increased. Consumption in the retail channel remained above pre-pandemic levels in 2022, whereas foodservice activity increased year-on-year. PRICE ACHIEVEMENT The development in market reference prices was described in the previous section. Mowi achieved a combined global price 5% below the weighted reference price in 2022, compared with 1% below the reference price in 2021. Relative to the reference price, contract sales made a negative contribution in 2022 due to the record-high spot prices, compared with a positive contribution in 2021. In 2022, the contract share varied between the different business units. The Group's overall contract share was 33% in 2022, up from 29% in 2021. The contract share for Norwegian origin of 27% was significantly reduced from pre-pandemic levels. The overall share of the volumes sold as superior quality was 91% in both 2022 and 2021. This level is within the normal range, but slightly below the Group's target of at least 92%. Consumption in the Asian market decreased by 4.2% compared with 2021. Japan, South Korea and Taiwan experienced decreased consumption rates, while consumption in China and other Asian markets increased. Reduced global supply combined with a challenging logistics situation with reduced air cargo capacity and high freight cost affected the market consumption. Profit 035 Integrated Annual Report 2022 CONTRACTS, QUALITY AND PRICE 2022 NORWEGIAN ORIGIN SCOTTISH ORIGIN CANADIAN ORIGIN CHILEAN ORIGIN IRISH ORIGIN FAROESE ORIGIN TOTAL Contract share 27% 71% — 50% 78% — 33% Quality - superior share 90% 96% 93% 91% 88% 90% 91% Price achievement 92% 101% 105% 96% N/A 100% 95% Segment Reporting The following is a presentation of our operating performance by business segment, using Operational EBIT per kg of fish harvested as a key measure of performance. The table below shows Operational EBIT for each of our operating segments for the years ended December 31, 2022 and 2021: SEGMENT RESULTS (EUR MILLION) 2022 2021 Operational EBIT - Feed 30.8 18.4 Operational EBIT - Farming 817.2 370.5 Operational EBIT - Markets 61.1 50.5 Operational EBIT - Consumer Products 112.1 95.5 Operational EBIT - Other -16.1 -12.2 Group Operational EBIT 1) 1 005.1 522.6 Group EBIT 1 053.8 602.2 1) Group Operational EBIT is a non-IFRS financial measure. See Note 4 Business segments and part 4 of this report for an explanation of how we define and calculate Operational EBIT, and for a reconciliation of Group Operational EBIT to Financial EBIT according to IFRS. FEED Operational EBIT for our Feed segment in 2022 ended at EUR 30.8 million, up from the previous year (EUR 18.4 million), on good volumes and strong operational performance. Operational EBITDA of EUR 47.0 million was record-high and up from EUR 34.5 million in 2021. Feed raw material costs increased further in 2022, including vegetable oils, soy and wheat gluten. Logistics costs also increased from the comparable period. These developments were exacerbated by the Russia-Ukraine war. Feed sales prices increased in accordance with market prices, and this was connected to the increased feed raw material prices. Operational EBITDA margin was 4.8%, down from 5.1% in 2021. The current over-capacity in the salmon feed industry is expected to be offset by growth in farming volumes in the coming years. Our Norwegian plant produced 371 876 tonnes of feed in 2022 (358 769 in 2021). The plant in Kyleakin, Scotland, produced 143 140 tonnes of feed in 2022 compared to 123 133 tonnes in 2021. Combined our two feed factories ensured a 97% (95%) self-sufficiency rate for our European Farming operations in 2022. The total estimated production capacity is 640 000 tonnes. Following our self-sufficiency strategy on feed, Mowi Feed continues to develop its range of products, including fresh water, organic and cleaner fish diets. FARMING Farming’s Operational EBIT totalled EUR 817.2 million in the year ended December 31, 2022, compared with EUR 370.5 million in the year ended December 31, 2021. The increase was due to record-high prices in 2022. Following a number of years where cost has been stable adjusted for inflation, full cost per kg salmon increased from EUR 4.47 per kg to EUR 5.09 per kg in 2022, first and foremost due to higher feed prices. Feed prices have increased by approx. 70% from the beginning of 2021. Mowi Farming continued to be the best or second best cost performer among peers in the various farming regions. Prices increased in all markets on continued strong post-pandemic demand and global supply contraction. Volumes were high at 463 635 tonnes and relatively stable from the record year of 2021. We had a favourable mix effect in 2022 with increased volumes in our best performing region, Norway, mainly due to increased smolt stocking and very good seawater production following operational improvements. For details of our farming entities' operational performance, please see the comments under Operational performance by country of origin. SALES AND MARKETING Our Sales & Marketing operations consist of the reporting segments Profit 036 Integrated Annual Report 2022 Markets (trading) and Consumer Products (value-added operations). Markets Markets’ Operational EBIT for the year ended December 31, 2022 came to EUR 61.1 million, compared with EUR 50.5 million in 2021. While revenue increased in Europe and Americas as a consequence of higher sales prices and increased volumes, the Operational EBIT margin decreased in both areas on increasing raw material prices resulting in margin pressure for our RMT division. Consumer Products Mowi Consumer Products is geographically organised, but constitutes one reporting segment. Consumer Products' Operational EBIT for the year ended December 31, 2022 came to a record-high EUR 112.1 million, compared with EUR 95.5 million in 2021. Retail demand remained strong and above pre-pandemic levels, and the effect of increased raw material prices compared with 2021 was more than offset by improved operations and production costs including yield, in addition to price adjustments to compensate for inflation in the value chain. The volume sold ended at 229 434 tonnes end-product weight, a reduction by 7.3% from the year before when home consumption and demand for value-added products was particularly strong during the pandemic. Europe Consumer Products Europe benefited from strong operational performance including significant yield improvements, partly offset by lower volumes compared with the extraordinary retail demand during the pandemic. Earnings increased following strong operational performance related to efficiency in production. Increased raw material cost negatively impacted earnings, but over the course of the year earnings improved as price adjustments were able to compensate for inflation in the value chain. Americas Volumes in the Americas were relatively stable in 2022 compared with 2021. Retail sales and prices remained strong. However, pressure on raw material costs and other cost items negatively impacted earnings. Asia Our Asian operations experienced a 12% decrease in sold volumes in 2022 compared to 2021. Volumes and earnings were negatively impacted by significantly increased freight cost. However, strong operational performance in several of the regions, in addition to price adjustment and re-openings in China positively affected earnings towards the end of the year. Profit 037 Integrated Annual Report 2022 Operational Performance By Country of Origin The table below shows a selection of operating metrics by country of origin for our harvested salmon for the years ending December 31, 2022 and 2021: OPERATIONAL PERFORMANCE BY COUNTRY OF ORIGIN 2022 NORWEGIAN ORIGIN SCOTTISH ORIGIN CHILEAN ORIGIN CANADIAN ORIGIN IRISH ORIGIN FAROESE ORIGIN OTHER TOTAL Operational EBIT (EUR million) 806.1 42.6 76.9 65.8 6.0 19.6 -11.9 1 005.1 Harvest volume of salmon 1) 293 720 48 374 65 737 41 095 6 845 7 864 463 635 Average price achievement 2) 92% 101% 96% 105% — 100% 95% Contract coverage 3) 27% 71% 50% 2% 78% — 33% Quality - superior share 4) 90% 96% 91% 93% 88% 90% 91% Feed cost (EUR per kg) 5) — — — — — — — 2.15 Total cost (EUR per kg) 6) — — — — — — — 5.09 Operational EBIT (EUR per kg) 2.74 0.89 1.17 1.60 0.88 2.49 — 2.17 EBIT (EUR per kg) 3.18 1.12 1.09 0.17 0.35 2.32 — 2.27 2021 NORWEGIAN ORIGIN SCOTTISH ORIGIN CHILEAN ORIGIN CANADIAN ORIGIN IRISH ORIGIN FAROESE ORIGIN OTHER TOTAL Operational EBIT (EUR million) 389.4 77.2 47.1 -10.4 14.2 12.7 -7.6 522.6 Harvest volume of salmon 1) 273 204 64 405 65 958 45 311 6 790 9 932 465 600 Average price achievement 2) 96% 117% 97% 97% — 109% 99% Contract coverage 3) 24% 50% 45% 3% 78% — 29% Quality - superior share4) 92% 95% 88% 87% 88% 89% 91% Feed cost (EUR per kg) 5) — — — — — — — 1.77 Total cost (EUR per kg) 6) — — — — — — — 4.47 Operational EBIT (EUR per kg) 1.43 1.20 0.71 -0.23 2.09 1.28 — 1.12 EBIT (EUR per kg) 1.87 1.32 0.68 -1.80 1.27 1.44 — 1.29 1) We measure our harvest volume in terms of tonnes of gutted weight of salmon. Harvest volume of salmon is a key measure of our success as, in the absence of trading, it corresponds to the volume of salmon available for sale. As trading volume generally achieves limited margin, harvested volume is the volume-related driver of our profit. 2) The average price achievement measures the prices that we are able to achieve on our products compared with a salmon price index. Price achievement is measured against NASDAQ for salmon of Norwegian, Scottish and Faroese origin and Urner Barry for salmon of North American and Chilean origin. The market reference prices are spot prices for superior quality salmon, while our achieved price is a blend of spot and contract price for all qualities. Average price achievement measures our ability to sell our products at above market rates and is thus important for understanding our performance. In situations where contract prices deviate from spot prices, or the quality of our sold fish is low, our achieved price will deviate from the reference price. 3) The contract coverage measure represents the percentage of our products that was sold pursuant to contracts. A contract is for this purpose defined as a commitment to sell our salmon at a fixed price for a period of three months or longer. We have a sales contract policy aimed at limiting our exposure to short and medium-term fluctuations in salmon prices. 4) The superior share of salmon is the percentage graded as being of superior quality, divided by the total volume of harvested salmon. If salmon for some reason, e.g., pale colour or scale loss, cannot be classified as a superior product, it is downgraded and sold as production or ordinary grade product at a lower price. 5) Feed cost per kg harvested is calculated by dividing our total cost of fish feed for harvested fish by tonnes of gutted weight of salmon harvested. 6) Total cost per kg harvested is calculated by dividing our total cost for harvested fish by tonnes of gutted weight of salmon harvested. Profit 038 Integrated Annual Report 2022 Salmon of Norwegian origin Operational EBIT Our Operational EBIT for salmon of Norwegian origin was all-time high at EUR 806.1 million for the year ended December 31, 2022 compared with EUR 389.4 million in 2021. The increase was mainly due to improved prices and higher volumes. Full cost per kg salmon increased from 2021 on as a result of strong inflationary pressure, mainly for feed. Prices increased to a record-high levels on strong demand and constrained market supply. Harvest volumes of 293 720 tonnes was the highest ever on increased smolt stocking, good production and high license utilisation. Operational EBIT per kg was EUR 2.74 compared with EUR 1.43 in 2021. Our EBIT for salmon of Norwegian origin was EUR 933.6 million for the year ended December 31, 2022 compared with EUR 511.6 million in 2021. EBIT per kg was EUR 3.18 in 2022 compared with EUR 1.87 in 2021. Price and volume developments The reference price for Atlantic salmon of Norwegian origin increased by 40.1% from the levels in 2021. Market spot prices were positively affected by good demand in many important markets. Our price achievement for the year ended December 31, 2022 was 8% below the reference price, compared with 2021 when the price achievement was 4% below the reference price. With record-high prices, contribution from contracts was negative in 2022, as opposed to 2021 when the contribution was positive. The contract share was 27% in 2022, compared with 24% in 2021. The contract share was significantly reduced from pre-pandemic levels. The superior share of salmon harvested in 2022 was 90%, down from 92% in 2021. Superior share was negatively impacted by winter sores in the first half of 2022, while we in the last two quarters of 2022 had a superior share in Norway of 92% and 94% respectively. Harvest volume was 293 720 tonnes gutted weight, which was an increase of 20 516 tonnes, or 8%, from 2021. This was driven by Region South and Region West where harvests increased by 13 799 tonnes and 10 046 tonnes respectively in 2022 compared with 2021. Both Region South, Region West and Region North set new records with 61 628 tonnes, 75 266 tonnes and 100 006 tonnes harvested respectively. Costs and operations The total cost per kg for salmon of Norwegian origin harvested in 2022 increased compared with 2021 due to higher feed prices in addition to inflationary pressure, partly offset by survival rates, production and feed conversion rates which all improved from 2021. Harvest weights also improved from the year before. Relative seawater production was the best ever. The feed cost for fish harvested in 2022 increased compared with 2021, though partly offset by improved production and feed conversion ratio. Other seawater costs per kg harvested also increased due to inflationary pressure. Sea lice mitigation and treatment costs were relatively stable compared with 2021. Extensive development and testing of non-medicinal tools and methods continues in collaboration with Mowi's Global R&D and Technical department. Non-seawater costs increased compared with 2021 mainly driven by primary processing cost. Incident-based mortality costs totalled EUR 29.1 million in 2022 compared with with EUR 23.0 million in 2021. Salmon of Norwegian origin by region The table below shows an overview of operating performance by region in 2022 compared with 2021. KEY FIGURES BY REGION IN NORWAY SOUTH WEST MID NORTH 2022 2021 2022 2021 2022 2021 2022 2021 Operational EBIT (EUR million) 148.0 56.3 200.1 55.3 147.3 75.1 310.7 202.7 Harvest volume (GWT) 61 628 47 829 75 266 65 220 56 820 61 410 100 006 98 745 Operational EBIT per kg (EUR) 2.40 1.18 2.66 0.85 2.59 1.22 3.11 2.05 Superior share 91% 91% 90% 93% 88% 91% 90% 94% Region South Operational EBIT in Region South amounted to EUR 148.0 million in 2022 compared with EUR 56.3 million in 2021. The increase was mainly due to higher prices and increased harvest volume. Costs increased from 2021, mainly due to higher feed prices, partly offset by dilution effect due to higher harvest volumes. While seawater costs increased compared with 2021, non-seawater cost were stable. Operational EBIT per kg harvested was EUR 2.40 compared with EUR 1.18 in 2021. The volume harvested was 61 628 tonnes gutted weight, an all-time high for Region South, compared with 47 829 tonnes in 2021. Volumes were positively affected by more biomass available for harvesting due to increased smolt stocking, as well as good production. Region West Overall 2022 was a very good year for Region West. Operational EBIT in Region West amounted to EUR 200.1 million in 2022 compared with EUR 55.3 million in 2021. The increase was mainly due to higher prices and harvest volume. Costs were relatively stable from 2021 following operational improvements and positive scale effects from high volumes. Harvest volumes ended at an all-time high on the back of improved seawater production, survival rates and feed conversion ratio compared with 2021. 2022 volumes were 75 266 tonnes gutted weight compared with 65 220 tonnes in 2021. Operational EBIT per kg harvested was EUR 2.66 vs. EUR 0.85 in 2021. Regions Mid and West have common interregional MAB and due to seawater site availability, volumes are higher in Region Mid in odd years, and in Region West in even years. Profit 039 Integrated Annual Report 2022 Region Mid For Region Mid, 2022 was negatively affected by high treatment activity impacting production and cost. Operational EBIT amounted to EUR 147.3 million in 2022 compared with EUR 75.1 million in 2021. The increase was mainly related to higher prices. Harvest volumes were slightly reduced, while full cost increased compared with 2021. The main driver was higher feed cost. The volume harvested was 56 820 tonnes gutted weight compared with 61 410 tonnes in 2021. The decrease in harvest volume was to a large extent explained by the bi-annual alternating pattern of high/low volumes in Regions Mid and West due to seawater site availability and common interregional MAB. Operational EBIT per kg harvested was EUR 2.59, compared with EUR 1.22 in 2021. Region North Operational EBIT in Region North amounted to EUR 310.7 million in 2022 compared with EUR 202.7 million in 2021. The increase was due to higher achieved prices and increased harvest volume, partly offset by higher cost. Measured by Operational EBIT per kg harvested, Region North continues to be the best performing region in Mowi Norway, as it has been since 2017. The margin increased to EUR 3.11 from EUR 2.05 in 2021. The volume harvested ended at all-time high 100 006 tonnes gutted weight, an increase from the previous record of 98 745 tonnes in 2021. The increase in harvest volumes from an already high level was a result of good production and generally good biology. As all other regions, also Region North experienced high inflationary pressure, especially for feed. Salmon of Scottish origin Operational EBIT Our Scottish farming operations had a challenging year in 2022 related to poor production and high mortality on stocks grown from externally sourced eggs, in addition to issues with micro-jellyfish bloom and SRS following the warmest summer on record in Scotland. Operational EBIT for salmon of Scottish origin was EUR 42.6 million for the year ended December 31, 2022 compared with EUR 77.2 million in 2021. Improved prices were more than offset by the above-mentioned challenges. Operational EBIT per kg was EUR 0.89 in 2022 compared with EUR 1.20 in 2021. Our EBIT for salmon of Scottish origin was EUR 54.3 million for the year ended December 31, 2022 compared with EUR 85.1 million in 2021. EBIT per kg was EUR 1.12 in 2022 compared with EUR 1.32 in 2021. Price and volume developments The reference price in EUR increased on positive market developments and limited supply also in the Scottish market. Our price achievement for salmon of Scottish origin for the year ended December 31, 2022 was 1% above the reference price, compared with 17% above in 2021. Price achievement in 2022 was negatively affected by contracts due to high spot prices, compared to 2021 where the contribution from contracts were positive. The contract share was 71% in 2022 compared with 50% in 2021. The superior share was 96% in 2022 and 95% in 2021. At 48 374 tonnes gutted weight, harvested volume in the year ended December 31, 2022 decreased from 64 405 tonnes in 2021 on the back of multiple biological issues. Towards the end of the year, biology improved on colder temperatures and harvesting was reduced in order to build biomass. Costs and operations Full cost per kg for salmon of Scottish origin harvested in 2022 increased compared with 2021 on challenging biology, increased mortality costs, negative scale effects from reduced harvest volumes and generally inflationary pressure, especially with regards to feed. EUR 23.3 million was recognised as incident-based mortality in 2022, compared with EUR 12.9 million in 2021. Salmon of Chilean origin Operational EBIT Our Operational EBIT for salmon of Chilean origin was EUR 76.9 million for the year ended December 31, 2022 compared with EUR 47.1 million in 2021. The increase was due to improved market prices on strong demand and reduced market supply, partly offset by increased cost. Harvest volumes were stable from 2021. Operational EBIT per kg was EUR 1.17 in 2020 compared with EUR 0.71 in 2021. Our EBIT for salmon of Chilean origin was EUR 71.8 million in the year ended December 31, 2022 compared with EUR 45.1 million in 2021. EBIT per kg was EUR 1.09 in 2022 compared with EUR 0.68 in 2021. Price and volume developments Market prices for salmon of Chilean origin increased by 13.9% in 2021 compared with 2021. In North America, the most important market for Mowi Chile, markets prices developed favourably on strong demand. Prices achieved were 4% below the reference price in 2022, compared with 2% below the reference price in 2021. Contracts impacted price achievement negatively in both 2022 and 2021. The contract share increased to 50% in 2022 from 45% in 2021. The superior share for salmon of Chilean origin was 91% in 2022 and 88% in 2021, a good improvement from 2021, but still slightly below the group target of 92%. The biological challenges our Chilean operations faced during 2021 continued to affect the operations also in the first half of 2022. During the second half of the year overall biological situation was relatively good, with production, survival rates and feed conversion rates improving from 2021. However, SRS continues to be a challenge for Chilean salmon farming. Harvest volume of 65 737 tonnes gutted weight in 2022 was stable compared with 2021, when it totalled 65 958 tonnes gutted weight. Costs and operations On the back of the above-mentioned environmental issues, and a general inflationary pressure as experienced in all farming regions, the total cost per kg for Chilean salmon harvested in the year ended December 31, 2022 increased compared with 2021. Incident-based mortality in the amount of EUR 9.8 million was recognised in 2022, compared with EUR 11.0 million in 2021, mainly related to algal bloom, followed by extended periods of low oxygen levels. Profit 040 Integrated Annual Report 2022 Salmon of Canadian origin Operational EBIT Our Operational EBIT for salmon of Canadian origin was EUR 65.8 million for the year ended December 31, 2022 compared with EUR -10.4 million in 2021. The positive development was driven by Canada West with increased prices, almost full spot exposure, improved cost and higher harvest volumes. In Canada East, harvest volumes were limited with only 4 211 tonnes, affecting both achieved prices and cost. This was mainly due to previous environmental and biological issues. Operational EBIT per kg was EUR 1.60 in 2022 compared with EUR -0.23 in 2021. Our EBIT for salmon of Canadian origin was EUR 7.1 million in the year ended December 31, 2022 compared with EUR -81.4 million in 2021. EBIT per kg was EUR 0.17 in 2022 compared with EUR -1.80 in 2021. Price and volume developments Market prices for salmon of Canadian origin increased by 14.1% and 21.0% in West and East respectively versus 2021. Our price achievement in 2022 was 5% above the combined reference price, compared to 5% below in 2021. Price achievement was negatively impacted by the biological challenges in Canada East, mainly related to ISA and small-sized fish, while good spot performance, improved biological control and high superior share had a positive effect in Canada West. The contract share for salmon of Canadian origin was 2% in 2022 compared with 3% in 2021. The superior share was 93% in 2022, compared with 87% in 2021. The harvest volume in the year ended December 31, 2022 was 41 095 tonnes gutted weight compared with 45 311 tonnes in 2021. In Canada East, harvest volume decreased from 13 490 tonnes in 2021 to only 4 211 tonnes in 2022. In Canada West, harvest volumes were 36 884 tonnes in 2022 vs. 31 821 tonnes in 2021, positively impacted by increased smolt stocking in even years. Costs and operations The total cost per kg for salmon of Canadian origin harvested in the year ended December 31, 2022 decreased compared with 2021 following several cost-reducing measures, lower incident-based mortality and also increased share of harvesting from Canada West. Incident-based mortality of EUR 9.4 million was recognised in 2022 in our Canadian operations (EUR 24.2 million in 2021) mainly related to ISA in Canada East. Canada East has experienced significant environmental and biological challenges since the acquisition by Mowi in 2018 including mass mortality, algal blooms, ISA and lice issues. A turn-around is ongoing with the aim of returning to profitability and establish Mowi Canada East as an appropriately scaled, lean business unit equipped to deal with the challenges of the region and positioned for solid financial performance and growth. Volumes are expected to gradually increase over the coming years while ensuring that biological control is maintained. Salmon of Irish origin Operational EBIT Our Operational EBIT for salmon of Irish origin was EUR 6.0 million for the year ended December 31, 2022 compared with EUR 14.2 million in 2021. Prices for organic salmon were good also in 2022. Harvest volumes were stable from 2021, but cost increased on inflation and environmental challenges related to gills and SRS following the record-warm summer. Operational EBIT per kg amounted to EUR 0.88 in 2022 compared with EUR 2.09 in 2021. Our EBIT for salmon of Irish origin was EUR 2.4 million in the year ended December 31, 2022 compared with EUR 8.6 million in the same period in 2021. EBIT per kg was EUR 0.35 in 2022 compared with EUR 1.27 in 2021. Price and volume developments Our Irish operation mainly produces organic salmon and there is no reference price available for benchmarking. Compared with 2021, achieved prices were 1% higher for the year ended December 31, 2022. As in previous years, earnings were positively impacted by sale of eggs. Our contract share was 78%, the same as in 2021. The superior share of salmon harvested was 88% in 2022 and 88% in 2021. The harvest volume in the year ended December 31, 2022 was 6 845 tonnes gutted weight compared with 6 790 tonnes in 2021. Costs and operations The total cost per kg for salmon of Irish origin harvested in the year ended December 31, 2022 increased compared with 2021, driven by increased feed prices and the above-mentioned environmental challenges. Profit 041 Integrated Annual Report 2022 Salmon of Faroese origin Operational EBIT Our Operational EBIT for salmon of Faroese origin was EUR 19.6 million for the year ended December 31, 2022 compared with EUR 12.7 million in 2021. The increase in earnings were mainly due to increased prices, partly offset by lower harvest volumes and higher cost. Operational EBIT per kg was EUR 2.49 in 2022 compared with EUR 1.28 in 2021. Our EBIT for salmon of Faroese origin was EUR 18.2 million in the year ended December 31, 2022 compared with EUR 14.3 million in 2021. EBIT per kg was EUR 2.32 in 2022 compared with EUR 1.44 in 2021. Price and volume developments Achieved prices in 2022 were at the reference price level, compared with 9% above in 2021. Biological issues at Oyndarfjørdur, as well as harvesting from the site Sandsvág, impacted harvest weights and price achievement. There were no contracts in Faroes in 2022 or 2021. The harvest volume in the year ended December 31, 2022 was 7 864 tonnes gutted weight compared with 9 932 tonnes in 2021. Volumes fluctuate for our Faroese operations due to the low number of sites. Costs and operations In 2022, the cost level for salmon of Faroese origin increased compared to 2021 on the back of feed inflation and biological issues at Oyndarfjørdur, as well as harvesting from the site Sandsvág, which normally carries an elevated cost level. Incident-based mortality in the amount of EUR 0.4 million was recognised in 2022, compared with EUR 1.8 million in 2021. Liquidity, Cash Flow and Borrowings LIQUIDITY AND CAPITAL RESOURCES Our principal sources of liquidity are cash on hand, revenues generated from our operations, loans and other financings. Our principal needs for liquidity have been, and will likely continue to be, costs of raw materials, including fish feed, other working capital items and capital expenditures, to service our debt, and to fund dividend payments and acquisitions. We believe that our liquidity is sufficient to cover our working capital needs in the ordinary course of business. Our cash and cash equivalents as of December 31, 2022 was EUR 178.5 million compared with EUR 101.7 million as of December 31, 2021. Cash and cash equivalents comprise cash and bank deposits, including restricted funds. Restricted funds are mainly related to employees’ income tax withholdings. Our NIBD (excluding effects of IFRS 16) was EUR 1 758.9 million as of December 31, 2022, up from EUR 1 257.3 million as of December 31, 2021. Our NIBD target is based on a Farming NIBD/kg of EUR 2.2 and the long-term net interest bearing debt target is set at EUR 1 400 million. Per year-end, NIBD exceeded the long-term target driven by the Arctic Fish acquisition and temporarily increased working capital tie-up. Adjusted for the Arctic Fish acquisition, NIBD was EUR 1 510.2 million. CAPITAL EXPENDITURES Our capital expenditures primarily relate to investments in our operating facilities and equipment used in our operations. Net capital expenditures were approximately EUR 326 million for the year ended December 31, 2022, compared with approximately EUR 241 million for the year ended December 31, 2021. For 2022 and 2021 respectively, EUR 198.8 million and EUR 128.8 million of the total net capital expenditure was attributable to our farming operations in Norway. The bulk of the capital expenditure in Norway was related to expansions in our freshwater operations, investments related to mitigation of sea lice and general maintenance investments at our seawater facilities. The main purpose of the expansions in our freshwater operations is to enable the production of larger and higher quality smolt. CASH FLOWS Cash flow from operations Cash flow from operations for the year ended December 31, 2022 came to EUR 644.8 million, compared with EUR 833.1 million for 2021. The decrease is mainly related to increased earnings, partly offset by higher working capital tie-up. Cash flow from investments Cash flow from investments for the year ended December 31, 2022 came to EUR 469.4 million, compared with cash flow from investments of EUR 133.7 million in 2021. The main explanation for the increase from 2021 is the acquisition of 51% of Arctic Fish amounting to EUR 179.5 million in 2022. Furthermore, the acquisition of Western Ross in Scotland and increased capex also contributed to the increased cash outflow. Cash flow from financing Cash flow from financing for the year ended December 31, 2022 came to EUR 99.9 million, compared with EUR 706.6 million for 2021. Cash flow outflow related to dividend was increased from EUR 226.8 million in 2021 to 380.6 million in 2022 on the back of increased earnings. BORROWINGS As of December 31, 2022 our main outstanding borrowings consisted of the EUR 1 800 million sustainability-linked facility, an unsecured Schuldschein loan of EUR 150 million and two unsecured bonds of EUR 200 million each, one of which classified as green. For further details of our borrowing facilities and bonds, please see Note 11 to the Group financial statement. For further details of how to analyse our performance, please see Part IV - Analytical Information. Profit 042 Integrated Annual Report 2022 Financial performance Profit 043 Integrated Annual Report 2022 044 Integrated Annual Report 2022 Planet 045 Integrated Annual Report 2022 Planet: The Blue Revolution has begun There is untapped potential for our oceans to produce more sustainable food – Salmon is part of the solution to climate change while also being a huge benefit to human health. Top ESG ratings For the fourth time in a row, Mowi was ranked the most sustainable animal protein producer in the world by the Coller FAIRR Protein Producer Index. Reduction in GHG emission Reduced scope 1 and 2 GHG emissions by 33% and scope 3 emissions by 10% since 2019. Sustainability-related certifications 99% of our harvest volume in 2022 was sustainably certified with a Global Sustainable Seafood Initiative (GSSI) recognised standard (ASC, BAP or Global GAP). Sustainable feed 100% sustainable sourced feed according to Mowi's policy. Sustainable and environmentally responsible development Planet Planet 046 Integrated Annual Report 2022 The global picture – climate friendly food production THE CHALLENGE AND THE OPPORTUNITY Never before have we seen leading scientists and heads of state coming together to recognise that food from the sea, the so called Blue or Aquatic Food, is uniquely positioned to contribute to the most pressing challenges humanity is facing: food security and climate change. From FAO to world leading scientists (see Blue Food Assessment and Ocean panel) there is an overall agreement that food from the ocean is a triple win: for people because it is healthy, for the planet because it is climate-friendly and for the economy because it sustains local and global economies. In 2022, we saw the FAO report, State of World Fisheries and Aquaculture, showing evidence that Aquaculture is key to feed and nourish the world’s growing population. Aquatic animal production is forecasted to grow another 14 percent by 2030. However, such growth needs to go hand in hand with safeguarding ecosystems, reducing pollution, protecting biodiversity and ensuring social equity. We believe salmon farming is well positioned to deliver food from the ocean in a sustainable way. The Blue Food Assessment, in addition to the High Level Panel for a Sustainable Ocean Economy have provided a credible and transparent assessment of the potential of aquaculture as a sustainable ocean economy. Blue foods have lower environmental footprints than land-based foods. Farmed salmon in particular has lower GHG emissions, water use and land use compared to chicken. Mowi's vision of Leading the Blue Revolution and our sustainability strategy aim at realising the potential of blue foods. Chief Sustainability and Technology Officer, Dr Catarina Martins, Mowi ASA Our commitment to produce more food from the ocean in a sustainable way guides our day-to-day actions. Mowi has developed a sustainability strategy, Leading the Blue Revolution Plan. It sets ambitious goals to ensure our salmon is raised in the ocean in harmony with nature, and local coastal communities, using an eco-efficient value chain while offering solutions to global challenges, such as climate change and plastic pollution. In 2022, our actions towards the targets set in our sustainability strategy contributed to reducing the group's GHG emissions, further optimisation of our packaging, increased recyclability of farming equipment, more efficient freshwater use at our processing plants and smolt/post-smolt units and increased circularity of our waste streams like sludge The ocean has the potential to provide over six times more food than it does today, food that is highly nutritious containing essential vitamins, minerals, omega 3 fatty acids and other nutrients not found in plant-based or other animal proteins. In fact, according to the Blue Food Assessment, the nutritional contribution of blue foods are significantly higher than previously estimated – 13% higher for Vit B12 and 186% higher for EPA and DHA fatty acids. “ If the world is to build food systems that are good for people and the planet, for today and tomorrow, it needs to take advantage of Blue Foods. These offer a unique combination of excellent nutrition and lower greenhouse gas emissions, water and land use compared to land animal proteins.” Material value drivers Ambitions Climate friendly food production 100% of our yearly harvest volumes are sustainably certified by a GSSI recognised standard Achieve our Science Based Targets for GHG emissions in our scopes 1, 2 and 3 Responsible use of plastics By 2025, 100% of our plastic packaging will be reusable, recyclable or compostable By 2025, at least 25% of plastic packaging will come from recycled plastic content By 2023, 100% of farming plastic equipment is reused or recycled Prevent fish escapes Positive trend towards zero escapes Fish welfare, health and robustness By 2025, > 99.5% survival in sea (average per month) By 2023, minimum 50% of our stock in Norway with real-time welfare monitoring Sea lice management 0% of sites above national limit (monthly average) Responsible use of medicines and chemicals Reduction in antimicrobial use relative to 2015 Efficient and sustainable fish feed 100% compliance with our sustainable feed sourcing policy * Global Sustainable Seafood Initiative ** Global Salmon Initiative methodology In addition to the material targets mentioned above, Mowi also has a target on freshwater use and waste to landfill (see Biodiversity section) Planet 047 Integrated Annual Report 2022 from freshwater units and by-products from processing plants. Our feed continues to be sourced from sustainable sources and our soy from Brazil is 100% deforestation-free. In 2022, we have implemented a global supply chain relationship management tool for onboarding and risk-assessment of our suppliers. On an industry average, farm-raised Norwegian salmon has an emission intensity that is 20% of that of beef (SINTEF, 2020). The carbon footprint of farm-raised salmon is 6.4 kg of carbon equivalent per kg of edible product, compared with 12.2 kg of carbon equivalent per edible kg of pork and 39.0 kg per edible kg of beef (SINTEF, 2020, 2022). For the consumer, replacing pork and beef with fish would significantly reduce their personal carbon footprint. Not only is the carbon footprint of farm-raised salmon lower but its edible yield is higher (68%) as compared with chicken (46%), pork (52%) or lamb (38%). For Mowi, high edible yields combined with 100% re-use of by-products (i.e.offcuts and trimmings) means that nearly every single gram of salmon is used, thereby avoiding food waste. OUR EFFORTS Climate change and food security remain the biggest challenges facing humanity. We recognise the growing significance of climate change on our business and the increasing role of producing food from the ocean as a solution to climate change. We continue to engage with key stakeholders such as our industry associations, the financial sector, NGOs and suppliers to validate our climate roadmap, initiatives taken and the progress achieved. Mowi has adopted a global approach to climate change which is aligned with climate science (our targets are approved by the Science Based Targets Initiative, SBTi) and the Paris Agreement to limit the increase in the global average temperature to well below 2°C, and ideally no more than 1.5°C, above pre-industrial levels by the end of the century. Mowi has chosen to pursue the Representative Concentration Pathways (RCP) 2.6 pathways and the climate scenario that will limit the global average temperature to well below 2°C above pre-industrial levels. As part of this process we also run a high-level assessment of the impact of 2°C and 4°C global warming scenarios to inform our strategy and financial planning. Information about our climate-related scenario analysis can be found in the TCFD report (see section 4) where a range of scenarios are used to illuminate future exposure to both transition and physical climate-related risks and opportunities. In 2022, we reviewed two IEA scenarios for carbon pricing modelling, the Stated Policies Scenario (STEPS) and the Sustainable Development Scenario (SDS). The STEPS scenario was a ‘well-above 2°C scenario’ scenario which considers current policy settings. The SDS scenario was a "‘well-below 2°C scenario’ which draws a pathway to effective climate mitigation with a ‘well-below 2°C’ outcome, while also taking into consideration other sustainable development goals such as global health or easy access to energy. The carbon pricing modelling outcomes are presented in our TCFD report (see Strategy and Metrics & Targets categories). As part of our Green Bond and Sustainability-linked loan, Mowi is committed to align its capital expenditures with its GHG targets. In 2022, the allocation of proceeds to green categories including those related with GHG emissions (sustainable feed) was 164 million EUR. Planet 048 Integrated Annual Report 2022 In addition, in 2022, the group invested approximately 1.5 million EUR in energy-saving initiatives. Mowi integrates climate-related disclosures in this Planet section, in the Risk and Risk management sections and in addition, we have also summarised the risks and opportunities arising from climate change, our strategic approach towards a low carbon economy and our corporate targets in the TCFD report (see Part 4 of the Annual report). ESG performance including energy efficiency targets are also embedded in incentives in the group management team (see People section). We have a global policy on climate change guiding our operations to take action that lead to reduction in GHG emissions. Our policy is publicly available at mowi.com Our energy consumption and GHG emissions data are reported internally and audited by an independent third-party annually. We disclose our GHG emissions strategy and performance in association with the Carbon Disclosure Project (CDP). Mowi has improved its CDP climate rating from B to A- reflecting our continuous improvement on performance and transparency on climate related metrics. In addition, Mowi is ranked in the leadership category (A) in the CDP supplier engagement rating (SER). We are working in collaboration with our peers in the seafood sector and other ocean economies (High Level Panel for a sustainable ocean economy) to optimise the value of the ocean to produce more sustainable food as a strategy against climate change while at the same time increasing our understanding of the potential impacts of climate change to our business. Mowi also collaborates with science to further advance our focus on circularity and climate change. In 2022, we updated the assessment of sea surface temperatures, at our farming locations using satellite data sets (gathered from NASA's Earth Observing System Data and Information System) to further understand possible climate impacts. The comparison of average monthly records of ocean temperature from the past 3 years (2020, 2021 and 2022) to the same data set from the past 20 years indicate no clear pattern in local ocean temperature changes at our farming locations. Our approved science-based targets are: •reduce absolute scope 1 and 2 GHG emissions 35% by 2030 and 72% by 2050 from a 2016 base year •reduce absolute scope 3 GHG emissions 35% by 2030 and 72% by 2050 from a 2018 base year 2022 RESULTS Energy consumption and greenhouse gas emissions Mowi's total GHG emissions (scope 1, 2 and 3) were 2 013 800 tonnes CO2e in 2022 which is 4% lower than total emissions in 2021 (2 089 404 tonnes CO2e). The same reduction level (4%) is achieved when using location-based scope 2 emissions. For Mowi, emissions decreased from 4.5 in 2021 to 4.3 tonnes CO2e/tonne biomass harvested in 2022. This is a combination of a reduction in our scope 1, 2 and 3 emissions. Mowi's GHG emissions (scope 1 and 2, market based) decreased by 9% from 263 659 tonnes CO2e in 2021 to 239 570 tonnes CO2e in 2022 (Feed: 29 975 tonnes CO2e, Farming: 170 744 tonnes CO2e, Sales & Marketing: 38 851 tonnes CO2e). When using location based scope 2 emissions, the reduction in scope 1 and 2 together was 11% from 222 505 tonnes CO2e in 2021 to 197 150 tonnes CO2e in 2022. Compared with 2019, Mowi's scope 1 and 2 emissions in 2022 decreased by 33%. A location-based method reflects the average emissions intensity of grids on which energy consumption occurs. A market-based method reflects emissions from electricity that companies have purposefully chosen. It derives emission factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims (e.g RECs, GoO). Planet 049 Integrated Annual Report 2022 Mowi’s climate roadmap Planet 050 Integrated Annual Report 2022 Both our scope 1 and 2 reduced in 2022 due to a a replacement of high emissions fuel types by more climate friendly alternatives in our feed operations and an overall reduction in fuel use in our farming operations as a result of more sites being connected to land power and the use of hybrid generators. Our reduction in scope 2 emissions is due to an increased purchase of renewable electricity (GoO and green contracts with our electricity suppliers) and energy efficiency projects. In 2022, Mowi group's renewable electricity accounted for 28% (market based) and 56% (location based) of the total electricity use. In 2022, we used 7 TJ of fuel from a renewable energy source in the form of wood chips. Our largest farming entity, Farming Norway (includes all freshwater, seawater and primary processing in Norway) showed a significant reduction in scope 1 and 2 emissions, from 51 446 tonnes CO2e in 2021 to 27 214 tonnes CO2e in 2022 (location based) and from 102 671 tonnes CO2e in 2021 to 87 668 tonnes CO2e in 2022 (market based). Scope 3 emissions were reduced from 1 825 745 tonnes CO2 in 2021 to 1 774 230 tonnes CO2 in 2022, a 3% reduction. This reduction was mainly due to reduced purchase of goods and services (external feed suppliers). In the Farming business area, emissions (scope 1+2, market-based) reduced from 332 in 2021 to 302 kg CO2e/tonne biomass harvested in 2022 (and from 231 to 194 kg CO2e/tonne biomass harvested in 2022; scope 1+2 location-based). Nearly 70% of our farming sites in Norway are connected to land power. For those sites in Norway located in areas where connection to land power is challenging we have been installing hybrid generators. In 2022, we installed two additional hybrid generators in Norway Mid and North leading to a total of 10 hybrid generators installed in Mowi Norway with an estimated reduction of GHG emissions of 1 735 tonnes of CO2. Mowi Faroes is 100% connected to land power while in Ireland, 47% of our seawater farming sites are connected to the grid. In 2022, we continued our efforts to generate on-site renewable electricity. "We have installed 10 hybrid generators in our seawater operations in Norway. By using batteries to power our feeding system we were able to avoid the use of 650 000 liters of fuel and avoid 1 735 tonnes of CO2 tonnes since 2021". Arnt Erik Tronvold, Operational support, Mowi Norway In Canada West (Dalrymple hatchery) we generated 211 MWh using solar panels, representing 4% of the total yearly energy needed for two freshwater production buildings. This allows us to match the electricity needs of production buildings by 4% and 7.5% respectively. This will reduce GHG emissions by 4.8 tonnes of CO2e annually. In Chile, we used hydraulic turbines to generate 2 MWh in freshwater facilities and five wind turbines which generated 42 MWh to support the energy needs at our processing plants. "On-site generation of renewable electricity has helped us to reduce the greenhouse emissions at our freshwater and processing plants. In 2022 we were able to generate 44 MWh electricity by the use of hydraulic and wind turbines. " Alvaro Perez, Environmental Director, Mowi Chile Innovation projects continue to be part of Mowi's focus to reduce GHG emissions. In our farming business area, Mowi has the aim of implementing Smart Farming by 2025 in our Norwegian farming units. Smart farming includes the use of next-generation underwater cameras allowing automatic sea lice counting. Such automation allow us to avoid the need of manual counting and its associated use of service vessel and fuels, leading therefore to a reduction in fuel use and a reduction in scope 1 emissions. In 2022, we have also strengthened training of our personnel on driving vessels in a climate-friendly way. In our freshwater production we have focused on adjusting production temperature to reduce energy consumption and therefore GHG emissions. We have also installed energy management systems at selected Recirculation Aquaculture Systems. Planet 051 Integrated Annual Report 2022 In the Feed business area (including both the plants in Norway and Scotland), the intensity of GHG emissions (scope 1+2, market based) decreased from 78 to 58 kg CO2e/tonne feed produced (25% reduction). In 2022, 100% of the electricity used at the Scottish feed plant was from renewable sources. We continued our efforts to optimise energy efficiency at both plants by focusing on improving the efficiency of the feed drying process by optimising the air flow in our driers, measuring and gathering more data, using the data to optimise the process and finally automating the process to reduce the possibility of suboptimal operation. In 2022, we have calculated and audited our scope 3 emissions in connection with sourcing feed raw materials for our feed business area (following the ASC guidelines for GHG accounting of feed, the GHG Protocol Standard and the carbon footprint of feed raw materials provided by SINTEF 2020 Life Cycle Assessment). We have also applied guidance from LCA experts and LCA studies to improve primary data use. Our estimates indicate that sourcing and transportation of feed raw materials by Mowi Feed resulted in 794 933 tonnes of CO2e in 2022 (770 555) or 1.59 kg CO2e/kg feed produced (1.66). The absolute GHG emissions related with sourcing feed raw materials increased in 2022 due to increased feed production while the intensity (kg CO2e/kg feed produced) reduced due to a reduction in sourcing of feed raw materials which have a higher carbon footprint such as soy proteins and vegetable oils. Our engagement with our feed raw material suppliers include discussion on primary data collection following the Product Environmental Footprint (PEF) guidelines and reduction in GHG emissions in their value chain. We have also engaged our suppliers of vegetable feed raw materials on developing and implementing good agricultural practices, including regenerative agriculture. In 2022, we have seen several of our suppliers reducing GHG emissions by implementing practices to reduce energy use at their processing sites but also at the farm level by giving preference to renewable energy sources (e.g ESG in the field program by CJ Selecta). Our innovation work on testing new feed raw materials and optimizing feed formulation has also resulted in a reduction in FCR for Mowi Group, meaning a reduction in the use of feed raw materials and its GHG emissions to produce the 2022 volumes. More information can be found here on Mowi Feed R&D. The intensity of GHG emissions (scope 1+2, market based) from the Sales & Marketing business area, which includes our secondary processing units and sales offices across the globe also decreased from 94 to 91 kg CO2e/tonne sold end product (i.e. Mowi achieved a reduction in both absolute emissions and intensity for all our business areas). We continue to purchase renewable electricity and to focus on energy-saving initiatives at our plants. In 2022, our energy saving initiatives summed up to 2 643 MWh saved as a result of building new cold storage, replacing fluorescent lamps with LED, installation of air curtains in store freezers, removal of compressed air leaks, modernisation of the vacuum installation, adjustment of A/C systems, avoidance of running equipment when not in use, installation of motion sensors for lights in transit areas and recovery of heat from cooling installations. In 2022, we have also calculated Mowi's scope 3 emissions and compared it with equivalent emissions in 2021, 2020 and our reference year of 2018. Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company that occur from sources not owned or controlled by the company. Categories that were assessed as relevant for Mowi Group were included in scope 3 emissions namely purchased goods and services, fuel and energy related activities, upstream transportation and distribution, waste generated in operations, business travel and downstream transportation and distribution. 62% of scope 3 emissions related to feed; both the purchase of feed from external parties and the sourcing of feed raw materials for Mowi Feed, followed by 22% related with downstream transportation. Air freight, road and sea transport contributed to 17%, 5% and 0,2%, respectively, of total scope 3 emissions. Wind turbines at Mowi Chile Chacabuco processing plant Planet 052 Integrated Annual Report 2022 GHG emissions (scope 2) is market based for 2022 and the years before. Indirect GHG emissions calculated in scope 2 originate from electricity consumption, while direct GHG emissions calculated in scope 1 come from use of fossil fuels, such as diesel, fuel oil, gasoline/petrol, heating oil, natural gas, marine gas oil and propane/LPG as well as refrigerants. The methodology used for the carbon accounting is the Corporate Accounting and Reporting Standard (Revised Edition), WBCSD, WRI, 2004. The chosen consolidation approach for calculation of GHG emissions is operational control. All figures are based on direct consumption reported by each Business Unit, multiplied by an energy conversion factor and carbon emission factor per unit consumed. All emission and heating value factors for direct GHG emissions are from DEFRA 2022. Emission factors for calculation of indirect location based GHG emissions are based on International Energy Agency statistics (IEA), 2022. Emission factors for calculation of market based GHG emissions come from European Residual Mixes, AIB, 2022. The emission factor for electricity consumption in Norway is the Nordic average grid mix for four Nordic countries: Norway, Sweden, Finland and Denmark and is based on IEA statistics, 2022. The GWP reference is IPCCAR5 (IPCC Fifth Assessment Report). All six greenhouse gases are taken into account and converted into carbon dioxide equivalents (CO2e). These six gasses are: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); and sulphur hexafluoride (SF6), all of which are listed in Kyoto Protocol and GHG Protocol. All figures listed as CO2e in the report are metric tonnes of carbon dioxide equivalents. Mowi Eggesbønes, Norway ENERGY AND GHG EMISSIONS (scope 1, 2 & 3) 2022 2021 2020 Reference years 2016/2018 Energy consumption (TJ) Direct energy consumption (Scope 1) 1 699 2 006 2 212 na Indirect energy consumption (Scope 2) 1 507 1 476 1 578 na Total energy consumption (TJ) 3 206 3 482 3 790 na GHG emissions (tonne CO2e) Direct energy consumption (Scope 1) 119 191 137 374 159 961 na Indirect energy consumption (Scope 2, location based) 77 958 85 131 96 114 Indirect energy consumption (Scope 2, market based) 120 379 126 285 162 875 na Indirect energy consumption (Scope 3) 1 774 230 1 825 745 1 941 085 1 950 541 Total GHG emissions - scope 1 and 2, location based (tonne CO2e) 197 149 222 505 256 075 200 483 Total GHG emissions - scope 1 and 2, market based (tonne CO2e) 239 570 263 659 322 837 273 587 Total GHG emissions - scope 1, 2 (location) and 3 (tonne CO2e) 1 971 379 2 048 250 2 197 160 2 151 024 Total GHG emissions - scope 1, 2 (market) and 3 (tonne CO2e) 2 013 800 2 089 404 2 263 921 2 224 128 Planet 053 Integrated Annual Report 2022 Sustainability certifications Third-party certification remains key to our sustainability strategy. 99% of the harvested volume in 2022 was sustainably certified by a Global Sustainable Seafood Initiative (GSSI)-recognised standard: the Aquaculture Stewardship Council (ASC), Best Aquaculture Practices (BAP), or GlobalGAP. Mowi's certification table can be found here: At the end of 2022, Mowi accounted for a total of 120 sites ASC certified, representing 47% of our active seawater farming facilities. The largest increase originated from Scotland where we increased the number of ASC certified sites from 9 to 21. In 2022, we have also increased the number of ASC certified sites in Norway from 77 to 79. In Canada and Chile we have reduced the number of ASC certified sites, from 20 to 4 and from 20 to 10, respectively. Despite reducing the number of ASC certified sites in Canada and Chile we maintain our harvested volumes 100% BAP certified. In our smaller farming entities, Ireland and Faroes, we maintained the certification at 4 sites in Ireland and increased to a total of 2 ASC certified sites in the Faroes in 2022. Public reporting information for our ASC sites is available at asc-aqua.org and in our public facing ASC dashboard. Responsible Plastic Use Mowi depends on a healthy ocean. Mowi focuses on avoiding unnecessary use of plastics in their operations, and makes sure plastic waste is handled in a responsible manner. We have a well-established monitoring and control programme for undesirable substances in both feeds and fish, verifying that there are no reasons for concern and that all limits set by food safety authorities are adhered to. Planet 054 Integrated Annual Report 2022 of the packaging used by Mowi is EPS (expanded polystyrene) fish boxes which are 100% recyclable as insulation building materials. “Caring for the environment is at the heart of MOWI’s brand promise. That’s why we are proud that MOWI brand packagings are produced of 92% recycled plastics” Andreas Johler, MOWI Brading director We reduce the amount of plastic used in packaging In 2022, we avoided about 2 314 tonnes of virgin plastic use by using a variety of strategies such as packaging redesign/simplification: •In Norway, we were able to save 1 227 tonnes of virgin plastic by increasing the filleting share and thereby reducing the amount of plastic boxes used for transportation. We have developed a policy on plastic use and plastic waste management Our policy sets the minimum actions we are taking as a company to use plastic in a responsible manner. Our policy is publicly available at mowi.com We have set targets •by 2025, 100% of our plastic packaging will be reusable, recyclable or compostable •by 2025 at least 25% of plastic packaging will come from recycled plastic content •by 2023, 100% of farming plastic equipment is reused or recycled In 2022, 77% (74%) of Mowi's plastic packaging was reusable, recyclable or compostable and it contained 15% (12%) of recycled plastic. Our MOWI brand packaging has exceeded the group targets and achieved a 92% recycled plastic content. We used the percentage of plastic packaging made of polymer monomaterials as a proxy of recyclability as this type of packaging can be fully recyclable as all layers are made of the same type of plastic. Most This is what we are doing to tackle plastic waste: Planet 055 Integrated Annual Report 2022 •In Scotland, a total amount of 214 tonnes of virgin plastic were avoided by transitioning to monomaterial trays and reduction of top films. •In Chile, we reduced the use of virgin plastic by 168 tonnes through the replacement of plastic cover sheet for workers’ clothing, use of cardboard boxes and the introduction of palletized boxes. •In the US, our processing plants in Miami and Dallas managed to reduce virgin plastic by 20 tonnes by reducing film thickness through tray design. •Our processing plant in Spain replaced 30% of their trays by smaller trays and could report plastic savings of 12 tonnes. •Belgium and China reduced their virgin plastic demand by 7 and 1.4 tonnes, respectively, mainly by the introduction of reusable crates. •In Japan, both of our plants changed the vacuum film thickness and introduced reusable aprons which resulted in a total amount of 3 tonnes reduction in virgin plastic use. We recycle plastic in packaging and farming equipment In 2022, we increased the volumes of packaging being recycled by preventing landfill, switching to mono-materials and upcycling our plastic farming equipment. •In the USA, both of our processing plants, Miami and Dallas, implemented mono material plastic instead of polymaterial plastic resulting in a total of 1 149 tonnes of recycled plastic. •Similarly, Spain introduced monomaterial trays and LID (PET) which resulted in additional 12 tonnes of recyclable plastic in 2022. •China’s initiative on reusable aprons did not only reduce the amount of virgin plastic used in their operation but also increased the amount of recyclable plastic by 0.6 tonnes. •We continue our recycling program of farming equipment (our initial scope until 2023 is on nets and feeding pipes). In 2022, our farming units recycled or reused 2564 tonnes of nets and feeding pipes, representing 94% (88%) of our total farming equipment waste. The recycling process includes reconversion of the netting into new polyamide filament, which in turn can be used in a variety of applications, such as in the manufacture of swimwear or carpet yarn. We reuse plastic equipment In Scotland, we transitioned to returnable crates instead of using outer corrugated boxes which avoided more than 97 tonnes of outer cases. We monitor the presence of microplastics in our fish In 2022, we continued monitoring microplastics in our products. As in previous years our monitoring results indicate no plastic-related contaminants in our salmon. We work in global partnerships We work with our global partnerships to scale up our impact on protecting the oceans from plastic litter including global clean-up events. Our 2021 and 2022 coastal clean-up events resulted in more than 1 tonne of trash collected with the involvement of more than 200 employees. We work with our suppliers Used feeding pipes in our Norwegian farming operations are collected and cut in a closed process to prevent cut fragments and microplastics from being released to the environment. This process is taken care of by an external subcontractor. The used pipes will be recycled into new products. Planet 056 Integrated Annual Report 2022 Escape prevention The Challenge Escaped farm-raised salmon may have a negative impact on the environment, due to ecological interactions and interbreeding with wild populations. Therefore, we have an ambition to achieve zero escapes. Our Efforts Our focus on preventing escape incidents includes a wide variety of actions focusing on making our equipment more resilient and on preventing human errors : Equipment related •Implementation of technical requirements for farming operations. •Norwegian NYTEK standards for technical requirements on the dimensioning, design, installation and operation of fish farming installations. In 2022, Norway’s fisheries department has issued new requirements for escape-proof design and operation of fish farming facilities (NYTEK 23). •Scottish technical standard for finfish aquaculture. In Scotland, all new sites and sites converted to larger 160m pen have net and moorings systems which exceed the Scottish technical standard. There is an active program of mooring grid, net replacement and pen improvements throughout 2021 and 2022 to exceed both the Scottish and Norwegian technical standards. PRIORITIES GOING FORWARD To Lead the Blue Revolution, we must have a positive impact on global issues, such as climate change, and also tackle environmental challenges that are more industry specific. Moving forward, we will continue to focus on verification of our improvements by reputable third-party certification schemes, such as ASC, BAP and Global GAP. In 2023, we aim to have 100 % of our harvested volumes sustainable certified. We will continue to transition to a low carbon business by focusing on our feed suppliers, reducing the use of fossil fuels in our farming operations and increasingly using renewable electricity in our processing plants. As a member of the Sustainable Air Freight Alliance (SAFA), a buyer-supplier collaboration between shippers, freight forwarders, and air freight carriers we will continue to promote tracking and reduction of GHG emissions from air freight and responsible freight transport. Overcoming the plastic waste challenge remains an important issue for our business and our stakeholders and as such we will continue to focus on avoiding any plastic litter ending up at sea as a result of our farming activities, implement our packaging design strategy and monitor the potential for microplastics and plastic-related contaminants in our fish. Mowi beach cleaning in Region South, Norway Planet 057 Integrated Annual Report 2022 •Chilean technical standard established in 2020 with standardised methodology for the information collection, processing and calculations of the engineering study, and technical specifications of the fish farming structures. •Our Global Escape Action Group continued in 2022, meeting digitally every quarter to define key improvement priorities, track progress and share learned experiences. A sub-group has been set to focus only on defining the equipment needs for exposed sites. This work is being done together with our suppliers. We already moved to more robust pen and net designs at exposed sites in Mowi Scotland (Hellisay), designed and specified to perform in this high energy environment. In Norway, a risk-matrix has been developed and existing sites are in progress of evaluation toward the risk matrix. Establishment of new sites uses risk-matrix to decide best pen design. •Simplification of anti-fouling strategies that minimise the need for net cleaning and for better sea lice treatment strategies that minimise net handling. Human-error related •Increased focus on escape prevention by the operational and management teams across our farming operations. •Implementation of our internal global standard (ONE Mowi) which sets minimum requirements regarding equipment certification, training, risk-assessment, reporting, mitigation, drills and checklists. •Prevention of human error by focusing on training and simplification of procedures. In 2022, we updated our global training program on escape prevention and mitigation. This training aims to reaffirm our internal standard for seawater and freshwater management, including the sharing of experiences and lessons to be learned after escapes, and the highlighting of behavioural changes that can make a difference. In 2022, 100% of all our farmers passed this training program. •Sharing main learning points after each incident with all site managers globally using our escape info sheets (in Norwegian, English and Spanish). Results In 2022, the number of material incidents involving escaped fish increased from 1 to 2 in Scotland. These two incidents accounted for 99.6% of all escaped fish in 2022, totalling 50 138 fish (20 600 in 2021). This number of escaped fish represent 0.03% of the total number of fish we had in sea in 2022. The incidents occurred due to equipment failure at exposed sites, and we are actively collaborating with our suppliers to prevent future incidents in these areas. The two locations where the escapes took place in Scotland (Colonsay and Grey Horse) are more exposed but offer sustainability benefits in terms of reduced sea lice pressure and high assimilative capacity. The remaining escape incidents were insignificant, with only one fish escaping in Canada and 174 fish escaping in Norway. These escapes were all attributed to human Planet 058 Integrated Annual Report 2022 errors. In total there were 11 (7) escape incidents in 2022, and the main causes and mitigation actions for each incident are detailed below. We conducted monitoring studies in Scotland to assess the impact of previous escape incidents on wild salmonids, and the results indicate no significant impact. The study focused on farmed salmon following an escape event at an exposed farm in Scotland (Carradale Fish Farm) in 2020, resulting in the loss of 48,834 farm-raised salmon. Following the escape, anglers recorded catching farm-raised salmon in 17 rivers across Scotland and Northwest England, with a total of 277 confirmed verified captures. Mowi, in collaboration with wild fish partners, commissioned a scientific study of juvenile salmon in nearby rivers where escaped farm-raised salmon were caught to determine if any hybridization occurred between escaped salmon and wild stocks, and to monitor the impact and extent of the escape in the rivers. The genetics study, published by Marine Scotland in 2022, found limited evidence of hybridization after the incident, with only a single juvenile salmon showing aquaculture-derived ancestry out of the 5 281 fish sampled during the study. Although the single salmon was found to have aquaculture-derived ancestry, it could not be identified as a progeny of a farm-raised escaped salmon from Carradale Fish Farm. Priorities Going Forward We will continue our efforts to reduce the number of escape incidents by strengthening our collaboration and training with equipment and service suppliers, improving our training programs to minimise human error, ensuring that best practices for delousing operations are followed, and implementing anti-fouling strategies that reduce the need for net cleaning. In addition, a positive progress towards zero-escapes has been linked to bonus remuneration in the senior management team. NUMBER OF ESCAPE INCIDENTS AND FISH ESCAPED Country 2022 2021 2020 # of escape incidents # of escaped fish # of escape incidents # of escaped fish # of escape incidents # of escaped fish Norway 8 174 4 909 11 1 264 Scotland 2 49 963 1 19 686 2 122 518 Canada 1 1 2 5 3 1 069 Chile — — — — Ireland — — — — Faroe Islands — — 1 22 022 Group 11 50 138 7 20 600 17 146 873 Country Site name # of escaped fish Main cause category Mitigation actions Norway Verpeide 4 Human error (net handling) Equipment inspections prior to operation to avoid chaffing of ropes Canada Humphrey Rock 1 Human error (lice counting) Ensure equipment is installed correct and properly dimensioned Norway Tveitevåg 2 Human error (unloading fish) Improve procedures for unloading fish Norway Kobbavika 3 Human error (missing secondary barrier external vessel) Confirm that external vessels have secondary barrier in place prior to operation Scotland Grey Horse 32 463 Technical error (failure of winches) Improved equipment design and staff training Scotland Colonsay 17 500 Technical error (net tension) Inspection prior to operation to ensure ropes are secured and net integrity has not been breached Norway Storvika V 1 Human error (lice counting) Ensure procedure is followed and equipment is properly dimensioned Norway Pinnen 8 Human error (sea lice treatment) Update procedures and check-list Norway Kjeahola 1 Human error (gill scoring) Improve procedure for security nets Norway Heggvika 5 Human error (mispositioned valve external vessel) Check and ensure that external vessels have correct system set-up prior to operation Norway Vindsvik 150 Human error (missing barrier) Install missing equipment Planet 059 Integrated Annual Report 2022 Why we care about fish welfare Caring about fish welfare is an ethical responsibility and an integral part of our business strategy as it can impact our productivity and reputation. Our definition of fish welfare Mowi recognises the accepted Five Freedoms for animal welfare and adopts the World Organisation for Animal Health (OIE) definition of animal welfare: A good state of welfare is if it is healthy, comfortable, well nourished, safe, able to express innate behaviour and it is not suffering from unpleasant states. Good welfare requires disease prevention and veterinary treatment, appropriate shelter, management, nutrition, humane handling and humane slaughter. How we safeguard the welfare of farmed-raised salmon •Train our employees •Farm under optimal environmental conditions •Secure optimal heath and, when needed, responsible medicine use •Apply optimal feed and feeding practices •Vigilance of fish behaviour •Use humane slaughter methods •Apply internal and global fish welfare standards •Ensure service and equipment suppliers adopt our standards •Monitor and report operational welfare indicators •Continuously improve through R&D Fish Health and Welfare THE CHALLENGE Protecting the health and welfare of our fish is paramount for achieving optimal performance and is both financially rewarding and positive for the environment. OUR EFFORTS Animal welfare is recognised as a strategic and important business consideration, and our primary goal is to rear healthy fish and to protect their welfare across all our farming operations. Ocean farming allows us to rear salmon under conditions that are optimal for welfare and their well-being, which includes clean water, space and food, and ensuring they obtain the necessary nutrients for good health and performance throughout their lives. Our fish are stocked at densities that safeguard their welfare and enhance performance, ensuring they have ample space to swim and express innate behaviour. Biosecurity, health management, coordinated fallowing and synchronised production are integral components of our farming practices, which reduce biological risk. The application of good husbandry and management practices, biosecurity standards and veterinary health plans, all under the supervision of our dedicated fish health professionals, contribute to the optimisation of fish welfare, their well-being and propensity to thrive. We maintain our commitment to certify all our farms to the highest possible standards (namely Global GAP, ASC and BAP, which also address fish welfare aspects), including those related to feed, water quality, health management, transport, harvesting and slaughter. Our Irish operations are 100% organic certified, as is a proportion of our Scottish operations. In addition, our Scottish operations are 100% certified against the Royal Society for the Prevention of Cruelty to Animals (RSPCA) standard, as are our freshwater sites in Ireland. Smolt quality and effective vaccines are key ingredients. We vaccinate 100% of our fish to reduce the risk of disease and compromised welfare, and we apply great care to ensure the highest quality and robustness of our smolts, to reduce health risks. Our procedures on plankton monitoring and mitigation practices, together with continuous training on plankton surveillance, risk management and response plans, contribute to reducing losses. In Chile, Canada, Scotland, Ireland and at-risk regions in Norway we use monitoring protocols adapted to seasonal risk, ensuring that surveillance is carried out on a frequent basis during high-risk periods. During harmful algal bloom events we follow a management and response plan to protect our fish, and use measures such as aeration systems, halting surface feeding and guiding fish to safer depths using deep lights. In addition, fish vulnerable to algal blooms are relocated to other unaffected sites/areas if there is no biosecurity or welfare risk from such an operation. Further details on plankton mitigation are provided in the expert interview below. Promoting fish welfare, resilience and well-being remain integral in our feed strategy and feed development. We target the use of functional ingredients to support fish welfare when exposed to Mowi policy on salmon welfare Planet 060 Integrated Annual Report 2022 conditions that may compromise the skin and gills. Additionally, we continue our search for solutions that support gut health with a view to maximising nutrient retention. We report survival rates to the relevant authorities, at the required frequency. This data is also publicly available eg. Barentswatch in Norway. Results In 2022 the Group achieved a monthly survival rate (fish numbers) in seawater of 99.2%, (99.2%). Survival rate increased in Norway, Chile, Canada and Faroes, and decreased slightly in Scotland and Ireland. As a result of our continuous focus to reduce the risk of infectious disease, this accounted for 49% of the total number of fish lost during the year. The remaining 51% was attributed to non-infectious causes. * reported in accordance with the Global Salmon Initiative (GSI) methodology: (total # mortality in sea last 12 months / (closing # in sea last month + total # mortality # in sea last 12 months + total # harvested last 12 months + total # culled fish in sea) X 100) Freshwater average monthly survival rate (based on fish number ≥1g, which corresponds to the completion of transition to exogenous feeding) for the Group was 99.2% (99.2%), ranging from 99.1-99.6% across our farming entities. Losses associated with Cardiomyopathy Syndrome (CMS), Heart and Skeletal Muscle Inflammation (HSMI), Amoebic Gill disease (AGD), algal blooms and poor performers were reduced by 26%, 17%, 63%, 76% and 24% respectively in 2022 compared with 2021. In addition, losses associated with sea lice treatment were also reduced in 2022, by 14%. For Salmonid Rickettsial Septicaemia (SRS) in Chile, losses based on fish numbers increased by 4% but were still 29% lower based on fish biomass compared to 2015. In 2022, we further increased our focus on biosecurity practices for mitigation of Pasteurella and vaccinated a greater proportion of our stocks in Norway, with mortality being reduced by 32% (based on fish numbers) from 2021 to 2022. Total mortality (numbers) due to sores (wounds) for the Group was 1.8% (1.4%), meaning 98.2% of our fish were unaffected by sores (wounds). Decreased survival (numbers) in 2022 was associated with Pancreas Disease (PD) and gill conditions, which was influenced mainly by our operations in Ireland and Scotland where the incidence of extraordinary environmental conditions and zooplankton (micro-jellyfish) increased in 2022. However, our surveillance programmes, management and response plans contributed to mitigating the severity of such incidents to a larger extent. Despite the application of our strict risk management approach for Infectious Salmon Anaemia (ISA), and vaccination in areas of highest risk, 6 cases of ISA were recorded in 2022 (0), with 4 in Canada East and 2 in Norway. To further safeguard fish welfare and well being, we continuously tracked stocking densities across all seawater sites and countries, ensuring actual densities were consistently and significantly lower than regulatory maximum limits. Average monthly standing stocking density for the Group in 2022 was 7.4kg/m3 (7.4kg/m3). According to our standardised global system for welfare monitoring on our seawater sites, total welfare score recorded was very good and averaged 1.8 (1.6) on a scale of 0-30. In 2022, we received a Special Recognition Award from Compassion in World Farming (CIWF) to recognise our global standard and commitment on the humane slaughter of our fish using percussive stunning. This commitment applies to 100% of our ocean reared salmon, across all countries, thereby matching CIWFs flagship recommendation. Dr Gordon Ritchie, Group Manager Fish Heath & Welfare, Mowi ASA Through our breeding and genomic selection programme (see R&D section), we made further advancements in our selection of fish stocks with resistance to PD, CMS and sea lice, and this is again expected to result in further improvements in survival rates. CMS, SRS, gill health, sores (wounds) and PD, along with sea lice treatment losses, remain our priority areas for improvement. In addition, we will continue to work on addressing environmental related fish health challenges and develop improved strategies to manage incidents that negatively affect survival, together with relevant stakeholders. Priorities Going Forward Protecting the health and well-being of our fish, and improving survival, will remain a primary focus in 2023. We will continue to closely monitor, investigate and analyse the causes for reduced survival, and set our operational, R&D and data analysis priorities accordingly. Gordon Ritchie (Group Manager Fish Health & Welfare) receiving Compassion in World Farming’s Good Farm Animal Welfare Award. Planet 061 Integrated Annual Report 2022 Further development of new and gentler systems for sea lice treatment, implementation of new/improved vaccines, mitigative approaches to gill challenges, advances in genomic selection for disease resistance and the outputs from several important R&D projects are expected to contribute towards our goal of >99.5% survival (average % monthly survival rate) in both freshwater and seawater by 2025. We will continue to drive and support research initiatives and the development of better industry practices in the area of fish health and welfare, together with relevant research institutes, commercial partners and suppliers. We continuously search for new farming, technological and health solutions and we will continue to engage and support research institutes, health product/service suppliers and relevant stakeholders to advance fish welfare and well-being in our operations. Our R&D portfolio includes, but is not limited to, research and data analytics on the main causes for reduced survival, nutritional health, production related disorders and harvesting methods. We will continue to engage with stakeholders on the development of Operational Welfare Indicator monitoring for farmed raised salmon, and target 50% of sites with real-time monitoring in Norway within 2023. MAIN CAUSES OF REDUCED SURVIVAL INFECTIOUS NON-INFECTIOUS FISH NUMBERS BIOMASS FISH NUMBERS BIOMASS 1 Gill infections CMS Treatments Treatments 2 CMS Gill infections Poor performers Environmental-oxygen 3 Winter sores Winter sores Physical damage Poor performers 4 PD SRS Transport Physical damage (CMS, Cardiomyopathy Syndrome; PD, Pancreas Disease; SRS, Salmonid Rickettsial Septicaemia) Planet 062 Integrated Annual Report 2022 Sea Lice Management THE CHALLENGE Effective sea lice management is important for fish welfare and to ensure sea lice on our farms do not negatively impact wild salmonids. Sea lice control also represents a significant cost to the industry. OUR EFFORTS We work intensively to continuously improve our approach to sea lice management and minimise the number of adult female lice at our sites, especially during the period when wild salmon migrate to sea. Our goal is to manage sea lice in an integrated manner and avoid an over-reliance on the use of medicines, through the application of strategic, preventive, biological and non-medicinal measures. We continue to respect the precautionary statutory limits on the maximum number of lice per fish, set by relevant authorities. We continuously develop better management practices, new solutions and sharing best sea lice management practices between our operations. Together with our academic and commercial partners, we target innovative and non-medicinal solutions for more gentle control of lice, and we update our policies and best practices accordingly, on a regular basis. We report sea lice levels to the relevant national authorities at the required frequency, and data on our sea lice levels are publicly available (eg. Barentswatch in Norway) and provided in our policy on Integrated Pest Management. Results We again progressed towards our goal of managing sea lice in an integrated and sustainable manner, and reducing the use of medicines. We continue to use cleaner fish and non-medicinal treatment systems and continually work on developing alternative solutions. In 2022, we once again increased our R&D activities on lice management and made good progress on several important projects to develop novel solutions for safe and cost-efficient control (see R&D section). Preventive management tools (skirts, deep lights, deep feeding, and a combination of these) were used more extensively in 2022. In our operations where non-medicinal treatment systems are available, an average of 60% (56%) of all treated fish were treated using such systems. This increase was mainly attributed to increased use in Chile and Canada West. While the proportion of fish treated varied (depending on equipment availability, environmental conditions and fish size) the application of non-medicinal treatment systems remained relatively stable in all other seawater farming units in 2022. The development of non-medicinal treatment systems continued in all our operations, with the aim to use them more extensively and efficiently going forward. Further advancements were made in cleaner fish production in Norway, Scotland and Ireland, and we continued our investment in cleaner fish R&D. In 2022, we continued rolling-out our strategy to improve the efficiency of cleaner fish and reduce losses. On average, 77% (76%) of our seawater sites, with access to cleaner fish, applied them for lice control in 2022. Plankton mitigation systems Why are mitigation systems important? Shifts in environmental conditions can lead to more recurrent and intense plankton events in the industry. For Mowi, the implementation of such solutions is inextricably linked to our sustainability strategy, which considers respecting our environment by seeking to mitigate challenges, and being an ethical commitment towards our productivity and reputation. How do our mitigation systems work? One of the key elements is having a strict surveillance program in place, where plankton is monitored several times daily during high risk periods. Mitigation systems are basically composed of two components - an external barrier consisting of a micro-bubble curtain around the farm (from <20 meters depth to the surface) to reduce contact between harmful plankton and our fish, and water upwelling to move plankton which may have passed the micro-bubble curtain up and away from the pen. Both components are supplied by electric compressors, which are designed with the latest engineering know-how, to generate air of a high technical quality which allows us to maximize efficiency and effectiveness. How effective are they? These systems reduce the risk of mortality and our experiences to date have been very positive. With respect to harmful diatoms in particular, we have reduced both the concentration within our pens (up to 75%) and potential mortality (up to 50%) during significant events, for periods of one month or more. It must be kept in mind, however, that harmful plankton events can be very diverse in terms of the number and type of species involved, their behaviour and potential impact, in the areas and countries where we produce our salmon. Ricardo Gantenbein, Production Director, Mowi Chile Dr Jorge Mancilla, Fish Health & Nutrition Director, Mowi Chile Insights from Our experts Planet 063 Integrated Annual Report 2022 We continued to register the percent of sites above national limits on a monthly basis across our business units. If a site was registered above the limit, then action was taken to bring the site below the limit. Meaning, all sites registered above the limit were treated to, again, be below the limit. For Canada West, Ireland and Chile, any sites above the limit were brought below the limit within the regulatory defined time period. These time periods are now factored into our calculations and applied retrospectively. For Mowi Group, the percentage of sites above national sea lice limits was 5% (3%) in 2022. Sea lice treatment losses decreased by 14% in 2022 and we will continue to strengthen our efforts to develop integrated approaches and more gentle non-medicinal treatment systems for lice control. Priorities Going Forward Maintaining low levels of sea lice at our seawater sites remains a top priority. Together with our academic and commercial partners, and relevant suppliers, we will continue to optimise existing solutions, develop novel and cost-effective methods and will increase our focus on the use and welfare of cleaner fish. In Chile and Canada we will continue to develop and operationalise non-medicinal treatment systems. Our ambition is to ensure that sea lice control is based principally on preventive, integrated and non-medicinal approaches, allowing us to reduce the need for medication. Medicine use THE CHALLENGE Licensed medicines may have potential negative environmental impacts if used too frequently. The risk of sea lice developing reduced sensitivity to medicines is also a concern. OUR EFFORTS With our strong focus on optimising fish survival and preventing disease, licensed medicines are only used when absolutely necessary. Used in rotation, sea lice medicines are additional tools for integrated management and ensuring lice from farms do not impact wild salmonids. We only use licensed antimicrobial medicines when fish health and welfare are at risk from bacterial infection. We adopt the recommendations and support best practices as outlined in the World Health Organisation's "WHO guidelines on use of medically important antimicrobials in food-producing animals” and the WHO list of Critically Important Antimicrobials for Human Medicine, to reduce the risks of development of antimicrobial resistance. Only when specific bacterial infections are diagnosed, and there is no alternative, do we treat fish with licensed medicines. If used, strict policies and regulations apply. We restrict use of antimicrobials and do not use them routinely, and we never use any antimicrobials (critically important, medically important or otherwise) for the purposes of growth promotion, prevention of infectious diseases or for control of dissemination. Antimicrobials are only used prudently, responsibly and under veterinary prescription and supervision. Medically important antimicrobials are restricted for disease treatment only. We prohibit the use of Highest Priority Critically Important Antimicrobials in our operations. Those listed as critically important for human medicine are only used as exemptions under the judgement, prescription and supervision of a veterinary professional, and if microbial sensitivity results demonstrate that the selected antimicrobial is the only treatment option. Medicines are always applied in a responsible manner and we ensure there are no flesh residues at harvest. Planet 064 Integrated Annual Report 2022 We work continuously with academic and commercial partners, and relevant suppliers, to discover and research new approaches and alternative treatments for the management of sea lice and bacterial infections, including research on probiotics, phage-therapies, genomic selection and novel vaccine technologies. Results Sea lice management Licensed medicines for sea lice control were prescribed and used only when required, under the supervision of authorised veterinarians and fish health professionals. In 2022, the use of licensed medicines increased compared to 2021 and was mainly attributed to an increase in the use of topical medicines. The use of hydrogen peroxide was reduced in 2022. From 2021 to 2022, the total active substance used (g + ltr) rose from 1.65 to 2.58/t biomass produced. Bacterial challenges Licensed medicines for bacterial infections were prescribed and used only when required, and under the supervision of authorised veterinarians and fish health professionals. For information about withdrawal periods and medicine residues in our end products, please see the Product section. In total, our use of antimicrobials (gram of active substance per tonne produced) to combat bacterial infections decreased to 76g (91g) in 2022, (figure shown at the end of this section). Again, no antimicrobials were used in our operations in Norway or the Faroe Islands in 2022. Decreases were observed in Scotland, Canada and most notably Chile. In Scotland and Canada, decreases were associated with a reduction in Pasteurella skyensis and mouth rot challenges, respectively. While a reduction was observed in Chile, Salmonid Rickettsial Septicemia (SRS) and Tenacibaculum infections remain a challenge across the entire industry. The two antimicrobials used in 2022 are classified as Highly Important Antimicrobials (HIA). No Highest Priority Critically Important Antimicrobials (HPCIA) or Critically Important Antimicrobials (CIA) were used in our operations. An overview of our use of antimicrobials per territory is shown at the end of this section. The number of fish treated with antimicrobials remained very low, with 0.8% (0.2%) treated in freshwater and 5.9% (6.2%) in seawater. Priorities Going Forward Reducing the use of antimicrobials remains an important priority. Several important R&D and strategic initiatives on SRS, together with relevant stakeholders, are expected to reduce biological risk and contribute to decreases in antimicrobial use going forward. We will continue to address the issue of antimicrobial resistance and management, and engage in the Chilean Salmon Antimicrobial Reduction Programme and Global GAP Aquaculture Technical Committee. While licensed medicines remain a tool in the integrated management of sea lice, we will continue to develop and implement non-medicinal control methods and advance our breeding programme for lice resistance. Planet 065 Integrated Annual Report 2022 Biodiversity The Challenge Biodiversity loss can result in significant reductions of resources provided by the earth’s ecosystems, which contribute to economic prosperity and human development. We need healthy oceans, not only to drive sustainable salmon farming, but also to support flourishing societies and buoyant national economies. We acknowledge that our activities potentially could impact biodiversity as a result of sea lice, medicinal treatments, fish escapes, organic loading/nutrient release and the sourcing of feed ingredients. Despite the potential impact on biodiversity we run our operations in a way that protects biodiversity. We do this by monitoring our environmental impact, adhering to voluntary certifications on sustainability which consider biodiversity (ASC, Global GAP and BAP), minimizing escapees, sourcing feed raw materials sustainably and innovating throughout our value chain. Our Efforts In 2022, we once again paid due regard to critical, highly sensitive environmental areas, special areas of conservation (SAC) and/or special protected areas (SPA) in the vicinity of our seawater sites. Very few production sites are located in or close to protected areas or highly sensitive areas of biodiversity. In Norway, we operate one site in a National Preservation-fjord for Atlantic salmon and six sites in a landscape conservation area. We follow closely the results from our benthic surveys to ensure these sites have a minimum negative impact. In Scotland, we operate five sites located in Special Areas of Conservation (SAC), 11 sites in areas classified as both a SAC and a Marine Protected Areas (MPA) and one site located within in a Marine Protected Area (MPA). The majority of the sites have been in operation prior to the date of designation reflecting the minimal impact that farming operations have had, and continue to have on the conservation objectives of these designations. In order to safeguard Protected Areas there is a robust environmental assessment process that applies to the licensing of new activities and such activities will only be licensed by regulatory authorities if it can be demonstrated there is no significant risk to the status of these areas. In Canada West, none of our sites operate near official High Conservation Value Areas (HCVA) or Federal Marine Protected Areas. Five marine sites border the Broughton Archipelago Provincial Marine Park. In the Port Hardy area, one site borders a marine park and another site borders a provincial conservancy. In Canada East, none of our sites are located close to protected areas or highly sensitive areas with respect to biodiversity. In addition, none of our sites operates near official HCVA or federal Marine Protected Areas. In Chile, we operate two sites located in the Priority Conservation Area Isla Kent-Quitralco. These sites have all permits to operate in these areas and all operations are regulated by law, therefore additional actions are not necessary because all sites have environmental impact assessments to make sure all site activities are within national regulations. In Ireland, nine of our marine sites are located within special areas of conservation (SAC). These sites have several habitats listed in Annex I and Annex II of the EU Habitats Directive such as coastal lagoons, tidal mudflats, sandflat, large shallow inlets and bays, reefs, mudflats, and sandflats not covered by seawater at low tide. A further two marine sites are located within five kilometres of special protected areas (SPA) designated under the EU Birds Directive. For all marine sites we undertake annual monitoring of the seabed, resulting in a comprehensive database of seabed animals under and adjacent to our sites. Periodic riverbed quality surveys are carried out below discharge points from our smolt units. This coupled with careful feed management and site fallowing ensures that we do not negatively impact these areas. Results Our farming operations are certified according to standards that take account of biodiversity. These standards, such as Global GAP, BAP and ASC, include criteria to minimise environmental impact and preserve biodiversity. In addition, our responsible sourcing policy for feed ingredients is key to ensuring that both the marine and non-marine raw materials used in our fish feeds do not compromise biodiversity. Both our own feed plants and external feed suppliers must comply with this policy (see sustainable feed section). Circular economy and waste We also recognise that to protect our natural capital, we need to adopt a circular economy perspective and derive the most value from resources during their lifetime. For Mowi, circularity is a priority in rethinking how we handle our waste and seeing it’s potential beyond our use. Reducing waste where possible and optimising waste streams are both important for securing a responsible waste management. This was high on our agenda in 2022, where 95% of the non-hazardous waste generated by our processing plants is already recycled, reused or recovered as energy. In 2022, we were able to reduce the waste sent to landfill from our processing plants in the US. Challenges related with supply chain in connection to Covid 19 have delayed our progress on this metric. We continue to reduce the waste generated at processing plants like Rosyth and Spain by reusing pallets and replacing cardboard packaging to plastic returnable crates. We also introduced several new initiatives for improving recycling and reuse of plastics, these are described under Plastic Management. In addition to plastic waste, we have adopted circular economy practices in other parts of our business such as in our freshwater production where waste is collected and further reused. In Europe, our freshwater production which includes flow-through systems and recirculating aquaculture systems Planet 066 Integrated Annual Report 2022 have systems in place for effluent treatment. Particulate organic matter, rich in carbon and phosphorus can be removed from the discharge, dewatered, dried and recycled as fuel for biogas or used as soil fertiliser. This waste is used by local companies to limit the transport distance. Collecting particulate organic matter from the effluent of land based facilities is important to secure a good environment in our fjords, and also to make a contribution to the green economy linking the aquaculture to recycling renewable resources. In Norway, we re-used 12 379 m3 of wet and dry sludge of which 94% were used as input material for biogas production and 6% was further used as fertilizer for agricultural production. In Scotland, 5 533 m3 of wet sludge was re-used as supplement to compost production and Canada West and East reported in total 2 149 m3 of re-used wet sludge for agricultural purposes. Our farming plants in Ireland produced 11 510 m3 of wet sludge which was further used for biogas production while Chile was re-using both, 160 m3 of dry sludge and 162 m3 of wet sludge, as agricultural fertilizer. In total, Mowi upcycled 31 893 m3 tonnes of dry and wet sludge in 2022. Working towards a more efficient global circular economy is key to Mowi, including reducing food waste by upcycling the by-products that result from our processing activities. In fact, Mowi has established Mowi Nutrition (mowinutrition.com) to ensure that by-products such as skin and offcuts are not wasted but instead used for other applications such as non-salmon aquaculture diets and pet food. In addition to reducing food waste, the upcycle of these by-products represent a recapture of the fishmeal and fish oil used as marine raw materials as such feed raw materials are used not only to produce our salmon but become also part of non-salmon aquaculture diets and pet food through the use of the salmon by-products. In 2022, Mowi Norway recaptured approximately 13 000 tonnes of fish oil from our Norwegian operations by-products. Freshwater use Freshwater is important for Mowi and is used both directly and indirectly in our operations. Directly in the initial stages of farming to produce smolts prior to sea transfer as well as at our processing plants to keep high hygienic standards. Indirectly from the use of agricultural feed raw materials. Similarly, to what occurs in the wild, farmed-raised salmon spend the initial phase of production growing in freshwater. Therefore, the majority, 99%, of freshwater withdrawal in our business comes from the initial life stage production of salmon. This freshwater withdrawal is returned to its source in almost its entirety (in flow-through systems) or reused (in our Recirculating Aquaculture Systems), which therefore reduces our water consumption significantly. Although we do not farm in countries with freshwater scarcity, we still focus our efforts and resources on freshwater efficiency at our freshwater farming units, feed and processing plants. Our freshwater use policy guides our business units, including Mowi’s feed supply chain, to key actions on freshwater use stewardship. In addition, we continuously invest to comply with local regulations and where possible, improve water use efficiency through technological developments. Our sustainable feed sourcing policy includes elements of good agricultural practices which also address water use. Mowi’s target on freshwater is: by 2025, achieve a reduction of 10% on water intensity at our processing plants located in medium-high water scarcity risk, using 2018 as a reference year. Planet 067 Integrated Annual Report 2022 This target is directed to water withdrawal as water consumption is negligible. For more information on water withdrawal and consumption see the data section at the end of the Planet chapter. Our data on freshwater withdrawal and consumption is audited by an independent third-party. In 2022, absolute water withdrawal for Mowi Group was reduced from 387 105 333 m3 in 2021 to 367 267 542 m3, a reduction of 4%. This includes all freshwater sources including surface water used to grow our smolts. Freshwater withdrawal intensity in 2022 was 0.65 (0.70) m3/kg fish produced. Freshwater consumption intensity was the same as in 2021, 0.0009 m3/kg fish produced. Freshwater source 2022 Water withdrawal (1 000 m3) 2022 Water consumption (1 000 m3) Surface water 317 049 204 Third party water (purchased water) 32 337 236 Ground water 17 881 51 Total water withdrawal or consumption (all sources) 367 268 491 Freshwater withdrawal intensity (m3/kg fish produced) 0.65 Freshwater consumption intensity (m3/kg fish produced) 0.0009 Municipal water suppliers and municipal wastewater treatment plants, public or private utilities, and other organisations involved in the provision, transport, treatment, disposal, or use of water and effluent. In 2022, direct freshwater withdrawal at Mowi’s freshwater production units (RAS and flow-through), feed plants and primary and secondary processing plants around the world summed up to 367 267 542 m3 (387 105 333 m3 in 2021). 98.9% of freshwater withdrawal was used for our smolt production in flow-through systems and recirculating aquaculture systems, 1.0% at our processing plants and 0.1% at our feed plants. Focusing on our major freshwater withdrawal business unit, smolt production, the total freshwater withdrawal from third parties, such as municipal water networks, accounts for as little as 8.8% (32 337 000 m3) of the Group’s total freshwater withdrawal. Most of the freshwater withdrawal is coming from surface water (86%) which is almost in its entirely returned to its source (in flow through systems) or reused (in our Recirculating Aquaculture Systems). Mowi’s most modern and recent RAS facilities are operating with a percentage of recirculation varying from 95 to 99.9% and have been recycling 21 562 846 m3 of freshwater in 2022. For Farming Norway, our freshwater withdrawal in 2022 was 211 917 206 m3, representing 0.60 m3/kg fish produced in Norway. For Mowi Feed, water intensity was negligible at 0.0006 m3/kg of feed produced. The percentage of water withdrawal from areas classified as medium-high water scarcity risk (using Aqueduct, water quality assessment), is only 0.1% for Mowi Group (346 149 m3, all sourced from surface water). These areas are part of our Sales and Marketing operations, more specifically from three processing plants located in China, Vietnam and France. Therefore, zero percent of the water used in our feed and farming operations originate from areas of water scarcity. "Only 0.1% of water used by Mowi Group originates from areas classified with medium-high water scarcity risk" Mowi Vietnam saw a reduction from 52 m3/tonne production in 2021 to 46 m3/tonne production in 2022, resulting in a total intensity reduction of 26% compared to the reference year of 2018; Mowi Shanghai saw a reduction from 31 m3/tonne production in 2021 to 18 m3/tonne production in 2022, resulting in a reduction of 63% compared to 2018; and Mowi France (Boulogne) maintained the use of 4 m3/tonne production in 2022, which is 13% increase compared to 2018. However, the total amount of freshwater used at Mowi France (Boulogne) has decreased by 11% compared to the previous year. This means that two out of three processing Planet 068 Integrated Annual Report 2022 facilities located in areas with medium-high water scarcity have not only reached but greatly exceeded their intensity reduction target. Several water saving initiatives were implemented at our processing plants in 2022. Mowi Scotland concluded a survey on both air and water leaks as well as stopped using water on portioning belts. In addition, redundant water drops around the processing site were removed and a closed water cooling installation was introduced. In Spain, Mowi’s processing plant Zaragoza reduced the quantity of water used in the process of portioning and Mowi Germany stopped its ice melting with warm water and uses outside temperatures instead. Mowi Belgium implemented sensors for the water release on skinners, a closed loop cooling for multivacs and water reducing shower nozzles. In Japan, a water control for conveyors in the process line were installed and the recycling of cooling water for vacuum machines got introduced. Mowi Poland introduced closed cooling circuits on packaging and skinning machines while also installing new nozzles and reductors on all social areas’ faucets. In total, our new water saving initiatives in 2022 resulted in 91 856 m3 of saved freshwater (62 580 m3 in 2021) on top of Mowi’s already existing initiatives from previous years. Mowi follows wastewater discharge limits (discharge volume and quality) per national regulations and aims to comply 100% with the volume and quality regulatory limits. All our processing plants discharging wastewater to freshwater do it through third-party wastewater treatment plants where regulatory limits are set by national environmental governmental agencies. Responsible freshwater management in our feed supply chain Our work towards a responsible freshwater use also extends to our vegetable raw material suppliers. In 2022, additional to Mowi’s certification schemes that ensure agricultural raw materials are sourced from areas where water management is considered, we ran a water risk assessment using the water risk index. For those rated as medium and high risk we have developed a Mowi’s water risk assessment survey to further understanding the risk profile and the actions being taken by our suppliers on aspects related to water infrastructure, sustainable withdrawal, sustainable water supply, buffer zones and the protection of water bodies from pollution by agriculture activity. According to the overall water risk mapping from Aqueduct, only 5% of Mowi’s raw material purchases originate from countries classified as high or extremely high stressed-water areas such as India, Romania, or Ukraine. From these 5%, more than half, 57%, of the risk exposure is coming from the purchase of guar protein followed by 30%% from soy protein concentrate. The remaining 13% are mainly originating from the purchase of soybean oil (11.7%) and small amounts of organic whole grain wheat (0.8%) and sunflower meal (0.5%). Our sustainable sourcing policy of feed raw materials includes requirements on good agricultural practices. Several of our vegetable feed raw material suppliers are engaged in projects to promote good agricultural practices. Our Soy Protein Concentrate (SPC) suppliers from Brazil (Caramuru, CJ Selecta Mowi Steinsvik freshwater facility, Norway Planet 069 Integrated Annual Report 2022 and Bunge/Imcopa) are implementing several projects focusing on nutrient management, responsible water use, integrated pest management, improved farming techniques that ensure minimum land use and soil health, and Good Agricultural Practices (GAP) training for farmers. More information can be found at our suppliers websites regarding their sustainability programs. Our SPC suppliers are engaged in several sustainability programs like ESG in the field (from CJ Selecta) or Sustentar (from Caramuru) which focus on several innovative approaches to manage water and nutrients responsibly. Examples of these are, compensatory measures to recover areas of native vegetation and restoration or maintenance of native vegetation of riparian forests, steep slopes and hilltops as well as defining and promoting regenerative agriculture. In addition, our suppliers focus on implementation of good practices for water management and irrigation, maintaining the quality and quantity of natural water resources, minimizing the use of energy giving preference to renewable sources and adopting good practices on nutrient use. Good agricultures practices already implemented by our vegetable feed raw materials also include responsible use of pesticides. As an example, through our Proterra Certification, we ensure that the Soy Protein Concentrate used in our feed production adheres to several requirements including 1. pesticides listed in the WHO classes (la, lb lists, Rotterdam Convention and Stockholm Convention), as well as pesticides forbidden by local, national, and regional law, are not used; 2. programme of pesticide rotation designed to minimize development of pest resistance. 3. proper handling, storage and disposal of pesticides according to manufacturers’ instructions and legal requirements 4. application methods that minimise harm to human health, wildlife, plant biodiversity, and water and air quality. Benthic Impact In 2022, we continued to run mandatory national surveys to measure the potential impact of organic loading from our farming operations on the seabed. Results show that, on average, 92% (95%) of our sea sites surveyed in 2022 have a minimal impact on faunal communities and/or sediment chemistry near to the fish pens. In Canada West and the Faroes, 100% of our sites were classified as very good or good. When the impact on the seabed is considered unsatisfactory (four in Chile - region XI, one in Canada East - region New Brunswick, one in Ireland - region West, one in Scotland - region South Uist, and four in Norway - region South, West and North), we take corrective action. This may include stopping or reducing production, repositioning the pens and/or increasing the fallow period, i.e. the time between production cycles, to allow the seabed time to recover from organic loading. Our benthic assessment includes MOM-B analysis across all operations in Norway and equivalent assessment in the other farming countries. Measures on organic and inorganic loading are considered (see methodological details in footnote under % of sites with minimum impact). In addition, Mowi engages with stakeholders in the communities we operate to share results of our environmental Planet 070 Integrated Annual Report 2022 performance, impacts and solutions, including benthic impact. For more information on Mowi's community engagement strategy see here: The ability to determine where our impacts may occur within the environment has always been critical to our industry and a key tool in assessing the environmental sustainability of our farming locations is the use of environmental modelling. Modelling is used in the first instance to demonstrate that proposed fish farming locations are likely to comply with minimum environmental standards relating to the spatial extent and intensity of any impacts. Reliable models such as the NewDepomod are crucial in ensuring accurate environmental assessment of our sites. In Scotland a new framework for surveying was implemented by the Scottish Environmental Protection Agency (SEPA). Mowi Scotland continues monitoring in line with SEPA’s new enhanced monitoring framework and we anticipate a progressive improvement from previous compliance statistics. In Norway, we are testing new technologies to minimize organic loading. This is done through the use of underwater faeces collecting systems which through a lift-up system can collect the organic waste to be further processed and upcycled. In Scotland, we are investigating the co-farming of salmon and shellfish to examine ways to improve the productivity and environmental sustainability of marine aquaculture practices. Also in Scotland, we are testing sea cucumbers as a seabed bioremediation tool. Wildlife interactions There is a rich wildlife around our farms, including marine mammals and birds. From time to time we experience that predators attack and try to break into in our pens. To protect our salmon and prevent escape incidents we have implemented different approved preventative measures. Our primary objective is to eliminate human-wildlife interactions and to prevent attacks by using passive control methods, such as anti-predator nets. Engagement with our stakeholders such as equipment suppliers as well as global partnerships help us manage wildlife interactions in the best possible way. Mowi's policy on human-wildlife interactions is included in our biodiversity policy. In rare cases, when attacks are too aggressive and persistent, undesired killing may be the only option. This is only ever carried out as a last resort and in accordance with relevant local regulations. Birds Marine mammals Accidental mortalities Intentional mortalities Accidental mortalities Intentional mortalities Norway 0.4 0.0 0.0 0.0 Ireland 0.1 0.0 0.0 0.0 Faroe Island 0.5 0.0 0.0 0.0 Scotland 0.2 0.0 0.0 0.0 Chile 0.0 0.0 0.0 0.0 Canada 0.0 0.0 0.0 0.0 GROUP 0.2 0.0 0.0 0.0 Total number of interactions divided by the total number of active sites in 2022 Biodiversity-related projects In 2022 we ran a total of 30 projects aimed at understanding and minimising our potential impact on biodiversity. In Norway, we continued our collaboration with Marin Overvåkning Hordaland and Rogaland in Region South, aiming to monitor potential effects of fish farming operations on nutrient levels and macroalgae in these two counties. In Norway North, we continued our support in a study of migration patterns of wild trout and salmon smolts. Also in Region North we participated in a project aiming to strengthen local conservation of salmonid waterways in the county of Nordland. In Region Mid/West and South we participated in projects investigating sealice infestation and dispersal on sea trout. In Region South we also contributed to a project looking at migration of wild salmon from native river system. In 2022, Mowi Faroes continued the participation in a project together with other fish farmers, the Faroese Environmental Agency and the Faroese Aquaculture research station to develop a new biodiversity index and classification system of macrofauna. Mowi Faroes also participated in two projects to better understand wild juvenile sea trout migrations and to better understand salmon louse populations around our salmon farms. In Norway, seabed quality standards are defined by the Fisheries Directorate. In the figure above, data from Norway and the Faroes refer to sites classified as 1 or 2 in MOM-B surveys. (MOM, short for ‘Matfiskanlegg Overvåking Modellering’, is a Norwegian fish-farm monitoring and modelling scheme.). The MOM-B surveys are performed regularly by third-party companies under and in the closest vicinity of the net pens, and are based on indicators such as pH and redox, sensory parameters, and presence and/or absence of macrofauna. The performance of these indicators against predefined thresholds categorises the farming location into different environmental conditions: 1. Low, 2. Medium, 3. High-organic loading and 4. Organic overloading. In Ireland, national compliance is based on positive redox potential. In Scotland, classification is based on SEPA’s criteria for seabed quality standards. In Chile, classification is based on Sernapesca’s criteria for seabed quality. In Canada West, seabed quality standards are defined by the Department of Fisheries and Oceans Aquaculture Activities Regulation. Compliance is based on sediment free sulphides at soft bottom sites and the presence/absence of Beggiatoa sp. and Opportunistic Polychaete Complex (OPC) at hard bottom sites. In Canada East, standards are defined by the Aquaculture Activities Regulations (AAR) and the Provincial - Annual Environmental Monitoring Program, based on the sulphide concentrations, presence/absence of Beggiatoa sp. and Opportunistic Polychaete Complex (OPC) at hard bottom sites. Weighted average was used to calculate the group's result. Planet 071 Integrated Annual Report 2022 In Chile, we continued to be part of an ongoing project to assess the risk of establishment of Atlantic salmon in Chile. In Canada, we participated in projects aimed at understanding the effects of our marine farms on wild salmon stocks; particularly focusing on migration patterns of wild salmon and sea lice levels in wild salmon. We partnered with Fisheries and Oceans Canada on a project to validate spatial benthic footprint predictions with monitoring of organic deposition. In 2022, Mowi Ireland continued its project to research the genetic and population ecology of wild wrasse in Irish bays. The resulting data will be used in the development of a sustainable fisheries management plan for wild caught cleanerfish. In addition, Mowi Ireland continued participation in a project forecasting harmful jellyfish blooms and biofouling for the salmon aquaculture industry. In Scotland, we continued our involvement in projects aiming to develop and validate eDNA tools for benthic monitoring in 2022. A monitoring study has also been initiated to measure and track the gradient of benthic recovery following the cessation of farming using our former Isle Ewe fish farm. We are also involved in a Scottish project aiming to develop and improve management tools for farmed/wild fish interactions in terms of sea lice dispersion models and interaction between wild and farmed fish. This work is part of our commitment to the Scottish Governments “Farmed Fish Health Framework” and involves collaboration between farm operators, local wild fish stakeholders, the Scottish Association for Marine Science (SAMS) and Marine Scotland Science. Mowi Scotland is also involved in a multi-trophic growing project which combines salmon and shellfish farming in close proximity (in collaboration with the University of Stirling). Mowi Scotland is also participating in a project to use of sea cucumbers as a seabed bioremediation tool. Mowi Scotland remained actively involved during 2022 in supporting two long term multi-partner projects with a goal to restore self-sustaining wild Atlantic salmon populations to the upper River Garry and Loch Arkaig. Our Scottish operations also supported local monitoring of juvenile salmon populations in river Tournaig and Loch Sguod. Also in Scotland, as a result of our escape incident at the Carradale Farm we launched, in partnership with Fisheries Management Scotland, a comprehensive multi-year wild fish monitoring study across 110 rivers in the closest areas to the Carradale Site. The results of the genetics study indicated that evidence of hybridisation post incident was limited to a single juvenile salmon which could not be identified as a progeny of a farm raised escaped salmon from the Carradale fish farm. Mowi Scotland is also involved in a project aiming to develop improved solutions for analysing and monitoring hard seabed by using ROVs linked with above water GPS technology and acoustic responders to develop 3D digital models to be used for monitoring seabed changes. Priorities Going Forward We will continue to focus on projects aimed at protecting our natural capital. Areas such as the reduction of benthic impact through improved monitoring tools, better understanding of farmed/wild salmon interaction, and waste (including plastic) management and recycling will be a priority. Deforestation/biodiversity has been and will continue to be taken into account when reviewing and selecting our soy suppliers so we ensure to maintain a 100% free-deforestation sourcing of soy. Planet 072 Integrated Annual Report 2022 Sustainable Feed The Challenge Feed is a key component in ensuring the best possible fish health and performance. In any life cycle assessment (LCA) of salmon farming, feed also makes the largest contribution to its environmental footprint. To remain at the forefront of environmental responsibility, we prioritise the sourcing of sustainable feed ingredients, and strive to utilise feed as efficiently as possible at our fish farms. * Life Cycle Assessment (LCA) determines the environmental impacts of products, processes or services, through production, usage, and disposal. Our Efforts Sourcing sustainable feed ingredients is crucial if we are to remain a front-runner with regard to environmental responsibility. Our policy for sustainable feed ingredients applies to all feed purchased externally, as well as the feed we produce ourselves. Our feed plant at Valsneset, Norway, is Global GAP certified, and produced 371 876 tonnes of feed in 2022. Mowi Feed supplied salmon feed to all our seawater farms in Norway in 2022, with only limited amounts sourced from other suppliers. Our feed plant in Kyleakin, Scotland produced 143 140 tonnes in 2022. Mowi is self-sufficient with Feed in Europe. In 2022, the sourcing of our marine and vegetable raw materials was 100% compliant with our sourcing policy (also 100% in 2021). 100% of our marine raw materials were either MSC, MarineTrust Standard (former IFFO-RS) certified or part of fisheries improvement projects aimed at achieving the MarineTrust certification. In 2022, we have included algal oils in our feed formulation as a step towards achieving our target on inclusion of emerging feed raw materials: By 2030, Mowi aims to achieve an inclusion of 10-15% ingredients from emerging feed raw materials. More information on our Emerging Feed Raw Materials Policy can be found here. In 2022, Mowi Feed included 2.5% emerging feed raw materials in its feed composition (which includes algal oils and pea protein concentrate). 100% of our soy originated from deforestation-free areas, non-GM (not genetically modified) and was either Proterra or Europe Soya Standard certified. Mowi has conducted a risk-assessment of the soy supply chain which is available in our Sustainable Salmon Feed Policy. Soy sourcing has a low risk from a nutrition quality and certification perspectives while it has a medium risk from a climate exposure, price increase and reputational perspectives. We will continue to work closely with our soy suppliers to minimise those risks including work through Proterra certification and to continue supporting MRV (Monitoring, Reporting and Verification) audits to our Brazilian suppliers of soy protein concentrate (Caramuru, Imcopa/Bunge and CJ Selecta), already initiated in 2021. In 2022, significant progress was done to verify the commitment has been achieved to all direct and intermediate suppliers. Independent auditors conduct an annual review of the effectiveness of supplier procurement controls to ensure only approved Mowi’s policy on biodiversity and natural capital Mowi’s vision is to Lead the Blue Revolution and unlock the potential of the ocean in a way that respects our planet. To realize our vision we depend on a healthy ocean where biodiversity and natural capital are preserved for future generations. We acknowledge that aquaculture activities can potentially impact biodiversity and we therefore work continuously to keep any negative impacts to an absolute minimum. Mowi’s Biodiversity and Natural Capital Governance Mowi is committed to achieving 100% compliance with prevailing environmental laws, regulations and relevant standards – and we always strive to go above and beyond these where possible. Biodiversity and natural capital conservation is governed trough implementation of our sustainability strategy and a number of comprehensive policies with the aim of strengthening our environmental management systems. Mowi’s Biodiversity policy Our biodiversity policy covers scopes identified by benchmarking towards the EU Green Deal and key global initiatives and outlines how our operations are managed responsibly with biodiversity considerations in the forefront. How we work to minimize our impact: •Responsible sourcing of sustainable feed ingredients •Reducing water and benthic pollution •Reducing greenhouse gas emissions •Minimizing the use of plastics and increasing plastic recycling •Prudent and responsible medicinal treatments •Using non-medicinal sea lice management and prevention techniques •Minimizing fish escapes •Monitoring and minimizing interaction with wild populations •Continuous improvement through R&D Planet 073 Integrated Annual Report 2022 purchases are made. This includes several checks including satelling monitoring. All ingredients, marine as well as non-marine in origin, which are used in the production of our feeds, are fully traceable (for marine raw materials, please see the illustration on the following pages). None of our raw materials originate from illegal, unregulated and unreported (IUU) catches, or from fish species classified as endangered on the International Union for the Conservation of Nature (IUCN) red list. We aim at having all our marine raw materials sourced from suppliers who adhere to responsible fishery management practices. Through research collaboration with scientists from institutes and universities, as well as with industrial partners, we identify and source alternative ingredients - including responsibly produced plant proteins and oils - that provide the necessary nutrients for state-of-the-art salmon feed. As a result, we have significantly reduced our use of fishmeal and fish oil in feeds, while maintaining growth performance, fish health and product quality. Soy purchased from Brazil was 100% ProTerra certified and originates from the states of Parana, Matto Grosso, Minas Gerais and Goiás. The ProTerra Standard is based on ten principles, focusing on biodiversity conservation, environmental management and effective environmental services, the protection of Amazon, Cerrado and Chaco biomes, the protection of community rights and the promotion of working and agricultural best practices especially related to sustainable land use and reducing the application of pesticides. Land areas converted after 2008, be it by human intervention or natural causes, are not eligible for certification under ProTerra under any circumstances. In 2022, Mowi continued to work together with our Soy Protein Concentrate (SPC) suppliers, ProTerra and the other feed companies within the Aquaculture Dialogue on sustainable soy sourcing from Brazil. This dialogue aims to further develop sustainable sourcing from Brazil by achieving more transparency through traceability tools. In 2022, we continued our work to ensure a robust MRV system. Mowi's SPC suppliers from Brazil have passed with success a MRV (Monitoring, reporting and verification) audit on the Proterra Foundation Monitoring and Verification Guide. This confirms that the commitment made by our suppliers to achieve a deforestation-free supply base has been achieved. This bold and historic move sets a new benchmark for global sustainable supply chains and has been recognised by external stakeholders such as WWF and the Rainforest Foundation. In 2022, Traceability Certificates of Compliance (TCCs) were issued to provide further documentation of origin (down to municipality level). The TCCs include information on volume of the consignment changing ownership, the lot numbers and volumes of each lot of material contained in the consignment, identification of seller and buyer, date of the transaction and information verifying that the specific lot of material referenced in the TCC complies with the relevant threshold for GMO. In addition to increased traceability, a study on the carbon footprint of Brazilian soy from ProTerra certified sources was improved allowing to have credible and updated carbon footprint data for SPC from Brazil. In addition our European suppliers have updated their carbon footprint data. Planet 074 Integrated Annual Report 2022 This has allowed us to use specific carbon-footprint data instead of secondary data from LCA databases in our scope 3 emissions calculations. Results 1.15 kg of feed used to produce 1 kg salmon The feed conversion rate (FCR) is a ratio that describes the amount of feed used to produce a certain amount of salmon. It is often defined as kg feed consumed/kg biomass gained. The lower the FCR, the more efficient our salmon are at converting the energy in the feed. Biological feed conversion ratio expresses the amount of feed used to produce 1 kg of salmon. On a global level in 2022, we used 1.15 kg (1.16) of fish feed to grow 1 kg of salmon. Reduced dependency on wild fish for salmon farming In 2022, particular attention was paid to expanding the raw materials basket for fish feed production. It is well recognised that the industry has moved on from the initial dependence on fishmeal and fish oil through the inclusion of other types of protein- and lipid raw materials. A better understanding of Atlantic salmon nutrient requirements through the various stages of the fish’s life cycle has allowed for the inclusion of a range of novel raw materials in our salmon feed. We support and closely follow the ongoing development and testing of novel raw materials. This is the case for oils rich in Omega-3, as well as novel protein sources from sustainable production. We continue our efforts to increase the use of fish trimmings to produce fishmeal and fish oil, in both our integrated feed production and externally sourced feed. In 2022, Mowi Feed sourced 53 897 tonnes of fish meal from whole fish and 32 058 tonnes from trimmings/by-products and 56 072 tonnes of fish oil from whole fish and 10 773 tonnes of fish oil from trimmings/byproducts. This means that in 2022, 37.3% and 16.1% of fish meal and fish oil respectively, used by Mowi Feed, originated from trimmings. In 2022, Mowi Farming used 0.76 kg of wild caught fish to produce 1 kg of farm-raised salmon - comparatively in 2021 we used 0.80 kg. We sourced a high proportion of marine ingredients from the northern hemisphere in 2022, much in line with the situation in 2021. The value of FIFO of 0.76 is further reduced to 0.65 (recapture FIFO, rFIFO) if one takes into account the recapture marine raw materials, i.e. the fact that the salmon by-products after processing are used to produce fish meal and oil used for other aquaculture (non-salmon species and pet food). Our Forage Fish Dependency Ratios (FFDR) for meal and oil are also presented at the end of this section, as a group (weighted average based on seawater production) and per farming country. The ASC methodology is used for these calculations. Priorities going forward We strive to balance the need to produce healthy meals for human consumption with our goal to be an environmentally responsible producer. We do this by sourcing sustainable feed ingredients and utilising the feed resources optimally at our farms. The biology of salmon as an effective protein converter is one of the salmon industry’s key success factors. Since we own our own strain of salmon, "Mowi", we believe that it is possible to work with our breeding and genetics group to create a fish capable of even better feed utilisation, growth performance and nutrient value. Our focus moving forward is to optimise feeding procedures and practices to make sure we make the best possible use of the resources available. In terms or raw material development, we strive towards independence from specific raw material sources be they of marine origin or those derived from commodities including wheat, soya, corn, peas or beans etc. This will secure our cost competitiveness in the face of fluctuations in commodity markets and give us the power to catalyse change in the supply chain through our ability to switch between sustainable, responsible, solutions when circumstances dictate it. In seeking to expand our spectrum of available raw materials, we continue our efforts by validating promising candidates including those derived as by- or co-products from other feed, food and even non-food industries. Within this scope, we include products derived from insects, alcohol fermentation, CO2 capture and forestry. We will continue working with our SPC suppliers from Brazil as part of the aquaculture dialogue on sustainable soy sourcing from Brazil. Planet 075 Integrated Annual Report 2022 Why is it important to produce larger smolts? Since 2020, we have produced over 40 million smolt with a pond size greater than 200g, and have observed that these larger smolt generally have a higher relative growth index compared to their normal-sized counterparts. This, coupled with their shorter time to reach harvestable size, highlights the potential for improvement in growth and turnover of our sea-based biomass production. Globally, over 80 million smolt have been ponded above 200g since 2020, and the number of larger smolts will continue to rise due to Mowi Norway's post-smolt program. In our ongoing efforts to achieve sustainable and efficient production, we believe that reducing the time spent in sea is crucial. This will help minimize the need for sea lice treatment, reduce the number of sites required, and lower the risk of impacting wild salmon stocks. What has Mowi done in 2022 to enable deployment of larger smolts? Since 2022, we have expanded our freshwater production by establishing five land-based sites and launching the announced post-smolt production in three land-based sites in Norway using RAS technology. Additionally, we have increased our testing of post-smolt production in marine floating semi-closed systems (S-SCC) from one to four in Southern Norway. To ensure the production of larger smolts, we have invested in R&D programs with CtrlAqua and FHF. To increase smolt size before ponding, we must focus on the details of design, operation, and biological protocols. We are continuously evaluating the biological and technical performance of these systems to validate their effectiveness. It is important to secure our smolts by providing internal training in RAS and constantly upgrading our design and operational practices. We have been pursuing these initiatives throughout the past year. What’s next? Over the past five years, we have completed or initiated fifteen building projects related to fry, parr, or smolt production. Our strong global technical team ensures the transfer of knowledge across all units, and our skilled and dedicated personnel guarantee the production of smolts with the right quantity and quality. We will continue to enhance our freshwater section of Mowi to meet the demands for smolts in terms of quantity, ponding time, size, and quality. We utilize four technological platforms - flow-through, RAS, Lochs, and S-CCS, some of which are freshwater-based, while others use saline water. This diversifies our risk, and we believe all these platforms will continue to be relevant in the future. The priority for specific technologies or production regimes in freshwater will also be shaped by the regulatory and taxation policies in the production areas, and we will adapt accordingly. Unfortunately, the Norwegian Government’s proposal for resource rent tax on aquaculture forced Mowi and the rest of the industry to put all new investments on hold in 2022. Trond Rosten, Group Manager Freshwater, Mowi, ASA The role of Postsmolt in our Sustainability Journey Planet 076 Integrated Annual Report 2022 Planet 077 Integrated Annual Report 2022 Fish meal Species Country of origin/ FAO Fishing Area Volume (tonnes) % of meal purchased Fish meal, NE Atlantic Blue whiting, capelin, herring, Norway pout, sandeel, sprat; and trimmings from blue whiting, capelin, cod, herring, mackerel & sprat Faroe Islands, Iceland, Norway, Denmark, Scotland, Ireland / 27, Atlantic Northeast 81 309 93.7% Fish meal, Peru/Chile Anchovy, sardine, stripped weakfish Peru / 87, Pacific Southeast; 41, Atlantic South West 3 247 3.7% Fish meal, SE Atlantic Anchovy South Africa/ 47, Atlantic Southeast 2 246 2.6% Total fish meal (tonnes) 86 802 100% Fish oil Species Country of origin / FAO Fishing Area Volume (tonnes) % oil purchased Fish oil, Peru/Chile Anchovy, jack and mackerels & sardine Peru / 87, Pacific Southeast 17 155 26.0% Fish oil, SE Atlantic Anchovy & pilchard South Africa / 47, Atlantic Southeast 5 423 8.2% Fish oil , Eastern Atlantic Sardine Mauritania / 34, Atlantic Eastern Central 3 040 4.6% Fish oil, Pacific Eastern Central Anchovy Panama / 77, Pacific Eastern Central 419 0.6% Fish oil, USA, menhaden Gulf menhaden USA / 31, Atlantic Western Central 8 651 13.1% Fish oil, NE Atlantic Blue whiting, herring, Norway pout, sandeel, sprat and trimmings from capelin, cod, flounder, herring, mackerel & sprat) Iceland, Norway, Denmark, Ireland / 27, Atlantic Northeast 31 392 47.5% Total fish oil (t) 66 080 100% Planet 078 Integrated Annual Report 2022 Planet 079 Integrated Annual Report 2022 Planet 080 Integrated Annual Report 2022 The above graph is composed of the following: Total fuel consumption non-renewable (1 692 TJ from Diesel, Fuel oil, Gasoline/petrol, Heating oil, Natural gas, Propane and MGO); Total fuel consumption renewable (7 TJ from Wood chips); and Electricity consumption (1 507 TJ); Total energy consumption is 3 206 TJ. Zero (0) heating, cooling, steam consumption and zero (0) electricity, heating, cooling and steam sold. “Others” with 10% contribution include: Gasoline/petrol with 1,2%, Heating oil with 1,1%, Propane with 1,6%, Wood chips with 0,2% and Marine Gas oil with 5,5%. Planet 081 Integrated Annual Report 2022 Planet 082 Integrated Annual Report 2022 FFDRo and FFDRm calculation according to ASC definitions, Appendix IV https://www.asc-aqua.org/wp-content/uploads/2019/07/ASC-Salmon-Standard_v1.3_final.pdf Planet 083 Integrated Annual Report 2022 Mowi Group Mowi Farming (Freshwater production) Mowi Farming (primary processing plants) Mowi Feed Mowi S&M (secondary processing plants) Freshwater withdrawal (x1000 m3) Total 367 268 363 490 1 825 330 1 622 Surface water 317 049 316 862 94 93 0 Third Party water 32 337 29 606 1 615 238 878 Ground water 17 881 17 022 115 0 744 Freshwater consumption (x1000 m3) Total 491 216 92 182 1 Surface water 204 168 7 29 0 Third party water 236 0 81 153 1 Ground water 51 47 4 0 0 Farming has been split into our freshwater production and primary processing plants. Our Sales & Marketing business area (S&M) include our secondary processing plants. Freshwater consumption is calculated as freshwater withdrawal minus freshwater discharge (GRI, Water and Effluents). For our Recirculating Aquaculture Systems (RAS) we have assumed 1% of water consumption linked with make-up water used to compensate for evaporation. At our processing plants, consumption is linked with ice production. Our targets are therefore directed to water withdrawal as consumption is already negligible. Planet 084 Integrated Annual Report 2022 The world needs more food with a lower carbon footprint and the ocean holds the still largely untapped potential to feed a growing population. Blue or Aquatic Foods have lower greenhouse gas (GHG) emissions than land-based foods and, therefore, salmon farming can help bridge the gap between the potential of the ocean and the production of sustainable food that is healthy for people. Mowi is leading the Blue Revolution and is working globally to make Blue Foods part of the solution to climate change. Through partnering with initiatives including the One Ocean Expedition, as well as through events such as the UN Ocean Conference and organisations including seaBOS, we can work together to help close the emissions gap needed in food production. One Ocean Expedition The Statsraad Lehmkuhl, Norway’s largest and oldest square-rigged sailing ship, is travelling 55,000 nautical miles and visiting 36 ports worldwide over the course of 20 months, returning to Norway in April 2023. The One Ocean Expedition aims to raise awareness and share knowledge about the crucial role of the ocean in sustainable development and is recognised as part of the United Nations Decade of Ocean Science for Sustainable Development. As we place sustainability at the heart of what we do at Mowi whilst we lead the Blue Revolution, we are extremely proud to sponsor the expedition. Young people, scientists and international leaders have come together on board to gain new insights through science, education, and technology, before sharing with the world the vital role of the ocean for a sustainable future. Events have been held at various ports along the ship’s voyage, where those involved can share learnings. In September 2022, the Statsraad Lehmkuhl visited Japan as part of the Japan-Norway Sustainable Seafood Symposium. Mowi is at the forefront of producing climate friendly food Statsraad Lehmkuhl Supporting the planet and people Planet 085 Integrated Annual Report 2022 Norwegian seafood companies with a presence in Japan, including Mowi, presented their sustainability strategies and progress made, alongside representatives from Japanese trade and certification companies. Mowi’s Chief Sustainability and Technology Officer, Dr Catarina Martins, was there to present on behalf of Mowi, and a reception was also held on board the Statsraad Lemkuhl. The Japan-Norway Sustainable Seafood Symposium and the reception on board the Statsraad Lemkuhl were a great way for the sector to come together to share our expertise, experience and knowledge of sustainable aquaculture. The inclusion of aquatic foods in national food security and nutrition strategies, together with initiatives to improve consumer awareness on their benefits, is needed to increase availability and improve access. UN Ocean Conference In 2022, Mowi was proud to be part of the UN Ocean Conference in Lisbon, Portugal. Taking place from 27th June until 1st July 2022, the conference brought together delegates from member states, non-governmental organisations, universities and business to discover ways to sustainably develop the ‘Blue Economy’. By uniting with delegates from around the world who share our passion for the ocean and advocating sustainable aquaculture at important events like this, we can mobilise significant action on climate change. Based around the UN’s Sustainable Development Goals (SDGs), the conference seeks to accelerate science-based innovations and solutions that aim to begin a new chapter of global ocean action. “The UN Ocean Conference amplified the message that ocean conservation can go hand-in-hand with sustainable ocean economies like aquaculture, renewable energy and green shipping. Mowi's participation in key discussions at the conference centred around climate change and sustainable aquaculture production to satisfy global demand for aquatic foods. These discussions made me realise what a fantastic sector we are part of - delivering millions of healthy and sustainable meals to a growing world population.” Catarina Martins, Chief Sustainability and Technology Officer, Mowi ASA Promoting sustainable aquaculture Aquaculture has the potential to feed and nourish the global population, and the consumption of aquatic foods is already on the rise. Promoting the expansion and intensification of sustainable aquaculture is The Food and Agriculture Organization of the United Nations (FAO). The FAO’s report ‘The State of World Fisheries and Aquaculture’ provides a compelling case for the future potential of aquaculture. According to the report, fisheries and aquaculture production reached a record 214 million tonnes in 2020. Of this, aquaculture production reached a new record of 122.6 million tonnes, accounting for 49.2 per cent of the global production of aquatic animals in 2020, with a total value of USD 281.5 billion. And the growth of aquaculture is projected to reach 100 million tonnes for the first time in 2027 and 106 million tonnes in 2030. In fact, global consumption of aquatic foods (excluding algae) has increased at an average annual rate of 3 per cent since 1961, almost double the population growth rate of 1.6 per cent. In the 1960s, an average of 9.9kg of seafood was consumed per capita, more than doubling to 20.2kg per capita in 2020. Consumption of aquatic foods is projected to increase by 15 per cent to an average of 21.4kg per capita in 2030, driven by rising incomes and urbanisation, improvements in post-harvest practices and changes in dietary trends. FAO, The State of World Fisheries and Aquaculture, 2022 Mowi has the potential to play a significant part in meeting the global demand for salmon. 086 Integrated Annual Report 2022 Product 087 Integrated Annual Report 2022 Nutritious and tasty salmon Our goal is to deliver top-quality salmon and inspire a healthy and climate-friendly lifestyle. Branding and product innovation The branding rollout continued in 2022 with the MOWI brand launched in Germany, Brazil, Argentina, Colombia, China and South Korea. Mowi's team of experts is constantly exploring market needs to create innovations and is looking at the phenomenal variety of ways to prepare and consume salmon all around the world. In 2022, Mowi launched several new products such as the new Mowi Pas Fume meaning non-smoked, dried and marinated salmon, a new product altogether in the salmon category. Nutritional and good for your mood salmon Salmon is a consumer favourite, highly nutritious and promoted by nutritionists worldwide. The Blue Foods Assessment found that blue foods from the ocean, such as salmon, on average have much greater nutritional benefits than terrestrial animal foods, and many also have a smaller environmental footprint. Our own Good Mood Food survey in the UK found that 73% of UK consumers recognise a link between what we eat and how we feel but that 65% of adults will reach for the foods that are less likely to improve their mood. Enhanced food safety monitoring The results of our rigorous testing program continue to demonstrate that our salmon is both safe and healthy. In 2022 we increased the focus on implementing common global systems for our processing plants, such as traceability systems and common databases for microbiology results. Tasty and healthy seafood providing customer value Product Product 088 Integrated Annual Report 2022 Branding and product innovation THE OPPORTUNITY During the pandemic, more and more people learned to enjoy seafood from the comfort of their own home and kitchen. With a lack of restaurant visits and chefs to create great tasting salmon dishes, we learnt to do that ourselves. This has continued and we’re happy to see ever more people enjoying salmon meals. In 2022, the food service channel bounced back as well after tough years with lockdown and strong restrictions preventing people from dining out. Market conditions in 2022 have been very favourable with 1% supply contraction and improved demand from re-opening of the foodservice segment and continued good retail volumes. While the effects of the economic slowdown in the time ahead are uncertain, we know that people still want to eat tasty and healthy foods. Consumers have become more interested in health and wellness since the emergence of the pandemic, and now pay more attention to attributes like high-protein, low-sugar and plantbased1. Mintel’s 2023 Global Food and Drink Trends2, confirm that healthy eating is at the top of the consumer’s mind, worldwide, with 57 % of adults determining good value in food and drink as “added nutritional benefits”. Mintel states that: Despite high inflation, consumers in Brazil and Italy say health benefits and natural ingredients are more important factors than a low price to indicate whether food or drink is a good value. When it comes to the health benefits consumers would like from their diets, one of the pandemic’s lasting influences is a global consumer priority for their diets to strengthen the immune system. Brands also can make it easier for consumers to find food and drink that can maintain a healthy heart and support digestive health. Consumers concerned with a healthy lifestyle would do well to choose salmon for their meals as research published by the journal Neurology suggests that most adults could benefit from at least one serving of oily fish each week. It found that eating salmon and other fish rich in omega-3 in your 40s and 50s can lead to a healthier brain as it is linked to a healthier brain structure and more agile thinking. A research by Frontiers in Immunology also found that the type of vitamin D found in salmon and other oily fish helps boost the human immune system against bacteria and viruses. The study found that vitamin D₃ from animal-based foods is more effective at boosting vitamin D levels in the blood than D₂, which is found in plant foods, such as mushrooms, and is also added to some breads, cereals and yogurts. The research was conducted on women in Britain over a three-month period and was published in the journal Frontiers in Immunology. With its heart-healthy omega-3 fatty acids, high-quality protein and vitamins and minerals, salmon can be enjoyed in a variety of options from sushi to burgers, stir-fry to risotto or simply raw. It comes highly recommended by national food safety and health authorities around the world, making it an almost universal recommendation to get your 2 to 3 servings of seafood per week and at least one of them being a fatty fish3 such as salmon. There are large variations in the seafood consumption per capita around the world: we see that countries with large local fisheries and a tradition for eating seafood have normally a relatively higher seafood consumption per capita. This provides an opportunity for farmed salmon to provide steady year-round supplies to markets which in the past had less access to seafood. The Blue Foods Assessment4 released in 2021, showed farmed salmon is preferable to chicken for most environmental metrics, including freshwater use and greenhouse gas emissions, as well as on nutrient profile. Farmed salmon is a highly sustainable way of farming animal protein, and in 2022, Mowi was for the fourth time in a row ranked the world’s most sustainable protein producer 1 Euromonitor 2022 2 http://tiny.cc/Mintel_2023_Trends 3 https://www.efsa.europa.eu/en/news/efsa-provides-advice-safety-and-nutritional-contribution-wild-and-farmed-fish 4 https://bluefood.earth/ Material value drivers Ambitions Branding and product innovation Value added sales growth Ensure food safety and quality No recalls related to food safety. Superior quality > 92% Product certification and verification All farms 100 % GSSI certified certified, and processing plants certified to standards recognised by the Global Food Safety Initiative (GFSI) Healthy seafood Omega-3 content >1g per 100 g product Watch our Tik Tok recipe video Product 089 Integrated Annual Report 2022 by the Coller FAIRR Initative5. Together with 5 of our aquaculture colleagues, aquaculture, and specifically salmon farming, held 6 out of the top 10 places in the Coller FAIRR ranking. Despite our excellent health and sustainability credentials, we know the main reason why consumers choose our product over and over again: TASTE. Nothing is as important as taste when it comes to food. In many countries, salmon is the top choice and favourite fish of all time. Its famous for its not-so-fishy, buttery, mild taste and soft, melt-in-your-mouth texture. From this delicious produce, we create new recipes and products throughout the year and offer it to our customers and consumers. There are still huge opportunities in this category and the number of people not eating salmon is still bigger than those who do. By using consumer and market insight, we can recruit new users to the category and further drive growth. By identify new ways to enjoy salmon and create new products, we can entice both existing and new consumers. Creativity, precision, and innovation all play a part throughout the value chain but nowhere more so, than at the end. OUR EFFORTS At Mowi we have a global new product development network with centres around the world. We produce 200-300 new products a month and we have several hundred new products in our pipeline globally at all times. We have assembled a team of experts who are developing and refining salmon in all its forms, from smoked slices to seasoned portions. Our specialists from around the world are coming together to share innovative approaches and cross-fertilize between different food cultures. Having created salmon which sets new standards of colour, taste, marbling, and freshness, we are inspiring customers all over the world with ever more delicious ways to enjoy it. With various production capabilities across markets, we’re able to fulfil the needs of our customers through our network of production facilities worldwide. Our engineers, chefs and technicians will inspire our customers and have the salmon know-how to help overcome technical complexities using innovative technology. Our teams have delivered kosher products and have helped address demand for low fat, low salt, and low smoke options in specific markets. We are here to help our customers succeed in their market. We recognize that collaboration is the key to unlock a whole range of new products and the best way to discover the next salmon success. 5 https://www.fairr.org/index/company-ranking/ Check out a delicious recipe with our new Pas Fume products here MOWI’s French Pas Fume product Product 090 Integrated Annual Report 2022 In 2022, Mowi’s smoked salmon with 25% less salt, produced by our Belgian factory Mowi Ostend, won the Best Product of the Year award 2022-2023 in the seafood category. The significance of this award is that it is chosen by consumers, who can vote for their favourite products in a range of categories. In January 2023, this product won another award: it achieved the Nr. 1 ranking from the expert jury in the Healthy Innovation Awards. The Healthy Innovation Awards, an initiative of Food Personality and Foodlog (Dutch trade media), compliment products and initiatives that contribute to a healthier diet. The smoked salmon was unanimously chosen as the winner because the product makes a strong contribution to health awareness and healthier menu choices, the jury said. This lower-salt smoked salmon was first developed in cooperation with Belgian retailer Delhaize upon their request for a smoked salmon product with a better NutriScore ranking. The product was an immediate success in the Belgian Delhaize stores. This led to the launch of the same product in approx. 1,000 stores in the Netherlands in November 2021, under the private label of Albert Heijn. Both Albert Heijn and Delhaize are part of the Ahold Delhaize retail group. This lower-salt product has a sodium level which is well below the global sodium benchmarks set by the World Health Organization6 for the subcategory of processed fish and seafood products. These WHO benchmarks aim to reduce the global population’s salt intake, reduce the burden of diet- and nutrition-related non-communicable diseases (NCDs), and achieve the global NCD target for a 30% relative reduction in mean population intake of salt by 2025. “We found a worthy alternative to replace part of the sea salt we normally use to produce our smoked salmon. Both in terms of salt perception and food safety, this proved to be a good choice! Thanks to a smooth cooperation between New Product Development, Production, Quality Assurance and the Technical department of Mowi Ostend, the challenges in production implementation of this lower-salt smoked salmon were expertly solved. This well-executed new production process ensures a safe, high-quality product with 25 % less salt than the usual smoked salmon and NutriScore C. The sales show this is recognised by consumers. These awards, from consumers and from an expert jury, are the icing on the cake for Mowi Belgium.” Nele Tylleman, New Product Developer at Mowi Belgium. A great example of how collaboration between us and our customers result in new, healthy and tasty products that can count on a high level of consumer acceptance and appreciation. Being customer centric is important to us, that is why we do our best to accommodate the needs our customers have with regards to products. For instance, we offer different certifications such as ASC, Global Gap and BAP but also accommodate needs around packaging, production specifications, or even labelling needs. Nutri-score is something we offer to our customers which is a grading system developed to help people make healthier food choices more easily. It is made up of a 5-point scale: Letter “A” is the most favorable choice and is presented in dark green to the letter “E” which is the least favorable choice and is red. Today, the NutriScore table is mostly used for smoked salmon products where also the health challenge is the biggest due to its salt content. Our packaging specialists ensure the optimal use of packaging for our seafood and salmon products. They are also staying up to date on relevant new packaging developments and of course reduction of the use of plastics. In all our markets, we are working on reducing the use of plastics where light weighting our packaging is one action and introducing recycled and recyclable material other actions. We have set ambitious targets to reduce the use of plastic; •by 2025, 100% of our plastic packaging will be reusable, recyclable or compostable •by 2025, at least 25% of plastic packaging will come from recycled plastic content Our packaging teams are continuously looking at new solutions for more sustainable packaging with current and new suppliers as well as technological start-ups. We are also implementing processes and tools to share the knowledge and best practice between all operations. These efforts will benefit our customers and support their own efforts to reduce the use of plastics. Europe Europe is the largest market for salmon in the world, thus also our biggest market. It is also a driver for innovation, new product development and many of our new product launched stem from Europe. Strict Covid restrictions were mostly removed in Europe during the first half of 2022 and people were little by little able to return to their more normal everyday life. This includes restaurants and food service which came back with force from the start of the summer season. Retail continued to be a strong channel in 2022, despite a decline compared with the extraordinary high levels seen during the pandemic. We have continued to focus on our strong retail relationships and help to drive category growth through joint efforts with retailers and strong own brands. Our efforts in European retail Our network of processing plants with key roles and departments located in strategic parts of Europe enables us to deliver excellent, delicious and healthy products to all parts of the European continent in a matter of hours. Collaboration is key to making this happen; sharing production, product and market knowledge 6 https://www.who.int/publications/i/item/9789240025097 Product 091 Integrated Annual Report 2022 makes our organization agile, proactive and highly responsive. Its important for us to have a global presence, with strong local expertise in order to best serve our customers and consumers. As previous years, we have also in 2022 received several acknowledgements of the great taste, high quality and overall excellence of our products. In Italy, with our MOWI brand and for the entire brand range, we won the “Eletto prodotto dell’anno” (Elected Product of The Year) in the salmon category. For over 30 years, ‘Eletto prodotto dell’anno’ has been rewarding the work of innovative brands that focus attention on the needs of consumers. And it was the consumers who decided that MOWI was a worthy winner by a voting system conducted by the research institute IRI on over 12,000 Italians. The voting took into consideration two fundamental criteria: Innovation and Satisfaction. The entire MOWI range won the ‘Eletto prodotto dell’anno’ award including MOWI SIGNATURE for smoked salmon, and MOWI GOURMET for marinated salmon with the INFUSIONS, DELI and BBQ options. These are two exceptional lines that offer salmon with an intense flavour and an excellent nutritional profile, farmed in the pristine waters of the Norwegian fjords and fed on a diet free of antibiotics and GMOs. In France, the MOWI smoked salmon won “Saveurs de l’année 2022” (Taste of the Year) award. The Saveurs de l’Année is a consumer quality award. It’s not a contest, nor are there grand prizes to be won, but recognition is subject to the taste evaluation by a consumer jury. What matters is the pleasure the taste of the product gives, and the members of the consumer panel take their critical role very seriously. The objective of this examination is not to identify ‘the best product in the world’, which would be unrealistic, but to offer consumers a serious guarantee of good taste. Our French MOWI smoked salmon products now proudly wear the Saveurs de l’année label on their packs. In Europe, we also saw the expansion of our MOWI brand into the German market. Germany is a large consumer market in Europe and there is still big room to grow seafood and salmon consumption there as the seafood consumption is below the world average at 13 kilos per capita/year versus 19 kilos per capita/year. We know almost half of the German population eat seafood at least once a week, but very few follow the dietary advice of having fish twice a week. With the combination of excellent products, good consumer insights, market understanding and retailer relationships, we believe MOWI will help grow the German market even further. Finding those untapped occasions and creating relevant products for the quality conscious, sustainability-minded German consumer is a key challenge for our teams moving forward. Our Efforts in European Food Service The food service sector still had major limitations at the start of 2022 due to continued restrictions in most major markets. As we saw the opening of several countries towards the end of Q1 and during Q2, food service began to recover and bounce back from the pandemic. Towards the summer of 2022, we saw a real growth in demand from the channel, and recovery was underway. People were delighted to once again visit restaurants, cafes and other dining venues. Throughout the pandemic, we have remained in contact with our food service partners in the anticipation of the opening of societies. We were ready when this happened and could immediately take advantage of the situation and supply customers with their salmon needs. Just like for retail, we remain agile and are constantly developing and offering a variety of products for food service. This also includes the MOWI brand where we have a range of delicious products and services we offer to our partners. In this channel, the support we can provide beyond purely products has been greatly appreciated by our customers and we will continue to give them our support in order to increase the number of salmon meals on their menu. Our MOWI Supreme food service brand has yet again been awarded medals from the International Taste Institute. The International Taste Institute (ITI) is the world's most renowned independent certification worldwide when it comes to evaluation and certification of food and beverages. Our MOWI Supreme Check out how we collaborate with top restaurants MOWI salmon product in Chile Product 092 Integrated Annual Report 2022 Fresh Salmon won the 3 star Superior Taste Award, while our MOWI Supreme Cold Smoked Salmon and Rope Smoked Salmon was awarded the Superior Taste Award 2 stars. We are delighted to offer such high quality products acclaimed by chefs to our partners around the world. The Americas The size and population of the Americas makes it one of the most interesting markets for salmon. In this vast continent, our operations stretch from Chile in the South to Canada in the North. As a fully integrated salmon producer, we both farm and sell our products in the Americas. We have a wide presence both in Canada, the US, not to mention several of the large Latin American consumer markets. With offices close to our operations and customers, we have a strong market knowledge and ability to serve customers both with high quality product and category relevant market insights. Our efforts in the US The market for Atlantic salmon has been growing in the US and the last 3 years has seen a growth of 30% in volumes7. The salmon consumption per capita remains low at 1.9 kg8. No wonder we continue to see growth opportunities in this market. Salmon is one of the preferred seafood species in the American market and Chilean is the largest origin in the market. Mowi has a unique position in the US. From a supply side we are able to source all origins (Chilean, Canadian, Norwegian and more), while our logistical and factory setup enables us to deliver anywhere in the US market within days. This puts us in a unique position to serve customers and expand in a market where demand is high and still growing. In the US, we have both a very strong private label portfolio delivered to partners we have had for years and who continue to put their trust in us, as well as strong household brands. Ducktrap remain one of our strongest brands and they are delivering high quality products in the US market, both in retail and food service. It has a nationwide presence with signature products that consumers love. In 2022, Ducktrap expanded its capabilities in production to ensure high quality products for customers and consumers. The Maine facility serves the needs of customers from fresh never frozen fish to pre-frozen fish portions that are ready to be skin packed according to customer needs. The Ducktrap River of Maine Facility continues to process cold and hot smoked roasted selection, while expanding production to new capabilities. 7 NSC www.seafood.no 8 NSC www.seafood.no Watch our Hivju campaign video MOWI’s US product Product 093 Integrated Annual Report 2022 At its third year in the US market, the MOWI brand continued to expand and delivered great results for the overall brand performance in 2022. The brand with brick & mortar presence, online grocery shopping and commodity space, offers MOWI Atlantic Salmon products in several retail chains. The line has grown from 8 to 12 fresh Atlantic Salmon options; the new addition to the line includes portions that come with flavoured butters offering cooking convenience to consumers. To continue bringing brand awareness, a partnership with Discovery and Food Network brought foodies interest to the brand. Our efforts in Latin America The MOWI brand is now present in several countries in LATAM, and saw a huge expansion in 2022. Through our dedicated team in Chile, we’re now reaching millions of consumers in LATAM. Our team has built a solid foundation in brick & mortar, food service and e-commerce. With products suitable for all channels and ranging from whole fish to fillet to pre-packed, we have seen an impressive growth in these large markets. With a bespoke program, our team has educated close to 100 ambassadors who are now able to promote MOWI and our delicious products. They have been trained in the MOWI story from farm to fork, and act as trustworthy, highly skilled experts who are in direct contact with our customers and consumers. This paves the way for further expansion in these exciting markets. Asia Asia represents many diverse market opportunities; that is why we have set up operations in several Asian countries to accommodate the specific market needs. We have built a product portfolio which appeals to local preferences and every day we work with customers to unlock the vast potential in Asia. Unfortunately, demand in Asia is negatively impacted by high air freight rates, and these rates were further impacted by the war in Ukraine. Our efforts in Asia Despite several lockdowns and heavy restrictions in China, the total import of salmon grew with 11 %9, but the growth came in frozen salmon. The value grew by 49%. Through our factory in Shanghai, we’re able to produce products for both food service and retail market. Our team in China are able to source salmon from all over the world and accommodate customers with various demands and preferences. In the Chinese market, we are present in all relevant sales channels from retail to food service and e-commerce. We also continued with livestreaming in China in 2022. In Japan, we have had a large sales and marketing organization for many years including several factories. Japan is a seafood-loving market and few people eat as much seafood as the Japanese do with 45 kg annually per person10. Despite a more difficult logistic situation following the invasion of Ukraine, we have managed to keep a stable supply to this important market. Demand in the market is high and customers are looking for high quality salmon. In South Korea, we are present with our sales and marketing team as well as two own factories. We’re able to serve customers directly with our own products packed conveniently for consumers. New sales channels are emerging rapidly and quickly adapted by the consumers of all ages, such as e-com and delivery services. Home consumption also increased during the pandemic. We will see an increase in smaller packaged products and easy-to-prepare products in this market as we see the move from the traditional family structure to single households. In Taiwan our NPD center launches a number of innovations each year under the Supreme Salmon brand with great success. A few examples of innovations: Kabayaki Salmon Belly, Grilled Salmon Fillet with Garlic Butter or the Salmon Bar. In 2022 the newly launched Salmon Bar has won the “Food Innovation Award”, meaning that it was elected one of the top 10 new products 2022. The Salmon Bar is a ready-to-eat product, consisting of salmon, chicken and surimi mixed with creamy lemon sauce, sold in one of the top convenience store chains. PRIORITIES GOING FORWARD 2022 has been a turbulent year. Coming out of the pandemic, we were all expecting to return to a “new normal”. But starting the year with the invasion of Ukraine and following consequences from this, the pandemic and subsequent inflation and a more challenging macro-economic environment, the year developed more tumultuous than anyone could have foreseen. Despite this, the salmon category delivered stable and good results. At home and at restaurants, salmon is still an important menu choice. In 2022, we continued to expand our MOWI brand. Our ambition to de-commoditize the salmon category remains. We aim to be recognized as the innovation leader in our category and even the broader seafood category. We work hard to make this happen, collaborating across geographies and throughout our value chain. We also work closely with external experts on innovation projects for both product and technology. Our product development teams are not resting on their laurels, and we have several hundred on-going projects in our pipeline. New, exciting, tasty, nutritious and innovative products are being developed to hit the shelves in the coming years. Being able to foresee consumer behaviour is difficult in an extraordinary situation. However, we can conclude that it will be important to satisfy the increasing demand from consumers that the food they eat should be good for them, and good for the planet. This means that it is not enough that the food is healthy, which we know the seafood is. It must also have a low environmental footprint – and here, among other things, the UN’s high-level papers have highlighted the importance of the role of the sea in feeding an ever-growing population. Mowi is ready to answer that calling, and to deliver seafood and salmon to all corners of the world, presented in the right way to the right customer and right consumer. 9 NSC www.seafood.no 10 NSC https://seafood.no/markedsinnsikt/ Japan data 2019 Product 094 Integrated Annual Report 2022 2022 was another year of expansion and development for the MOWI brand. Winning the hearts of new consumers every day through relevant and delicious tasting, high-quality products. Increasing market presence Throughout the year, the brand expanded into new markets – Germany, Brazil, Argentina, Colombia, China and South Korea. The brand is now present in all the key markets we first set out to achieve. The main target for 2023 is to grow where we are currently present, although there might also be roll-outs in new markets. The MOWI brand continued its expansion in existing markets in 2022 by launching in more brick and mortar stores, and also e-commerce which has been a successful channel for the brand. A volume increase of close to 400% from 2021 to 2022 is a testament to the rapid growth we are seeing. With every new customer added we are delighted to be able to bring delicious, healthy products of the highest quality. . Bringing awareness and value to the category The MOWI brand continues to add incremental sales to the category by adding new customers. 49 % of MOWI’s growth in the UK is category driving adding more frequency or new customers to the category. In many of the markets where the brand is present, MOWI is building a loyal base of consumers who consume MOWI products regularly and recommend it to their friends and family. The brand continues to build awareness around itself and thus the category. Marketing investments have been made into all the major markets where we are present. In 2022, the new global campaign for MOWI featuring Game of Throne star Kristofer Hivju was launched. Filmed in Lofoten, the campaign plays on stereotypes of Norwegian culture, such as Janteloven (the law of Jante, which is said to explain the way Norwegians behave) and Friluftsliv (Norwegians’ love of the outdoors). Kristofer Hivju was chosen as MOWI’s brand ambassador due to his global reach and fit with the new positioning of the brand. The campaign was recognized by AdForum for its quirky style and fun nature. Kristofer Hivju was visible both on TV-screens, on digital platforms, in social media and in-store in many of our markets. It became very clear that people were intrigued and looking to know more as they clicked our ads to learn more about the brand and our collaboration with Hivju. We will continue with this successful campaign in 2023. Award winning products Through the MOWI brand, we can offer a wide range and variety of products for consumers. Our offer stretches from smoked salmon and delicate, fresh cuts to more elaborate and convenient products such as marinated, ready-to-heat dishes, sushi and hot smoked salmon. In order to stay ahead of the game, the MOWI brand continues to tap into consumer trends and seasonal occasions where salmon, until now, has been less important than other proteins. Mowi Brand continues its expansion MOWI Brand Progress and success: Product 095 Integrated Annual Report 2022 In 2022, we launched a range of completely new dried and marinated products to the French market called MOWI Pas Fume. For this new concept the salmon is dried and marinated (but not smoked). So, it looks like smoked salmon and has a similar texture but without the strong smoky flavour. The result is a unique offer with colourful and appealing slices, tasteful products with a perfect balance between spices and salmon taste. In December, the MOWI Pas Fumé range received the ‘Best innovation in the seafood category’ award from LSA – France’s most famous FMCG magazine. It’s becoming a bit of a habit, as this is the fourth award received since the launch of MOWI Pas Fumé. Earlier awards were the Saveurs de l’année in March 2022 for best taste in its category, Cuisine Actuelle in September 2022 for best product to share and Produits de la Mer in October 2022 for best innovation in the seafood category. But these are not the only awards and recognitions the MOWI brand has been awarded in 2022. Our focus on taste and excellent quality products, is paying off. In Italy, we were awarded the “Eletto prodotto dell’anno’ (Elected Product of The Year) in the salmon category, in France our MOWI smoked salmon produced in Bretagne was recognized with the 2022 Saveurs de l’Année (Taste of the Year) award by a French consumer panel and in Germany our smoked salmon was awarded the Seafood Star Award. MOWI continues to develop tasty products and drive innovation. This is crucial to encourage new people to try our products as well as to recruit new consumers to the category. Food service - an important part of the MOWI brand Food service recovered in 2022, and during Q2 we saw a significant uplift in volumes going into this channel. Our food service range of products was awarded the International Taste Institute Award once more, thanks to its outstanding taste, texture and appearance. With the International Taste Institute being the global leader in the evaluation and certification of food and beverages by professional chefs and sommeliers, the award is a fantastic acknowledgement of the care and hard work that goes into making the exquisite MOWI product range. Our MOWI Supreme range is performing really well in many markets, in particular Poland where we have been able to establish a well-renowned brand which supports its customers both through services and products. In Latin America, our food service channel is an important part of our sales and our team has educated close to 100 ambassadors who are now able to tell the MOWI story to restaurateurs, chefs and others working in the food service industry. Running parallel to the development of our MOWI retail offer, food service will be an important addition to the brand in many markets, with huge potential for high-end, high-quality salmon products for discerning chefs and restaurant owners. MOWI ambassador Kristofer Hivju Product 096 Integrated Annual Report 2022 Health benefits of salmon Our salmon is a high-quality product that has a taste and health profile that few other products can match. It is rich in Omega-3 fatty acids (EPA+DHA), vitamins (B12, E and D), and the minerals selenium and iodine. These are important nutrients for people of all ages. Product 097 Integrated Annual Report 2022 Mowi salmon (100 g) Selenium helps cognitive function and fertility for men and women. Lack of selenium leads to weakening of the heart muscles and increased risk of cardiovascular disease. Helps red blood cells form and keeps the nervous system healthy. A lack of vitamin B12 can cause a form of anaemia. Plays a role in our immune function and is an important anti-oxidant needed to protect cells. Salmon is rich in the very long chain fatty acids which are essential for our health and are needed to ensure cells function well. Helps the body absorb calcium. Lack of vitamin D is associated with rickets in children and soft bones in adults. Iodine plays a vital role in our metabolism and a deficiency can lead to reduced growth and mental decline. It’s particularly vital for pregnant women to aid the growing baby’s development. EPA and DHA are in cell membranes and help cells function properly. Marine Omega-3 prevent development of cardio-vascular disease. Protein is a building block in muscles. At least nine amino acids are essential for humans, and all nine are present at balanced levels in our salmon. EPA & DHA 480 % of RDI Total fat 17–29 % of RDI Vitamin B12 275 % of RDI Protein 34 % of RDI Vitamin D 61 % of RDI RDI = Recommended Daily Intake Selenium 33 % of RDI Iodine 3 % of RDI Vitamin E 43 % of RDI Product 098 Integrated Annual Report 2022 Safe Seafood THE CHALLENGE Consuming farm-raised salmon is both safe and healthy. This assertion is supported by food safety authorities across the world, and proved through our comprehensive monitoring program. Our approach at Mowi is to be transparent and share information which demonstrates to our customers and consumers that our products are safe and healthy. OUR EFFORTS The safety of our consumers is our top priority. In connection with the production of farm-raised salmon, food safety hazards fall into three main categories: environmental contaminants; pathogen bacteria; and medicine use/residue. Environmental contaminants in our feed and fish are kept far below the safe limits (MRLs) set by the food safety authorities around the world. Through our ONEMowi Operational Excellence Program we secure a harmonised monitoring program for undesirable substances in the Mowi group. In this program we include heavy metals, pesticides, GMOs, mycotoxins and dioxins/dioxin-like PCBs. In recent years, a comprehensive monitoring program related to microplastics has been implemented. This so we understand what impact microplastic can have for our value chain. Pathogen bacteria are kept under control to prevent contamination in our products, both to ensure the safety of our own ready-to-eat and ready-to-heat products and to ensure that fish sold to commercial customers for further processing is risk-free. Listeria monocytogenes is one of the potential food-borne pathogens in fish products which are consumed without prior heat treatment. Due to increased consumption of raw salmon in products such as sushi, it has become even more important to fully control the risk of Listeria contamination. Through our own two manuals for Hygiene and the one more specific on Listeria control, we enforce a common, group-wide hygiene standard. A self-assessment tool has been developed and translated to several languages for use in internal audits. The recommendations found in the manuals are based on our own experience, R&D work either internally, or in cooperation with external research institutions, and published scientific articles. This manual highlights what activities and technical solutions can be applicable for each step in the entire value chain from sea to finished product. Our approach to medicine use and medicine residue is very strict and is designed with an emphasis on disease prevention and fish welfare. Fish, like other animals and humans, may become ill and require intervention. Our fish health professionals use medicines only when other measures are not sufficient, or when fish welfare may be compromised. Any prescription is signed by a certified veterinarian or fish health professional, and the approval process is strictly controlled by the relevant authorities. Our product recall system is part of our ONEMowi operational excellence program where we have specific policies and standard operating procedures related to incident reporting and crisis handling. Each business unit has its own crisis team which handle the incidents locally. This includes having defined reporting and notification groups The group management team, the global communication team and the Group Manager of Food Safety & Quality are included in the notification groups to ensure efficient internal communication. Food safety incidents are reported internally using our global incident reporting tool and adequate mitigation actions are taken according to the severity of the incident. The global incident reporting tool is complemented by local incident reporting and handling. Food Safety incident handling includes different steps of actions: •Establishment of crisis team and report the incident •Create ground for decision making: (what have actually happened, and what is the severity of the incident) •Trace the involved products that are delivered to customers, on transport or in-house storage •Depending on outcome of step 2, do the necessary actions (such as full recall, communication to customers and authorities) •Learn from the incident: What was actually the cause and take actions to prevent similar incidents from happening again 2022 RESULTS Every day we work hard to ensure that our products are safe. Our Listeria results for 2022 prove that Mowi has a food safety culture in-house that few other seafood producers can compare with. This is something we can state due to the fact that our secondary processing units also buy raw material from other seafood producers. In the business units several traceability tests/ mock recalls are performed every year. In addition an annual global traceability test is done, to ensure a global approach,facilitate knowledge sharing and identify where we can do further improvements. But even so, we can still improve. In 2022, Mowi had 9 (6) food safety incidents with only one resulting in recall and three in withdrawal. No market bans did occur. Cost related to food safety incidents in 2022 was reported to be EUR 1.2 million. Product 099 Integrated Annual Report 2022 The table below gives detailed information about each of the food safety incidents. When Incident Business unit What happened Corrective actions carried out Recall required Market bans May Microbiology Mowi Central Europe Possible listeria detection in product Investigation was carried out. No major findings. No No July Foreign body Mowi Norway Markets Piece of metal in a product discovered by a consumer. Investigation carried out. Improved routines for using metal detectors. No No July Microbiology Mowi Central Europe Consumer suspected food poisoning. Investigation was carried out. Case was closed, with no indication this was from a Mowi product. No No Aug Microbiology Mowi Norway region South Detection of Listeria in salmon meat with skin. Customers were notified, and the material were handled internally producing NON RTE products. No No Oct Allergen Mowi Central Europe Not clear allergen labelling on a product. The typing of allergens on these products has been changed to make it more clear for consumer. Yes No Oct Packaging Mowi Central Europe Customer realized some not properly closed glasses of herring in marinade Additional controls were implemented by producer, including special device to check the properly closing of the glasses. Yes No Oct Parasites Mowi Central Europe Internal lab found deviation and one parasite. Reference samples analyzed, no findings. Increased focus on screening, and contacting lab to make sure that material is sent for further verification of species. No No Nov Parasites Mowi Central Europe Customer reported that nematodes was detected in a consumer product from one of our factories. Reference samples analyzed, no findings. Increased focus on screening, and contacting lab to make sure that material is sent for further verification of specie. No No Nov Allergen Mowi Central Europe Customer found excess amount of histamine in a finished product. An official letter sent to the customer together with the results of the histamine measurements during the year. The statement included a comment on the sampling carried out by the customer, which did not comply with the legislation and was therefore not a reason to withdraw the production batch from the market. No No Farmed salmon and rainbow trout is exclusively fed on heat-treated dry feed, which does not contain any viable parasites. This explains the absence of Anisakis. Based on this farmed salmon is given exemption from freezing before consumption: https://www.mattilsynet.no/language/english/fish_and_aquaculture/farmed_atlantic_salmon_and_rainbow_trout_are_safe_for_sushi_and_sashimi.31976 PRIORITIES GOING FORWARD Maintaining the trust of customers and consumers is a non-negotiable priority for our company. We will continue our comprehensive program to monitor the feed raw materials, feed used in our farming operations and our salmon, to ensure that the level of environmental contaminants is far below the safe limits set by food safety authorities. We are currently working on global e-learning programs on Food Safety, and this will be an additional tools to what is already of local food safety training in our different facilities. At the same time, we will work to keep pathogen bacteria under control so that consumers eating our farm-raised salmon products can remain confident that they are safe. Through openness and transparency, we aim to provide evidence-based facts about our products which will help customers and consumers make informed choices. In 2018, the European Food Safety Authority, EFSA, published a new risk assessment where it recommends changing the tolerable weekly intake (TWI) for the sum of dioxins and dioxin-like PCBs in foodstuff from today’s 14pg per kilogram bodyweight a week to 2pg per kilogram bodyweight a week. We expect that EU will reduce the maximum limits of dioxins and dioxin-like PCBs in feed and food, as a consequence of the reduced TWI. We expect that new limits will first be implemented in feed & feed raw materials. Most likely a new regulation will happen during 2023. Mowi follows the ongoing regulative process closely, and will implement the new regulation accordingly for feed and farm-raised salmon. The main source of dioxins and dioxin-like PCBs is fish oil. Even though farm-raised salmon meets levels well below the European maximum limit of 6,5pg TEQ/g for dioxins and dioxin-like PCBs, Mowi initiated cleaning of fish specific oils , to further remove persistent organic pollutants (POPs) in finished feed and fish. In addition to our monitoring program on contaminants, we continue our roll-out of Infor's M3 Graphical Lot Tracker (GLT). GLT will replace all local solutions our units have today and ensure we get a common traceability approach in the company. GLT is 100% implemented in our feed and farming division. For our secondary processing plants, the rate is 84% (75%). Implementing global systems takes time and resources, but we strongly believe that a global traceability system through the whole value chain makes us more robust when food safety incidents occur. In these cases the ability to communicate fast, with reliable data, are crucial. Product 100 Integrated Annual Report 2022 Quality Seafood THE CHALLENGE AND THE OPPORTUNITY Every day, we produce high-quality farm-raised salmon and value-added products. High quality is ensured through procedures, training, and the sharing of best practices across the Group. In addition, we are constantly improving our monitoring programs and quality assurance systems, and implementing technology that helps us deliver high-quality products across the world. OUR EFFORTS Every day, we maintain the trust of our customers by offering them products and services that match their expectations. When we are unable to meet these expectations, we welcome feedback to help us continuously improve. That information helps us to direct our resources to areas where additional attention is needed. Our global Operational Excellence Program, ONEMowi, helps us to operate in a consistent way throughout the Group. All our operations must comply with a minimum set of third-party verified certification schemes addressing food safety, environmental responsibility, social responsibility and fish welfare. Chain of Custody certifications must be achieved, as required by GLOBALG.A.P., GAA/BAP, ASC and MSC. 2022 RESULTS Mowi has different platforms to communicate with our customers and stakeholders. Platforms that help us to continuously improve our performance. Important performance indicators are feedback from the market in terms of quality and food safety claims and the superior quality share of our salmon. In 2022, 91% (91%) of our salmon was of superior quality, so we know our farm-raised salmon and value-added products are of excellent quality. The superior quality share (i.e. the proportion of the salmon without damage or defects that provides a positive overall impression) has remained above 90% for the last decade. Approximately 6% of our fish were downgraded by Mowi's expert quality inspectors mainly due to wounds, spinal deformities and mature fish. In 2022, we received a total of 6 326 quality and food safety claims, compared with 13 210 quality and food safety claims in 2021. PRIORITIES GOING FORWARD Although the quality of our products is already high, we know there is always room for improvement. Feedback from the market and internal KPIs help us to focus on the right tasks. We continually strive to attain high quality through our research and development efforts and our quality assurance systems and controls. Together with the Global ERP system (M3) roll-out are we now implementing a common claim process in the group. This software tool developed for us will help Mowi to respond faster and with greater accuracy to claims we receive from customers. So far 100% of our primary processing units and 77% of the secondary processing units have implemented it. In 2023, this implementation also has a priority, and the benefits of having one global claims system are comparable data and more efficient reporting, in addition to more reliable data that can be used to identify areas for improvement on a global perspective. Product 101 Integrated Annual Report 2022 AUDITS, REVIEWS AND CERTIFICATIONS We have set minimum requirements for third-party certifications throughout the Group. The minimum requirement for farming operations is to be certified with a Global Sustainable Seafood Initiative (GSSI) recognised standard, and that means either GAA BAP, ASC or Global G.A.P. The GSSI benchmarking tool is underpinned by the FAO guidelines and provides a formal recognition of seafood certification schemes which have successfully completed a rigorous and transparent benchmark process focusing on environmental impact. All Mowi processing plants should have a Global Food Safety Initiative (GFSI) recognised standard. 100% of our processing plants have this in place. Mowi had a total of 377 internal food safety audits, and 263 external (certification bodies, food safety authorities and customers). Of the external food safety audits, 33 were related to GFSI standards, and 6 major non-conformities were reported in these GFSI audits. The non-conformities (NC) were related to labelling and calibration routines on weights, insufficient NC handling, and missing managements review of quality system. All of these were closed within 30 days after the audit. Therefore, we achieved a 100% closure of corrective actions after the detection of NC. In 2022, 98% (84%) of the seafood suppliers to our factories were certified to a Global Food Safety Initiative (GFSI) recognised standard. Mowi's target is that all our seafood suppliers shall have a GFSI recognised certification. For more detailed information about Mowi’s quality certifications, visit www.mowi.com/sustainability/certifications Healthy Seafood THE OPPORTUNITY Nutrient-dense foods such as salmon play an important role in meeting our individual dietary requirements without excess energy intake. The nutrients in salmon support optimal health and help to reduce the risk of a range of diseases and disorders. Our salmon is an excellent source of high-quality protein, vitamins and minerals (including potassium, selenium and vitamin B12), but it is the content of the long-chain Omega-3 fatty acids EPA and DHA that receives the most attention, and rightly so. Consumption of these essential Omega-3 fatty acids is associated with: •Helping maintain a healthy heart by lowering blood pressure and triglycerides, and reducing the risk of sudden death, heart attack and stroke 1, 2, 3) •Reducing the risk of coronary heart disease3, 4) •Supporting brain function and development in infants5) •Possibly preventing psychiatric diseases, particularly cognitive decline in the elderly6) •Possibly preventing inflammation and reducing the risk of arthritis6, 7) Other health benefits derive from the protein and amino acid content of salmon. Protein is essential for the structure, function, and regulation of human tissues and organs. Proteins are composed of amino acids; salmon is a ‘complete protein’: it contains all nine essential amino acids which the human body needs to get from food, as it cannot synthesise these itself. Engagement with our stakeholders such as regulators, scientists, certifications bodies and retailers help us understand expectations and trends on healthy foods. Health authorities around the world advise people to include at least one portion of oily fish per week into their diets because of the associated health benefits. Along with plant-based foods, such as vegetables, fruit, legumes, whole grains, and nuts, fish is categorised as an 'emphasised food' in a planetary healthy diet by the EAT Lancet commission8) . The EAT-Lancet Commission convened 37 leading scientists from 16 countries in various disciplines including human health, agriculture, political sciences and environmental sustainability to develop global scientific targets for healthy diets and sustainable food production. The Blue Food Assessment, bringing together over 100 scientists from more than 25 institutions to assess the nutritional, social and environmental benefits of Food from the Ocean. The Blue Food Assessment researchers built the most extensive database ever assembled on the nutritional quality of Blue Foods and concluded that the nutritional contribution of blue foods are significantly higher than previously estimated and that blue foods provide the highest nutrient richness across multitude micronutrients, vitamins and long chain polyunsaturated fatty acids relative to terrestrial animal-source foods. 8% increase in the supply of seafood by 2030, mostly from aquaculture, could prevent over 160 million cases of micronutrient deficiencies worldwide The Blue Food Assessment The most recent official dietary guidelines from the Danish government, issued in January 2021, entitled “The official Dietary Guidelines – good for health and climate”9) show the way to food 1) Weichselbaum E et al. Nutr Bull 2013;38(2):128–177. 2) Schwellenbach LJ et al. J Am Coll Nutr 2006;25(6):480–485. 3) Innes J.K and Calder P.C Int. J. Mol. Sci. 2020;21, 1362. 4) U.S. Food and Drug Administration. Summary of qualified health claims subject to enforcement discretion. 2014. Available at: https://regulatorydoctor.us/wp-content/uploads/2014/09/Summary-of-Qualified-Health-Claims-Subject-to-Enforcement-Discretion.pdf. Last accessed January 2020. 5) Hibbeln JR et al. Prostaglandins Leukot Essent Fatty Acids 2019;151:14–36. 6) Pusceddu M.M et al. International Journal of Neuropsychopharmacology 2016; 19(12): 1-23. 7) Akbar U et al. JCR: Journal of Clinical Rheumatology 2017 23;(6): 330-339. 8) EAT-Lancet Commission Summary Report. https://eatforum.org/content/uploads/2019/07/EAT-Lancet_Commission_Summary_Report.pd 9) De officielle Kostråd – godt for sundhed og klima. https://altomkost.dk/fileadmin/user_upload/altomkost.dk/Billeder/Alt_om_kost/ Product 102 Integrated Annual Report 2022 and drink that is healthy and at the same time climate-friendly. As is stated in the introduction to these new guidelines “Good meals with healthy and climate-friendly food can provide enjoyment, happiness and well-being, and good meals can play a significant role in our social life. The Danish Veterinary and Food Administration is behind the official Dietary Guidelines. They have been developed on the basis of research and advice from the DTU Food Institute and in dialogue with a wide range of stakeholders. Follow the official Dietary Guidelines - then you are doing something good for both your health and the climate.” One of the guidelines is to eat more fish: the Danish government advises to eat 350g of fish a week, of which 200g fatty fish, e.g. herring, mackerel, salmon and trout, and to vary between different fish species. In 2020, the US Department of Health and Human Services (HHS) and the US Department of Agriculture (USDA) published the latest five-yearly Dietary Guidelines for Americans (DGA) 2020-202510). Their recommendation is that all adult Americans – including pregnant and breastfeeding women – should eat 8-10 oz (227-283 gram) of seafood per week. Seafood choices higher in EPA and DHA and lower in methylmercury, such as salmon, are encouraged. Analysis of What We Eat in America, NHANES 2013-2016 shows that almost 90% of Americans consume less than the recommended quantity of fish and seafood. In 2019, the US Food and Drug Administration and the US Environmental Protection Agency issued a further advice regarding fish and seafood consumption11). This advice is geared to helping women who are pregnant or may become pregnant – as well as breastfeeding mothers and parents of young children – make informed choices when it comes to fish that are healthy and safe to eat. One of the species considered as “best choice” by the FDA and EPA is salmon. A study from the University of Pennsylvania in the US, published in December 201712), supports the recommendation that people, and especially children, should increase their seafood intake. This study found that eating fish improves children’s cognitive ability. A study carried out by researchers at the medical school found that frequent fish intake (at least 2–3 times per month) was associated with fewer sleep problems and higher IQ scores. In 2016, NIFES (the National Institute of Nutrition and Seafood Research) in Norway presented the results of a project13) proving that schoolchildren have better concentration and kindergarten children gain better learning abilities by eating more oily fish. An article published by Harvard School of Public Health 14) reports that an analysis of 20 studies involving hundreds of thousands of participants indicates that eating approximately one to two 3-ounce servings (85 gram) of oily fish a week — salmon, herring, mackerel, anchovies, or sardines — reduces the risk of dying from heart disease by 36 percent. Eating oily fish also lowers blood pressure and heart rate, improves blood vessel function, and, at higher doses, lowers triglycerides and may ease inflammation. The strong and consistent evidence for benefits is such that the Dietary Guidelines for Americans, the American Heart Association, and others suggest that everyone should eat fish twice a week. Study published in 2022 also indicate that Omega 3 can contribute to reduce autoimmune diseases17). Omega 3 is not only good for our health, it is good for our brain as well. Several studies have suggested that taking fish oil supplements may improve brain function in people with more mild types of brain conditions like 10) De_Officielle_Kostraad_november_2020/ONLINE_Kostraad_pjece_2021.pdf 11) Dietary Guidelines for Americans. https://www.dietaryguidelines.gov/ 12) FDA and EPA. https://www.fda.gov/food/consumers/advice-about-eating-fish https://penntoday.upenn.edu/news/weekly-fish-consumption-linked-to-better-sleep-higher-IQ 13) Øyen J. m.fl: Fatty fish intake and cognitive function: FINS-KIDS, a randomised controlled trial in preschool children. https://bmcmedicine.biomedcentral.com/articles/10.1186/s12916-018-1020-z 14) Harvard School of Public Health. https://www.hsph.harvard.edu/nutritionsource/fish 15) J Aging Gerontol. 2014 Dec; 2(2): 60–71. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4399494 16) Hahn J. m.fl: Vitamin D and marine omega 3 fatty acid supplementation and incident autoimmune disease: VITAL randomized controlled trial. https://www.bmj.com/content/376/bmj-2021-066452 17) Mazereeuw G. m.fl: Effects of ω-3 fatty acids on cognitive performance: a meta-analysis. https://pubmed.ncbi.nlm.nih.gov/22305186/ Product 103 Integrated Annual Report 2022 mild cognitive impairment (MCI) or age-related cognitive decline18). One study gave 485 older adults with age-related cognitive decline either 900 mg of DHA or a placebo every day. After 24 weeks, those taking DHA performed better on memory and learning tests19). 2022 RESULTS Eating our farm-raised salmon, packed with protein, vitamins, and long-chain Omega-3 fatty acids, fits in a planetary healthy diet and can lower your blood pressure and reduce the risk of a heart attack or stroke. Our salmon is an important source of EPA and DHA for many consumers around the world, with these essential nutrients supporting heart, brain and eye health. Our salmon is also a rich source of vitamin D. Vitamin D helps your body absorb calcium, one of the main building blocks for strong bones and teeth. The human body needs vitamin D for other functions too: it is important for our cells, our muscles need it to move, and our nerves need it to carry messages between our brain and our body. Our immune system needs vitamin D to fight off invading bacteria and viruses. In addition, some research15) shows that vitamin D can help prevent depression, dementia and cancer, as well as diabetic and cardiovascular diseases. To guarantee our salmon is healthy, tasty and rich in essential nutrients, we track the raw materials used both in our own and third-party feed production. Results from our surveillance program in 2021 show that our salmon contains the expected levels of EPA and DHA (long-chain Omega-3 fatty acids) and vitamins (B12, E and D), as well as the minerals selenium and iodine. PRIORITIES GOING FORWARD As in previous years, we will continue to control the nutritional content of our salmon. We want to ensure that our salmon is both safe and an excellent way to contribute to both human and planetary health. 18) Chiu C. m.fl: The effects of omega-3 fatty acids monotherapy in Alzheimer's disease and mild cognitive impairment: a preliminary randomized double-blind placebo-controlled study. https://pubmed.ncbi.nlm.nih.gov/18573585/ 19) Yurko-Mauro K. m.fl: Beneficial effects of docosahexaenoic acid on cognition in age-related cognitive decline. https://pubmed.ncbi.nlm.nih.gov/20434961/ NUTRIENT GROUPS OF MOWI SALMON 2022 NUTRITIONAL FACTORS PARAMETER VALUE MOWI SALMON % OF RECOMMENDED DAILY INTAKE VALUE WILD ATLANTIC SALMON1) % OF RECOMMENDED DAILY INTAKE WILD SALMON RECOMMENDED DAILY INTAKE (RDI)2) Fat Total fat 16.000 g/100 g 17-29 % 16,5 g/100 g 18-30% 55-90 g/d4) Omega-3 fatty acids Total EPA + DHA 1.200 g/100 g 480 % 1.15 g/100 g 460% 0.25 g/d Vitamins Vitamin B12 5,5 ug/100 g 275% 4.67 ug/100g 234 2 ug/d Vitamin D 6.120 ug/100 g 68% 7.00 ug/100g 70% 10 ug/d Vitamin E 3.890 mg/100 g 43% 1.64 mg/100 g 18% 9 mg/d Minerals Iodine 0.004 mg/100 g 3% 0.003 mg/100 g 2% 0.15 mg/d Selenium 0.020 mg/100 g 33 % 0.017 mg/100 g 67% 0.06 mg/d Protein Protein 19.750 g/100 g 34% 20.1 g/100 g 35% 58 g/d3) 1) Source: IMR seafood data, 2021 results ex Vitamine E, 2012 numbers. ( sjomatdata.hi.no) 2) Nordic Nutrition Recommendations and EFSA. 3) Recommended daily intake of proteins for adults (70 kg) is 0.83 g protein/kg body weight/daily. 4) For an adult with a calorie requirement of 2000 kcal/day. It is recommended that fat accounts for 25-40% of daily energy intake. Product 104 Integrated Annual Report 2022 Product 105 Integrated Annual Report 2022 106 Integrated Annual Report 2022 People 107 Integrated Annual Report 2022 People are key to our success With a presence in 26 countries, we know that people are key to our success. Our shared company culture unites our diverse organisation and inspires us to reach our common goals with focus on safety and pride in the workplace and the communities where we operate. Leading a revolution requires engaged and passionate people, who share our common vision and values. Our shared company culture unites our diverse organisation and inspire us to reach our common goals. Corporate culture We embrace our key values: Passion, Change, Trust and Share. Our ONE Mowi operational excellence program guides our actions based on our core values. Ethical business conduct 21 (17) incidents were reported through our whistleblower channel in 2022. Employee health and safety Lost Time Incidents (LTI) per million hours worked fell from 2.5 in 2021 to 2.3 in 2022. The rate of absenteeism ended at 5.4% in 2022, compared with 5.2% in 2021. Our target is an absence rate below 4.0%. Female leaders 25.6% of our leaders are female, moving towards our target of 30% female leaders by 2025. Safe and meaningful jobs People People 108 Integrated Annual Report 2022 Providing meaningful jobs Our success depends on our people The people in Mowi are critical to our success. Having the right people on board, with the right skills, mindset and competences across our business is a key enabler for continuous growth and development. To be an attractive employer for current and future generations, our focus is on sharing our impact by providing healthy, tasty and sustainable food to a growing population. All employees in Mowi have an impact on the Blue Revolution. Our people is a core success factor to produce our healthy and sustainable salmon. Our aim is to provide safe, meaningful and attractive jobs. We cultivate a working environment where every voice is welcome and heard. We believe in joining forces across functions and geographies, and by respecting and valuing what every individual brings to the table. We continue our efforts to build an engaged and diverse work force that will thrive, develop and stay in the company long term. Our efforts Human rights Human rights are at the core of a sustainable business. We believe that businesses can only flourish in societies where human rights are protected and respected. We aim to contribute to positive human rights impacts in the company, in our supply chain, with our stakeholders, and in the world. Our commitment to human rights in our operations as well as our supply chain is held in close collaboration with our vision Leading the Blue Revolution, our Sustainability Plan, our Code of Conduct, and the business strategy as a whole. Our commitment is an expectation as well as a requirement for our organisation, our supply chain, and other stakeholders. Mowi’s commitment on human rights is based upon internationally recognised human rights principles, such as the Universal Declaration of Human Rights, the United Nations Global Compact, The United Nations Guiding Principles on Business and Human Rights and the International Labour Organisation’s Core Conventions. The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human and labour rights, the environment and anti-corruption. This way, business is a driver to ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere. Mowi contributes to the UN’s Sustainable Development Goals, which is outlined further in the People chapter, as well as the Leading the Blue Revolution chapter of this report. Our human rights commitment to prevent, mitigate and remedy adverse human right impacts is expressed in our Code of Conduct for ethical business conduct, global policies, procedures and public communication. Our human rights due diligence process is founded on principles of ethical business conduct, as expressed in our Code of Conduct, our global policy framework ONE Mowi, our risk assessment and management processes, tracking of metrics, communication and reporting of findings and results, learning efforts and collaboration with stakeholders. Our approach is dynamic, allowing for continuous development and improvement. More information on our human rights due diligence process, and how our Human Rights Program is implemented and secured is described throughout the People chapter, the Leading the Blue Revolution chapter, and on www.mowi.com/sustainability. Numerous programs, described throughout the People chapter, form important elements in identifying, preventing, mitigating and remedying adverse human rights impacts within our operations and in our supply chain. Examples include our Code of Conduct and business ethics efforts, our global policies, employee surveys, health and safety programs, the privacy program, whistleblowing and grievance mechanisms, monitoring of fair working conditions, collaboration with labour unions, the diversity and inclusion program, learning programs, local community engagement efforts and interaction with indigenous people. All Mowi’s suppliers have been risk assessed in our human rights due diligence process in 2022. Material value drivers Ambitions Mowi way Live our vision, values and leadership principles every day Excellence-driven organisation Implement operational excellence program, ONE Mowi Ethical business conduct Compliance with our code of conduct across the group Safe and meaningful work Year-on-year reduction in LTIs per million hour worked Absence rate < 4% 30% female in leadership positions by 2025 50/50 employee gender ratio by 2025 Community engagement Develop and support the local communities in which we operate People 109 Integrated Annual Report 2022 Fair employment We are committed to fair working conditions and employment practices. Our commitment is expressed in our Code of Conduct, in our global policies such as human rights and diversity & inclusion, in our ONE Mowi operational procedures, and in our values and leadership principles that guide us in our work every day. We strongly believe there is both a business and a moral case for ensuring that human rights are upheld across our operations and our supply chain. Our aim is to secure that our business operation and supply chain is committed to freely chosen employment and fair wages, and prohibits any form of forced, compulsory, detained or child labour, slave labour or human trafficking. Mowi would, for example, never claim a fee to offer employment. We continuously work to secure a work environment free of abuse, violence, harassment, inhumane treatment or discrimination in our own operations and in our supply chain. As a rule, Mowi offers full-time positions. We monitor the ratio of part time employment, and aim to use this for roles which by nature are not full-time. Employees expressing a wish to increase their work percentage are followed up locally. We are proud that Mowi is ranked the most sustainable animal protein producer by the Coller FAIRR Protein Producer Index, for the fourth year in a row. Social indicators such as human rights, fair working conditions, health and safety, turnover and freedom of association are among the key indicators in the rankings, and Mowi has improved our performance on this year-on-year. In Mowi, 100% of our employees have written terms of their employment. All employees have occupational health insurance. Employees are entitled to sick pay, in compliance with local insurance schemes and local laws and regulations. Maternity and parental leave is practised in compliance with local law. Fair compensation We continue to prioritise fair and transparent compensation. Our aim is to offer competitive compensation, yet aligned with the local market and industry. No employee is paid less than the official national living wage indicated for the relevant location. We utilise a global job architecture system to ensure transparent processes with objective criteria for compensation and benefits determination. Our collaboration with the labour unions is of vital importance in this process, who represent 17% of the employees who are organised in unions. In 19 of our Business Units where 73% of our people are employed, collective bargaining agreement results cover all workers, regardless of their contract type and union membership. We map gender pay on a regular basis. Our analysis overall shows no significant gender pay difference. For compensation based on collective bargaining agreements we have equal pay. For individual compensations, no gender pay differences are found when adjusted for seniority. More information on remuneration policies and reports on gender pay is found at mowi.com/sustainability. Freedom of association Mowi respects, recognises and support our employees' freedom of association and the right to engage in collective bargaining. Employees are free from reprisals due to union membership or engagement. Mowi is committed to the constructive dialogue and cooperation with labour unions and employee representatives. We strongly believe in this partnership to lead the way forward and find common solutions for our employees. In 2022, 17% of our employees were members of a labour union, however 73% is covered by collective bargaining agreement results, regardless of contract type. The remaining 27% that are not part of an active collective agreement, are managed individually. People 110 Integrated Annual Report 2022 Diversity and equality Mowi values the diversity of our work force and the valuable contribution it makes. We believe that a diverse work force gives us an advantage in our business operation, our access to future talent and maintaining our attractiveness as an employer. Mowi have a long-standing commitment to equal opportunity. We continuously work to create a workplace that is free from discrimination or harassment based on race, sex, colour, national or social origin, religion, age, disability, sexual orientation, political opinion or any other status protected by law and international human rights. Any recruitment, hiring, promotion, training, reward and other advancement at the company is based on qualifications, performance, skills and experience. At Mowi, the principles of equality, diversity and inclusion are built into our Code of Conduct – fair, respectful and ethical treatment of others is core to who we are. In 2022 we continued the roll-out of our global diversity and inclusion program, which encompasses three strategic areas: Seek diversity, create inclusion and drive accountability. Mandatory training on equal opportunities, non-discrimination and personal bias remains integral to the onboarding program of every employee. This year was supported with additional information, facts, figures and a quiz designed to encourage discussion and honest reflection among our teams. Our 2022 Diversity Day once again aimed to highlight the importance of an equitable and inclusive workplace, and to remind everyone of the benefits that diversity brings to us all. With a focus on recognising and celebrating the differences that make each of us unique; employees around the world were encouraged to review and reflect on how we each take responsibility for ensuring our workplace is welcoming to all. This year for the first time, Diversity Day also saw the launch of our Diversity Survey, inviting our people to not only share their views and suggestions on how we might continue to improve, but also to participate in that work. 2022 results At the end of 2022, we had 13 726 (13 984) FTEs in 26 countries around the world. The number decreased by 258 during 2022. At the close of 2022, women accounted for 37.7% of our 10 381 permanent employees, relatively stable from 2021. The ratio between genders for management positions in 2022 was 25.6% female and 74.4% male. The overall gender ratio for FTEs in the Group was 39.0% female and 61.0% male. The Group had 1 160 temporary employees at the end of 2022 compared with 1 334 in 2021. Of these temporary employees, 39.9% were female, a decrease from 41.8% in 2021. Overall, the temporary workforce decreased from 9.5% to 8.5% of the total from 2021. See the table showing a breakdown of our workforce by type of employment, gender and region at the end of this section. Our business units promoted 836 internal employees during 2022, 50% female and 50% male. In our recruitment processes, a total of 22% of both internal and external applicants were female, yet 37% of all new hires were female. The majority of new hires were in the age group 30-50 years with 48%, while 13% were in the age group 50 years and above. Almost 500 employees responded to the diversity survey. The output will inform our plan of action and improvement for 2023, as we work together towards our diversity goals and towards achieving a truly inclusive workplace. Priorities going forward We will continue our efforts to keep our organisation attractive and competitive by hiring, developing, engaging, rewarding and retaining a highly skilled and diverse group of employees. Our focus on practising fair employment and fair working conditions, diversity and equality in the workplace is an integral part of both our operations and our supply chain. We will continue our efforts to ensure a skilled and sustainable workforce, a responsible supply chain and good business partnerships going forward. All business units continue to pursue their targets on diversity, equality and inclusion in 2022. Mowi will continue our efforts to embed diversity and inclusion elements in our daily operations and recruitment practices to ensure discrimination and unfair practices is not taking place. We aim to increase the focus on improving our common knowledge and awareness tracking and assessing data and risks to drive further development and continue to enable and push for diversity and inclusion in our operations. People 111 Integrated Annual Report 2022 We continue our efforts to integrate human rights principles into our operations, our culture and the way we work, as well as in our supply chain and with our business partners. Our approach to strengthen and develop our human rights program continues. We aim to further strengthening the efficacy of our human rights due diligence process of prevention, mitigation, remedy, communication and learning. This includes a review of all steps in the process, such as our policy framework, risk management, mitigation measures, tracking of results, communication, remedy and learning. We continue to develop and improve our global supplier relationship management system. The system provides the framework for our Human rights due diligence process, and provides valuable data on our supply chain performance and compliance, which forms the basis for reporting, mitigation and remedy, learning and decision making in relation with our supply chain and other stakeholders. More information on the human rights program may be found at mowi.com/sustainability. Leading a revolution The opportunity Leading a revolution requires engaged and passionate people, who share our common vision and values. Our shared company culture unites our diverse organisation and inspire us to reach our common goals. Our vision, “Leading the Blue Revolution”, gives direction and outlines possibilities. Our values “Passion, Change, Trust and Share” inspire us to act in the right way and are key enablers for reaching our goals. Our leadership principles “Inspire people, Make it happen, Live the values and Think and act”, provide an important guide for our managers. Society is changing at a fast pace and impacts our people and our organisation. Our goal is to be an employer of choice, and our leaders have an important role to embrace and lead change, to attract and retain the best people, as well as remaining at the forefront of industry and digital innovation. Our efforts Leaders in Mowi, as part of a global company, must have broad cultural insight and a global mindset. We aim to develop our leaders through leadership development and mobility programs, building a pipeline of leaders who will inspire, lead and transform the business, the Mowi Way. In Mowi we nurture a strong performance culture. We aim at being a cost leader in our industry, with an emphasise on achievement of cost control and efficiency, driving operational excellence, and increasing sharing of information and best practices cross-organisation. We are preparing the organisation for future needs and opportunities. Our productivity and efficiency programs prepare the organisation and our people to meet current and future challenges in a forward looking and responsible way, including building a competitive organisation of highly skilled people and leaders, as well as right sizing activities. People Development Our goal is to be an attractive employer and workplace, founded on the Mowi culture, with a strong emphasis on talent attraction, development, sharing and learning. We aim to build a strong learning culture, where our employees own their individual development, and Mowi enables resources and opportunities for learning and development of future skills and development for employees. Our training and development opportunities enable life-long careers in Mowi. Learning opportunities are given irrespective of who you are and who you are. We keep in close contact and collaboration with external stakeholders, including local schools and universities, offering apprenticeships and internships to young employees. Learning is increasingly becoming digital and thus more easily available to employees globally. The back bone of our learning opportunities is our global learning management platform, Mowi Academy. This development is closely connected with Mowis digitalisation strategy, where digital learning is a mist meet and adapt to the digital transformation in our industry and in society. 2022 results 2022 brought additional complexity to our managers, on the way we work, where we work, and access to skilled and motivated employees, which required both resilience, flexibility and adaptability from managers and employees. People 112 Integrated Annual Report 2022 It is of vital importance to offer career opportunities to our leaders and employees to secure core talent, and maintain our position as an attractive employer. A range of initiatives are in place to support that. One effort is promoting our own employees and we saw a total of 836 employees that were internally promoted in 2022. Mowi’s Executive Leadership Program is aimed at developing senior leaders for the future, and the first group completed the program in 2022. The program was carried out in collaboration with Harvard Business School, and managers from all parts of the value chain participated. The program ran fully digital, which proved highly successful and effective and enabled managers to maintain high attendance and engagement and effectively obtaining leadership skills. A total of 608 leaders have attended different leadership trainings in 2022, at different levels in the Group. Leadership training has been held both digitally and face to face, but with a heavy shift towards digital learning. At the end of 2022, digital training amounted to 70% of all training hours done in Mowi. More than 1200 individual digital training courses are created and made available for employees in Mowi Academy. In total we had 212 619 hours of digital training by our employees in 2022, an increase of 83% compared with 2021 and an average of 18,5 hours per employee. Priorities going forward Our goal is to continue to empower leaders and employees by building a learning culture and strengthening leadership skills and competencies to ensure we have employees and managers with business acumen, who inspire people, seize business opportunities and transform the business. Our emphasis on talent and leadership development to secure the right skills and competences for the future continues. Traineeships, apprenticeships, and internships are in place to attract young candidates. Talent and succession planning, international mobility and learning programs are all essential elements in building and securing the work force for the future. Our transition from classroom to digital training will continue. Securing a talent pipeline has been a strategic area for Mowi over the last years, and we will continue our efforts in securing a diverse pool of talent. Attracting and retaining talent from a wide range of areas will help Mowi benefit from the full potential of the workforce, and managers play a key role in succeeding with this. Our global Mowi Executive Program will continue developing the next generation of senior management, alongside local leaderships programs. Our efforts on internal promotion will continue at full speed, to enhance career opportunities for our employees. People 113 Integrated Annual Report 2022 Ethical Business Conduct The challenge and the opportunity Abiding by the Code of Conduct is an essential element in our ability to engender trust and is an integral part of the Mowi Way. All our 13 726 employees in 26 different countries are committed to high ethical standards in our business dealings worldwide. To ensure this we expect our employees to make our Code of Conduct a personal commitment, as it provides direction and guidelines and clarifies where we draw the line. Our suppliers are required to take on the same commitment to comply with our Code of Conduct. Our efforts The Code of Conduct sets the standards of behaviour which we can expect from one another, and which external parties can expect from us. The complete Code of Conduct is available at mowi.com in 7 different languages. The Code of Conduct includes sections on whistleblowing, anti-fraud and anti-corruption, financial reporting and regulatory compliance, as well as sections on safety, fair working conditions, culture, human rights and sustainability. Our group-wide policies are discussed with local management teams as part of our risk management, internal control and governance processes. We believe in transparency and therefore the Code of Conduct also emphasizes the responsibility to report violations or raise concerns. The Code of conduct also includes a section on how to work with suppliers, and what we are requiring from our suppliers. We engage with our suppliers to ensure high ethical standards are the norm throughout our supply chain. Our whistleblower channel facilitates the reporting of concerns about potential compliance issues related to laws, regulations and our own Code of Conduct. Concerns received are reported to the Board of Directors Audit committee on a quarterly basis. Reporting of concern may cover any area including environment, human and labour rights, equality and diversity, health and safety, business ethics and anti-corruption, and conflict of interest. The channel aims to prevent discrimination and ensure professional behaviours. The whistleblower channel is managed by an independent third party. Notifications may be done anonymously and are handled confidentially. In the event of organisational changes in our operations, our company practice is to carry out a fair, lawful and predictable process, by giving notice as early as possible and cooperate in close partnership with the employee representatives in the organisation(s) affected. 2022 results We have continued our efforts to ensure that our standards of behaviour comply with our Code of Conduct, and that all new employees commit to upholding its provisions. The annual training for all Mowi employees have been completed also in 2022. Adding to the annual training we have launched a new digital training course for everyone to refresh on the Code of Conduct standards. The importance of ethical business standards and behaviour have continued to be communicated through our leadership development, training and internal communication, to ensure strong ethical business principles are known and upheld by management and employees. No major breaches of our Code of Conduct, or instances of perpetrated or alleged fraud were reported in our operations in 2022. On whistleblowing, 21 cases were reported through our whistleblower channel in 2022, including 4 whistleblowing reports from local communities in 2022. In line with our whistleblower policy and procedure, all cases were logged, evaluated, risk assessed and investigated. Investigations are carried out either centrally or locally, depending on the subject matter of the concern and the person being reported upon, ensuring information from all relevant parties are gathered. Business Units report the conclusions of their investigations, including initiatives, mitigation, remedy or any actions taken. All reported concerns received in the Group in 2022 have been followed up either centrally or locally in line with the recommendations proposed in the investigation reports. Examples of initiatives and actions taken as follow-up include training, leadership development, organisational changes, performance management training, audits by external parties and internal communications. 8 of the reported incidents were related to work place harassment, including 1 claim of sexual harassment. 3 reported incidents were related to breach of internal policies, 6 notices were related to claims of breach of law, related to discrimination and bribery and work time regulation. 4 notices were related to local community complaints. All notices are investigated and resolved. None of the whistleblowing notices were found to be a breach of Human Rights principles or policy. We have continued our efforts on securing human rights in our operation and supply chain by strengthening our human rights due diligence process. People 114 Integrated Annual Report 2022 During 2022 we launched our global supplier relationship management system. The system will strengthen the risk management carried out in our business units today, and improve our processes on supplier qualification, risk management and mitigation, as well as audits, remedy, communication and training. The system provides the framework for our Human rights due diligence process, and provides valuable data on our supply chain performance and compliance, which forms the basis for reporting, mitigation and remedy, learning and decision making in relation with our supply chain and other stakeholders. Throughout 2022 we have gained important data regarding our suppliers and their internal processes and measures on human rights and labour rights. We are partnering with our suppliers to make sure they are aligned with global standards and our Code of Conduct. Going forward we will continue to work with the suppliers that have identified risk areas to improve. Further details on how we secure human rights in our operation is found in the chapter on human rights. Safeguarding of our employees' personal data is a continuous effort that has been a priority also in 2022. During 2022 we continued our efforts to integrate the EU General Data Protection Regulation (GDPR) in the Group. A network of employees facilitates the protection of personal data throughout the Group with the aim to ensure compliance and to enhance the protection of personal data of our employees and contractors. All employees are invited to training on managing personal data, and all employees who handle personal data have completed the training as part of their mandatory training requirements. In 2022 Mowi did not pay any significant amount in regards to incidents. Mowi’s goal will always be zero fines and we continue to work daily to achieve this. Priorities going forward In 2023 we will continue our efforts to ensure that our standards of behaviour comply with our Code of Conduct. We will continue with the annual training on the Code of Conduct and encourage the reporting of concerns internally or through our established external and internal whistleblowing channels. To ensure that strong ethical business principles are upheld by management and employees the importance of ethical business standards and behaviour will continue to be communicated through our leadership development, training and internal communication, We will continue our efforts on securing human rights in our operation and supply chain by partnering with our suppliers and continue the implementation of our global supplier relationship management system. We aim to further strengthening the efficacy of our human rights due diligence process of prevention, mitigation, remedy, communication and learning. Safeguarding of our employees' personal data is a continuous effort that is a priority also in 2023. People 115 Integrated Annual Report 2022 Employee health and safety Our vision Our goal is zero workplace injuries. Health and safety is foundational in everything we do and we will never compromise on safety for any other business priority. Our efforts Our long term goal is to develop a strong safety culture. This is done through systematic and structured safety programs, and developing a high awareness and safety mindset. In our experience, a large number of incidents are caused by inattention. Our global safety program, BrainSafe, is a behaviour-based safety process designed to empower employees, hired staff and contractors to take control of their own safety and raise safety awareness. In our experience, the best results can be achieved through an integrated approach where all areas, from the person, to environment and practice is included, but where the most crucial element is developing the employees safety mindset. Our aim is that safety is the top priority of all our employees, to ensure we all can to go home safely at the end of the day. The global fundamentals for Mowi’s health and safety commitment, standards, and expectations is established in our health and safety policy and lifesaving rules. These principles sets the standards for our efforts to reach our zero accident goals and promote an environment of continuous learning and improvement through identifying, assessing and mitigating potential for serious injuries or fatalities in our Business Units. Safety Program Mowi operates under a systematic approach to hazard and risk management, including hazard identification, analysis of the potential risk, and mitigation strategies under the hierarchy of controls starting with elimination, substitution, engineering controls, administrative controls, and personal protective equipment (PPE). Necessary elements to support this process include: •Reporting of all hazards, dangerous work environments, near misses, incidents and accidents. •Including all stakeholders in risk analysis including subject-matter experts, end-users, leadership, and safety personnel. •Conducting regular audits and inspections. •Effective root cause analysis for any incidents. •Regular and recurring safety training. •Implementing safety communication methods across functions, levels and business units with opportunities for feedback loops. •Understanding of the employee’s right to refuse unsafe work. Preventive measures are taken where possible to counteract these risks, in line with our safety principles and with local laws and regulations on preventive work in the health and safety area. One of our global safety initiatives in 2022 was Safety week. The initiative was rolled out as a global campaign, where business units and employees were invited to participate in various initiatives. The aim of the Safety week is to inspire and reconnect employees and business units all over the world with the common goals on staying safe and healthy, raise awareness on peoples impact on their own safety as well as the safety of their colleagues, and sharing of information and direction on Mowi’s safety approach. We strongly believe in behaviour based safety as a key element in optimising our safety culture, and Safety Week is an important safety initiative in this regard. Important insights on people's engagement, well-being and working environment gathered from the 2021 Employee Engagement Survey were in 2022 shared by management with employees, for feedback, discussion and suggestions for improvement in the business units. Several of our business units have healthy eating initiatives in their locations. Mowi Chile initiated a healthy eating project in cooperation with their employees, with the support of University of Desarrollo and nutritional specialist. In the project, that ran for 12 months, food served internally to staff were planned together with a nutritionist to ensure high nutritional value and composition, and sessions with nutritional specialists were offered to employees. Our progress in the area of health and safety is measured through a number of key indicators, including lost-time incidents (LTIs) per million hours worked, and the rate of absenteeism. LTIs are tracked and reported in three categories of seriousness - low, medium and high - for both for employees and suppliers, and in categories of injuries. People 116 Integrated Annual Report 2022 Employees are encouraged to report on incidents as well as near-misses within their organisation. Employees may also report via the external whistleblower channel, where anonymous reporting is an option. Health and safety paragraphs are included in collective work agreements, including working hours and shift structures. Safety targets are included in the bonus agreements for all senior managers. Health and safety topics are routinely discussed in health and safety network meetings, with labour union representatives, or in local safety committees. Our business units are certified on Health and Safety by recognised, third party certification standards, including ASC, Global G.A.P and GSA BAP. More information on certifications may be found at Our certifications - Mowi Company Website Safety committees All Business Units in Mowi are required to have, and have established safety committees. The committees have participation from both management and employees, as well as from labour unions where they have representation. All Business Units have dedicated safety representatives, who have the safety responsibility for all locations and sites in the business units operation. Employees are entitled to sick pay, in compliance with local insurance schemes and local laws and regulations. Employees have access to health services as part of our occupational health care provider agreements in the different units. All employees have occupational health insurance. Maternity and parental leave is practised in compliance with local law. In 2022, our efforts on Covid-19 continued, with a focus on providing safe and secure working environments while coping with the pandemic. Our business units took measures to secure sufficient spacing, alternative transportation, changes to shift patterns, and used technology in new ways to limit the risk. Due to the limited volumes of antimicrobials used in our farming operations and the type of antimicrobials used (which follows the World Health Organization guidelines, see Planet section) the risk for antimicrobial resistance for the workforce is negligible. 2022 results The majority of our employees and hired staff have attended training in our global safety program, BrainSafe, which is a mandatory part of our onboarding. On a global basis, 7481 persons conducted safety training in Mowi during 2022. Long-term injuries (LTIs) measured per million hours worked came to 2.3 for the Group in 2022, compared to 2.5 in 2021. The impact of our safety programs on LTIs and the rate of absenteeism can be seen in the statics comparing the last 10 year, with a reduction in the rolling LTI per millions hours worked for 10 consecutive years. We also see results in terms of a more proactive approach by both people and the company, a higher safety awareness and correct reporting of incidents and injuries. We are convinced that our safety program BrainSafe will continue to have a positive impact and effect on our key indicators and safety performance. People 117 Integrated Annual Report 2022 We reported 59 LTIs for our own employees and 11 LTIs for our subcontractors in 2022, a total of 70 LTIs, compared with a total of 73 LTIs in 2021, with 67 LTIs for own employees and 6 for subcontractors. In the three-year period from 2020 to end 2022, Mowi managed to reduce the number of LTIs by 21.3%, and we aim to continue our good progress and positive trend going forward. The LTIs for our own employees were categorised as Low (18), Medium (17) and High (9). For our hired staff the LTIs were categorised as Low (7), Medium (5) and High (3). The category “high” is regarded as an “Extremely dangerous situation/occurrence" that has the potential to cause "serious injury to personnel or could potentially have led to serious injury”. Out of the 12 High category LTIs, 5 of them happened in our Sales & Marketing division and 7 in our Farming division. The incidents resulting in high-consequence injuries were caused by compressions and impacts. The main causes of injuries were pinches, compressions, cuts and impacts which together accounted for 37% of injuries, and injuries in the category slips, trips and falls which accounted for 42% of injuries. Injuries related to smoke or chemicals accounted for 9%, while others accounted for 12%. The majority of the lost-time incidents occurred in our Sales & Marketing division, with a total of 41 LTIs or 69.4% of the total. The majority of the incidents occurred in our processing plants. The Sales & Marketing units with the highest incident rate were France with 12 incidents, Poland with 9 incidents, Belgium with 8 incidents, Spain had 5 incidents, US had 3, and Asia and Raw Materials & Trade had 2 each. The Farming Divisions had a total of 18 LTIs, accounting for 30.6% of the total. The incidents happened both at farming sites and processing plants. Norway and Chile had the highest number of 7 incidents each, Scotland, Faroe Island, Canada West and Ireland had 1 each. Our Feed division has not had any LTIs for 7 years. We did not have fatalities in the group in 2022 and the fatality rate (TRIR) for employees in 2022 is therefore zero. Our rate of absenteeism has slowly decreased over the past years, from 5.7 in 2016 to 5.4% in 2022, slowly moving towards our 4% goal. The decrease represents a positive trend in the longer term, but we have experienced peeks throughout the 3 last years due to Covid-19. The rate of absenteeism is higher in value-added processing operations than in our Farming and Feed units, which is largely attributable to ergonomic issues and stress. The Business Unit with the highest absence rate is Poland with an accumulated absence rate of 9.5%. Western Europe, including Belgium, France, Spain and Netherlands had an accumulated absence rate of 7.1%. All other Business Units are on or below the Group median for absence. The Group absence split between genders were 47% female, 53% male. Between the age groups, the age group 50 years and above had a share of 32%, the group 30-50 years had an absence share of 46%, while the age group 30 years and below were at 22%. The global turnover rate for 2022 was 15.5%. The highest turnover was in the age group 30-50 years old with 45% of the turnover. The age group 30 years and younger had 38% turnover, while the age group 50 years and above had 17% turnover. The majority of the turnover was among employees with a seniority of 5 years or less in the company with 68% of the turnover. Employees with a seniority of 5 to 10 year had 23% of the turnover, 10 to 20 years were at 8% of the turnover and employees with a seniority of 20 years or more had 1% of the turnover. The turnover split between genders were 43% female and 57% male. Priorities going forward We will continue our efforts to build a strong health and safety culture, with BrainSafe as an integral part of our operation. Our ambition to achieve a rate of absenteeism of below 4% remains unchanged, as does the target of zero LTIs. We believe that our global and systematic approach to safety will contribute to a safer workplace and reduce LTIs and absenteeism going forward. All new employees and hired staff are required to attend BrainSafe training sessions. Our efforts to provide training to selected contractors and suppliers continues. Safety materials and digital trainings are available to all employees. Refresher courses and workshops will be offered to reinforce and sustain the lessons learned during the initial training. The Global Safety Week initiative is planned to continue as an annual event. Mowi plans to run a global Employee Survey in in 2023, to gain insights on people's engagement, well-being and the working environment. People 118 Integrated Annual Report 2022 Commitment to local communities The opportunity Wherever Mowi operates we are dependent on maintaining good relationships with the local communities in which we all live and work. By offering support to important community projects and programs, in addition to providing valuable employment opportunities, we hope to make a positive impact and help our communities thrive. Our efforts We aim to maintain good relations and a positive coexistence with the local communities in which we operate. We are committed to contributing to local development by supporting schools, sports, and environmental and cultural initiatives. By offering employment opportunities and allowing our employees to give back to their local communities, we aim to contribute to the development of society as a whole. We encourage proactive efforts to engage locally to help prevent any negative impacts on surrounding communities as a result of our operations. While formal commitments, such as certification standards, require us to engage with local communities with regard to our business operations, we are also keen to ensure that social responsibility, ethical conduct and sustainability are at the heart of our corporate culture. Having productive relationships with the Indigenous groups in the territories where we operate is a critically important part of our business. We firmly believe in the right of any Indigenous group to meaningfully participate in discussions that affect their territory and to make decisions in their interests. Our success depends on working together with Indigenous groups and co-developing business. We are glad to report that in 2022 Mowi had 96 events, and we spent over EUR 1.6 million in sponsoring to different local initiatives and events. During 2022 we also delivered more than 3 000 hours of volunteer work, and our events and programs reached more than 31 000 people. Almost 20 000 of the people engaged were participating or part of program focusing on well-being, sports and healthy living and eating. Examples of support in 2022 Mowi’s business units across the globe are always getting behind their communities and supporting good causes, events and initiatives. Norway In Norway staff from multiple Mowi sites took part in the world’s largest beach clean-up event organized by Rein Hardangerfjord during the National Beach Cleanup Week. The entire Hardangerfjord – which stretches 183 km – was cleaned. The clean-up was a collaboration between farmers, schools, companies, environmental organizations and volunteers. This was the first year of a clean-up operation that will last over five years to clear the Hardangefjord of plastic. Scotland Mowi Consumer Products UK has this year become a funding partner for the Cash for Kids Sports Challenge. This is a grant-giving charity helping children and young people who find it difficult to get into sport, either through disadvantage or disability across the UK. Mowi are proud to take part in a worthy cause that will support local children. Poland In March, the wildlife and nature photography exhibition was held once again to raise vital funds to support those in the country, including the family members of many Mowi colleagues. Members of the Mowi family encouraged support by purchasing a print and helping the team reach its fundraising goal. All funds raised will help to support child refugees from Ukraine staying in welfare centre in Ustka, Rowy and Runowo. France Mowi Bretagne donated chairs, tables and lockers to help the Ordre de Malte France fit out its new presises in the Finistère region, home to Mowi Bretagne. Ordre de Malte France is the French branch of the Sovereign Order of Malta – one of the oldest People 119 Integrated Annual Report 2022 charitable organizations in the world. Mowi Bretagne has also entered a three- year partnership with the regional sports club where we will be sponsoring the women’s handball team of the Entente Bas Léon. Canada West While access to fresh and affordable fruit and veg is expected in most all communities we live, logistical challenges in small coastal villages like Klemtu that are only accessible by a weekly public ferry or float plane create obvious challenges to food freshness and cost. The Mowi Canada West team will be ensuring that Klemtu residents are well catered for with healthy, delicious and affordable food options. A variety of fresh fruit and vegetables will be delivered at the Kitasoo Band Store by Mowi’s Aquatrans trucks that arrive to the small coastal community on a private barge. Chile In the Aysén region, Mowi Chile is developing a collaborative project called Salmon tourism. This is a pioneering project of its kind; the aim is to take visitors to learn about the complete value chain. Salmon tourism seeks to teach the community about our production processes. First the visitors are taken to de Fiordo Aysén hatchery, then to Tortuga site and the Chacabuco processing plant. The tour ends with a delicious salmon degustation. Another project in Mowi Chile is Salmon at school in the Chilean Patagonia. Through an agreement with the authority, Mowi is delivering salmon at a subsidized price, so that the children of the public schools of the Aysen region can have healthy, delicious and healthy lunches. Netherlands The employees of Mowi Lemmer in the Netherlands have raised EUR 1 500 for the Highflyers Foundation (Stichting Hoogvliegers); a Dutch charity that lets sick or disabled children experience a special and unforgettable adventure. Since 2007, more than 11 000 children have flown thanks to the foundation and its volunteers. Mowi Lemmer is a proud supporter of this fantastic foundation and hopes it can continue to provide even more unforgettable experiences for the children. Priorities going forward In the areas in which we operate, we will continue our efforts to support local projects, both financially and socially, as well as continuing to develop our relations with local communities. Furthermore we will keep supporting local projects within sports and healthy living, education, sustainability and youth programs. People 120 Integrated Annual Report 2022 NUMBER OF EMPLOYEES NUMBER OF EMPLOYEES 2022 2021 Permanent Temp 3rd party Total Permanent Temp 3rd party Total Feed Male 109 10 2 121 113 9 2 125 Female 29 2 — 31 30 2 — 32 Farming Norway Male 1 408 163 135 1 706 1 413 135 131 1 679 Female 390 45 86 521 352 34 44 430 Farming Scotland Male 632 46 7 685 570 34 8 612 Female 85 5 5 95 86 5 1 92 Farming Canada Male 456 28 — 485 540 16 — 557 Female 86 3 — 89 117 4 — 122 Farming Chile Male 584 48 131 763 591 47 151 789 Female 200 20 49 269 211 14 47 272 Farming Ireland Male 146 27 — 173 131 70 11 213 Female 20 17 — 37 21 27 — 48 Farming Faroe Islands Male 47 4 — 51 51 — — 51 Female 22 1 — 23 23 — — 23 Farming Iceland Male 59 — — 59 — — — — Female 15 — — 15 — — — — Farming Male 3 333 316 273 3 922 3 296 302 301 3 900 Female 819 91 140 1 050 811 84 92 986 Consumer Products Male 2 883 378 900 4 103 2 931 450 902 4 256 Female 3 014 380 881 4 174 3 111 470 861 4 421 Markets Male 105 24 1 157 100 16 — 143 Female 41 3 — 65 46 1 2 70 Sales & Marketing Male 2 994 371 926 4 291 3 032 466 902 4 400 Female 3 055 370 839 4 264 3 157 471 863 4 491 Corporate/other Male 29 — 5 34 29 — 5 34 Female 14 — — 14 17 — — 17 Mowi Group Male 6 465 697 1 205 8 367 6 470 777 1 211 8 458 Female 3 917 463 979 5 359 4 014 557 955 5 526 Mowi Group Total 10 381 1 160 2 184 13 726 10 484 1 334 2 166 13 984 The percentage of self-employed workers is not significant. Data are registered as part of our monthly reporting process and closely monitored by management. Sales & Marketing has the high season before the Christmas sale and Eastern sale, specially chilled operations. Our Farming and Feed operations have a more stable work season. Employee number equals FTE, calculated from hours worked based on the entities standard full time working hours. 3rd party personnel are hired from and employed by external agencies, with a contractual relationship between Mowi and the agency. People 121 Integrated Annual Report 2022 KEY HEALTH AND SAFETY INDICATORS Key indicators 2022 2021 2020 2019 2018 2017 LTI per million hours worked (own employees) 2.3 2.5 2.7 4.3 4.8 6.6 LTI own employees 59 67 75 118 134 155 LTI subcontractors 11 6 15 11 9 9 Absentee rate in % of total hours worked (own employees) 5.4% 5.2% 5.1% 4.7% 5.0% 5.2% Fatalities (own employees) — — 1 1 — — LTI grading High (extremely dangerous situations/occurrences) Medium (moderately dangerous situations/occurrences) Low (situations/occurrences that are not dangerous) Total 2022 9 17 18 44 2021 12 18 24 54 2020 11 14 50 75 SUPPORT TO LOCAL COMMUNITIES Direct support to local communities (EUR thousand) 2022 2021 Norway 567.9 422.2 Canada 38.4 139.3 Scotland 742.2 270.8 Chile 23.6 63.4 USA 62.1 156.0 Ireland 64.9 32.0 Central Europe 94.5 26.0 Western Europe 20.3 131.0 Total support to local communities 1 613.9 1 240.7 The list covers the main countries or regions in which we operate. The figures include contributions to charities, various community projects and social programs. People 122 Integrated Annual Report 2022 Investment in people is a Smart move Mowi Smart Pro programme develops the Mowi team while improving business outlook. A talented workforce lies at the very heart of a successful business. At Mowi we invest in employee development and provide numerous opportunities for training, sharing knowledge and experience, and developing the most effective solutions for our organisation. As embracers of change, we are ever refining and improving our operations. In 2022, the Mowi Smart Pro programme was launched to develop problem solving and waterfall project management methodology among our team, with the principal aim of standardising the Mowi approach and fostering organisational advancement. A driving force behind the programme is the idea of promoting cooperation between different areas of our organisation, with the goal of solving new and complex problems that have no obvious solution. Between 2021 - 2022, 79 project ideas were submitted as part of Mowi Smart Pro, of which 22 were successfully addressed and implemented at Mowi Poland. How it works Mowi Smart Pro intends to identify projects that will benefit our organisation. After ideas have been submitted, the leading proposals are divided into two groups and a project manager is assigned to manage the related tasks, with the entire team reporting their progress. Each working group then outlines a plan, including estimated monthly savings. A standout project from the programme in 2022, which has been fully developed and implemented, was ‘The 30% reduction of rework on unused finished product’ submitted by Dorota Rosochacka, a production coordinator at Mowi’s sushi plant in Ustka, Poland. The project identified the reclassification report prepared by production control as an effective tool for verifying expected standards. This is just one of 18 projects implemented in 2022. People 123 Integrated Annual Report 2022 The results The entire Mowi Smart Pro programme shows that harnessing human potential in a project is vital for identifying and implementing improvements and boosting managerial and analytical skills. Mowi Smart Pro benefits and develops our entire organisation and enriches individual careers. The 2022 projects resulted in two promotions and three moves to new positions within Mowi Poland, along with a reorganisation involving the promotion of all nine production optimisers to new positions in a newly created Technology Department. This programme ensures the organic and sustainable development of our organisation. We are now in the third round of Mowi Smart Pro, with 14 projects and new project teams learning how to solve complex problems, how to calculate financial benefits and how to implement solutions. “We have achieved very good financial results from this programme, but the main gain for the people and for the company is the rising number of engaged employees, who know how to approach and solve difficult issues, and how to collect and analyse data. Employees who can see their ideas being implemented are more proactive in the implementation of further solutions,” Robert Zelewski, HR Director Mowi CE and creator of the programme. Project Managers from Mowi Smart 2 Program 2022 People 124 Integrated Annual Report 2022 People 125 Integrated Annual Report 2022 The Group management team Ivan Vindheim (1971) Chief Executive Officer Mr. Vindheim was appointed CEO in 2019. Prior to this he held the position as CFO. Mr. Vindheim has experience from various executive positions in seafood and other industries. He was CFO of Mowi for seven years before taking on the position of CEO. Mr. Vindheim serves as a Board member of Arctic Fish. Mr. Vindheim holds an MSc in Business and an MBA from the Norwegian School of Economics. He is also a State Authorized Public Accountant and Certified European Financial Analyst. Number of shares held at year end: 7 750 Number of options allotted at year end: 661 975 Kristian Ellingsen (1980) Chief Financial Officer Mr. Ellingsen was appointed CFO in 2019. Prior to this he held the position of Group Accounting Director. Mr. Ellingsen has experience from various positions within the finance area: •Group Accounting Director at Mowi, 2015–2019 •Director within auditing and advisory services at PwC, 2006–2015 Mr. Ellingsen holds an MSc in Business from the Norwegian School of Economics and a BSc in informatics from the University of Bergen. He is also a State Authorized Public Accountant and a Certified Information Systems Auditor. Number of shares held at year end: 1 090 Number of options allotted at year end: 265 646 Catarina Martins (1977) Chief Technology Officer and Chief Sustainability Officer Ms. Martins was appointed Chief Sustainability Officer in 2019. As of 2020 Ms. Martins also holds the position as Chief Technology Officer with responsibility for Mowi's Global R&D Department. Ms. Martins has both a scientific and business background in the area of sustainability: •Group Manager Environment and Sustainability, Mowi ASA, 2013–2019 •Invited senior researcher and lecturer at the University of Veterinary Medicine in Vienna, Austria, 2012–2013 •Project leader at the Centre for Marine Sciences (CCMAR), Portugal, 2011–2013 •Senior researcher at Wageningen University, The Netherlands, 2005–2011 Ms. Martins has a PhD in Aquaculture from Wageningen University (The Netherlands), an MBA in global seafood from the Norwegian School of Economics (Norway), and an MSc in Marine Biology from the University of Lisbon (Portugal). Additionally Ms. Martins has supplementary education on Corporate Sustainability from Harvard University (USA). Number of shares held at year end: 2 535 Number of options allotted at year end: 105 694 10% of variable compensation linked to achieving energy efficiency targets People 126 Integrated Annual Report 2022 Øyvind Oaland (1970) Chief Operating Officer Farming Norway Mr. Oaland was appointed COO Farming Norway in 2020. Prior to this he held the position as Mowi’s Chief Technology Officer/Head of Global R&D. Mr. Oaland has held various positions within Mowi since 2000 and also holds various Board positions within the industry: •Board Member of Arctic Fish, from 2023 •Board Member of The Norwegian Seafood Federation, since 2021 •Board Member of the Norwegian Seafood Research Fund (FHF), since 2019 •Member of the Board of Directors at the Aquaculture Stewardship Council (ASC), 2019-2022 •Chief Technology Officer at Mowi ASA, 2008–2020 •Vice President Food Safety & Quality at Mowi ASA, 2005–2008 •Fish Health and Quality Manager at Mowi Norway 2002–2005 •Fish Health Manager at Mowi Norway, 2000–2002 Mr. Oaland is an authorised veterinarian from the Norwegian School of Veterinary Science. Number of shares held at year end: 5 478 Number of options allotted at year end: 293 028 Ben Hadfield (1976) Chief Operating Officer Farming Scotland, Ireland, the Faroes and Canada East Mr. Hadfield holds the position as COO Farming Scotland, Ireland, the Faroes and Canada East. Mr. Hadfield has considerable experience within farming: •Board Member of the Scottish Salmon Producers Organization, since 2016 •Board Member of the Sustainable Aquaculture Innovation Centre, 2016-2023 •Managing Director of Mowi Scotland, 2016 – December 2019. •COO of Mowi's Fish Feed Business Area, 2013 –December 2019. •Technical Chair of the Scottish Salmon Producers’ organisation, 2012–2013 •Production Manager at Mowi Scotland, 2007–2013 •Technical & HSEQ Manager at Mowi Scotland, 2004–2007 •Environmental Manager at Mowi Scotland, 2000–2004 Mr. Hadfield holds a BSc in Environmental Geoscience from the University of Sheffield and an MSc in Pollution Control and Environmental Management from the University of Manchester. Number of shares held at year end: 7 960 Number of options allotted at year end: 375 175 Fernando Villarroel (1974) Chief Operating Officer Farming Americas Mr Villarroel has served as COO Farming Americas since 2020, prior to that Mr. Villarroel was the Managing Director for Mowi Chile. Mr Villarroel has extensive experience in salmon farming and finances in Chile, Canada, Scotland and Norway: •Managing Director of Mowi Chile, 2017-2020 •Managing Directior of Cermaq Canada, 2007–2017 •Farming Business Controller Cermaq Group, 2005–2007 •CFO Mainstream Scotland 2004 •Different financial roles in Mainstream Chile from 1998 to 2003 He is a Financial Auditor with a MSc from the Universidad Austral de Chile. Number of shares held at year end: 5 502 Number of options allotted at year end: 293 779 People 127 Integrated Annual Report 2022 Ola Brattvoll (1968) Chief Operating Officer Sales & Marketing Mr. Brattvoll has served as the COO of Mowi's Sales & Marketing Business Area since 2010. Mr. Brattvoll has comprehensive experience within sales and marketing: •Vice President at Hallvard Lerøy AS, 2010 •Market Director at Hallvard Lerøy AS, 2008–2010 •Market Director Japan at Hallvard Lerøy AS, 2006–2008 •Head of the Norwegian Seafood Export Council´s Tokyo office, 2002–2006 •Market Manager at the Norwegian Seafood Export Council´s head office, 1995–2002 Mr. Brattvoll holds a degree in fisheries from the Norwegian College of Fishery Science, University of Tromsø. Number of shares held at year end: 10 321 Number of options allotted at year end: 375 175 Atle Kvist (1963) Chief Operating Officer Feed Since 2020 Mr. Kvist has served as COO for Mowi Feed. Prior to this he held the position as Managing Director for Mowi Feed. Mr. Kvist has experience from various executive positions and is an experienced feed executive: •Managing Director Mowi Feed, 2019 •Project Manager Cermaq Norway AS, setting up a greenfield salmon processing plant in Nordland, 2015–2019 •Managing Director EWOS Norway AS, 2010–2015 •Production Director EWOS Norway AS, 2008–2010 •Production Director Hansa Borg Breweries AS, 2000–2007 •Managing Director Stord International AS / Atlas-Stord Norway AS, 1996–1999 Mr. Kvist holds a degree from South Dakota School of Mines & Technology. Number of shares held at year end: 633 Number of options allotted at year end: 293 028 Anne Lorgen Riise (1971) Chief Human Resource Officer Ms. Riise has served as the Chief Human Resource Officer since 2012. Ms. Riise has experience from various positions within law and human resources: •VP HR Europe and General Counsel for Ceragon (Nera) Networks, 2007–2012 •Lawyer at the lawfirm of Alfheim & Hansen, 2004–2007 •Advisor at the Norwegian Ministry of Foreign Affairs, 2000–2002 Ms. Riise holds a master’s degree in law (LLM) from the University of Bergen and Oxford Brookes University. Number of shares held at year end: 1 448 Number of options allotted at year end: 105 694 128 Integrated Annual Report 2022 Research and development 129 Integrated Annual Report 2022 Mowi 4.0 and Smart Farming In 2022, we continued to validate and implement key components of our Smart Farming concepts, such as continuous weight measurement, automatic sea lice counting and assisted feeding, real-time net surveillance at our seawater operations, and real-time water-quality measurements at our Recirculating Aquaculture Systems. Strong focus on improved sea lice control Testing, validation and implementation of the most promising lice prevention concepts, together with development and testing of novel and optimised treatment methods, had high priority also in 2022 and have contributed to further improvements in our lice control for several farming entities. Bringing MOWInsight into our operations We completed several new projects to harvest more insights and intelligence from our data throughout our integrated value chain, focusing on our farming operations in Norway. Establishment of MOWInsight - one common, modern, cloud-based, and integrated data platform for the whole company, has allowed us to significantly advance our data science and analytics capabilities. Genetic progress in production data revealed The potential of full integration of breeding and farming in Mowi was realised using MowInsight, where genetic progress in key production traits has been quantified, and the economic impact of this gain derived. Research & Development Embracing the revolution A Blue Revolution can only happen if we are all willing to accelerate our learnings and embrace change. Mowi’s Research and Development teams are leading the change throughout our entire value chain. Research and development 130 Integrated Annual Report 2022 Ambitions Main focus within R&D and Technical Optimise farming technologies Develop and test new technologies that lead to more cost-effective farming Increase survival in sea Monitor diseases and loss factors. Identify risk-factors and develop best practices for prevention and mitigation Control sea lice mainly by non-medicinal means Develop non-medicinal methods and approaches for sea lice control Eliminate limits on sustainable growth caused by the feed ingredients situation Identity and implement safe and sustainable alternative feed ingredients Maintain premium product quality and further reduce downgrading Develop improved technological solutions for optimised processing, packaging and storage of our products Maintain salmon's reputation, and further improve customer satisfaction Secure and maintain good listeria control. Continue to ensure control of environmental contaminants in fish feed and end product Use data analytics to guide business decisions Unlock the potential of big data from Mowi integrated value chain to guide business decisions Research and development 131 Integrated Annual Report 2022 "The Blue Revolution requires us to learn, improve and adapt. Innovation can happen in small iterative steps over time or in significant disruptive leaps. Mowi's Research and Development teams are focused on both; smaller stepwise developments to improve conditions for our fish and value chain every day, and more transformative initiatives changing the entire industry." Dr Catarina Martins, Chief Sustainability and Technology Officer, Mowi ASA We believe that producing more food from the ocean is an integral part of dealing with major challenges faced by humanity such as food security and climate change. Salmon is farmed with a low carbon footprint, space for farming in the ocean is plentiful, and as far as animal protein goes - it’s about as healthy as it gets. By producing sustainable seafood at scale, the aquaculture industry is in a position to help tackle global challenges - this is at the very core of our vision of Leading the Blue Revolution. The period of 2021-2030 has been proclaimed by the UN as the Decade of Ocean Science for Sustainable Development. Our innovation efforts at Mowi focus on a productive ocean supporting sustainable food supply and a sustainable ocean economy. At Mowi, we do not simply farm and produce raw materials or a commodity, we produce healthy food in the most sustainable way possible and we use our unique value chain to expedite progress and change through implementation of new technologies at a high pace. Investments in new knowledge and research remains high, and emerging new technologies are continuously being developed, tested and adapted into our value chain. Research and development 132 Integrated Annual Report 2022 A value chain perspective Mowi's global value chain includes our own genetic material, feed, farming operations in both freshwater and seawater, harvesting, processing, by-products utilization, logistics and sales. Controlling the entire production with its main input factors gives us opportunities unmatched by other aquatic food producers. With full internal transparency in the breeding program, feed raw materials and recipes, farming performance and conditions in fresh and seawater, as well as harvesting and processing methods, identifying and implementing improvement can be done more effectively as we track results throughout the value chain. This gives Mowi an edge and allows us to innovate at a higher pace and with better precision. Today, we can easily track large advances through the value chain, however to follow minute and step-wise progress has been challenging even for Mowi. This relates to a general lack of standardisation and high-quality data of sufficient resolution. In 2022, Mowi continued with development, validation and implementation of projects to leverage machine learning techniques to gain new insights in our genetics department, our freshwater and seawater production and in our processing operations. The progress of our MOWInsight program, tying the aforementioned novel techniques to our vast amounts of production related data, is already allowing us to access previously untapped potentials in several parts of our value chain. Data-driven decision-making "Our new data platform, MOWInsight, is already providing valuable business insights. We see things in real time and are sharing this information across our whole value chain, enabling better cooperation across business areas and more informed decision-making. This is one example of how we deliver on our digital strategy, Mowi 4.0.” Jørn Berg, Group IT Director, Mowi ASA The Blue Revolution is also a digital revolution. Digitalization is high on the agenda for Mowi. Information Technology is an important driver of productivity improvements in a number of different ways. Smart Farming technologies in Mowi Farming is transforming the industry. The results are already visible in biological performance, fish welfare, productivity and costs. Farming Norway is on track to deliver “Mowi 4.0 Smart Farming” by 2025. By means of advanced imaging technology and intelligent sensors, Mowi work with real-time monitoring of biomass, automatic lice counting and tracking of fish welfare on selected pilot farms in Norway and will scale this up to cover the whole country by 2025. Further digitalization will be achieved through new enhancement tools, for example autonomous feeding, aiding the feeding process to help increase productivity and reduce costs. The first remote operation centre is leveraging these technological advances, with further centres planned for each of Norway’s farming regions. By constantly tracking important metrics related to fish health and performance, How we innovate The focus behind all innovation activities in Mowi, from small local initiatives to larger global research projects, is always the increased and improved production of sustainable, healthy and safe seafood. Our vision of Leading the Blue Revolution brings both responsibility and mandate to be industry leaders on R&D and technical innovation in the entire value chain – to move the industry forward into an even brighter future. This requires sustained financial commitment, a multitude of competencies and scientific expertise spanning several fields, and of course the ever-present will and passion to always become better at what we do. Since Mowi is a fully integrated food producer with our own breeding program and feed production, as well as farming, processing and sales operations, our strategic plans and key focus areas are multidisciplinary, and set the foundation for innovation within all Mowi business units and across our value chain. Mowi has established world-leading R&D and technical capacities within Mowi Genetics, Mowi Feed, across our processing plants through our processing excellence team and our Global R&D and Technical which supports mostly our Farming entities. Our R&D efforts in these critical parts of the value chain play an essential role in keeping Mowi at the forefront of the Blue Revolution. Carefully selecting the genetic properties of our salmon through cutting-edge methodologies like genomic selection, along with comprehensive nutritional and functional tailoring of our feeds, provides Mowi opportunities unlike other marine food producers. Mowi has the largest dedicated research- and technical division in the salmon aquaculture industry. Our Global R&D and Technical Department, consisting of 18 technical experts from areas of marine biology, fish health, technology, data science, engineering, economy, nutrition and veterinary medicine, holds the main responsibility for planning, coordinating and leading global R&D efforts in Mowi. The department - working collaboratively with operational staff across the value chain - helps Mowi to achieve its goals related to sustainable commercial growth, operational performance and company reputation within the fields of fish health and welfare, feed and fish performance, food safety and product quality, environment and sustainability, and farming and processing technology. R&D expenditure in Mowi totalled EUR 35 million in 2022, compared with EUR 39.6 million in 2021. In addition, an annual fee of 0.3% of Mowi Norway’s export value is paid to the Norwegian Seafood Research Fund (FHF). Research and development 133 Integrated Annual Report 2022 Mowi can be proactive instead of reactive when it comes to acting on biological issues. We see that Industry 4.0 technologies offer much clearer scale advantages in the seawater phase than what is seen today. Industry 4.0 and Smart Operations technologies are being applied in a variety of additional ways to automate and streamline our operations, for example adoption of advanced supply chain planning algorithms to balance supply of salmon and market demand. The effort to implement blockchain technology and improved traceability tools continues for strategic customers. These projects and initiatives demonstrate how Mowi is taking advantage of new Information Technology to deliver business value. Through the MOWInsight platform all data points throughout the life cycle of the salmon are now connected in one place, easily accessible. Data models are built that enable in-depth analysis of any farming-related problem, providing new insights and fresh knowledge that is translated into improved operations. MOWInsight is also the backbone of a whole range of operational reports, KPIs and dashboards that will support data-driven, fact-based decisions across the farming organization. As part of the “cloud first” strategy, Mowi continues to move important applications and IT infrastructure to the cloud. Five years ago, there were 14 ERP systems in the group, while the number is now only four. The effort to move the whole company onto one single, modern, cloud-based ERP platform continues. This will give transparency and control and provide valuable data throughout the complete value chain in one single system, which will further reduce complexity and facilitate internal cooperation while also providing the business with the most current tools to operate efficiently and in a standardized way across the supply chain and finance areas. Wellboat Ro Fjord approaching Mowi Eggebønes Research and development 134 Integrated Annual Report 2022 Innovation throughout the value chain Research and development 135 Integrated Annual Report 2022 Research and development 136 Integrated Annual Report 2022 Progress in Breeding and Genetics "MOWInsight has allowed us to integrate breeding and genetics with farming data. Such data will be of key importance going forward to confirm that the expected genetic progress is being realised in complex production environments and will ultimately allow us to tailor the use of genetics in addressing biological challenges and improving production together with complementary management measures.” Dr Matt Baranski, Group Genetics Manager, Mowi Norway Impact of genetics and association with important traits In addition to documenting genetic progress on a large scale using production data and MOWInsight, internal R&D and collaborative research with external partners has demonstrated the importance of genetics for individual traits like pigment level and CMS resistance. While colour and pigment are influenced by a range of nutritional and environmental parameters, research in 2022 demonstrated that the genetic component is highly significant, and provided valuable data optimizing the combination of breeding and nutrition to achieve Mowi’s quality targets. Extensively validated markers for CMS resistance, regularly showing strong association with CMS survival in field outbreaks, have been heavily implemented in selection to produce a rapid increase in the frequency of the favourable variants in the breeding populations in Norway and Ireland. New genomic technologies Mowi’s breeding programs globally are now routinely implementing industry standard approaches for selective breeding based on ‘genomic selection’ using highly accurate genotyping tools. The emergence and maturation of groundbreaking new technologies like genome editing have begun to open up new possibilities for rapid and efficient progress in addressing biological challenges like sea lice resistance. In 2022, Mowi took a strategic decision to invest in the development of in-house competence around these new technologies, with the commencement of a new project and hiring of an industry PhD candidate. The project aims to produce a sterile production salmon in an efficient and safe manner using highly advanced genomic technologies and will ultimately result in the elimination of genetic interactions between escaped farmed and wild salmon populations and the undesired incidence of early maturation in production fish. Combined with ongoing R&D project collaborations in the area of gene editing, these investments are expected to put Mowi in a leading position for adoption of new breeding technologies when they are adequately tested and validated, and a robust regulatory framework is in place. R&D focus on automation and high resolution phenotypes R&D continues to be a strong focus within the area of breeding and genetics, and in 2022 we added to our strong portfolio of innovative R&D projects and collaborations with world leading universities, research institutes and innovative technical partners. With advancements in genetic selection accuracy through development of genotyping and analytical approaches that have now matured into an effective and routine process, a focus has moved back to efficient collection of high resolution phenotypes Research and development 137 Integrated Annual Report 2022 to further increase accuracy of breeding values. Notable examples of developments in 2022 include collaboration with a service provider on the use of machine learning based scoring of inflammation of heart tissue from histological sections of CMS affected individuals, providing a much higher level of resolution for this phenotype compared to a category based score. A focus on horizontal transfer of technology between Mowi’s harvest plants and breeding department in Norway was realized with the initiation of a project that will use a common platform for high resolution imaging scanning of whole fish. This technology will enable rapid and accurate classification of fish size and quality in harvest plants, and will also enable accurate and high throughput automation for sorting the best quality broodstock during sea sorting operations, ensuring the best genetics are available for egg production. Finally, automation of gender sorting of broodstock candidates using innovative ultrasound technology was tested in 2022, with expected implementation on smolts sites in 2023. Not only will this innovation significantly reduce manpower requirements for such an operation, but it will increase consistency and accuracy of the process while at the same time minimising handling of fish. Through extended collaboration with Mowi's Global R&D and Technical, this technology base will be explored to see whether the platform can be extended to a broader range of health and robustness parameters, potentially leading to automated data collection for smolt and freshwater traits in the breeding programs, and sorting of superior grades of smolt for sea production. Progress in Mowi Feed “Thanks to a dedicated team of researchers, product developers and technicians, Mowi Feed R&D punches well above its weight in terms of discovery and implementation. 2022 was a year in which our feeds truly fulfilled their potential despite all the supply chain and feed ingredient cost challenges we faced. It was a year in which the agility of our formulation and production processes shone through.” Dr Paul Morris, Feed Formulations Director. Mowi Feed In terms of R&D in Mowi Fish Feed, our objective is to better understand the nutrient requirements of salmon and to better exploit the true value of sustainably sourced raw materials. Although the themes interlink, our research is focused on four areas which are: nutrient requirements; raw material optimisation and utilisation; fish health, welfare and quality; and feed technology. Research and development 138 Integrated Annual Report 2022 FUNDAMENTAL NUTRIENT REQUIREMENTS This year, mineral nutrition was a key focus for both sea and freshwater stages of production. In particular, we focused on phosphorous both in terms of revisiting our requirement assumptions and maximising phosphorus availability from plant-based ingredients. In addition, we explored the potential of complexed or so-called organic minerals and the interaction between trace elements and plant-based proteins in salmon feeds. 2022 saw the continuation of our research on nutrients associated with lipid-energy metabolism and their impacts on the optimisation of somatic growth, carcass yield, lipid deposition and pigmentation. In addition to our own projects on this theme, this year was the last year of our participation in the FHF sponsored project, GutMatters. In the 2nd half of 2022, we joined the FHF financed programme, Millennial Salmon. As part of the programme, the partners aim to better understand the requirement of salmon for the long chain omega-3 PUFA, EPA under real world conditions. Throughout 2022 we have been reappraising the interactions between omega-3 and omega-6 fatty acids and how temporal changes in their relative proportions in feed may influence pigmentation and nutritional value in salmon. Finally, our involvement in the practical elements of the FHF sponsored project Broodstock Nutrition in Norwegian Salmon Production also drew to a close in 2022. RAW MATERIAL OPTIMISATION Our long-term objective is to achieve independence from / non-reliance upon specific raw material sources be they of marine origin or those derived from commodities including wheat, soya, maize, peas or beans etc. This will secure our cost competitiveness and flexibility in the face of fluctuations in commodity markets. Fishmeal (FM) and fish oil (FO) contain a number of nutrients that are not unique to these ingredients but, their relative abundance and accessibility in FM and FO contribute to the performance consistency achieved by fishmeal and oil-containing feeds. To this end, we have been evaluating the potential of more complex lipid molecules e.g. phospholipids and peptide-rich materials from plant, animal and microbial sources as tools to support FM- and FO-free feeds. Additionally, crustaceans and copepods can provide valuable sources of proteins and fat from trophic levels lower down the food chain than traditional fishmeal and oil. We have been evaluating these materials as both sources of bulk ingredients and as sources of the nutrients characteristic to marine-origin feedstuffs. At this point, it is worth reiterating that what we expect to gain by continuing to work with marine-origin materials is to understand what makes them work so well with a view to applying that knowledge for the improvement of non-marine substitutes. Furthermore, whilst it is desirable to reduce our dependence on fishmeal, this highly effective raw material will still play a role in salmon nutrition for some time to come and thus, our focus on fishmeal quality has not diminished. Our search for emerging, non-marine ingredient sources has revealed considerable potential in protein concentrates derived from pulses and legumes which, given the right investment in the supply chain, could compete strongly for the niche currently occupied by soy protein concentrate. Mowi Feed continues as a Research and development 139 Integrated Annual Report 2022 participant in the EU-funded Next Generation Proteins (NGP) project which, in addition to our in-house work, has given us further understanding of the commercial value of algal, insect and bacterial proteins. In addition to the work on essential fatty acid requirements, the Millennial Salmon project (in which Mowi is a partner) is a vehicle to evaluate the potential of oil-rich biomass / algal oil and insect products as feed materials for salmon. Finally, Mowi contributed to the Råvareløftet project which spotlighted a number of sustainable candidate ingredients (primarily, marine based) that may contribute to Norwegian self-sufficiency in feed materials. You can read more in our policy on emerging feed raw materials on Mowi.com. FISH HEALTH, WELFARE AND QUALITY Promoting fish resilience through the feed is key to Mowi Feed’s overall strategy. To this end, we carried out a number of projects in which we used functional ingredients including plant extracts and essential oil blends as non-medicinal tools to support salmon exposed to conditions likely to damage skin and gills. Nutritional antioxidants including but, by no means limited to: vitamins E & C; carotenoids; polyphenols and selenium interact in a multitude of ways to determine salmon health and quality outcomes. To this end, in 2022 we carried out a number of projects in which the potential to both over- and undersupply of antioxidants and factors considered advantageous for pigmentation, were explored. In addition, we worked at quite some depth to characterise the effectiveness of both traditional and so-called natural antioxidants and their potential to both maintain feed freshness and crossover to support the antioxidant systems in the fish itself. Mowi Feed maintained its activities in the EU-sponsored AquaIMPACT project in which the interaction between breeding / selection and feed composition is studied and how they can be used as tools to steer the quality of farmed fish including Atlantic salmon. FEED TECHNOLOGY 2022 was a year in which agility in terms of making substantial formulation changes whilst delivering consistent nutritional value was crucial. Throughout this year we widened the process window i.e. broadened the number and scale of the variables to which we can be exposed without negative impact on the feed’s physical properties. The supply chain difficulties of 2022 were a strong driver in projects focused on raw material substitution with algal cell / oil suspensions and products reducing fat leakage from high oil feeds being highly relevant. As in recent years, a number of projects focused on maintaining feed freshness in the post-ethoxyquin era with securing the stability of astaxanthin in the feed being a key objective. As part of the crossover between manufacturing and nutrition, we explored the extent to which lot-to-lot variability in both ingredients and feed manufacturing can have on salmon performance and quality. Additionally, in response to the increasing focus on rearing in closed systems, we initiated a number of projects to further develop feeds with the features and benefits that maintain high water quality (low levels of fine particulates and suspended solids) whilst maintaining high levels of digestibility and nutrient retention. Innovation in Farming In 2022, our Global R&D and Technical department, along with different Farming divisions and their technical experts, have continued the work to close important knowledge gaps in both freshwater and seawater farming operations to improve performance of fish, welfare and equipment. Recirculating Aquaculture Systems (RAS) "With more than 50% of our smolts produced in RAS, Mowi continues to build internal knowledge to refine and optimise global best practices for design and operation in RAS." Trond Rosten, Group Manager Freshwater production, Mowi ASA Developing and optimising farming practices in freshwater Our smolt production is depended on new evolving RAS technology, new Semi-Closed Containment Systems (S-CCS) as well as traditional and proven flow through systems with reuse of water. It is vital to us to provide all life stages of our salmon with a healthy and sustainable environment safeguarding welfare and production volumes. Our focus regarding Freshwater technology and production environment are: •investing in new technology and upgrading production sites for smolts and post-smolts in Norway. •updating the One Mowi RAS global standard from recent learning safeguarding decisions for design and operation of RAS systems •validating new system for performance in terms of water quality and microbiology. •test and contribute to the development of new S-CCS for post-smolts. •safeguarding startup and restart of new as well as running RAS systems. •undertaking risk-assessment when running large operations or using new equipment. •preventing human error by focusing on training and implementation of results from innovations and learnings in RAS. In 2022 all key employees in all business units have completed our global E-training program on operations of RAS systems. •sharing main learning points after R&D projects as well as incidents with the global technical team for freshwater, the global One Mowi system as well as the new RAS -E-learning platform (in Norwegian, English and Spanish). •Constant improvement, through R&D, focusing on in depth understanding of biological and technical solutions, and with special focus on smoltification, water quality, light regimes and microbiology. Research and development 140 Integrated Annual Report 2022 In 2022, we have continued to develop and implement the post-smolt project in Norway. We also tested and benchmarked a new type of S-CCS based on a flexible closed bag with deep water intake and cleaning systems of the particle discharge. S-CCS could be an alternative production platform for post-smolt, given the right licensing conditions and price. It is proven that S-CCS enables sea lice numbers to be held below treatment thresholds. Likewise we have shown that recapture of resources from discharge is achievable and integration into circular economy is possible. Predictive and consistent regulations on measures for sea lice, fish density, sludge recapture and fish movement need to be in place to secure commercial implementation of S-CCS solutions. In 2023, we will continue to build knowledge of tank hydraulics, related to different iterations of inlet arrangements as well as fish behaviour to provide high performing units. We will also test out performance of a new system for recapturing resources from the particle outlet from the new S-CCS systems in production. Since more than 50% of our smolts are produced with RAS technology we are a global big player in RAS where all our business units (except Ireland) are using the this technology. Extensive training have been conducted in 2022 using the internal RAS E-learning course as well as sharing knowledge internally through the global freshwater seminar. Our R&D have reach new and novel understanding of factors that influences conditions in RAS that can cause H2S, obtained recommendations for enhanced and more secure production protocols for post-smolts, best available real time monitoring technology for water quality in RAS, as well as sharpening the recommendations and knowledge for a more united and novel use of light in freshwater systems. We will continue to secure smolt numbers as well as post-smolt Norway and other business units. We will continue our efforts to validate our new freshwater systems to minimize risk and secure global learning effects. We aim to support R&D that secure good biosecurity and production protocols for smolts and post-smolts. Focus will also be on implementing real time monitoring for H2S in relevant system. We will conclude on learning points from our active role in the CtrlAkva research innovation center for RAS and S-CCS and continue to develop understanding and performance of to types of S-CCS system. Developing and optimising farming practices in seawater net pens "We need to ensure that we always use best-in-class equipment for all conditions, and that we continuously refine our seawater operational procedures and support technologies according to new knowledge, improved analytical tools and rapid technological advancement. This is what Mowi has always done for decades – and will continue with going forward - to keep at the forefront of the Blue Revolution.” Henrik Trengereid, Group Manager Seawater Technology, Mowi ASA Research and development 141 Integrated Annual Report 2022 Safeguarding both our fish and equipment Mowi have long worked to move away from high-pressure cleaning of salmon nets in sea, as well as reducing our dependency on copper-based antifouling paints, to improve animal husbandry, reduce strain on our salmon nets and avoid copper emissions from salmon farms. In 2021, we essentially stopped high-pressure cleaning of copper-coated nets in sea, and in 2022 we continued implementing copper-free products and became independent on copper in several farming entities. We have maintained our focus to consolidate nets- and antifouling strategies, using now only a select range of high-performing concepts in all farming entities. Several R&D projects have documented the effectiveness of gentler robotic cleaning methods to potentially replace in-situ cleaning altogether, demonstrating the possibility of net pen farming without dependency on neither copper paints nor in-situ cleaning. Notwithstanding the anticipated benefit of gentler cleaning methods for our fish and equipment, several types of new and/or improved netting have also in 2022 been tested commercially in our farming entities, with tremendous scrutiny being placed on performance of the nets as they are evaluated for parameters related to physical handling, ability to retain strength over time and abrasion resistance. Solutions for nets with less shrinkage have also been identified and headed into full scale testing in 2022, with significant potential to increase the lifetime of our nets and reducing associated cost. Our strategic initiative to research and define best practices for farming in more exposed locations continued in 2022, with sustained emphasis on selecting the objectively best suited pen equipment (mooring system, pen and net) for high-energy sites. Together with suppliers, significant effort has also been placed on developing more objective risk-based tools to select the best combination of pen equipment in all conditions, from shallow to deep - sheltered to exposed farm locations – and this work has continued to result in optimisations regarding choice of pens, net material- and geometry for both sheltered and exposed locations. Work continues to ensure, with the utilisation of new knowledge and technology, that all our farms are fitted with best-in-class production equipment always tailored for the environment in which we operate, to further reduce the risk of escapes and safeguarding the welfare of salmon in or care. Sea lice mitigation and management Successful management of sea lice (a natural skin parasite of marine fish) commands a high focus in all our farming regions, not least because of limitations on growth in Norway and increasing production cost related to its management. As in 2021, further improvements were attained to make our sea lice treatment systems even more gentle for our salmon. Our extensive sea lice research resulted in a broader roll-out of preventive tools across our Norwegian and Scottish operations in Research and development 142 Integrated Annual Report 2022 2022, along with the implementation of our Dynamic prevention concept, to further optimise lice prevention and growth performance. In addition, we tested several novel lice prevention and treatment concepts and will pursue those which demonstrated encouraging results. Numerous innovative projects on novel and passive treatment concepts/technologies were further developed in 2022, and several new and promising projects were initiated. One project in particular reached commercial validation and several others advanced to proof of concept testing. We continued our endeavours to discover new solutions and knowledge to tackle sea lice, working integrally with both scientific and commercial partners. In addition, we implemented new combinations of different non-medicinal treatments in Norway. New concepts for collecting lice that may fall off during operational processes or when fish are crowded, and removing them from the environment to reduce the risk of re-infestation, were trialled and implemented on several sites in 2022, with further testing continuing in 2023. Our research on farmed cleanerfish led to the implementation of solutions to further improve their performance and survival. We also ran a programme to validate best practices for survival, performance and optimal lice control for cleanerfish, which will be continued in 2023. Through our Breeding and Genetics division, we maintained our strong focus on genomic selection for lice resistance in the Mowi strain. Our Global R&D and Technical Department, in collaboration with Mowi Farming, scientific and commercial partners, will continue to research, develop, test and commercially validate new preventive and treatment concepts for lice mitigation. Fish health In 2022, we tested and validated several new or improved health products and solutions, together with our respective scientific and commercial partners, the results of which will emerge in 2023. Based on the positive outcomes from projects completed in 2022, new vaccines were implemented that will give improved survival in 2023 and beyond (see Planet section). To achieve further improvements in our management of Pancreas Disease (PD), projects were established that are expected to contribute to a further reduction in PD. In tandem, best practice reviews and specific fish health projects yielded important findings which were implemented to optimise biosecurity programmes in our operations and address gill health challenges more effectively. In collaboration with our scientific and commercial partners, we co-developed several new tools and machine learning techniques to improve our understanding of fish health status and delivery time on diagnostic results. and we conducted detailed investigations into our SRS management practices and research on vaccine performance in Chile. Research and development 143 Integrated Annual Report 2022 Innovation on net pens Research and development 144 Integrated Annual Report 2022 Innovation in Processing “In 2022, we really saw the amazing potential at Mowi in terms of horizontal and vertical integration and bringing people together across the organisation. We were able to successfully run several pilot projects with significant learnings to take forward in the business and also optimise our approach to data analysis in our processing plants.” Teis Knudsen, Managing Director Global Processing Excellence, Mowi ASA Mowi Jøsnøya – A RADICAL CHANGE IN HARVESTING AND PROCESSING Mowi Norway’s new plant in Region Mid will be the first new built salmon plant in the world specially designed for receiving salmon from sea harvest vessels (i.e fish are slaughtered in vessel and thereafter transported chilled to a processing plant). The new plant will have a capacity to produce 100,000 tons of salmon and convert 25,000 tons to Premium fillets. The plant is located at Jøsnøya Industry park at Hitra and will receive bled and chilled fish from farms in a distance of up to 150 nautical miles with the largest new built Sea Harvest vessels in the world. Moving the stun and bleed process from the factory to the vessels gives the lowest emissions and highest biosecurity and fish welfare standards in transport. The processing plant will be based on the newest proven processing technology in gutting, grading/ packing, filleting and logistics, giving major labour and yield efficiencies and a high utilization of by-products. Design criteria is based on Mowi’s high standard in health and safety and hygiene, and will secure the best working environment. The plant will start production in Q1 2024. Research and development 145 Integrated Annual Report 2022 Global Processing Excellence Team Optimising operational excellence In 2022, we have taken significant strides to optimise operational excellence. We saw the acceleration of pilot projects for new equipment and new processes at Mowi. We have streamlined our approach in this aspect which now means that we run a pilot with one business unit, allowing the team there to get a good insight and understanding of the new equipment or process and meaning they can, therefore, see the potential. By running a pilot in just one place, this means that we can maximise time and resource to run a different pilot related to a different project elsewhere in the business instead. The results of any pilot are well communicated within Mowi and those directly involved in the pilot are a key part of that communication and sharing best practice. Our streamlined approach also leads to better relationships with suppliers. These suppliers know that one in-depth well-run pilot at Mowi will inform our decision making for new equipment or processes with less time commitment required from them as it is rare that we need to replicate a pilot in a different location. This is mutually beneficial in terms of saving time and money. We then have internal specialists at Mowi who can roll out standards, equipment or processes globally when a decision has been taken. Measuring overall equipment efficiency Work is well underway to define our global standard for Overall Equipment Efficiency (OEE). This will result in a simpler way of measuring regardless of the equipment or the supplier.Communication will be key to this as we look at how we can best discuss facts and focus on improvement possibilities at Mowi and then subsequently cascade this information across the organisation. Research and development 146 Integrated Annual Report 2022 2022 represented another significant milestone in the digital revolution underway at Mowi as we implemented a new aspect of Mowi 4.0 – MOWInsight. MOWInsight is a data lake which stores a vast amount of data from both internal and external sources across the whole value chain. Because Mowi is a vertically integrated company, we have data from every aspect of our business – from egg to plate. Due to our size, we also have more data to feed the algorithms we have developed, making them more accurate. This means that with successful data analysis, we can develop insights to enable us to work smarter across the whole value chain leading to smart farming, smart operations, and enhanced customer insights. Accelerating the digital revolution Research and development 147 Integrated Annual Report 2022 Smart Farming The use of technology such as environmental sensors and underwater cameras means that we have a better understanding of what is happening under the water’s surface. We now have significant data from our farming operations which provides valuable insights to inform how we look after the fish in our care. It is now much easier to identify hot spots connected with biological challenges because we can compare data across our farms and identify patterns in a particular geography. We can also identify risks more quickly and take the appropriate intervention to mitigate those risks. We can improve biological results through remote operations combined with exact data on biomass and fish health and by using automated feeding, we can make any necessary adjustments quickly and easily. Very soon, real time sea lice counting will also reduce any stress on the salmon. Smart Operations Mowi 4.0 is driving processing excellence in our factories and technology is also transforming quality control. By combining machine learning and artificial intelligence with the knowledge and skills of our excellent people at Mowi, we are improving and automating our operations. We can now track genetic performance with previously non-existent feedback loops from farming and processing operations. MOWInsight also allows us to have smarter operations across our whole business, not only between Feed and Farming but also Processing. We can now have automatic data-driven quality control and grading at our processing facilities based on scanning the fillets. Data is also shared with secondary processing facilities to eliminate duplication of effort. Overall productivity is improving through the use of vision technology and real-time reporting of factory KPIs. Enhanced customer insights MOWInsight and our planning tools allow for data-driven balancing of supply and demand for customers. This helps us allocate the right product with the right quality to the right customer for the right price. Using Robotics Process Automation (RPA) in customer order management and blockchain to share product information with customers, the relationship between Mowi and our customers is more connected than ever before. Mowi 4.0 is also a game changer in gathering valuable consumer and market insights to inform our product development and even our marketing strategy. For example, we know that provenance and animal welfare continue to be important issues for consumers around the world so we provide them with transparent and relevant information about the product they are buying from QR codes on the products in our MOWI brand range. These give information on the origin of the fish and other details about its journey from the hatchery to the store.In time, MOWInsight will further inform our approach to feeding the global population with healthy, sustainable protein. 148 Integrated Annual Report 2022 GROUP RESULT Group Results 3 149 Integrated Annual Report 2022 GROUP RESULT The Board's outlook 2022 was characterised by strong operational performance and improved demand, resulting in the best-ever revenue and operational result. In Farming, seawater growth performance was the best ever, and biological KPIs generally improved compared with the year before. Also in Consumer Products and Feed operational performance was strong and resulted in earnings records for all business areas. The financial and operational records achieved during the year were unfortunately overshadowed by the proposed resource rent tax on salmon farming in Norway. The political process is ongoing and we do not expect to have a formal clarification until after Easter, and most likely not until close to the summer. Notwithstanding the negative effects from the proposed resource rent tax, we believe in a positive market outlook for the company. Although the global macro-economic environment is currently difficult, salmon normally fares well also in challenging economic times. In the coming years, we expect global megatrends to continue to drive demand for salmon and we expect demand growth to outpace supply growth. This will only be exacerbated by a resource rent tax in Norway which is expected to negatively impact investments in volume growth in the world's largest salmon-producing country. Mowi will in any case focus on achieving continued strong operational performance over the coming years. Governance We consider good corporate governance a prerequisite for generating shareholder value, gaining investor's trust, as well as maintaining a low cost of capital. We hold the view that our current policies for corporate governance are in line with the latest version of the Norwegian Code of Practice for Corporate Governance. Board of Directors´report 150 Board of Directors 162 Corporate Governance 166 Mowi Group Financial statement and notes 178 Mowi ASA Financial statement and notes 238 Directors´responsibility statement 254 Auditor´s report, financial audit 255 Auditor´s report, GRI audit 260 150 Integrated Annual Report 2022 GROUP RESULT Board of Directors' report Good market conditions and impressive operational performance resulted in all-time high revenue and earnings in 2022. In Farming, relative seawater growth performance was record-high and there was a general improvement in biological KPIs. Mowi Farming maintained its competitive cost position versus peers. Yet again, Mowi was shown to be at the forefront of sustainable food production as the company was ranked number one in the Coller FAIRR index for the fourth consecutive year. Yield and efficiency improvements combined with continued good retail demand resulted in a new earnings record in our value-added business, Consumer Products. The Feed business area's most important contribution was to supply feed products with excellent growth performance. Furthermore, high feed volumes and good operational performance resulted in the business area's highest ever gross earnings. Notwithstanding new financial and operational records, 2022 will also be remembered for the infamous resource rent tax proposal on salmon farming in Norway. The political process is ongoing and we do not expect to have a formal clarification until after Easter, and most likely not until close to the summer. In the coming years, Mowi will continue to focus on operational improvements across the value chain. In Farming we are working along three main pillars; volume growth, cost and sustainability. In Sales & Marketing, we are putting the customer at the core of all our activities related to products, branding and operational excellence. As regards the Feed division our feed is performing very well and we continue to work on operational improvements and cost optimisation. 151 Integrated Annual Report 2022 GROUP RESULT "Our vision is “Leading the Blue Revolution” and our ambition is to be a world-leading, integrated producer of seafood proteins. In 2022, operational performance was strong in all business areas and this was reflected in record-high earnings. Mowi was yet again ranked the world's most sustainable animal protein producer by Coller FAIRR. This is very encouraging, as sustainability will be even more important going forward. We will continue to capitalise on our integrated value chain and be the leader in key areas from fish feed production to meeting the needs of the market, and this is also essential for developing our unique MOWI brand." Ole-Eirik Lerøy, Chair of the Board of Directors 2022 in brief 2022 was a record year with all-time high revenues of EUR 4 940.8 million for the group, and the highest ever Operational EBIT of EUR 1 005.1 million. For the first time in Mowi’s history we crossed the EUR 1 billion earnings milestone. Market conditions improved significantly in 2022 with the lifting of Covid-19-related restrictions and subsequent increased demand from the foodservice segment. Retail demand also continued to be strong and above pre-pandemic levels. Combined with a global supply contraction of 1%, this resulted in spot prices at all-time high levels. With stable volumes and improved prices, Mowi's operational earnings increased to EUR 1 005.1 million from EUR 522.6 million in the previous year. While Farming cost per kg increased from 2021 due to significant feed price inflation, Mowi maintained its good cost position relative to peers in the various regions. Mowi's downstream operations had another record year with the highest ever operational earnings for the Consumer Products segment at EUR 112.1 million. This was driven by efficiency improvements including better yield, in addition to continued good retail demand. The Feed segment delivered all-time high Operational EBITDA of EUR 47.0 million (EUR 34.5 million) with high-performing feed produced at two modern and efficient plants. In Farming, volume growth, costs, and sustainability are the three main pillars the company is working along. When it comes to volume growth, Mowi has increased volumes significantly in recent years. As recently as 2018, volumes were 375,000 GWT, and with its 2023 volume guidance of 484,000 GWT, Mowi will have grown its farming volumes by as much as 109,000 GWT in five years. This is equivalent to a CAGR of 5.2%. This is above market growth of 4.1%, and Mowi's goal is to continue to capture market share in the salmon category in the coming years by growing its farming volumes, both organically and acquisitively. In Norway, our most important farming region, 2022 harvest volumes reached a record-high level of 294,000 GWT, up by 8% from 2021 on increased smolt stocking and strong growth conditions with the best ever relative seawater production. This puts Mowi Norway towards the top of license utilisation and production efficiency in Norway. When it comes to costs and sustainability, Mowi Farming also performs very well compared with peers, but the company continues relentlessly to seek further improvements in these areas. Adjusted for inflation, blended Farming cost per kg was stable until 2022 as the effects of costly treatments, biological measures and complex regulations were offset by various cost-cutting initiatives. In 2022, significant feed price inflation negatively impacted realised Farming cost. Nevertheless, Mowi's farming cost has over time been the best or second best compared with peers in the geographical regions where the company operates. Mowi continues to work relentlessly on cost measures through further development of farming technologies, adoption of more effective processes and continuing cost-saving initiatives. Our commitment to the sustainable development of the industry continues. In 2022, we demonstrated good progress in the implementation of our sustainability strategy, Leading the Blue Revolution Plan, in key areas such as a further reduction in Mowi's carbon footprint in line with our Science Based targets (SBT) and 152 Integrated Annual Report 2022 GROUP RESULT reduced escape incidents. The sustainable development of our industry demands improved solutions to the sea lice challenge, and Mowi is working on several different initiatives to address this, including technology projects, improved treatment capacity and investment in our freshwater facilities. As of the end of 2022, approximately 81% of Mowi’s committed financing was labelled green or sustainable and the group is on track to meet its 100% target by 2026. In 2022, Mowi was ranked the most sustainable animal protein producer for the fourth year in a row by the Coller FAIRR Protein Producer Index. This index assesses 60 of the largest listed global meat, dairy and aquaculture companies on ten environmental, social and governance themes aligned with the Sustainable Development Goals (SDGs). Overall, Mowi was rated ‘Industry Best’ against many of the criteria aligned to the SDGs including greenhouse gas emissions, deforestation and biodiversity, use of antibiotics, animal welfare, working conditions, food safety and governance. 2022 was the best year ever for Consumer Products with an outstanding Operational EBIT of EUR 112.1 million (EUR 95.5 million) and ROCE of 16.5 % on strong demand and impressive operational results including improved yields. Our value-added business sold 229 000 tonnes product weight from its plants in Europe, the US and Asia. Although volumes were reduced from 2020 and 2021 when home consumption was particularly high due to the Covid-19 pandemic, volumes were still higher than before the pandemic. Mowi Feed produces salmon feed which, most crucially, performs very well with regards to seawater growth and biological performance. Feed is the most important input factor in salmon production. Mowi is self-sufficient for feed in Europe with its modern and technologically advanced plants in Valsneset, Norway and Kyleakin, Scotland. In 2022, the plants produced a total of 515 016 tonnes of feed, up from 481 900 tonnes in 2021 driven by good growth in our Farming operations. Operational EBITDA came in at EUR 47.0 million, up from EUR 34.5 million in 2021, equivalent to a return on sales of 4.8% and ROCE of 13.1%. Costs in 2022 have been negatively impacted by inflation, especially relating to raw materials but also to logistics, energy and other cost items. Mowi continues to work on producing high-performing feed and optimising feed ingredients while maintaining its focus on sustainability and high quality. With two modern facilities strategically located close to its farming operations, Mowi Feed is well positioned to streamline operations and improve costs. Furthermore, the current over-capacity in the feed industry is expected to be offset by growth in farming volumes in the coming years. Mowi achieved a ROCE of 23.7% which is above our long-term target of 12%. The company's financial position at year-end was very solid with a covenant equity ratio of 52.2% and NIBD at EUR 1 758.9 million. NIBD was above the long-term target level of EUR 1 400 million due to the acquisition of 51% of Arctic Fish and temporarily increased working capital tie-up. Adjusted for the Arctic Fish acquisition, NIBD was EUR 1 510.2 million. A dividend of NOK 7.35 per share was paid to shareholders in 2022, up from 4.45 in 2021. Financial EBIT increased to EUR 1 053.8 million in 2022 from EUR 602.2 million in 2021, explained by improved operational performance in all segments. The Mowi Group At Mowi, we believe the right way to supply a growing world population with healthy, nutritious protein products is by sustainably farming the ocean. Our vision is “Leading the Blue Revolution” and our ambition is to be a world-leading, integrated producer of seafood proteins. In order to achieve this, we aim to capitalise on our integrated value chain and be the leader in key areas from fish feed production to meeting the needs of the market. We are the world's largest producer of farm-raised salmon, both by volume and revenue, offering fresh, whole salmon, processed salmon and other processed seafood products to customers in approximately 70 countries. We currently engage in three principal types of production activities: –Salmon feed production in Norway and Scotland; –Salmon farming and primary processing of salmon in Norway, Scotland, Canada, Chile, Ireland, Iceland and the Faroe Islands; and –Secondary processing of seafood in Norway, Scotland, Ireland, Poland, France, Germany, Belgium, the Netherlands, Spain, Turkey,Chile, Canada, United States, Japan, Vietnam, Taiwan, China and South Korea. Mowi is self-sufficient for high-quality fish feed in Europe. With our investments in Feed, we expect to obtain lower net costs as well as improved growth, lower feed conversion rates and higher product quality. The Feed segment also supports Mowi's sustainability and branding strategies. We are working along three main pillars in Farming; volume growth, costs and sustainability. We are focused on capitalising on the many organic growth opportunities within our current license footprint. Overall intrinsic harvest capacity for Mowi Farming as a whole is well beyond 500 000 tonnes. Mowi Farming also aims to grow volumes by applying new farming technologies as well as purchasing additional capacity and undertaking M&A activities. In 2022, Mowi acquired 51.28% of the shares in Icelandic salmon farmer, Arctic Fish. Iceland is Mowi’s seventh farming country and was the last spot missing from our geographical footprint. We are looking forward to developing the company further together with the other owners and a highly competent and motivated organisation. Iceland is one of the few areas left that offers extensive organic growth opportunities in conventional farming. On top of that, Icelandic waters also provide excellent growth and living conditions for the salmon. Arctic Fish has licenses for 10 ASC approved sites in total, providing a maximum allowed biomass of 27,100 tonnes and another 4,800 tonnes pending approval. In Norway we continued to expand our smolt facilities and invest in postsmolt in 2022. The new freshwater facilities will enable production of larger smolt of higher quality which are less susceptible to biological challenges. Three postsmolt projects in Norway are ongoing, but the other postsmolt projects, part of the NOK 4 billion investment programme announced in 2021, have 153 Integrated Annual Report 2022 GROUP RESULT unfortunately been put on-hold in the wake of the resource rent proposal and its unsustainable tax level in addition to embedded uncertain framework conditions. Plans are also underway to increase the average smolt size in our Scottish farming operations, and structural investments relating to seawater in Scotland include new equipment to support larger sites and also building new sites to utilise new licenses. In Chile, Mowi continues to invest in freshwater sites and improved efficiency in seawater, harvesting and processing. Mowi Chile expects to grow volumes by 3-4% annually in line with the traffic light system. In Canada, Mowi aims to harvest approx. 25,000 GWT in Canada West in the coming years, and to utilise its significant growth potential in Canada East. Unfortunately, the company has had several environmental and biological set-backs here since the acquisition of Northern Harvest in 2018 and has temporarily reduced smolt stocking to ensure biological control before gradually increasing smolt stocking and volumes in the coming years. There are also growth opportunities in Mowi's farming operations in Ireland and Faroes. In addition to new processing facilities under construction in Region Mid, Norway, and in Arctic Fish, Iceland, selected seawater expansions will also be undertaken to support growth opportunities across our farming footprint. Moreover, the ongoing implementation of Smart Farming technologies is expected to have a positive effect on volumes and costs, as well as on fish welfare and sustainability. With Smart Farming we will get a fully digital integrated value chain through, amongst other initiatives, remote operation centres, automatic feeding, real-time monitoring of biomass, digital lice counting and tracking fish welfare using artificial intelligence. Downstream, we currently operate 21 secondary processing facilities, of which the largest are located in Ustka, Poland; Bruges, Belgium; Rosyth, Scotland; Boulogne, France and in Miami and Dallas, USA. To achieve our ambition of growth in sales of both new and existing products, we must have the necessary production capacity, and with our investments in processing plants in recent years, Mowi is well positioned for further growth. The MOWI brand was launched in China, Brazil, Colombia, Argentina and Germany in 2022, and is now present in 18 countries. However, planned branded sales and marketing initiatives were curtailed by the Covid-19 pandemic, and as a consequence, the MOWI roll-out has experienced delays. Mowi will now focus on making improvements in the 18 countries where the brand is already launched. Our long-term target for the MOWI brand strategy of EUR 1 billion in turnover at 10% earnings margin remains unchanged, with an ultimate goal of de-commoditising the salmon market over time. Financial Results Financial results are created through interaction between people, the natural environment and technology. Our goal is to find an optimal combination of these elements to create long-term success, whilst understanding that our growth must be environmentally, socially and financially sustainable. We use key performance indicators within our four interrelated guiding principles, Profit, Planet, Product and People to measure the Group’s progress. This contributes to sustainable long-term results for all stakeholders. Developments with regard to key performance indicators within each guiding principle are discussed in detail in separate sections in this Integrated Annual Report. 154 Integrated Annual Report 2022 GROUP RESULT GROUP RESULTS Set out below are our consolidated statements of operational data for the years ended December 31, 2022 and 2021. CONSOLIDATED INCOME STATEMENT DATA IN EUR MILLION AS % OF REVENUE 2022 2021 Change in EUR 2022 2021 Revenue and other income 4 940.8 4 202.2 738.7 100.0% 100.0% Cost of materials -2 347.3 -2 191.5 -155.8 -47.5% -52.2% Net fair value adjustment biomass 113.7 119.8 -6.1 2.3% 2.9% Salary and personnel expenses -612.6 -568.3 -44.2 -12.4% -13.5% Other operating expenses -607.4 -534.4 -73.1 -12.3% -12.7% Depreciation and amortisation -386.6 -373.2 -13.4 -7.8% -8.9% Onerous contracts provision -8.3 -3.2 -5.1 -0.2% -0.1% Restructuring costs and other provisions -13.7 -22.6 8.9 -0.3% -0.5% Other non-operational items -2.1 -30.3 28.2 —% -0.7% Income/loss from associated companies and joint ventures 59.2 97.5 -38.3 1.2% 2.3% Impairment losses & write-downs -59.5 -74.8 15.3 -1.2% -1.8% Earnings before financial items (EBIT) 1 053.8 602.2 451.5 21.3% 14.3% Interest expenses -52.6 -59.0 6.5 -1.1% -1.4% Net currency effects 1.4 37.0 -35.6 —% 0.9% Other financial items -1.8 13.1 -14.9 —% 0.3% Earnings before taxes 1 000.9 593.4 407.5 20.3% 14.1% Income taxes -215.5 -105.5 -110.0 -4.4% -2.5% Net earnings from continuing operations 785.4 487.9 297.5 15.9% 11.6% Non-IFRS measures Operational EBIT 1 005.1 522.6 482.4 20.3% 12.4% ROCE % 23.7% 13.4% 10.3% The financial information includes certain APM non-IFRS measures used to evaluate our economic and financial performance. For further information, please see Part 4 Analytical section. The table above demonstrates that cost of materials, salary/personnel costs and other operating expenses decreased from 2021 relative to revenue. In recent years, and especially through 2022, costs have been under pressure from several factors which include increased feed prices, increased regulatory/compliance costs and high inflation. In order to address this cost pressure, Mowi has completed global cost-saving programmes since 2018 with EUR 230 million in annualised savings, and a new EUR 25 million cost savings programme has been initiated for 2023. The company will ensure that cost-saving initiatives do not compromise safety, quality and growth. Revenue and volumes Revenue and other income for the year ended December 31, 2022 totalled EUR 4 940.8 million, an increase of 17.6%, or EUR 738.7 million compared with the EUR 4 202.2 million achieved in 2021. The increased revenue was explained by all-time high sales prices, on relatively stable harvest volumes. Realised blended Farming prices, including the effects of contracts and quality downgrading, increased by approximately 30% from the preceding year while the increase was lower in Consumer Products as sales prices for value-added products in general are more stable vs. bulk salmon. Farming spot prices increased by 40.1% in Norway and 13.9% in Chile versus 2021 on improved demand. Mowi achieved a combined global price achievement including contribution from Sales & Marketing 5% below the weighted reference price in 2022, compared with 1% below in 2021. The Group harvested a total of 463 635 tonnes gutted weight in the year ended December 31, 2022. This was relatively stable from 2021 at group level, but the company saw good growth of 20 516 tonnes (7.5%) in Norway as a result of increased smolt stocking and good seawater growth performance. Mowi Scotland experienced a decrease in volumes of 16 031 tonnes in what turned out to be a very challenging year for the Scottish salmon industry. Mowi Canada 155 Integrated Annual Report 2022 GROUP RESULT reduced volumes by 4 216 tonnes due to Canada East. In this region, volumes have been reduced in order to regain biological control before returning to the planned growth trajectory. Volumes in the other regions were relatively stable. Cost of materials The cost of materials for the year ended December 31, 2022 totalled EUR 2 347.3 million compared with EUR 2 191.5 million in 2021, which is a increase of 7.1%, mainly explained by a strong inflationary pressure throughout the value chain, especially for feed. Cost per kg harvested in Farming (realised blended full cost in box across all regions) increased by 13.7%. Cost in Feed increased from 2021 on higher feed raw material prices, formulation costs and logistics costs. In Sales & Marketing, raw material costs increased due to the higher salmon prices, while improved operations including yield have contributed positively. Salary and personnel expenses Total salaries and personnel expenses for the year ended December 31, 2022 totalled EUR 612.6 million. As a result of Mowi’s productivity program and a decrease in the number of FTEs, this cost item has been reduced to 12.4% in 2022 from 13.5% in 2021 measured relative to revenues. In 2022, Mowi produced stable volumes with 2.9% fewer FTEs than the year before. Compared with the start of the productivity programme in 2020, volumes have increased by 6% while FTEs have been reduced by 9%. Other operating expenses Other operating expenses decreased from 12.7% in 2021 to 12.3% in 2022, measured in percentage of revenues. The increase from 2021 was EUR 73.1 million, mainly explained by higher costs relating to electricity and fuel, maintenance costs, partly offset by reduced rent and leasing cost. Net fair value adjustment and onerous contracts provision Mowi recognised a net fair value adjustment of positive EUR 113.7 million for the year ended December 31, 2022, compared with positive EUR 119.8 million in 2021. The change in the onerous contracts provision in 2022 was negative EUR 8.3 million compared with a negative effect of EUR 3.2 million in 2021. The net effect of these line items is a positive adjustment of EUR 105.4 million in 2022 on a positive price outlook at year end. This was relatively stable from the positive adjustment of EUR 116.6 million in 2021. For more information, please refer to Note 6 to the Group financial statements. Restructuring costs and other provisions In 2022, we recognised EUR 13.7 million in net restructuring costs mainly related to the turnaround of our Canadian operations. For more information, please see Note 30 to the Group financial statements. Income/loss from associated companies and joint ventures Income from associated companies and joint ventures of EUR 59.2 million in 2022. This was reduced from EUR 97.5 million in 2021 as Mowi realised a gain of EUR 53.1 million in 2021 related to the divestment of shares in DESS Aquaculture Shipping. The remaining income is mainly related to our associated company Nova Sea AS in Norway where Mowi is the largest shareholder and owns 49% of the company. For more information, please see Note 21 to the Group financial statements. Impairment losses Impairment losses recognised in 2022 mainly relate to impairment of inventory and fixed assets in Canada in connection with the turn-around and revised plans. See Note 9 and 10 to the Group financial statements for further details. Earnings before financial items (EBIT) As a result of the items described above, in addition to non-operating items and depreciation costs, EBIT came to EUR 1 053.8 million in the year ended December 31, 2022, compared with EUR 602.2 million in 2021. Operational EBIT Group Operational EBIT increased to EUR 1 005.1 million for the year ended December 31, 2022 from EUR 522.6 million in 2021. This change was mainly the result of higher achieved prices in Farming driven by a strong market. Return on capital employed (ROCE) We achieved a return on capital employed (ROCE) of 23.7% in 2022, a good performance that exceeds our long-term target of 12.0%. The comparable figure for 2021 was 13.4%. Financial items Interest expenses decreased to EUR 52.6 million in 2022 from EUR 59.0 million in 2021. Net interest-bearing debt at year-end totalled EUR 1 758.9 million versus 1 257.3 million in 2021. Net currency effects for the year ended December 31, 2022 amounted to EUR 1.4 million, compared with EUR 37.0 million in 2021.For the year ended December 31, 2022, other financial items totalled EUR -1.8 million compared with EUR 13.1 million in 2021. For more information about financial items, please see Note 12 to the Group financial statements. Income taxes For the year ended December 31, 2022, we recognised a tax expense in profit and loss of EUR 215.5 million, compared with EUR 105.5 million in 2021. The main driver for the higher tax expense was higher earnings. For more information, including a full reconciliation between earnings before taxes and the tax expense, please see Note 15 to the Group financial statements. Profit and loss for the year As a result of the foregoing, our profit and loss for 2022 came to EUR 785.3 million, a new record for the Group, compared with EUR 487.9 million in 2021. BUSINESS AREAS AND SEGMENTS Feed Operational EBIT for Feed was EUR 30.8 million in 2022, which was higher than the previous year (EUR 18.4 million). Costs increased in the period mainly due to significantly higher prices for feed raw materials, including vegetable oils, soy and wheat gluten. Logistics 156 Integrated Annual Report 2022 GROUP RESULT costs also increased from the comparable period. Feed sales prices increased in accordance with market prices, and this was connected to increased feed raw material prices. Mowi's feed plants produced 515 016 tonnes of feed in 2022, compared with 481 900 tonnes in 2022, driven by good growth in our farming operations. Overall, our two feed factories ensured a 97% (95%) self-sufficiency rate for our European Farming operations in 2022. Total capacity is approximately 640 000 tonnes. Following our strategy of self-sufficiency for feed, Mowi Feed continues to develop its range of products, including freshwater, organic and cleaner fish diets. Farming Farming’s Operational EBIT totalled EUR 817.2 million in the year ended December 31, 2022, compared with EUR 370.5 million in the year ended December 31, 2021. The increase was mainly due to higher achieved prices on improved demand. The full cost in box per kg for our farming operations increased due to significantly increased feed prices. Harvested volume of 463 635 tonnes (465 600 tonnes) was relatively stable from the all-time high level of last year. For details of our farming entities' operational performance, please see the comments under Operational performance by country of origin in Part 2 of this Integrated Annual Report. Sales & Marketing Our Sales & Marketing operations consist of the reporting segments Markets and Consumer Products. Markets Markets achieved Operational EBIT of EUR 61.1 million for the year ended December 31, 2022, compared with EUR 50.5 million in 2021. The increase is mainly related to higher trading margins. Consumer Products Mowi Consumer Products is organised geographically, but constitutes one reporting segment. Consumer Products' Operational EBIT for the year ended December 31, 2022 came to EUR 112.1 million, compared with EUR 95.5 million in 2021. Mowi Consumer Products had its best year ever on continued strong retail demand and significant yield and efficiency improvements. Consumer Products delivered strong volumes of 229 443 tonnes product weight (247 577 tonnes). In 2022, the MOWI brand was launched in Germany, Brazil, Argentina, Colombia, China and South Korea. Mowi will further enhance our value proposition downstream in the years to come and our branding strategy, with its ultimate goal of de-commoditising the salmon category, plays a key part in this context. Licenses The recognised book value of our fish-farming licenses in our Statement of Financial Position was EUR 1 194.2 million and EUR 919.7 million as at December 31, 2022 and 2021 respectively. The increase is mainly attributable to the consolidation of Arctic Fish. Measured in EUR per kg salmon harvested, book license values were approximately EUR 2.0 in both 2022 and 2021 adjusted for Arctic Fish. Mowi's license utilisation in Norway has improved in the past few years to exceed the industry benchmark. Through freshwater investments resulting in more and larger smolt, we plan to further improve our license utilisation. In Chile and Canada East, we have significant unused license capacity. In the other business units, our current harvest volumes are closer to the maximum capacity permitted under the current operating regime. Liquidity and Capital Resources Our principal sources of liquidity are cash on hand, revenues generated from our operations and, to a lesser extent, loans and other financing arrangements. Our principal needs for liquidity have been, and will probably continue to be, cost of raw materials, including fish feed, other working capital items and capital expenditures, debt service, and funding of dividend payments and acquisitions. We believe that our liquidity is sufficient to cover our working capital needs in the ordinary course of business. NIBD totalled EUR 1 758.9 million as of December 31, 2022, compared with EUR 1 257.3 million as of December 31, 2021. Per year-end, NIBD exceeded the long-term target of EUR 1 400 million driven by the Arctic Fish acquisition and temporarily increased working capital tie-up. Adjusted for the Arctic Fish acquisition, NIBD was EUR 1 510.2 million. Cash Flow Cash flow from operations Cash flow from operations for the year ended December 31, 2022 came to EUR 644.8 million, compared with EUR 833.1 million for 2021. The decrease is mainly explained by temporarily increased working capital build up of EUR 465 million and increased tax payments partly offset by higher operational earnings. Cash flow from investments Cash flow from investments for the year ended December 31, 2022 came to EUR 469.4 million, compared with cash flow from investments of EUR 133.7 million in 2021. Cash flow from investments in 2022 relates mainly to net capital expenditures of EUR 335.0 million in addition to EUR 179.5 million for the purchase of a Arctic Fish. This was partly offset by cash inflows of EUR 59.1 million from the divestment of unused development licenses of EUR 22.6 million and EUR 36.5 million from associated companies, mainly Nova Sea. Cash flow from financing Dividends amounted to EUR 378.2 million in 2022 compared with EUR 226.8 million in 2021. Cash flow from financing for the year ended December 31, 2022 came to negative EUR 99.9 million including effects of down-payment of interest-bearing debt including leasing debt, compared with a negative EUR 706.6 million for 2021. Mowi ASA PROFIT FOR THE YEAR The parent company made a profit for the year ended December 31, 2022 of EUR 557.3 million, compared with EUR 791.8 million in 2021. The decrease is related to higher dividends from subsidiaries in 2021. Net profit is allocated to other equity. Of total net profit of 557.3 million. Operational earnings for salmon of Norwegian origin across the value chain in 2022 came to EUR 806.1 million, significantly up from EUR 389.4 million in 2021. The increase relates to higher achieved 157 Integrated Annual Report 2022 GROUP RESULT salmon prices and volume increase. For more comments related to the Norwegian farming operations, which constitutes the bulk of operational activities in the parent company, please refer to the Operational Performance subsection of the Profit chapter in Part 2 of this report. Operational result for the Corporate segment part of the parent company, i.e. headquarter activities and the Global R&D & Technical department, amounted to a negative result of EUR 16.1 million in 2022, compared with a negative result of EUR 12.2 million in 2021. DIVIDEND Mowi ASA paid a dividend per share of NOK 7.35 in 2022, up from NOK 4.45 in 2021, supported by improved earnings, a positive market outlook and a strong balance sheet. Going Concern The Board confirms that the financial statements have been prepared on the assumption that the Company is a going concern, in accordance with section 3-3a of the Norwegian Accounting Act, and that such an assumption is justified. This confirmation is based on the reported results and the Group’s business strategy, financial situation and established budgets. Risk and Risk Management We categorise risk based on the COSO enterprise risk framework, which divides risk into four categories: 1. Operational risk 2. Strategic risk 3. Reporting risk 4. Compliance risk We consider our operational risk to cover several individually important subcategories, and have therefore chosen to divide our operational risks into the following sub-categories: a. Risks related to the sale/supply of our products b. Risks related to government regulations c. Risks related to our fish farming operations d. Risks related to our supply of fish feed and feed operations e. Risks related to our industry f. Risks related to our business g. Risks related to our financial arrangements h. Risks related to tax and legal matters i. Risks related to climate change j. Risk related to cyber security and technological innovation All risk categories could, if not properly managed, have material adverse effects on our business operations and financial results. Each risk category includes one or more identified risks factors that individually and/or in combination with others could significantly affect our performance. For a complete overview of our identified risks, please see section Risk and Risk Management in Part 4 of this Integrated Annual Report. RISKS RELATED TO OUR FINANCIAL ARRANGEMENTS Financial risk The Group monitors and manages the financial risks arising from its operations. These include currency risk, interest rate risk, credit risk and price/liquidity risk. Currency risk Several business units carry out a large number of business transactions in currencies other than their domestic currency. For the Group, the relative importance of these transactions is substantially larger on the revenue side than on the cost side. To mitigate potential fluctuation effects on our cash flows, we maintain a foreign exchange strategy designed to manage these exposures both in the short and long term. The Group has defined a hedging strategy for each of Mowi’s units. The Group’s predominant currency is EUR, which accounts for more than 50% of net cash flow. Since the establishment of the Group in 2006, Mowi has managed its cash flow in EUR and has used EUR as its main financing currency. Mowi's Group’s financial reporting currency is EUR. The functional currency of the parent company Mowi ASA is EUR and all of our Norwegian subsidiaries apply EUR as their functional and reporting currency. Interest rate risk Our financing is generally at floating interest rates. It is Mowi ASA's policy to hedge the Group’s long-term interest-bearing debt by currency, including external interest-bearing debt and leasing in the parent company or subsidiaries, through fixed-interest or interest-rate derivatives. Over time, Mowi ASA shall hedge 0%-35% of the Group’s long-term interest-bearing debt by currency through fixed-interest or interest-rate derivatives for the first 5 years, and 0% at fixed rates thereafter. Interest-bearing debt includes external interest-bearing debt and leasing in the parent company or subsidiaries. The interest rate hedges shall be based on the targeted currency composition. Interest rate exposure in currencies other than EUR, USD, GBP and NOK shall not be hedged. All interest-rate hedging shall be undertaken by the parent company. At year-end 2022 the Group had a portfolio of interest swaps with a net market value of EUR -1.7 million increased from EUR -4.5 million in 2021. Credit risk We are exposed to the risk of losses if one or more contractual partners fail to meet their obligations. To mitigate this risk the Group trades only with recognised, credit worthy third parties. It is the Group’s policy that all customers who wish to trade on credit terms be subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis and as a rule the Group’s trade receivables are fully credit insured. The Group monitors its exposure to individual customers closely and is not substantially exposed in relation to any individual customer or contractual partner as of December 31, 2022. The maximum exposure is disclosed in Note 17 to the Group financial statements. 158 Integrated Annual Report 2022 GROUP RESULT The Group enters into derivative transactions only with counterparts with which it has an established business relationship. Price/liquidity risk The Group continuously monitors its liquidity, and estimates expected liquidity developments on the basis of budgets and monthly updated forecasts from the units. Mowi’s financial position depends heavily on developments in the spot price for salmon, and these prices have historically been volatile. As such we are exposed to movements in supply and demand for salmon. We have to some extent mitigated our exposure to spot prices by entering into bilateral fixed-price/volume contracts with our customers. The contract share has normally varied between 20% and 50% of our sold volume, and the duration of the contracts has typically been three to twelve months. Furthermore, we reduce our exposure to spot price movements through value-added processing activities and the tailoring of products to specific customer requirements. Other key liquidity risks include fluctuations in production and harvested volumes, biological issues, and changes in the feed price, which is the most important individual factor on the cost side. Feed costs are correlated to the commodity prices of the marine and agricultural ingredients. Leverage and capital access risk Leverage and capital access i.e. capital management refers to the process of acquiring and utilising capital in the most efficient manner given the available alternatives. Capital access risk Feed production, salmon farming and seafood processing are capital-intensive industries. Our future development and growth may depend on access to external capital in the form of debt and/or equity capital. Access to borrowed capital is continuously monitored and we maintain a continuous dialogue with our lenders. Leverage risk We have significant indebtedness. Our current debt is on favourable terms including the syndicated loan facility. The syndicated loan facility sets forth an equity ratio as the only financial covenant. The remaining portfolio of interest-bearing debt does not include more restrictive financial covenants. Mowi complied with the covenant in its loan agreements during 2022 and at the close of the year. Details of the Group's main loan programmes are described in Note 11 to the Group financial statements. For further information about our financing arrangements, capital management and risk management, please see Notes 11 and 13 to the Group financial statements. Reporting Risk Mowi are subject to the rules of the Oslo Stock Exchange and other Norwegian and European Union financial market regulations. For further information regarding the Group’s internal control procedures, please refer to Corporate Governance in Part 3 of this Integrated Annual Report. Sustainability We live in a world that is facing major environmental challenges, including climate change and the depletion of natural resources, but also a world where future food production needs to match global demand. Fish farming can improve the world’s standard of living by producing food that is both highly nutritious and of high quality, while at the same time delivering a reduced carbon footprint. Fish farming is one of the most climate-friendly ways of producing protein from animal husbandry. Eating salmon instead of land-based animal proteins would, by itself make a difference to climate change. The FAO (SOFIA, 2022) and the Blue Food Assessment (2021) confirming the unique position of seafood to match global needs of a healthy and climate friendly diet. Delivering continuous excellence means tackling environmental challenges in a holistic way. In 2022, we continued the implementation of our sustainability strategy, Leading the Blue Revolution Plan. This strategy aims at aims at inspiring, leveraging and guiding our day-to-day actions and decision-making so that we can realise our vision of Leading the Blue Revolution. It includes our targets on key areas including GHG emissions, plastic reduction, eco efficient value chain, freshwater use, waste management, sea lice, fish health and welfare, medicinal use, sourcing of feed raw materials and sustainable certification. For a detailed review of how Mowi works to secure sustainable operations, please see Part 2 of this Integrated Annual Report and the Leading the Blue Revolution Plan available at mowi.com. Factors that might influence the Environment From a global perspective, the two most significant challenges related to food production are greenhouse gas emissions and the feed used for animal protein production. We consider these challenges to represent opportunities for the salmon farming industry, as farm-raised salmon utilises significantly less feed than competing agricultural protein sources, and causes lower emissions of greenhouse gases. Salmon farming is climate friendly food production When comparing the carbon footprint of farm-raised salmon with that of traditional meat production, the salmon footprint comes out at 5.1 kg carbon equivalent per kg of edible product, whereas pork and beef produce, respectively, 12.2 kg and 39 kg carbon equivalent per kg of edible product. Farm-raised salmon is also an excellent protein and energy converter compared with alternative meat sources. Producing proteins by farming salmon with sustainable sourced feed is therefore good resource management. The use of feed for animal protein production Continuous access to sustainably managed feed ingredients is a prerequisite for the salmon farming industry. Over the past ten years, we have been able to reduce our dependence on marine raw materials (fish meal and fish oil) in salmon feeds by 50%. This is made possible by a significant substitution of marine raw materials 159 Integrated Annual Report 2022 GROUP RESULT by vegetable sources and the use of high-quality by-products from poultry in Chile and Canada. However, such an improvement brings new challenges, including the use of sustainably sourced vegetable ingredients and a continuous effort to source marine ingredients from responsibly managed fisheries. We believe the coming years will be key to finding alternative EPA and DHA-rich sources that could further reduce our dependence on fish oil. Our efforts to source sustainable feed ingredients will always go hand-in-hand with the goal of ensuring that our salmon remain a rich source of Omega-3 fatty acids. Farming in harmony with nature We are committed to developing our business in a way that safeguards the planet’s natural capital, including its biodiversity. Our fish farming operations are done in a way that allow the coexistence of wild populations and salmon farming. Where a potential risk to wild populations exist we take the needed measures to minimise that risk and promote solutions and innovations that lead to a positive effect on biodiversity. For more information about sustainability and the aspects of our farming operations that might influence the environment, please see the Planet section and the Risk Management section. Global Operational Excellence Program Being aware of the potentially negative effects our activities could have on the environment and local communities, we have incorporated measures to monitor and manage these in the ONE Mowi Operational Excellence Program. We continue to work with regulators, industry partners and the scientific community to promote environmental responsibility in the industry. For more information on how the Group works to understand and address stakeholder concerns, please see our Stakeholder engagement section in Part 1 (Leading the Blue Revolution). EU Taxonomy The EU Taxonomy Regulation entered into force in July 2020 in the EU, and in Norway from 2023. The EU Taxonomy is a classification system for sustainable economic activities. The regulations are still under development and the seafood and aquaculture industries remain largely uncovered by the current taxonomy regulation. It is expected that the EU Taxonomy will be expanded to four other environmental objectives during 2023. Mowi supports the goals set by the EU Taxonomy and welcomes the further development of the regulation. Mowi has established a cross-functional working group for the EU Taxonomy consisting of members from Group Finance, Group Sustainability, Investor Relations and Communication. Mowi will report on the EU Taxonomy in the 2023 financial statements. Research and Development We believe that successful growth of the industry within a sustainable framework is only possible by overcoming biological challenges and controlling sea lice. Research and development (R&D) at Mowi is an engine for sustainable growth, and is integral to our vision of Leading the Blue Revolution. We focus on creating sustainable value and competitive advantage by making improvements and breakthroughs in our Feed and Farming, as well as our Sales & Marketing business areas. The specialists in our Global R&D and Technical Department work directly with technical staff at our operating units through participation in global technical teams and collaborative projects. This ensures that our work constantly benefits from a culture of shared expertise and knowledge. Through collaboration and the allocation of defined responsibilities, we ensure knowledge sharing and continuous improvement throughout the organisation. Our commitment to R&D is reflected in our significant R&D spending. R&D costs for the group was EUR 35.0 million for 2022 compared with EUR 39.6 million in 2021. For more information about R&D in Mowi, please see the Research and development section. People People and organisation All employees in Mowi have an impact on the Blue Revolution and are critical to the success of our company. At the end of 2022, the Group had 11 818 employees in 26 countries around the world. Human rights Mowi is committed to responsible business conduct and the respect of human rights in our operation and our supply chain. For a detail review of Mowi’s human rights program and due diligence process, please see Part 2, People section, and at Mowi.com/sustainability. Concerns received in the Whistleblower channel are reported to the Board of Directors Audit committee on a quarterly basis. Health and Safety Mowi aims to have zero injuries among its staff. Employee safety and a healthy working environment are high on the Board’s agenda, and safety will never be compromised for any other business priority. We foster a strong safety culture, in which our employees feel responsible for their own safety as well as the safety of their colleagues. In order to achieve our safety vision of zero injuries, we utilise a global safety program, BrainSafe. New employees are required to attend training in BrainSafe, and training is also provided to selected suppliers and contractors. We measure our progress in the area of safety through key indicators - lost time incidents (LTI) per million hours worked, as well as the rate of absenteeism. We reported 59 LTIs for our own employees in 2022, compared with 67 in 2021. The decrease was due to a reduction in LTIs at Mowi Poland and other plants in Consumer Products Europe. The number of LTIs per million hours worked in the Group was reduced from 2.5 in 2021 to 2.3 in 2022. Compared with the industry average, our rate of absenteeism has remained low for several years. Our rate of absenteeism increased from 5.2% in 2021 to 5.4% in 2022. The rate is higher in value-added processing operations than in Farming and Feed, which is largely attributable to ergonomic issues and stress. The Board continues to aim for an absentee rate of below 4%. The Board will 160 Integrated Annual Report 2022 GROUP RESULT continue to emphasise the imperative of improved health and safety performance going forward. For more information about health and safety in Mowi, please see the People section. Diversity and Equal Rights Mowi is committed to ensuring diversity in the Group, in accordance with the Norwegian Anti-Discrimination Act. We strive to attract a diverse workforce and provide equal opportunities. We do not discriminate and we value everyone as an individual. The Group works actively in the area of recruitment including offering apprenticeships to young employees, as well as promotion and development opportunities. The Group also aims to attract female employees to all levels in our organisation. The fish farming industry has traditionally had a majority of male employees. At the close of 2022, women accounted for 38.0% of employees, compared with 38.8% in 2021. In 2022, the senior management teams of most subsidiaries included one or more women. The Group continues to work actively to promote diversity in senior management positions globally. At the end of 2022, Mowi’s Group Management team consisted of nine people, of whom two are women. Of the ten members of Mowi ASA’s Board of Directors, four are women. For more information about diversity, equal rights and gender pay in Mowi, please see the People section. The report on Equality, Non-discrimination and Gender Pay for our Norwegian entities see mowi.com/sustainability. Future Prospects 2022 was a record year for Mowi financially. For the first time in Mowi’s 60-year history we crossed the EUR 1 billion earnings mark with operational EBIT reaching EUR 1,005 million for the full year. Revenue of EUR 4,946 million in 2022 was also a new record. These are impressive achievements and the Board commends the organisation for delivering these milestone results. Consumer Products had its best annual result ever of EUR 112 million, on strong operational performance. Feed also delivered financial and operational records with operational EBITDA of EUR 47 million for the year. The Board is pleased that the organisation continued to deliver on its many cost initiatives in 2022, achieving EUR 48 million in annualised savings, above the target of EUR 25 million. A total of EUR 230 million in annualised savings have been achieved since the start of the cost savings programmes in 2018. Addressing cost is engrained in Mowi’s workflow, and the Board is pleased that the organisation has initiated another global cost savings programme for 2023, with a target of EUR 25 million of savings during the year. The Board decided in 2020 to include a productivity programme in the cost savings programme, targeting a 10% reduction in FTEs for Mowi as-is by 2024. By year-end 2022, FTEs had been reduced by a total of 1,346 people, equivalent to a 9% reduction. At the same time Mowi has maintained an impressive volume growth trajectory for all its divisions, surpassing that of the wider industry. In 2023 the target is to reduce FTEs by 435 through the productivity programme. Energy savings is a new dedicated category from 2023 where Mowi aims to realise projects contributing to 28 GWh of annualised net savings on electricity and fuel, equivalent to 3% of Mowi's annual energy usage. In addition to the cost saving potential this will have a positive ESG impact. A similar category which contributes to both cost and ESG savings is travel cost, where Mowi achieved its target of a 50% cut in 2022 vs. 2019 by avoiding unnecessary travel and utilising virtual meetings and digital collaboration tools. The target going forward is to maintain this level in real terms. Notwithstanding all these cost saving efforts, cost is up on unprecedented inflation over the past 18 months. Thus, we expect slightly increased released-from-stock costs in the first quarter due to this and seasonally lower dilution of cost. Having said that, we should see a decline in cost to stock in 2023 on falling input prices. The Board emphasises the importance of continuing cost saving initiatives, and expects the organisation to constantly adopt more effective production processes and introduce smarter production solutions. On balance, the Board notes that Mowi’s farming costs relative to peers over time have been the best or second best in all of the geographical regions where the company operates. Mowi harvested 464,000 GWT in 2022 which was 4,000 GWT above initial guidance one year ago. Harvest volumes reached a record-high level of 294,000 GWT in Norway, up by 8% from 2021 on increased smolt stocking and strong growth conditions with the best ever relative seawater production. This puts Mowi Norway towards the top of license utilisation and production efficiency in Norway. Harvest volume guidance for 2023, including Arctic Fish in Iceland, of 484,000 GWT represents an all-time high level. From volumes of 375,000 GWT as recently as 2018, Mowi will have grown its farming volumes by as much as 109,000 GWT in five years, equivalent to a CAGR of 5.2%. This is above market growth of 4.1%, and Mowi's goal is to continue to capture market share in the salmon category in the coming years by growing its farming volumes, both organically and acquisitively. It was with great pleasure that we received approval for the acquisition of 51% of the shares in Icelandic salmon farmer, Arctic Fish, just before year-end. Iceland is Mowi’s seventh farming country and was the last spot missing from our geographical footprint. We are looking forward to further developing the company together with the other owners and a highly competent and motivated organisation. Iceland is one of the few areas left that offers extensive organic growth opportunities in conventional farming. On top of that, Icelandic waters also provide excellent growth and living conditions for the salmon. We expect to harvest 15,000 GWT in 2023. Consumer Products had an outstanding year, setting operational and financial records on strong consumer demand. Annual operational EBIT of EUR 112 million, equivalent to ROCE of 16.5%, and volumes of 229,000 tonnes product weight are impressive results. Mowi’s relentless focus on operational excellence has improved productivity in Consumer Products by 20% since the launch of the productivity programme in 2020. Furthermore, putting the customer at the core of everything we do downstream bears 161 Integrated Annual Report 2022 GROUP RESULT fruit and creates unique customer experiences. Mowi will further enhance our value proposition downstream in the years to come and our branding strategy, with its ultimate goal of de-commoditising the salmon category, plays a key part in this context. Feed can also celebrate its best year so far with an operational EBITDA of EUR 47 million, equivalent to ROCE of 13.1%. Feed performance was also very strong throughout 2022, which is of paramount importance to Mowi as the world’s largest salmon farmer. Feed sales reached 517,000 tonnes for the year, an increase of 6% from 2021. On 28 September 2022, the Norwegian government proposed to introduce a resource rent tax of 40% on salmon farming, or 62% including corporate tax. Including Norwegian wealth tax the tax rate would be about 80%. From the very beginning Mowi has been clear that this tax level is not sustainable and that it will impose major limitations on future growth and development of the Norwegian salmon industry, and thereby cause the loss of current and future jobs in their thousands along the Norwegian coastline, if implemented. Furthermore, the tax model as such is not fit for purpose as it is very bureaucratic and handles margins and deductibles asymmetrically. The standard deduction discriminates against larger salmon farmers and thus undermines the traffic light auction system in addition to potentially violating the Norwegian state’s obligations under the EEA agreement. The public consultation process ended on 4 January with, as expected, massive and vocal warnings of the negative consequences of this tax level and the chosen model from the majority of respondents. Now the political process has started, and we do not expect to have a formal clarification until after Easter, and most likely not until close to the summer. In 2023 Mowi will continue to invest across its value chain to support further organic growth and strengthen the asset base. The capital expenditure budget for 2023 is approximately EUR 370 million and the majority of investments will be allocated to the Farming segment. Postsmolt investments in Norway continue for projects that are already in progress, however, all new postsmolt projects have unfortunately been put on-hold in the wake of the resource rent proposal and its unsustainable tax level in addition to embedded uncertain framework conditions. Selected seawater expansions across our farming footprint will also be undertaken in addition to new processing facilities under construction in Region Mid, Norway, and in Arctic Fish, Iceland. Furthermore, Consumer Products expects to undertake several automation and packaging technology projects in Europe, US and in Asia. The Board is proud that Mowi for the fourth time in a row was ranked the world’s most sustainable animal protein producer by the prestigious Coller FAIRR Protein Producer Index. The Coller FAIRR Index is designed to provide financial institutions with data, analytics and trends on the protein sector to integrate into their investment decisions and engagement strategies. As at the end of 2022, approximately 81% of Mowi’s committed financing was labelled green or sustainable and the company is on track to meet its target of 100% by 2026. The Board is pleased that the company continues to convert its financing to green, whilst at the same time ensuring that Mowi’s financial position remains strong to take advantage of growth opportunities. According to Kontali Analyse global supply growth in 2023 is forecast to be modest at 2% which is supportive of a tight market balance for the year. BERGEN, MARCH 21, 2023 Ole-Eirik Lerøy Chair of the Board Kristian Melhuus Vice Chair of the Board Lisbet K. Nærø Katrine Fredriksen Renate Larsen Peder Strand Michal Chalaczkiewicz Marianne Andersen Jørgen J. Wengaard Roger Pettersen Ivan Vindheim Chief Executive Officer 162 Integrated Annual Report 2022 GROUP RESULT Ole-Eirik Lerøy (1959) Chair Mr. Lerøy has been a Board member of Mowi ASA since 2009. He is the Managing Director of the investment company Framar AS. Mr. Lerøy has extensive experience in the seafood industry: •Chair of the Board of Bergen Chamber of Commerce, 2015 - 2017 •Member of the Board of the International Groundfish Forum, 2000 - 2015 •Vice Chair of DNB Supervisory Board, 2006 - 2008 •Chair of the Norwegian Seafood Federation (FHL), 2000 - 2006 •Chair of the Board of the Norwegian Seafood Export Council (NSEC), 1994 - 2000 •CEO of Lerøy Seafood Group ASA, 1991 - 2008 Mr. Lerøy is educated at the Norwegian School of Management. Number of shares held at year end: 1 501 495 Lisbet K. Nærø (1963) Chair of the Audit Committee Ms. Nærø has been a Board member of Mowi ASA since 2015 and is also the Chair of the Audit Committee. She is the CEO of Fana Sparebank. Ms. Nærø holds a Master of Science of Business from the Norwegian School of Economics, a Bachelor of Law from the University of Bergen, MBA from the University of Central Florida and the Advanced Management Program from Harvard Business School. Ms. Nærø has comprehensive experience from banking and financial services: •Member of Telenor ASA Corporate Assembly since 2019 •Member of the Board of Norne Securities AS since 2019 •Member of the Board of Norce Norwegian Research Center since 2019 •Member of the Board of the Holberg Funds, 2012-2020 •Chair of the Board of Bergen Chamber of Commerce, 2017-2019 •CEO of Tide ASA, 2011 - 2014 •CEO of BN Bank ASA, 2009 - 2011 •CFO of SpareBank 1 SR-Bank, 2006 - 2009 •CFO of Sparebanken Vest, 2003 - 2006 •CFO of BNR/Fjordline ASA, 2001 - 2003 Ms. Nærø has experience with implementing SDGs in banking. This includes green financing, participation in the UN Climate Neutral Now program, the United Nations Environment Programme Finance Initiative and the additional Collective Commitment to Climate Action. She has additional expertise in information security, product development and innovation. Number of shares held at year end: 1 495 163 Integrated Annual Report 2022 GROUP RESULT Kristian Melhuus (1981) Deputy Chair Mr. Melhuus has been a Board member of Mowi ASA since January 2018. He is Partner at Sandwater. Mr. Melhuus has held various positions: •Director at Seatankers Management AS, 2016 - 2021 •Investment Director of HitecVision AS, 2013 - 2016 •CFO/COO of Liquid Barcodes AS , 2008 - 2013 •Analyst at ABG Sundal Collier, 2006 - 2008 Mr. Melhuus holds a Master of Science in Industrial Economics and Technology Management from the Norwegian University of Science and Technology (NTNU), and has also studied Finance, Derivatives and Econometrics at the University of Karlsruhe. Mr Melhuus has expertise in information security from his working experience and also from his educational background. Number of shares held at year end: 1 495 Kathrine Astrup Fredriksen (1983) Ms. Fredriksen has been a Board member of Mowi ASA since 2021. She is currently employed by Seatankers Services, an investment company. Ms. Fredriksen serves on several boards: •Member of the Board of Avance Gas SE, since 2021 •Member of the Board SFL Corporation Ltd , since 2020 •Member of the Board Axactor, since April 2020 •Member of the Board of Norwegian Property ASA, since 2016 •Previous directorships include Seadrill Ltd, Frontline Ltd and Golar LNG. Ms Fredriksen is also responsible for the art collection for the Fredriksen Family. Ms. Fredriksen was educated at the European Business School in London and is a Norwegian citizen and resides in the UK. Number of shares held at year end: 263 Peder Strand (1980) Mr. Strand has been a board member of Mowi ASA since 2022. He is an Investment Director at Seatankers Management Norway AS. Mr. Strand was previously a partner in Arctic Securities AS, where he was responsible for the seafood, IT and healthcare sectors. Strand has previously worked in equity research for SEB Enskilda, among other things as the responsible analyst for seafood. Mr Strand has expertise in information security from his working experience and studies. In addition, he has previous experience in innovation including developing, marketing, trialling new, redesigned or improved products. Mr. Strand has held various positions including: •Partner, corporate finance at Arctic Securities, 2014-2022 •Equity research, TMT & Seafood, SEB Enskilda, 2005-2014 Mr. Strand has a Master of Science from Norwegian University of Science and Technology (NTNU). Number of shares held at year end: 263 164 Integrated Annual Report 2022 GROUP RESULT Roger Pettersen (1971) Employee representative Mr. Pettersen was elected to the Board of Directors as a representative of the employees in 2022. He is Production Manager at Mowi ASA, Region North. Mr. Pettersen has worked in Mowi since 1994. He started working on a freshwater site (1994-1996) and thereafter at farming sites at sea since 1996 and have held various position in Sisomar, Fjord Seafood and Marine Harvest/Mowi. Mr. Pettersen has 23 years of experience working with and studying leadership: •Production Manager at Mowi ASA, since 2012 •Completed multiple leadership programs at AFF, 1996 - 2022 Number of shares held at year end: 1 883 Michal Chalaczkiewicz (1980) Mr. Chalaczkiewicz has been a Board member of Mowi ASA since 2022. Mr. Chalaczkiewicz joined Groupe Bruxelles Lambert in 2021 were he currently works as an Investment Partner. Mr. Chalaczkiewicz has close to 20 years of international Private Equity experience including 13 years at Montagu Private Equity in London where he was Senior Partner, IC & Executive Committee member. Over the years he has executed a number of investments in European companies, with a particular focus on healthcare/medtech, B2B services and TMT/infrastructure. He specialises in buy and build programmes as well as internationalisation strategies. Mr. Chalaczkiewicz is also a Board member at Sanoptis and Affidea. Mr. Chalaczkiewicz has close to 20 years of private equity experience in Europe: •Groupe Bruxelles Lambert – Investment Partner, since 2021 •Montagu – Most recently as Senior Partner, 2008-2021 •Innova Capital – Most recently as Director, 2003-2008 Mr. Chalaczkiewicz graduated from Warsaw School of Economics (Warsaw) with a degree in Finance & Banking. Number of shares held at year end: 263 Renate Larsen (1975) Ms. Larsen has been a Board member of Mowi ASA since 2022. She is currently the CEO and chair of Oceanfood. Larsen is also the chair of The Northern Norway Regional Health Authority (Helse Nord RHF), and member of the Board in Bane NOR SF, Norcod AS, Calanus AS and the Norwegian handball federation. Ms. Larsen is former CEO in Norwegian Seafood Council AS and Lerøy Aurora AS. Ms.Larsen has previous experience working within food safety and quality. Ms Larsen has comprehensive experience from the seafood industry and various Board positions both in private and public sector: •CEO and Chair of Oceanfood, since 2022 •Chair of the Board of Helse Nord RHF, since 2018 •Former Board positions: –Folketrygdfondet, 2013 – 2021 –Hålogaland Teater, 2015 – 2019 –Nofima, 2012 – 2015 –Different Board positions in Lerøy companies Ms. Larsen has a Master of Science in Business from the Norwegian School of Economics. Number of shares held at year end: 263 165 Integrated Annual Report 2022 GROUP RESULT Marianne Andersen (1981) Employee representative Ms. Andersen was elected to the Board of Directors as a representative of the employees in 2021. She is Biological Controller in Mowi ASA, Region Mid. Ms. Andersen has been with the Company since 2008: •Biological controller, Region Mid 2018 •Biological coordinator, Region Mid 2012-2018 •Quality coordinator, Region Mid 2011-2012 •Site manager, 2008-2011. Ms. Andersen holds a degree in Master of Science in Marine Biology from the Norwegian University of Science and Technology (NTNU), Jørgen Wengaard (1991) Employee representative Mr. Wengaard was elected to the Board of Directors as a representative of the employees in 2020. He is a Farm Technician in Mowi ASA, Region South. Mr. Wengaard has been in the industry since 2007: •Farm Technician at seawater farming site, since 2013 •Site Manager at seawater farming site, 2011-2013 •Apprentice at freshwater facility, 2007-2011 Mr. Wengaard holds the Aquaculture Technician Certificate and completed Technical and General Studies (TAF/YSK Marin) at Fusa High School in 2011. In 2018 he completed the part-time course in Aquaculture Operations and Management from NORD University. He also completed the part-time course in Leadership at the Arctic University of Norway (UiT) in 2022. He is currently participating in the Executive Master of Business Administration (EMBA) programme with specialisation in Seafood Management at the Norwegian School of Economics (NHH). Mr. Wengaard also holds various Board positions in different organisations connected to Aquaculture and Fisheries. Number of shares held at year end: 1 179 Number of shares held at year end: 600 166 Integrated Annual Report 2022 GROUP RESULT Corporate Governance Mowi ASA (“Mowi” or the “Company”) considers good corporate governance a prerequisite for generating shareholder value, as well as achieving a low cost of capital and merit investor confidence. Mowi strives to ensure that its internal control mechanisms and management structures comply with generally accepted principles for good corporate governance. 167 Integrated Annual Report 2022 GROUP RESULT Mowi follows the Norwegian Code of Practice for Corporate Governance (the “Norwegian Code”). A full description of the Norwegian Code is available from the Oslo Stock Exchange’s website (https://www.euronext.com/nb/markets/oslo). The following sections explain how Mowi has addressed the various 15 issues covered by the Norwegian Code. Mowi has reviewed our reporting on Corporate Governance based on the latest Code of Practice. The company is fully compliant to the Norwegian Code, with the exception of section 14 regarding lack of explicit guidelines for dealing with takeover bids. Issues covered by the Norwegian Code Compliance to the Norwegian Code Change in compliance from last year 1 Implementation and Reporting of Corporate Governance Principles Compliant n/a 2 Business Compliant n/a 3 Equity and Dividends Compliant n/a 4 Equal Treatment of Shareholders and Transactions with Related Parties Compliant n/a 5 Freely Negotiable Shares Compliant n/a 6 General Meetings Compliant n/a 7 Nomination Committee Compliant n/a 8 Corporate Assembly and Board of Directors: Composition and Independence Compliant n/a 9 The Work of the Board of Directors Compliant n/a 10 Risk Management and Internal Control Compliant n/a 11 Remuneration of the Board of Directors Compliant n/a 12 Remuneration of Executive Management Compliant n/a 13 Information and communications Compliant n/a 14 Takeovers Partly Compliant * n/a 15 Audit and Risk Oversight Compliant n/a * Lack of formalised takeover principles 1. Implementation and Reporting of Corporate Governance Principles The Board of Directors of Mowi (the “Board”) is aware of its responsibility for the development and implementation of internal procedures and regulations to ensure that the Company and its subsidiaries (together, the “Group”) complies with applicable principles for good corporate governance. The Board reviews the overall position of the Group in relation to such principles annually, and reports thereon in the Company’s annual report in accordance with the requirements for listed companies and the Norwegian Code. The Board has defined the Group’s overall vision as “Leading the Blue Revolution”. Closely linked to the vision are the Group’s global values “Passion”, “Change”, “Trust” and “Share”. –Passion for the company and the product: passion is the key to our success and how we make a difference. –Change is the new “normal”: we are ready for change and work continuously to improve our operations. –Trust is essential in everything we do: our operations provide safe, delicious and healthy food, and we deliver on our promises. –Share is the foundation for the performance of our over 11 800 employees: We share knowledge and experience, we are open and transparent, and we cooperate with key stakeholders globally. Mowi’s leadership principles were put in place to strengthen the link between individual management actions and our vision. Our leadership principles are: –Inspire people: we recruit the very best and build talent for the future. We strive to create winning teams and challenge people to succeed. –Make it happen: we challenge existing thinking and promote change and innovation. We encourage people to propose solutions and learn from mistakes. –Live the values: we want our leaders to be role models and build our culture; leaders should show direction and engage with stakeholders. –Think and act: we want our leaders to think and act as if the company was their own. Leaders should do what is best for the company, bearing in mind short and long-term goals. The Group is made up of individuals with different backgrounds, nationalities, cultures and customs. Their conduct - what each and every employee does and says each day - determines the Group’s ability to succeed as an organisation. The Code of Conduct sets standards for behaviour that can be expected between colleagues, and that external parties can expect from employees of the Group. The Code of Conduct was updated in 2021. It has been communicated to employees, and it is expected that all employees make a personal commitment to abide by the Code of Conduct. Testing of each employee’s understanding has been, and will continue to be, carried out regularly. The most recent test was performed in 2022. The Code of Conduct is available at Mowi.com. 168 Integrated Annual Report 2022 GROUP RESULT Our four guiding principles underpin our vision and guide our behaviour in a balanced way. Growth must be sustainable from an environmental, social and financial perspective. We need good financial results to drive the sustainable development of our operations. This interdependency is the foundation for our four important guiding principles: “Profit”, “Planet”, “Product” and “People”. –Profit: our profits hinge on our ability to provide customer value from healthy, tasty and nutritious seafood that is raised cost-effectively and in an environmentally sustainable way that maintains the aquatic environment and respects the needs of the wider society. –Planet: our operations and long-term profitability ultimately depend on sustainable and environmentally responsible interactions with the natural environment. We rely on qualified personnel to maintain fish health, avoid escapes and minimise the environmental impact of our operations. –Product: we aim to continually deliver healthy, tasty and responsibly-produced seafood to our customers to deliver long-term financial profitability. –People: the safety, self-respect and personal pride of our employees cannot be compromised if Mowi is to succeed as a company and maintain good relationships with local communities. Mowi has defined specific ambitions for each principle, with corresponding key performance indicators. Defining targets is an integrated part of the budget and long-term planning processes, and achievements are reported in operational review meetings with the Business Units, and in business review meetings with the three Business Areas; Feed, Farming and Sales & Marketing. Development and implementation of best practice is achieved through the global quality system, OneMowi, which contains our standard operating procedures. In addition, a global set of policies has been drawn up to guide decisions, manage risk and achieve results. Mowi’s governance and management structure is further described on the website at Mowi.com. 2. Business Mowi’s objective is defined in the company’s articles of association: “The objective of the company is production, refinement, sale and distribution of seafood and goods used in seafood production, either directly or through participation in other companies and hereto-related activities.” The articles of association are available from the Group’s website at Mowi.com. To achieve the objective set forth in the articles of association, the Board has adopted a corporate strategy whose ambitions and priorities lie within the framework of the Group’s vision and four guiding principles. The vision “Leading the Blue Revolution” provides direction and shows possibilities. The Group’s overall ambition is to grow organically as well as through acquisitions. At present, growth is focused on the whole salmon value chain, from feed to fork. Mowi is self-sufficient with feed in Europe as production at the new feed factory in Scotland has been ramped-up. In Farming, the company aims to capitalise on the organic growth opportunities within the current license footprint. Our ambition within Consumer Products is to become a seafood category leader with strong focus on quality, innovation, brand building and excellent customer service. We continue our work to improve efficiency in this segment by streamlining and use new technology. The material aspects of the four guiding principles are systematically assessed at regular intervals by the Group Management Team. The process of defining material aspects is discussed in the section "Leading the Blue Revolution". The ambitions and the priorities set to achieve them are regularly reviewed and revised by the Board. Through its annual discussion of the long-term plan, the Board sets the targets for the Group for the following five years. Many of the targets are discussed in the relevant sections of this Integrated Annual Report. 3. Equity and Dividends The shareholders’ equity as of December 31, 2022 was EUR 3 507.5 million (3 129.0 million), which represents 49.0% (54.6%) of the Group’s total assets. Mowi ASA’s objective is to maintain an equity level that is appropriate for the company’s strategy and risk profile. Mowi’s ambition is to create long-term value for the shareholder through both positive share price development and a growing dividend in line with long-term earnings. Dividend has been an important component of Mowi's financial strategy and to make dividend payments more predictable and transparent the Board decided in 2020 to operationalise the dividend policy by introducing ordinary and extraordinary dividends. The dividend policy states: –Quarterly ordinary dividends shall under normal circumstances be at least 50% of underlying earnings per share (“EPS”). –Excess capital will be paid out as extraordinary dividends. –When deciding excess capital the Board will take into consideration expected cash flow, capital expenditure plans, financing requirements and appropriate financial flexibility. Further to this a long-term target level for net interest-bearing debt is determined, reviewed and updated on a regular basis. –Shareholder returns are distributed primarily as cash dividends with the option of using share buy-back as a complementary supplement on an ad hoc basis. To facilitate quarterly distribution of dividends in an efficient and cost effective manner, the Board seeks a general authorisation from the General Meeting to distribute dividends. Such authorisations shall, however, be limited to a maximum aggregate amount, and limited in time to the next Annual General Meeting (“AGM”). At the 2022 AGM, the Board was granted the following authorisations: 169 Integrated Annual Report 2022 GROUP RESULT –(1) To approve the distribution of dividends based on the Company’s annual accounts for 2021. The authorisation may be used to approve the distribution of dividends up to an aggregate amount of NOK 7 500 000 000. The authorisation is valid for dividends from the date of the AGM in 2022 until the AGM in 2023, however no later than June 30, 2023. –(2) To purchase up to 51 711 109 shares in the Company (representing 10% of the shares in issue at the time) during the period up until the AGM in 2023, however no later than June 30, 2023. –(3a) To increase the Company’s share capital by up to 51 711 109 shares (representing 10% of the shares in issue at the time) provided that the the combined number of shares that are issued pursuant to this authorisation and the authorisation in item 3b below shall not in aggregate exceed 10% of the Company's current share capital. The authority did not define the purpose(s) of such a capital increase. The authority expires at the AGM in 2023, however no later than June 30, 2023. –(3b) To take up convertible bond loans of up to NOK 3,200 million (par value), convertible to a share capital equivalent by up to 51 711 109 shares provided that the the combined number of shares that are issued pursuant to this authorisation and the authorisation in item 3a above shall not in aggregate exceed 10% of the Company's current share capital. The authority expires at the AGM in 2023, however no later than June 30, 2023. 4. Equal Treatment of Shareholders and Transactions with Related Parties Mowi ASA has one class of shares. Any purchase or sale by the Company of its own shares will be carried out either through the Oslo Stock Exchange or at prices quoted on the Oslo Stock Exchange. Mowi also has American Depositary Shares (ADSs) represented by American Depositary Receipts (ADRs), traded in the US over-the-counter. Any transaction between the Company and a related party will be on arm’s length terms or, if relevant, will rest on a valuation obtained from an independent third party. Mowi ASA will make sure that major transactions with related parties are approved by the AGM in accordance with the Norwegian Public Limited Liability Companies Act. The Board is currently authorised to set aside the pre-emption rights of existing shareholders in capital increases if it exercises its authority to issue new shares, cf. above. This is to simplify the procedure in connection with capital increases to finance further growth and/or the offering of shares as consideration in acquisitions where this is deemed a favourable form of settlement. Members of the Board and the Global Management Team have an obligation, pursuant to the Company’s Code of Conduct, to disclose to the Board any material interest in transactions to which the Group is a party. The Code of Conduct is available at Mowi.com. 5. Freely Negotiable Shares All shares in the Company have equal rights and may be traded freely. Mowi also has American Depositary Shares (ADSs) represented by American Depositary Receipts (ADRs), traded in the US over-the-counter. 6. General Meetings The interests of the company’s shareholders are primarily exercised at the company’s general meetings. It is the company’s goal that as many shareholders as possible are given the opportunity to participate in its general meetings and that the general meetings are organised so as to ensure that they represent an effective forum for the company’s shareholders to express their views. Notices of general meetings are made available on the company’s website, Mowi.com, and through a separate notice to the Oslo Stock Exchange at least 21 days in advance of the general meeting. All shareholders with a known address are notified of general meetings a minimum of two weeks in advance. The notice contains detailed information on the resolutions proposed and matters to be considered at the general meeting. It includes the deadline for shareholders to register their intention to attend the general meeting, as well as instructions on how they can cast their votes by proxy. The deadline for registration is set as close to the date of the general meeting as possible. When documents concerning matters that are to be dealt with at a general meeting have been made accessible to the shareholders on the company’s website, the requirement stipulated by the Norwegian Public Companies Act that the documents shall be sent to shareholders by ordinary mail does not apply. This also applies to documents which, according to law, shall be included in or enclosed with the notice of a general meeting. A shareholder can, however, demand that documents concerning matters that are to be dealt with at a general meeting be sent to him or her by ordinary mail. The notice of a general meeting shall contain a reference to the company’s website, where shareholders can access relevant documents and, if appropriate, any other information that shareholders may need to gain access to such documents. The Chair of the Board, the CEO and the external auditor shall all be present at the AGM. Mowi does not have a policy that requires the other members of the Board to attend the AGM. The AGM elects a chair to preside over the meeting and one person to sign the minutes of the meeting together with the elected chair. The minutes are published on the company’s website. The AGM approves the annual financial statements and annual report, the Board of Directors’ report and any proposed dividend. The AGM also approves the remuneration to be paid to the members of the Board, the Nomination Committee (as defined below) and the external auditor. 170 Integrated Annual Report 2022 GROUP RESULT Other items on the agenda for the AGM may include authorisation for the Board to acquire the Company’s shares and to increase the company’s share capital, to take up loans convertible into shares, and the election of the members of the Board and the Nomination Committee (please refer to section 3 Equity and Dividends). Pursuant to Section 6-16a of the Norwegian Public Limited Liability Companies Act, the Board has implemented guidelines for the determination of the remuneration payable to the company’s CEO and other senior executives. These guidelines are tabled for resolution at the AGM. All shares carry an equal right to vote at general meetings. Resolutions at AGMs are normally passed by simple majority unless otherwise required by Norwegian law. The Annual General Meeting was held on June 13, 2022. 7. Nomination Committee The AGM elects the company’s nomination committee (the “Nomination Committee”). The Nomination Committee consists of three members; Anne Lise E. Gryte (Chair), Ann Kristin Brautaset and Merete Haugli. All members of the committee are independent of the Board and the company’s executive management. In addition, Mrs Gryte and Mrs Haugli are independent of the company's largest shareholders. The Nomination Committee submits its recommendations to the AGM regarding the election of members to the Board and the Nomination Committee and their respective remuneration. The general meeting has approved a set of instructions defining the responsibilities of the Nomination Committee. These instructions are available at Mowi.com. All shareholders are invited to propose candidates to the Board and the Nomination Committee through the company’s website. 8. Corporate Assembly and Board of Directors: Composition and Independence The company does not have a corporate assembly. According to the company’s articles of association, the company shall have a Board consisting of a minimum of six and a maximum of 12 members. The Chair of the Board and the Deputy Chair of the Board are both elected by the general meeting based on a proposal from the Nomination Committee, as are the other members representing the shareholders. Board members are elected for a period of one or two years at a time. In order to ensure continuity, not all seats on the Board come up for election in the same year. At present, the Board consists of ten members, of which seven are elected by the general meeting and three are representatives of the employees in Norway. All Board members are considered independent of the company’s executive management and material business partners. Four out of seven shareholder elected Board members, including the Chair of the Audit Committee, are considered independent of the Company's largest shareholders; Ole-Eirik Lerøy, Kristian Melhuus, Lisbet K. Nærø (Chair of Audit Committee) and Renate Larsen. No Mowi executives are members of the Board. The members of the Board are presented in this Integrated Annual Report. The shareholdings of Board members are listed in Note 24. The Board is of the opinion that it has sufficient expertise and capacity to perform its duties in a satisfactory manner. 9. The Work of the Board of Directors According to the Norwegian Public Limited Liability Companies Act, the Board has overall responsibility to oversee the management of the company, while the CEO is responsible for day-to-day management. The Board is responsible for ensuring that the Group’s activities are soundly organised, and for approving all plans and budgets for the activities of the Group. The Board approves a statement of the CEO’s duties, responsibilities and authorisations. The Board keeps itself informed about the Group’s activities and financial situation, and is under an obligation to ensure that its activities, financial statements, sustainability reporting and asset management are subject to adequate control through the review and approval of the Group’s monthly and quarterly reports and financial statements. The Board shall also ensure that the Group has satisfactory internal control systems. The CEO is in charge of the day-to-day management of the Group, and is responsible for ensuring that the Group is organised in accordance with applicable laws, the company’s articles of association and the decisions adopted by the Board and the company’s general meeting. The CEO has particular responsibility for ensuring that the Board receives accurate, relevant and timely information in order to enable it to carry out its duties. The CEO shall also ensure that the Group’s financial statements comply with Norwegian legislation and regulations and that the assets of the company are soundly managed. The CEO is also responsible for the Sustainability reporting. The Board has formally assessed its performance and expertise in 2022 as recommended by the Norwegian Code. The assessment focuses on the Board's effectiveness to continuously improve governance and support the company's performance. Furthermore, it evaluates several areas of work including, but not limited to, the work of the Board, its composition, work climate and the Board's competence. External resources are brought in at regular intervals to evaluate the work of the Board. Regardless of whether it is conduced internally or externally, the evaluation forms a foundation for the company's Nomination Committee's work related to the nomination of Board members. In 2022, the evaluation was conducted as a self-assessment and discussion with each of the Board members separately. The results were reported to the Board and communicated to the Nomination Committee. The Board conducted 19 meetings during 2022. The overall attendance rate was 92%. 171 Integrated Annual Report 2022 GROUP RESULT In 2022 the Board continued to spend significant time on the strategic positioning of Mowi throughout the value chain. The Board has chosen not to appoint a remuneration committee. Matters relating to the remuneration of executive personnel are discussed by the Board without presence of the CEO or other management representatives. The Board has one subcommittee: The Audit Committee. Name Position Independent of major shareholders and management Meetings attended Attendance rate (%) Director since Term expires Ole-Eirik Lerøy Chairperson Yes 19 100% 2009 2023 Kristian Melhuus Deputy Chairperson Yes 19 100% 2018 2023 Lisbet K. Nærø 1) Director Yes 16 84% 2015 2023 Kathrine Fredriksen 2) Director No 12 75% 2022 2024 Renate Larsen 2) Director Yes 9 90% 2022 2024 Peder Strand 2) Director No 10 100% 2022 2024 Michal Chalaczkiewicz 2) Director No 10 100% 2022 2024 Cecilie Fredriksen Director No 3 33% 2008 n/a Nicolas Gheysens 3) Director No 9 100% 2021 n/a Solveig Strand 4) Director Yes 9 100% 2020 n/a Bjarne Tellmann 5) Director Yes 8 89% 2020 n/a Roger Pettersen 6) Director, employee rep. No 10 100% 2022 2024 Marianne Andersen Director, employee rep. No 19 100% 2021 2024 Jørgen Wengaard Director, employee rep. No 19 100% 2021 2024 Hans Jakob Lande 7) Director, employee rep. No 9 100% 2020 n/a 1) Lisbet K. Nærø is Chair of the Audit Committee and Renate Larsen is member of the Audit Committee. 2) K. Fredriksen, Larsen, Strand and Chalaczkiewicz became Board members in June 2022. 3) Gheysens became a Board member in 2021 and stepped down in June 2022. 4) Strand became a Board member in 2020 and stepped down in June 2022. 5) Tellmann became a Board member in 2020 and stepped down in June 2022. 6) Pettersen became a Board member in June 2022. 7) Lande became a Board member in 2020 and stepped down in June 2022. THE BOARD’S AUDIT COMMITTEE The Board’s Audit Committee consists of two members: Lisbet K. Nærø (Chair) and Renate Larsen the “Audit Committee”. The Audit Committee meets Norwegian requirements regarding independence and competence. The responsibility of the Audit Committee is to monitor the company’s financial reporting process and the effectiveness of its systems for internal control and risk management. The Audit Committee shall also keep in regular contact with the company’s auditor regarding the auditing of the annual accounts and sustainability reporting and shall evaluate and oversee the auditor’s independence. The Audit Committee reviews ethical and compliance issues. The members of the Audit Committee are deemed to be independent of the company’s major shareholders and the company's management. The Audit Committee reports to the Board. The Audit Committee conducted six meetings during 2022, with 100% attendance rate from both members. The Audit Committee has formally assessed its performance and expertise in 2022 as part of the Board’s assessment. 10. Risk Management and Internal Control The Board and management attach great importance to the quality of the Group’s risk management and internal control systems, including ESG risks. Risk management and internal control systems are important to enable the Group to meet its strategic goals. These systems form an integrated part of management’s decision-making processes and are central elements in the organisation of the Group and the development of routines. By means of a materiality assessment we have identified areas of opportunity and risk that could influence our ability to achieve our goals and deliver on our strategy. 172 Integrated Annual Report 2022 GROUP RESULT Risk management is what the company does to manage risk in order to provide reasonable assurance to stakeholders that it will achieve its goals. The COSO enterprise risk framework, dividing risk into four categories is applied: 1. Operational risk 2. Strategic risk 3. Reporting risk 4. Compliance risk As the company considers its operational risk to cover several individually important sub categories of risk, a more detailed risk categorisation has been chosen. The operational risk category therefore includes the following sub categories: a. Risks related to the sale/supply of our products b. Risks related to governmental regulations c. Risks related to our fish farming operations d. Risks related to our supply of fish feed and feed operations e. Risks related to our industry f. Risks related to our business g. Risks related to our financial arrangements h. Risks related to tax and legal matters i. Risks related to climate change j. Risk related to cyber security and technological innovation The company believes that this risk categorisation addresses the main risk areas that could influence the ability to deliver on the strategy. The company works continuously to mitigate identified risks and capitalise on opportunities by tracking and following up key performance indicators within the framework of the guiding principles. The company believes that the long-term success depends on its ability to manage the risks associated with its operations, strategy, reporting and compliance. For more detailed descriptions of the risks associated with the company's operations, please see the section Risk Management and the sections Profit, Planet, Product and People. For a more detailed description of the risks related to the financing arrangements, please refer to the Board of Directors report and Note 13 to the Group financial statements. A continuous risk management process, including analysis, management and follow-up of significant risks, is performed to ensure that the Group is managed in accordance with the risk profile and strategies approved by the Board. This process encompasses the Group’s guiding principles and ethical guidelines. The Board reviews the Group’s overall risk profile in relation to strategic, operational and transaction-related issues at least once every year. The status of the overall risk situation is reported and discussed with the Board in connection with the annual budget process. The Audit Committee assists the Board and functions as a preparatory body with regards to surveillance of the company’s systems for internal control and risk management. As part of the company's risk management policy, Mowi ASA has entered into Property and Casualty Insurance for the company including all subsidiaries. Included in this insurance program is Directors & Officers Liability Insurance coverage which specifies its own global coverage with a corresponding master policy. All Directors and Officers in Mowi are part of this insurance coverage which has a total limit of NOK 350 million. INTERNAL CONTROL OVER FINANCIAL REPORTING The Board and Group management are responsible for establishing and maintaining adequate internal control over financial reporting. The process for internal control is developed under the supervision of the Chief Financial Officer. The process is intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Group’s Financial Statements for external reporting purposes in accordance with International Financial Reporting Standards and the interpretations issued by the International Accounting Standards Board (IASB) as adopted by the European Union (EU IFRS) and the Norwegian Accounting Act. The Audit Committee monitors financial reporting and its related internal controls, including application of accounting principles and informed judgements. Group management and the Audit Committee have regular meetings with the external auditor present to discuss issues related to financial reporting. Financial reporting in Mowi is an integrated part of the Group’s corporate governance. Distinct roles, responsibilities and duties have been established. Requirements with regard to content and deadlines, including accounting policies, checks and validations, have been clearly defined. A key element in the financial reporting process is risk assessment. A risk assessment is performed at least annually, and key controls and control procedures are established to mitigate identified risks. Compliance is reported to the Audit Committee. The Group’s applied accounting principles are described in an online accounting manual. All Business Units periodically upload their financial statements into a common consolidation system, based on a common chart of accounts. All subsidiaries are responsible for the accuracy of their reported figures, and for ensuring that their financial reporting is in compliance with the Group’s accounting principles. In addition, general and analytical controls of the reported figures are performed at corporate level. Additional information is disclosed in connection with quarterly and annual reporting. Extended controls are carried out as part of the quarterly and the year-end reporting processes. The Group has sufficient expertise to complete proper and efficient financial reporting in accordance with IFRS and the Norwegian Accounting Act. INTERNAL CONTROL OVER IT SECURITY The Board and Group Management Team are responsible for establishing and maintaining adequate internal control over IT Security. The process for internal control is developed under the supervision of the Chief Financial Officer and Group IT Director. 173 Integrated Annual Report 2022 GROUP RESULT Oversight of the company's information security risk management is assigned to the Board, and followed up by the Audit Committee. Mowi has a global IT Security team that spans all areas of IT. This team is led by the Group Infrastructure and Operations manager. The Group Infrastructure and Operations Manager have frequent and regular discussions with the Group IT Director on security issues. The Group IT Director in turn updates the CFO on a monthly basis, and the Group Management Team and the Board at least quarterly. Mowi has three Board members with information security experience; Mr Melhuus, Mr Strand and Mrs Nærø. The CFO has a degree in Information Technology. Mowi has a group security team, with internal and external security experts tasked with the assignment to protect Mowi from cyber threats and attacks. Cyber monitoring takes place 24/7 and action is taken constantly to mitigate risks, handle threats, and remediate issues, as needed. The approach is not disclosed to any external company. Over the last three years Mowi has not experienced a security breach. Mowi incurred the most recent information security breach 5 years and 7 months ago. As a result no costs have been incurred, other than the costs of ongoing security improvements. Mowi has an annual external audit on IT processes, audited according to top information security standards, with complete scope. Additionally, Mowi uses a 3rd party certified security vendor to analyse the environment to highlight potential threats and weaknesses. Mowi is using well known and established and certified partners to run the global infrastructure on Mowi’s behalf. Certifications and third party attestations and quality review are important tool for Mowi to mitigate risk. The external IT audit cover Mowi Group and not only specific regions. Mowi has an extensive information security training program and the program is robust. All employees logging on to Mowi networks and applications must complete mandatory security and awareness training on a monthly basis. CODE OF CONDUCT AND ETHICAL GUIDELINES The Code of Conduct describes Mowi ASA’s commitment and requirements in connection with ethical issues relevant to business practice and personal conduct. Mowi ASA will, in its business activities, comply with applicable laws and regulations, and act in an ethical, sustainable and socially responsible manner. The Code of Conduct has been communicated to employees, and each employee is expected to make a personal commitment to abide by the Code of Conduct. The third-party-operated whistleblower channel facilitates the reporting of concerns about potential violations of the law and breaches of Mowi’s Code of Conduct in all areas. On whistleblowing, 21 (17) cases were reported through our whistleblower channel in 2022. All cases are closed, but one notice from 2018 is kept open, where we are still in legal process. None of the reported cases are related to corruption. Mowi has also established a group-wide policy to combat fraud and corruption as part of its risk management, internal control and corporate governance process. 11. Remuneration of the Board of Directors Remuneration for the members of the Board is determined by the AGM based on a proposal from the Nomination Committee. The remuneration reflects the Board’s responsibility, expertise, time, commitment and the complexity of the Company’s activities. Remuneration is not linked to the Company’s performance. All members of the Board, with the exception of the Chair and the Deputy Chair receive the same remuneration. The members of the Audit Committee receive separate, additional remuneration. The fee paid to the members of the Board is fixed for each 12-month period (from AGM to AGM). The remuneration paid to members of the Board is disclosed in the Remuneration Report according to Allmennaksjeloven (The Public Limited Liability Companies Act) § 6-16 b. 12. Remuneration of Executive Management The Board of Mowi ASA determines the principles applicable to the Group’s policy for compensation of senior executives. The Board is directly responsible for determining the CEO’s salary and other benefits. The CEO is, in consultation with the Chair of the Board, responsible for determining the salary and other benefits for the Group’s other senior executives. The Group’s senior executives include the management team of each Business Area as well as the senior members of the corporate staff. The following guidelines underpin the determination of compensation payable to the Group’s senior executives: –The total compensation offered to senior executives shall be competitive, both nationally and internationally. –The compensation shall contain elements providing necessary financial security following termination of the employment relationship, both before and after retirement. –The compensation shall be motivating, both for the individual and for the senior executives as a group. –Variable elements in the overall compensation package shall be linked to the value generated by the Group for Mowi ASA’s shareholders. –The system of compensation shall be understandable and meet general acceptance internally in the Group, among the company’s shareholders and with the public. –The system of compensation shall be flexible and contain mechanisms that make it possible to carry out individual adjustments based on the results achieved and contributions made towards the development of the Group. 174 Integrated Annual Report 2022 GROUP RESULT Remuneration of the company’s CEO and the executive management team is disclosed in the Remuneration Report according to Allmennaksjeloven (The Public Limited Liability Companies Act) § 6-16 b. In compliance with the Norwegian Public Limited Liability Companies Act, the Board prepares a statement regarding the remuneration of the executive management team for consideration by the AGM. The remuneration package for corporate executive staff consists of the following main elements: –Fixed salary –Benefits-in-kind –Pension –Termination payment –Bonus In addition, the Group has a Share Option Scheme (“Scheme”) for key employees. The Scheme is limited to two years’ salary for each individual. The details of the Scheme are described in Note 14 to the Mowi Group Financial Statements, and in Note 4 to the Mowi ASA financial statements. 13. Information and communications The company publishes its financial calendar every year, identifying the dates on which it will present its quarterly reports, Integrated Annual Report and when the AGM will be held. All information concerning major events and acquisitions is publicly disclosed in line with the requirements of the Oslo Stock Exchange, and posted on the Company’s website (Mowi.com). All financial reports and other information are prepared and disclosed in such a way as to ensure that shareholders, investors and others receive correct, clear, relevant and up-to-date information equally and in a timely manner. The Company holds public presentations of its results quarterly. The Board has formalised guidelines for dialogue with the company’s shareholders outside the AGM. Mowi ASA is entitled by the Norwegian Securities Trading Act to publish all information (including its annual financial statements) in English only. 14. Takeovers The Board will not seek to hinder or obstruct any public bid for the company’s activities or shares unless there are particular reasons for doing so. In the event of a takeover bid for the company’s shares, the Board will not exercise mandates or pass any resolutions with the intention of obstructing the takeover bid, unless this is approved by the company’s general meeting following the announcement of such a bid. The Board acknowledges that it has a particular responsibility to ensure that the company’s shareholders are given sufficient information and time to form a view of any public offer for the company’s shares. If an offer is made for a significant and controlling stake of the shares, the Board will issue a statement evaluating the offer and will make a recommendation as to whether or not shareholders should accept it. The Board has not established explicit guiding principles for dealing with takeover bids as recommended by the Norwegian code. 15. Audit and Risk Oversight The company’s elected external auditor is EY. The auditor is independent of Mowi ASA and is appointed by the AGM. The auditor’s fee is approved by the AGM. The auditor presents a plan to the Audit Committee for the audit, and is present at Board meetings dealing with the preparation of the annual accounts where the audited financial statements are reviewed and approved. The auditor participates in the AGM. The Board and the Audit Committee hold regular meetings with the auditor without the presence of management. The auditor is also present at all meetings with the Audit Committee. The minutes from these meetings are distributed to all Board members. This practice is in line with the EU audit directive. The auditor submits a summary document to the Audit Committee and the Board following its audit of the Group’s and the company’s annual financial statement and sustainability reporting. The summary document, in addition to describing the audit review, includes an evaluation of the Group’s internal control systems. The auditor has not issued an adverse opinion in the past year. Lisbet K. Nærø (Chair) serve as the financial expert in the audit committee. The new Public Audit Act became effective as of January 1, 2021. Extended tasks related to the selection, evaluation of independence and follow-up of the external auditor as well as purchase of auditor services are handled by the audit committee. The Audit Committee has sufficient competence to challenge the statutory auditor in relevant areas. When evaluating the independent auditor, emphasis is placed on the firm’s competence, capacity, local and international availability and the level of the fee expected. Information about the fee paid to the auditor is stated in Note 32 to the Group financial statements. The independent auditor’s remuneration is split between audit services, tax services and other non-audit fees. To the extent that the auditor provides services other than the regular audit, this is discussed separately on a case-by-case basis, to ensure that there are no conflicts of interest. The non-audit fee represents 41% (11%) of total fees in 2022. EY was initially appointed external auditor in 2003. Øyvind Nore, EY, has been lead audit partner for the Group since 2016, hence 2022 was his seventh and last year as lead partner. Øyvind Nore will be replaced by Trine Hansen Bjerkvik from 2023. The lead audit partner rotates every 7 years. 175 Integrated Annual Report 2022 GROUP RESULT 176 Integrated Annual Report 2022 GROUP RESULT This annual report contains forward-looking statements that reflect our current expectations and views of future events. Some of these forward-looking statements can be identified by terms and phrases such as “anticipate,” “should,” “likely,” “foresee,” “believe,” “estimate,” “expect,” “intend,” “continue,” “could,” “may,” “plan,” “project,” “predict,” “will” and similar expressions. These forward-looking statements include statements relating to: –our goals and strategies; –our plans with respect to construction and opening of new production facilities, and the expected cost, capacity and timing for such projects; –our plans with respect to the aquaculture shipping associated company; –our ability to increase or otherwise vary our harvest volume in the short or long term and our expected investments in working capital; –the expected trends in global demand for seafood; –our expected sales of fish feed; –the expected trends in consumer preferences; –capacity to expand salmon farming in Norway or elsewhere; –the expected trends in the seafood industry, globally and regionally; –the expected trends in human population growth; –the expected trends in income growth in emerging markets; –our ability to control or mitigate biological risks, including fish diseases and sea lice, through the use of vaccines, treatment or otherwise, and other risks to our fish stocks; –expected developments in the cost and availability of fish feed ingredients; –climate change; –our dividend policy; –updates with respect to our legal proceedings; –our expected capital expenditures and commitments; –our ability to maintain access to and produce quality fish feed; –future movements in the price of salmon and other seafood; –our ability to effectively manage the impact of escapes and predation on our stock; –our ability to continue to develop new and attractive high quality products; –our ability to overcome any interruptions to the operations of our farms, our feed plant or our primary or secondary processing facilities; –our expected biological costs; –our expected investments, including our project pipeline and other expansion efforts; –competition in our industry and from other protein sources, such as beef, pork and chicken; –the prospects of the Chilean and North American salmon industry; –our restructuring efforts; –our research and development plans and expectations; and –developments in, or changes to, the laws, regulations and governmental policies governing our business and industry, including the developments with respect to licenses. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. The forward-looking statements are based on our beliefs, assumptions and expectations of future performance, taking into account the information currently available to us. These statements are only predictions based upon our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. In particular, such factors are described in the relevant sections in this Integrated Annual Report. These forward-looking statements speak only as of the date of this annual report. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The factors set forth in Risk and Risk Management could cause our actual results to differ materially from those contemplated in any forward-looking. Special note Regarding forward-looking statements 177 Integrated Annual Report 2022 GROUP RESULT Financial statements and notes / Group 178 Integrated Annual Report 2022 Mowi Group Financial statements and notes 179 Statement of comprehensive income 180 Statement of financial position 182 Statement of changes in equity 183 Statement of cash flow 184 Note 1 - General information 184 Note 2 - Significant accounting policies 191 Note 3 - Estimates and judgements (A) and Environmental risk (B) 193 Note 4 - Business segments 196 Note 5 - Disaggregation of revenue 197 Note 6 - Biological assets 200 Note 7 - Inventory 201 Note 8 - Impairment testing of intangible assets 203 Note 9 - Intangible assets 205 Note 10 - Property, plant and equipment 207 Note 11 - Interest-bearing debt 210 Note 12 - Financial instruments 213 Note 13 - Capital management and risk management 217 Note 14 - Remuneration 219 Note 15 - Taxes 222 Note 16 - Cash 222 Note 17 - Trade receivables, other receivables and prepayments 223 Note 18 - Trade payables and other current liabilities 223 Note 19 - Secured liabilities and guarantees 224 Note 20 - Other non-current liabilities 224 Note 21 - Investments in associated companies and interest in joint ventures 225 Note 22 - Business Combinations, assets held for sale and discontinued operations 226 Note 23 - Consolidated entities 229 Note 24 - Share capital 232 Note 25 - Earnings per share 232 Note 26 - Related party transactions 233 Note 27 - Contingent liabilities and provisions 233 Note 28 - Other operating expenses 234 Note 29 - Leases 236 Note 30 - Provisions 236 Note 31 - Research and development 237 Note 32 - Auditor’s fees 237 Note 33 - New IFRS standards 237 Note 34 - Subsequent events Financial statements and notes / Group 179 Integrated Annual Report 2022 STATEMENT OF COMPREHENSIVE INCOME MOWI GROUP (EUR MILLION) NOTE 2022 2021 Revenue 4 907.3 4 165.9 Other income 33.5 36.3 Revenue and other income 4/5 4 940.8 4 202.2 Cost of materials 7 -2 347.3 -2 191.5 Net fair value adjustment biomass 6 113.7 119.8 Salary and personnel expenses 14 -612.6 -568.3 Other operating expenses 28 -607.4 -534.4 Depreciation and amortisation 9/10/29 -386.6 -373.2 Onerous contracts provision 30 -8.3 -3.2 Restructuring costs and other provisions 30 -13.7 -22.6 License/production fees 4 -22.5 -18.9 Other non-operational items 27 -2.1 -30.3 Income/loss from associated companies and joint ventures 21/22 59.2 97.5 Impairment losses & write-downs 6/9/10 -59.5 -74.8 Earnings before financial items (EBIT) 1 053.8 602.2 Interest expenses 12 -52.6 -59.0 Net currency effects 12 1.4 37.0 Other financial items 12 -1.8 13.1 Earnings before taxes 1 000.9 593.4 Income taxes 15 -215.5 -105.5 Profit or loss for the year 785.3 487.9 Other comprehensive income Currency translation differences -19.2 99.8 Total items to be reclassified to profit or loss in subsequent periods -19.2 99.8 Actuarial gains (losses) on defined benefit plans net of tax 15 -7.9 5.3 Total items not to be reclassified to profit or loss -7.9 5.3 Total other comprehensive income -27.0 105.1 Comprehensive income for the year 758.3 593.0 Profit or loss for the year attributable to Non-controlling interests 3.0 0.2 Owners of Mowi ASA 782.4 487.6 Comprehensive income for the year attributable to Non-controlling interests 3.0 0.3 Owners of Mowi ASA 755.3 592.7 Earnings per share - basic and diluted (EUR) 25 1.51 0.94 Earnings per share for continuing operations - basic and diluted (EUR) 25 1.51 0.94 Financial statements and notes / Group 180 Integrated Annual Report 2022 STATEMENT OF FINANCIAL POSITION MOWI GROUP (EUR MILLION) NOTE 2022 2021 ASSETS Non-current assets Licenses 8/9 1 194.2 919.7 Goodwill 8/9 371.4 321.1 Deferred tax assets 15 69.1 51.1 Other intangible assets 9 29.8 26.7 Total intangible assets 1 664.5 1 318.7 Property, plant and equipment 10 1 711.0 1 504.0 Right-of-use assets 29 452.1 513.2 Investments in associated companies and joint ventures 21 211.7 203.9 Other non-current financial assets 12 2.7 2.0 Other non-current assets 0.6 0.5 Total non-current assets 4 042.6 3 542.2 Current assets Inventory 7 603.9 384.1 Biological assets 6 1 912.5 1 529.5 Trade receivables 17 600.1 492.1 Other receivables 17 183.7 177.2 Other current financial assets 12 10.0 33.0 Restricted cash 16 7.6 6.8 Cash in bank 16 170.9 94.9 Total current assets 3 488.7 2 717.5 Total assets 7 531.3 6 259.5 Financial statements and notes / Group 181 Integrated Annual Report 2022 Mowi GROUP (EUR MILLION) NOTE 2022 2021 EQUITY AND LIABILITIES Equity Share capital and reserves attributable to owners of Mowi ASA 24 3 507.5 3 129.0 Non-controlling interests 23 179.7 2.4 Total equity 3 687.1 3 131.4 Non-current liabilities Deferred tax liabilities 15 332.4 441.4 Non-current interest-bearing debt 11 1 725.8 1 358.9 Non-current leasing liabilities 29 289.4 335.7 Other non-current liabilities 20 8.2 19.3 Total non-current liabilities 2 355.7 2 155.3 Current liabilities Current tax liabilities 15 377.4 79.9 Current interest-bearing debt 11 211.6 0.1 Current leasing liabilities 18/29 173.5 182.7 Trade payables 18 437.0 392.8 Other current financial liabilities 12 11.9 7.0 Provisions 30 33.7 65.4 Other current liabilities 18 243.3 244.9 Total current liabilities 1 488.4 972.9 Total equity and liabilities 7 531.3 6 259.5 BERGEN, MARCH 21, 2023 Ole-Eirik Lerøy Chair of the Board Kristian Melhuus Vice Chair of the Board Lisbet K. Nærø Katrine Fredriksen Renate Larsen Peder Strand Michal Chalaczkiewicz Marianne Andersen Employee representative Jørgen J. Wengaard Employee representative Roger Pettersen Employee representative Ivan Vindheim Chief Executive Officer Financial statements and notes / Group 182 Integrated Annual Report 2022 STATEMENT OF CHANGES IN EQUITY MOWI GROUP (EUR MILLION) 2022 ATTRIBUTABLE TO OWNERS OF Mowi ASA NON- CONTROLLING INTERESTS TOTAL EQUITY SHARE CAPITAL OTHER PAID-IN CAPITAL SHARE BASED PAYMENT TRANSLATION RESERVE OTHER EQUITY TOTAL Equity 01.01.22 404.8 1 274.7 6.6 121.6 1 321.2 3 129.0 2.4 3 131.4 Comprehensive income Profit — — — — 782.4 782.4 3.0 785.3 Other comprehensive income — — — -19.2 -7.9 -27.0 — -27.0 Transactions with owners Share-based payment — — 1.3 — — 1.3 — 1.3 Dividend — — — — -378.2 -378.3 — -378.3 Business combinations — — — — — — 174.3 174.3 Total equity 31.12.22 404.8 1 274.7 7.9 102.4 1 717.5 3 507.5 179.7 3 687.1 MOWI GROUP (EUR MILLION) 2021 ATTRIBUTABLE TO OWNERS OF Mowi ASA NON- CONTROLLING INTERESTS TOTAL EQUITY SHARE CAPITAL OTHER PAID-IN CAPITAL SHARE BASED PAYMENT TRANSLATION RESERVE OTHER EQUITY TOTAL Equity 01.01.21 404.8 1 274.7 5.5 21.8 1 055.1 2 762.0 2.1 2 764.1 Comprehensive income Profit — — — — 487.6 487.6 0.2 487.9 Other comprehensive income — — — 99.8 5.3 105.1 — 105.1 Transactions with owners Share-based payment — — 1.1 — — 1.1 — 1.1 Dividend — — — — -226.8 -226.8 — -226.8 Total equity 31.12.21 404.8 1 274.7 6.6 121.6 1 321.2 3 129.0 2.4 3 131.4 Financial statements and notes / Group 183 Integrated Annual Report 2022 STATEMENT OF CASH FLOW MOWI GROUP (EUR MILLION) NOTE 2022 2021 Cash flow from operations Earnings before taxes 1 000.9 593.4 Interest expenses 12 52.6 59.0 Net currency effects 12 -1.4 -37.0 Other financial items 12 1.8 -13.1 Impairment losses, depreciation and amortisation 9/10 446.1 448.0 Net fair value adjustment on biological assets and onerous contracts 6/30 -105.5 -116.6 Income from associated companies and joint ventures 21 -59.2 -97.5 Taxes paid 15 -118.3 -42.6 Change in inventory, trade payables and trade receivables -491.4 -26.4 Restructuring and other provisions -48.3 47.8 Other adjustments -32.3 18.2 Cash flow from operations 644.8 833.1 Cash flow from investments Sale of fixed assets 9.3 4.5 Purchase of fixed assets and additions to intangible assets 4 -335.2 -244.7 Proceeds and dividend from associates and other investments 59.1 107.9 Purchase of shares and other investments -202.6 -1.4 Cash flow from investments -469.4 -133.7 Cash flow from financing Proceeds (payments of ) interest-bearing debt (current and non-current) 11 499.9 -209.6 Down payment leasing debt 11/29 -199.6 -192.7 Interest received 2.0 0.5 Interest paid -51.1 -65.9 Realised currency effects 29.4 -12.2 Dividend -380.6 -226.8 Cash flow from financing -99.9 -706.6 Currency effects on cash 0.5 1.9 Net change in cash in period 75.9 -5.4 Cash - opening balance 94.9 100.3 Cash - closing balance total 16 170.8 94.9 Financial statements and notes / Group 184 Integrated Annual Report 2022 NOTE 1 - GENERAL INFORMATION Mowi ASA is a Norwegian company headquartered at Sandviksboder 77A/B, 5035 Bergen. Mowi ASA is a publicly listed company on the Oslo Stock Exchange, with the ticker symbol MOWI. The Group’s operations are described in Note 4. Mowi has operations in 26 countries and has structured its operations in three Business Areas: Feed, Farming and Sales & Marketing. The Feed factories are located in Norway and Scotland. The Group’s farming activities are located in Norway, Scotland, Canada, Chile, Ireland, Iceland and the Faroe Islands. Sales & Marketing comprises the global sales organisation, in addition to the value-added operations in Consumer Products. Comparable information for one year is presented in this year's Annual Report. The financial statements were authorised by the Board of Directors on March 21, 2023. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies applied in the preparation of these consolidated financial statements are described below. These policies have been consistently applied to all periods presented. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION As of December 31, 2022, the consolidated financial statements of Mowi ASA and its subsidiaries (‘‘the Group’’ or ‘‘Mowi’’) have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU. In compliance with the Norwegian Accounting Act, additional disclosures are included in the notes to the financial statements of Mowi ASA. Any new standards and amendments adopted by the Group in 2022 are described in Note 33. At the end of 2022, new standards and changes to existing standards and interpretations have been enacted but are not yet effective. Any relevant effects for Mowi are further described in Note 33. The consolidated financial statements have been prepared on the historical cost basis, except when IFRS requires recognition at fair value. This relates to the measurement of certain financial instruments and valuation of the biomass as further described below. The reporting period follows the calendar year. CONSOLIDATION Consolidated financial statements present the Group’s financial position, comprehensive income, changes in equity and cash flow. All intragroup transactions, receivables and liabilities are eliminated. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies. Subsidiaries The Group’s consolidated financial statements comprise the financial statements of the Group and its subsidiaries as at December 31, 2022. Control is achieved when the Group is exposed, or is entitled, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights in an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. INVESTMENT IN ASSOCIATED COMPANIES AND JOINT VENTURES Associated companies are companies in which the Group has a significant non-controlling interest (normally ownership of 20-50%). Significant influence is the power to participate in the financial and operating policy decisions of the investee, but not to exercise control or joint control over those policies. A joint venture is an arrangement whereby the parties that have joint control of the arrangement have rights with respect to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The Group's investments in its associated companies and joint ventures are accounted for using the equity method. Financial statements and notes / Group 185 Integrated Annual Report 2022 Under the equity method, the investment in an associate or a joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group's share of the associate or joint venture's net assets since the acquisition date. The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring their accounting policies in line with those of the Group. The statement of comprehensive income reflects the Group's share of the results deriving from the associate or joint venture's operations. FOREIGN CURRENCY TRANSLATION The financial statements for the Group are presented in EUR, which is the functional currency of the parent company. The functional currency of the subsidiaries is their local currency, with the exception of the holding companies in Norway in addition to Mowi ASA, Mowi Markets Norway AS, Mowi Feed AS, and Waynor Trading AS which have EUR as their functional currency, subsidiaries in Chile, Singapore, and Vietnam which use USD as their functional currency, and subsidiaries in Iceland which have NOK as their functional currency. On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognised in other comprehensive income. When a foreign operation is sold the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. Translation of transactions in foreign subsidiaries Profit or loss transactions in foreign subsidiaries are translated to the presentation currency using the average exchange rate for the reporting month, unless exchange rates in the period have fluctuated significantly, in which case the exchange rates in effect on the transaction dates are applied. Assets and liabilities of foreign subsidiaries are translated at the exchange rate at the end of the reporting period. Transactions in foreign currencies Foreign currency transactions are translated using the exchange rate at the time of the transaction. Receivables, debt and other monetary items in foreign currency are measured at the exchange rate at the end of the reporting period, and the translation differences are recognised in profit or loss. Other assets in foreign currencies are translated at the exchange rate in effect on the transaction date. FINANCIAL INSTRUMENTS - INITIAL AND SUBSEQUENT MEASUREMENT A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets The Group´s financial assets are: derivatives, non-listed equity instruments, trade receivables and cash and cash equivalents. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. The Group classified its financial assets within 2 categories; financial assets at amortised cost and financial asset at fair value through profit and loss. The Group does not apply hedge accounting. Financial assets at amortised cost The Group measures financial assets at amortised cost if both of the following conditions are met: The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows and, The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment testing. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The Group's financial assets at amortised cost includes trade receivables and other short-term deposit. Trade receivables are measured at the transaction price determined under IFRS 15 Revenue from contracts with customers. No significant financing components are identified. Derivatives at fair value through profit and loss Financial assets at fair value through profit and loss include financial assets held for trading, financial assets designated through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near terms. Derivatives, including embedded derivatives, are also classified as held for trading. Derivatives at fair value are carried in the statement of financial position at fair value with net changes in fair value in profit and loss. Financial statements and notes / Group 186 Integrated Annual Report 2022 The category includes derivatives instruments such as foreign exchange contracts, interest rate swaps and salmon derivatives. The Group trades in salmon derivatives, both as an operational hedging activity and a financial activity. Operational trading of salmon derivatives is presented as other operating income, while financial trading of salmon derivatives is presented as other financial items. Derecognition of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group’s consolidated statement of financial position) when: –The rights to receive cash flows from the asset have expired, or –The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either. a.the Group has transferred substantially all the risks and rewards of the asset, or b.the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. Financial liabilities Financial liabilities are classified, at initial recognition, as loans and borrowings, payables, or as financial liabilities at fair value through profit and loss (derivatives), as appropriate. Financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. Derivatives are financial liabilities when the fair value is negative, accounted for similarly as derivatives as assets. Financial liabilities at amortised cost After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of comprehensive income. Payables are measured at their nominal amount when the effect of discounting is not material. Derecognition of financial liabilities A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of comprehensive income. Impairment of financial assets The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. REVENUE Revenue from contracts with customers as defined in IFRS 15 is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods. The Group has generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods before transferring them to the customer. Sale of fish products Revenue for the Group derives mainly from the sale of fish and elaborated fish products either on spot sales or from contracts. The Group recognises revenue from the sale of fish and elaborated fish products at the point in time when control of the goods is transferred to the customer. Control of an asset refers to the ability to direct the use of and obtain substantially all of the remaining benefits from the asset, and the ability to prevent others from directing the use of and receiving the benefits from the asset. Revenue is generally recognised on delivery of the goods (i.e. a certain point in time). Based on group business of sale of fish and elaborated fish products the customers do not pay any advances. The normal credit term is 30 days upon delivery, and based on the nature of the product there is generally no right of return or warranties. Refund is only given if delivered goods is damaged or delivered with discrepancy compared to agreement, such is immaterial. The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated, currently no multiple performance obligations have been identified. In determining the transaction price for the sale of goods, the Group considers the effects of variable consideration, the existence of Financial statements and notes / Group 187 Integrated Annual Report 2022 significant financing components and consideration payable to the customer (if any). At the balance sheet date the group has no outstanding performance obligations in contracts that have original duration of more than 1 year. Therefore no additional disclosures is provided on performance obligations. Variable consideration If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Contracts for the sale of goods may provide customers with retrospective volume rebates. The retrospective volume rebates give rise to variable consideration. The Group provides retrospective volume rebates to certain customers once the quantity of products purchased during the period exceeds a threshold specified in the contracts. Rebates are presented as reduction of revenue in the statement of comprehensive income, and other current liabilities in the statement of financial position. To estimate expected rebates, the Group applies the expected value method at the end of each reporting period. The amount of unsettled rebates in the statement of financial position per year-end is immaterial. Balances related to revenue A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional. A trade receivable represents the Group’s right to an amount of consideration that is unconditional. A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services, a contract liability is recognised when the payment is made. Contract liabilities are recognised as revenue when the Group fulfils the performance obligation(s) under the contract. Refer to notes 17 and 18, contract assets and liabilities are immaterial. The Group has elected to apply the optional practical expedient for costs to obtain a contract which allows the Group to immediately expense such costs when the related revenue is expected to be recognised within one year, as such no assets have been presented in the statement of financial position. Biomass Changes in the estimated fair value of the biomass are recognised in profit or loss. The fair value adjustment is presented in the statement of comprehensive income as “Net fair value adjustment biomass”. The net fair value adjustment consists of “fair value adjustment on biological assets”, “fair value adjustment on harvested fish” and “fair value on incident based mortality”, see Note 6. The fair value adjustment on biological assets represents the change in fair value of the biomass less the change in accumulated cost of production for the biomass. The fair value adjustment on harvested fish is the release from stock of the fair value adjustment related to the fish harvested in the period. The fair value adjustment on incident based mortality is the release from stock of the fair value adjustment related to the fish recognised as incident based mortality in the period. The accumulated cost of incident based mortality is included in “cost of materials” in the statement of comprehensive income. Interest income For all financial instruments measured at amortised cost, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability. Interest income is included in other financial items in the statement of comprehensive income. Dividends Revenue is recognised when the Group’s right to receive the payment is established, which is generally when the dividend is approved by the investment's general meeting. GOVERNMENT GRANTS Government grants are recognised where there is reasonable assurance that the grant will be received and where the Company will be in compliance with all conditions attached thereto. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the costs that it is intended to compensate are expensed. When the grant relates to an asset, it is deducted from the carrying amount of the asset. The grant is then recognised in profit or loss over the useful life of a depreciable asset by way of a reduced depreciation charge. GOODWILL AND LICENSES Goodwill Goodwill is initially measured at cost, and is the excess of the aggregate of the consideration transferred and the amount recognised for a non-controlling interest in the net identifiable assets acquired and liabilities assumed through a business combination. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units (CGU) that are expected to benefit from the combination, Financial statements and notes / Group 188 Integrated Annual Report 2022 irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed of in such circumstance is measured on the basis of the relative values of the disposed operation and the portion of the cash-generating unit retained. Goodwill is tested for impairment annually as at December 31, and when circumstances otherwise indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods. Other intangible assets (licenses) Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite. The value of licenses acquired by Mowi (mainly licenses for salmon farming) in Norway, Chile, Ireland, the Faroe Islands, Scotland, Canada, and Iceland are considered indefinite. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually or when circumstances otherwise indicate that the carrying value may be impaired, either individually or at the cash-generating unit level. The indefinite life classification is reviewed annually to determine whether it continues to be appropriate. If not, the change in useful life from indefinite to finite is made on a prospective basis. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are measured at acquisition cost less accumulated depreciation and any impairment. Costs associated with normal maintenance and repairs are expensed as incurred. Costs of major replacements and renewals that substantially extend the economic life and functionality of the asset are capitalised. Assets are normally considered property, plant and equipment if the useful economic life exceeds one year. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Straight-line depreciation is applied over the useful life of property, plant and equipment, based on the asset’s historical cost and estimated residual value at disposal. If a substantial part of an asset has an individual and different useful life, this part is depreciated separately. The asset’s residual value and useful life are evaluated annually. The gain or loss arising from the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset. At the end of the reporting period, the carrying amounts of the Group’s assets are reviewed to determine whether there are indications that specific assets have suffered an impairment loss. If such indications exist, the recoverable amount of the asset is estimated in order to determine the extent of net present value of discounted cash flows (value in use). If estimated recoverable amount is lower than book value impairment is recognised. IMPAIRMENT OF NON-CURRENT ASSETS Annually or upon indication, each cash generating unit, CGU, is tested for impairment. If the recoverable amount of a cash-generating unit is estimated to be less than the carrying amount of the net assets of the cash-generating unit, impairment to the recoverable amount is recognised. If impairment is required, goodwill is written down first, thereafter other intangible assets. If further impairment is required, other assets will be written down on a pro-rata basis. Impairment losses recognised in previous periods are reversed if the recoverable amount in a later period exceeds the carrying amount. The reversal will not exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. LEASING The determination of whether a contract is, or contains, a lease is assessed at the inception of the lease and is based on whether the contract coveys a right to control the use of an identified asset or assets for a period of time in exchange for consideration. For contracts where the Group is the lessee, right-of-use assets and lease liabilities are recognised at the commencement of the lease. Right-of-use assets are measured at cost, less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the shorter of the lease term and the useful life of the asset. When a purchase option has been included in the cost at recognition, the right-of-use asset is depreciated over the estimated useful life of the asset. The lease liabilities at commencement date is measured at the present value of the lease payments. The lease payments are discounted using the Group's incremental borrowing rate as the interest rate implicit in the lease is not readily determinable. The incremental borrowing rate for each business unit is based on SOFR with an addition of a country specific margin. Short term leases (lease term less than 12 months) and leases of low-value assets are not recognised as right-of-use assets and lease liabilities, as the recognition exemptions for these leases is applied. Lease payments of such leases are recognized as expense over the lease term. For leasing contracts with optional renewal period, and where we are reasonably certain to exercise this option, the renewal periods are included in the calculation of the lease liability and asset. Financial statements and notes / Group 189 Integrated Annual Report 2022 The Group has lease contracts for various assets used in its operation, the main asset group being transportation. Lease terms and other conditions vary. Refer to note 29 for further information. INVENTORY Inventories mainly comprise feed, goods in progress, packaging materials and finished goods. Inventories of goods are measured at the lower of cost and net realisable value. The cost of finished goods includes direct material costs, direct personnel expenses and indirect processing costs (full production cost). Interest costs are not included in the inventory value. The cost price of purchased goods is the actual purchase price. The cost is based on the principle of first-in first-out, except for feed and value-added-products, where a weighted average is used. If fish farmed by the Group is included in inventory as a raw material for further processing in one of the Group's processing entities, such fish is included in inventory at fair value less cost to sell at harvest. BIOLOGICAL ASSETS Fair value of biological assets is calculated based on a present value model which does not rely on historical cost. Fish ready for harvest (mature fish), are valued at expected sales price with a deduction of cost related to harvest, transport etc. For fish not ready for harvest (immature fish), cost to completion is also deducted. The model uses an interpolation methodology where the known data points are the value of the fish when put to sea and when recognised as mature fish. Technically, the interpolation is calculated per location. The effect of this is that fish that have the same weight and quality are valued similarly. The interpolation model has a natural interpretation in the form of a present value calculation where an imputed rent of assets (i.e. theoretical license rent) per location is included as part of the rate of return. Thus, the value is to a lesser degree affected by the site because low production cost at a high quality site is offset by a higher imputed rent and vice versa. All surplus return in the future is assigned to the licenses through a similarly high imputed rent of assets, and where any shortage in return is recognised in profit and loss immediately. The interpolation model is updated every month, with best estimates for time of harvest, remaining months at sea, expected price at time of harvest and estimated residual cost to grow the fish to harvest weight. The methodology has the effect that any changes in price will have full effect on the biomass at hand, while the price effect on increased weight going forward will be allocated to the license and recognised over time as remaining time at sea decreases. An effect of this is that even with high salmon prices there is no profit at the time the fish is put to sea because all surplus return is assigned to future periods (licenses). Correspondingly the fair value of small fish is rather insensitive to price fluctuations. An interpolation model as described works best if important variables such as pace of growth, mortality and feed conversion ratios are constant per unit of time or weight increase. Experience shows that in particular there is a deviation from an even development during the first period in sea relating to increased value due, among other things to reduced risk after handling of the fish, vaccination and mortality related to the transfer to sea. This has been adjusted for. Biological assets comprise eggs, juveniles, smolt and fish in the sea. Biological assets are, in accordance with IAS 41 and IFRS 13, measured at fair value less cost to sell. In line with IFRS 13, the highest and best use of the biological assets is applied for the valuation. In accordance with the principle for highest and best use, the fish is considered to have optimal harvest weight at 4 kg gutted. This corresponds to that a live weight of approximately 4.8 kg (there may be regional variances) or more are classified as mature fish, while fish that have still not achieved this weight are classified as immature fish. All fish at sea are subject to a fair value calculation, while broodstock and smolt are measured at cost less impairment losses. Cost is deemed a reasonable approximation for fair value for broodstock and smolt. Historically the market prices for eggs (broodstock are not traded) and smolt have not departed significantly from own production cost. Transactions with live fish rarely take place, partly due to regulatory constraints, so the valuation of live fish under IAS 41 implies the establishment of an estimated fair value of the fish in a hypothetical market. The calculation of the estimated fair value is based on market prices for harvested fish and adjusted for estimated differences in accordance with IFRS 13. The prices are reduced for harvesting costs and freight costs to market, to arrive at a net value back to farm. The valuation reflects the expected quality grading and size distribution. The valuation is completed for each Business Unit and is based on the biomass in sea for each seawater site and the estimated market price in each market derived from the development in recent contracts as well as spot prices. Where reliable forward prices are available, those have been used. The change in estimated fair value is recognised in profit or loss based on measurement as of each period, and is classified separately. At harvest, the fair value adjustment is classified as fair value adjustment on harvested fish. In cases of incident based mortality, the fair value adjustment is classified as fair value adjustment on incident based mortality when occurring. Both are included in net fair value adjustment of biological assets in the statement of comprehensive income. ONEROUS CONTRACTS At each reporting date, management assesses if there are contracts in which the unavoidable costs of meeting the Group's obligations under the contract exceed the economic benefits expected to be received in accordance with IAS 37. Fair value adjustment of biological assets is included in the unavoidable cost. This implies that the contract may be considered onerous even though the actual production cost of the products sold is lower than the contract price. Volumes used in the calculation is based on estimated remaining volumes for the contracts. Onerous contracts are classified as provisions in the statement of financial position. Financial statements and notes / Group 190 Integrated Annual Report 2022 TAXES Income taxes comprise taxes on the taxable profit for the year, changes in deferred taxes and any adjustments in prior years' taxes. Taxes on transactions that are recorded in other comprehensive income or directly in equity do not form part of the tax expense in profit or loss. Tax payable is calculated using the nominal tax rate for the relevant tax jurisdiction at the end of the reporting period. Deferred tax is calculated on the basis of temporary differences between accounting and taxation values at the close of the accounting year. Deferred tax assets arise from temporary differences that give rise to future tax deductions. Deferred tax assets are recognised to the extent that it is probable that a taxable profit will arise, against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses, can be utilised. Tax increasing and tax decreasing temporary differences are offset against each other to the extent that the taxes can be netted within one tax regime. PROVISIONS A provision is recognised if the Company has a legal or constructive obligation related to a past event, and it is likely that the obligation will lead to a financial outflow for the Company. Long-term provisions are valued on the basis of discounted expected cash flows. RESTRUCTURING COSTS Provisions for restructuring costs will be recognised if the Company has, within the reporting period, published or initiated a restructuring plan, which identifies which parts of the Company and approximately how many employees will be affected, the actions that will be taken and when the plan will be implemented. Provisions are recognised only for costs that cannot be associated with future earnings. Costs related to restructuring are presented on a separate line in the statement of comprehensive income. SHARE OPTION SCHEMES The Group has share option schemes from 2019, 2020, 2021, and 2022 which will be settled in shares (equity settlement). The cost of equity-settled transactions is recognised as a payroll expense over the vesting period. The cumulative expense is recognised in other equity reserves within equity. CASH FLOW STATEMENT AND CASH The cash flow statement is prepared in accordance with the indirect method. Cash comprises cash and bank deposits, except funds which based on restriction does not quality as cash. Financial statements and notes / Group 191 Integrated Annual Report 2022 NOTE 3A - ESTIMATES AND JUDGEMENTS ESTIMATES The preparation of financial statements in accordance with IFRS requires management to make accounting estimates and judgments that affect the recognised amounts of assets and liabilities, income and expenses. The estimates and underlying assumptions are based on past experience and information perceived to be relevant and probable when the judgments are made. Estimates are reviewed on an on-going basis and actual values and results may deviate from these estimates. Adjustments to accounting estimates are recognised in the period in which the estimates are revised. Mowi is exposed to a number of underlying economic factors which affect the overall results, such as salmon prices, foreign exchange rates and interest rates, as well as financial instruments with fair values derived from changes in these factors. The matters described below are considered to be the most important in understanding the key sources of estimation uncertainty that are involved in preparing these consolidated financial statements and the uncertainties that could most significantly impact the amounts reported on the result of operations, financial position and cash flows. INTANGIBLE ASSETS - GOODWILL AND FARMING LICENSES The annual impairment test on intangible assets is based on a discounted cash flow model per cash-generating unit (CGU). The cash flows used in the calculations represent management’s best estimate at the time of reporting. The assumptions used rest on uncertainty with regard to product prices, input prices, biological performance and future regulatory frameworks. Costs can normally be estimated with a higher degree of accuracy than income. As profitability in the salmon farming industry historically has been very volatile, depending on developments in the price of salmon, Mowi uses budgets and long-term plans for the analysis. The WACC model is used for estimating the discount rate. The input data for the model is updated every year for the annual impairment test. The choice of input data for the model significantly influences the outcome of the model, and to ensure that there is as little uncertainty as possible with regards to the calculation of the WACC, third-party sources are used where available (interest, inflation, beta). The WACC is calculated separately for the different CGUs. Indications of impairment that initiate testing beyond the year-end test include a significant reduction in the profitability of the CGU compared to previous periods, negative deviations from budgets, changes in the use of assets, market changes and regulatory changes. For further information about uncertainty in the valuation of intangible assets and impairment testing, please see Note 8, Impairment testing. Note 9, Intangible assets, illustrates the specification of intangible assets in the Group. BIOLOGICAL ASSETS Biological assets comprise eggs, juveniles, smolt and fish in the sea. These assets are measured at fair value less cost to sell, unless the fair value cannot be measured reliably. The estimation of the fair value relies on a series of uncertain assumptions, e.g., biomass volume, biomass quality, size distribution, market prices, expected future costs, remaining time to harvest and total time to harvest. Mowi measures all deviations in biomass volume compared to estimates when a site is harvested out. Except for situations where there has been an incident causing mass mortality, particularly early in the cycle, combined with an inability to count and weigh fish after the event in fear of further stressing the fish, volume deviations are normally minor. Similarly, excluding the effects of soft flesh and melanin, the quality of the fish can normally be estimated with a relatively high degree of accuracy. Categorisation of quality is normally set per country based on averages, but can be set individually per site when needed. The size distribution shows some degree of variation but normally not to an extent that significantly changes the estimated value of the biomass (the value of two fish at five kg is very similar to the value of two fish weighing four and six kg, respectively). The accumulated cost of the fish per kg will only deviate from the estimate if the volume is different from the estimate. For the estimation of future costs, there is uncertainty with regard to feed prices, other input costs and biological development. Mowi measures cost deviations vs. budget as part of the follow up of Business Units. Excluding special situations (incidents etc.), the deviations in costs vs budgets are normally limited for a group of sites, although individual sites might show deviations. The estimation of costs influences the biomass value through the recognised fair value adjustment in the statements of comprehensive income and financial position (calculated as fair value less accumulated biological costs). The key element in the estimation of fair value is the assumed market price. The assumed market price is the price that we expect to receive on the future date when the live fish is harvested. We derive these prices from a variety of sources, normally a combination of the prices achieved in the previous month and the contracts most recently entered into. For salmon of Norwegian, Scottish and Faroese origin, quoted forward prices (Nasdaq) are used in the estimation, see Note 2. The use of third-party forward prices improves the reliability and comparability of the price estimation. For further information about biological asset values please see Note 6, Biological assets. Financial statements and notes / Group 192 Integrated Annual Report 2022 JUDGMENTS The matters described below are considered to be the most important in understanding the key sources of judgments that are involved in preparing these consolidated financial statements and the uncertainties that could most significantly impact the amounts reported on the result of operations, financial position and cash flows. LICENSES The Group has assessed that all fish farming licenses have indefinite lives and, as such, are not amortised. Most of the jurisdictions in which the Group operates require us to obtain a license for each fish farm owned and operated in that jurisdiction. The Group has obtained and currently holds a license to own and operate each of our fish farms where a license is required. These licenses have indefinite lives or require renewal after a specific time period, but normally with automatic renewal and, as such, we have assessed that they have indefinite lives. However, the Group’s licenses in each country are subject to certain requirements, and we risk penalties (including, in some cases, criminal charges), sanctions or even license revocation if we fail to comply with license requirements or related regulations. Also, local government may change the way licenses are renewed. SUPPLY CHAIN FINANCING Two companies in the Group hold Supply Chain Finance (SCF) agreements meaning that some vendors will indirectly offer extended credit terms to the company through a separate agreement with a financial institution. The vendors sell their trade receivables to the financial institution in order to receive payment immediately. Payment terms under the SCF agreement are in line with industry practice. The transaction is still between the company and its suppliers, and the company does not waive the right to claim any refund on quality issues, return goods etc. towards the supplier. The refinancing by vendors has no cash-flow impact on the company, and only when the trade payable is settled with the bank will the cash flow statement be impacted, with a operating cash flow charge. The group's assessment is that the liabilities under these SCF agreements are presented as trade payables. NOTE 3B - ENVIRONMENTAL RISK Climate change represents both risks and opportunities for Mowi. We recognise the growing significance of climate change on our business and the increasing role of producing food from the ocean as a solution to climate change. Mowi has developed a sustainability strategy, the Leading the Blue Revolution Plan. It sets ambitious goals to ensure our salmon is raised in the ocean in harmony with nature and local coastal communities, using an eco-efficient value chain while offering solutions to global challenges such as climate change and plastic pollution. The risk of climate change on Mowi's financial position can be classified into two types of risks; transition risk and physical risk. Transition risks refer to the changes in technological advancements within clean energy, shifts in consumer behaviour and political interventions, such as restrictions and costs related to emissions etc. Physical risks are related to the increase and severity of extreme weather and long-term environmental changes. These risks can affect Mowi in multiple ways, with reduced quality and mortality on fish, increased operating expenses, but also opportunities with faster growing fish and increased revenues. The risk can also impact the carrying amount and useful life of both tangible and intangible assets. These risks and opportunities are part of our risk assessment as part of the annual budget process and considered in our impairment testing at year end. The long-term effects of climate change are uncertain, but we believe that Mowi will play an increasing role in producing healthy nutritious food through an eco-efficient value chain. No impairment related to environmental risk is recognised as of year end 2022 and there has been no change in useful life for our assets. Financial statements and notes / Group 193 Integrated Annual Report 2022 NOTE 4 - BUSINESS SEGMENTS For management purposes, Mowi is organised into three Business Areas: Feed, Farming and Sales & Marketing. Business segments are components of a business that are regularly reviewed by its chief operating decision-makers for the purpose of assessing performance and allocating resources. The term business segments corresponds to operating segments as defined in IFRS 8. The Group Management Team is the Group’s chief operating decision-maker ("CODM"). In Mowi the Feed Business Area consist of the feed factories in Norway and Scotland. Feed is considered to be a separate business segment due to the nature of the business (different economic characteristics (e.g similar long term average gross margin) compared to other business segments in the Group and separate management follow up). The Farming Business Area consists of the farming and primary processing operations in Norway, Scotland, Canada, Chile, Ireland, the Faroe Islands and Iceland which are reported separately to CODM. The Farming operations are, due to similar production processes, a global market for both salmon feed and sales of salmon, in addition to similar biological risk factors, considered to have similar economic characteristics (e.g similar long term average gross margin). The farming units are therefore aggregated into one business segment. The Sales & Marketing Business Area consists of the Markets operations in the Americas and Europe, as well as Consumer Products. As the Markets operations are considered to have similar economic characteristics (e.g similar long term average gross margin), due to similar production processes and operational risk factors, and a common set of key performance indicators, they are presented as one reporting segment. Consumer Products, which comprises the value-added operations in Europe, Asia and America, is presented as a single separate reporting segment due to similar production processes, operational risk factors and a common set of key performance indicators (e.g similar long term average gross margin). The business segments' performance is monitored in order to achieve the overall objective of maximising the operational EBIT per kg and margins. Consequently, reporting focuses on measuring and illustrating the overall profitability of the harvested volume, based on source of origin (operational EBIT per kg) and operational EBIT margin for the business segments Markets and Consumer Products. Legal entities with activities in both Farming and Sales & Marketing do not split their financial items or their statement of financial position. The net effects of Gross investments (CAPEX) in these entities are recognised in the business segment Farming. The pricing principle between Feed and Farming is set at market terms and benchmarked against third parties. The pricing principle between Farming and Sales & Marketing is based on market reference prices for spot sales, while contracts are at market terms, with the target for Sales & Marketing to maximise profit beyond these terms. The same accounting principles as described for the consolidated financial statements have been applied to the business segment reporting. Inter-segment transfers or transactions are entered into under normal commercial terms and conditions, and the measurements used in the business segment reporting are the same as those used for the third-party transactions. In the business segment reporting internal profit related to unrealised gains from intra-group transactions are included in Operational EBIT for the relevant business segments, but eliminated in EBIT. Operational EBIT and Operational EBITDA are non-IFRS financial measures. Operational EBIT is calculated by excluding certain items, according to the reconciliation below, from earnings before financial items and taxes (EBIT). Operational EBITDA is calculated by adding depreciation and amortisation to Operational EBIT, however Operational EBITDA excludes the effects of IFRS 16. For further explanations, see section Analytical information in this report. The sustainability reporting follows the same reporting structure as the financial reporting structure described above. Financial statements and notes / Group 194 Integrated Annual Report 2022 KEY BUSINESS SEGMENT FIGURES (EUR MILLION) 2022 FEED FARMING MARKETS CONSUMER PRODUCTS OTHER 1) ELIMINATIONS TOTAL External revenue 8.3 48.7 1 733.5 3 155.6 — — 4 946.0 Internal revenue 977.9 3 256.8 1 992.1 9.9 21.2 -6 257.8 — Operational revenue 986.2 3 305.5 3 725.6 3 165.5 21.2 -6 257.8 4 946.0 Derivatives and other items — -0.8 -2.1 0.2 — -2.5 -5.3 Revenue and other income 986.2 3 304.8 3 723.5 3 165.7 21.2 -6 260.4 4 940.8 Operational EBITDA 47.0 946.7 61.5 139.4 -15.2 — 1 179.4 Operational EBIT 30.8 817.2 61.1 112.1 -16.1 — 1 005.1 Change in unrealised internal margin — — — — — -10.4 -10.4 Gain/loss from derivatives — 2.3 -2.8 -1.6 -2.6 — -4.7 Net fair value adjustment biomass — 113.7 — — — — 113.7 Onerous contract provisions — -8.3 — — — — -8.3 Restructuring cost and other provisions -11.7 -0.3 -1.7 — — -13.7 Production/license/sales taxes — -25.6 — — — — -25.6 Other non-operational items — -3.2 — -0.1 1.2 — -2.1 Income from associated companies and joint ventures — 59.2 — — — — 59.2 Impairment losses and write-downs — -56.0 — -3.5 — — -59.5 EBIT 30.8 887.6 58.0 105.3 -17.5 -10.4 1 053.8 Gross investments 3.0 295.6 1.5 33.5 1.8 — 335.2 Number of FTEs 31.12 152 4 972 216 8 339 48 — 13 726 1) Corporate functions and holding companies are presented as "Other". Financial statements and notes / Group 195 Integrated Annual Report 2022 KEY BUSINESS SEGMENT FIGURES (EUR MILLION) 2021 FEED FARMING MARKETS CONSUMER PRODUCTS OTHER ELIMINATIONS TOTAL External revenue 8.3 56.5 1 361.3 2 781.5 — — 4 207.6 Internal revenue 670.8 2 519.5 1 502.0 28.9 21.2 -4 742.4 — Operational revenue 679.1 2 576.0 2 863.3 2 810.4 21.2 -4 742.4 4 207.6 Derivatives and other items — -6.8 -1.8 -0.7 — 3.9 -5.4 Revenue and other income 679.1 2 569.3 2 861.5 2 809.6 21.2 -4 738.5 4 202.2 Operational EBITDA 34.5 494.2 50.8 122.0 -11.2 — 690.3 Operational EBIT 18.4 370.5 50.5 95.5 -12.2 — 522.6 Change in unrealised internal margin — — — — — 6.6 6.6 Gain/loss from derivatives — -3.7 -1.8 3.1 10.9 — 8.5 Net fair value adjustment biomass — 119.8 — — — — 119.8 Onerous contract provisions — -3.2 — — — — -3.2 Restructuring cost and other provisions — -7.9 — 0.3 -15.0 — -22.6 Production/license/sales taxes — -21.9 — — — — -21.9 Other non-operational items -1.6 -0.6 — -6.1 -22.0 — -30.3 Income from associated companies and joint ventures — 44.4 — — 53.1 — 97.5 Impairment losses and write-downs — -73.8 -0.1 -0.9 — — -74.8 EBIT 16.8 423.6 48.7 91.9 14.8 6.6 602.2 Gross investments 1) 3.5 215.6 0.3 43.3 2.4 — 265.1 Number of FTEs 31.12 157 4 886 207 8 684 51 — 13 984 1) Gross investments includes EUR 20.5 million related to the acquisition of a farming license with 796 tonnes MAB in Norway Region North. NON-CURRENT ASSETS BY COUNTRY LOCATION (EUR MILLION) 2022 2021 Norway 1 968.2 1 830.6 Poland 128.8 125.8 Scotland 507.0 544.1 Iceland 408.1 — Belgium 77.5 77.5 France 50.0 49.5 Rest of Europe 101.8 100.5 Chile 274.4 250.4 Canada/USA 445.6 501.2 Asia 9.4 9.6 Non-current assets 3 970.8 3 489.2 Other non-current assets 1) 71.8 53.1 Total non-current assets 4 042.6 3 542.2 1) Deferred tax assets and other non-current financial assets. Financial statements and notes / Group 196 Integrated Annual Report 2022 NOTE 5 - DISAGGREGATION OF REVENUE BUSINESS AREAS Feed Farming Sales & Marketing Total (EUR million) Note 2022 2021 2022 2021 2022 2021 2022 2021 Geographical markets Europe 2.8 5.7 29.1 22.8 3 261.0 2 806.7 3 292.9 2 835.2 Americas — — 0.7 2.1 1 109.7 897.6 1 110.3 899.7 Asia — — — — 436.9 372.5 436.9 372.5 Rest of the world — — — — 72.4 63.9 72.4 63.9 Revenue from contracts with customers 2.8 5.7 29.8 24.9 4 880.0 4 140.7 4 912.6 4 171.3 Other income 5.5 2.5 18.9 31.6 9.1 2.1 33.4 36.3 Operational revenue 4 8.3 8.3 48.7 56.5 4 889.1 4 142.8 4 946.0 4 207.6 SOURCE OF REVENUE The main source of revenue for the Group is sales of Atlantic salmon, including elaborated products. The business area Sales & Marketing represents the majority of the Group's external revenue. The revenue distribution for Sales & Marketing according to product categories was as follows in 2022 (2021): Fresh bulk 37% (32%), smoked/marinated 19% (16%), fresh MAP 17% (20%), fresh prepared 16% (18%), frozen prepared 3% (4%), frozen bulk 1% (1%) and other 7% (9%). The revenue distribution for Sales & Marketing according to customer categories was as follows in 2022 (2021): Retail 50% (56%), Distributors 24% (25%), Industry 12% (8%), Foodservice 10% (7%) and Smoke houses 4% (4%). External revenue for the Farming business area includes insurance income, government grants, rental income from sales of surplus primary processing capacity, as well as revenue from sales of fish, eggs, smolt and cleanerfish. Revenue from customers in the Business Area Feed is related to sales of feed to external parties. No customers accounts for 10% or more of the Group's revenues. Financial statements and notes / Group 197 Integrated Annual Report 2022 NOTE 6 - BIOLOGICAL ASSETS VALUATION OF BIOLOGICAL ASSETS Biological assets are, in accordance with IAS 41, measured at fair value less cost to sell. All fish at sea are subject to a fair value calculation, while broodstock and smolt are measured at cost less impairment losses. Cost is deemed a reasonable approximation for fair value for broodstock and smolt as there is little biological transformation (IAS 41.24). Biomass measured at fair value, is categorised at Level 3 in the fair value hierarchy, as the input is mostly unobservable. In line with IFRS 13, the highest and best use of the biological assets is applied for the valuation. In accordance with the principle for highest and best use, we consider that the fish have optimal harvest weight at 4 kg gutted. This corresponds to a live weight of approximately 4.8 kg (there may be regional variances). Fish of this weight or above are classified as ready for harvest (mature fish), while fish that have still not achieved this weight are classified as not ready for harvest (immature fish). The valuations are carried out at business unit level based on a common model and basis for assumptions established at group level. All assumptions are subject to monthly quality assurance and analysis at the group level. The valuations are based on an income approach and takes into consideration unobservable input based on biomass in the sea, the estimated growth rate and cost to completion at site level. Mortality, quality of the fish going forward and market price are considered at business unit level. A special assessment is performed for sites with high/low performance due to disease or other deviating factors. The market prices are derived from observable market prices where available. ASSUMPTIONS USED FOR DETERMINING FAIR VALUE OF LIVE FISH The estimated fair value of the biomass will always be based on uncertain assumptions, even though the group has built substantial expertise in assessing these factors. Estimates are applied to the following factors; biomass volume, the quality of the biomass, size distribution, cost, mortality and market prices. Biomass volume: The biomass volume is in itself an estimate based on the number of smolt released into the sea, the estimated growth from the time of stocking, estimated mortality based on observed mortality in the period, etc. There is normally little uncertainty with regard to biomass volume. The level of uncertainty will, however, be higher if an incident has resulted in mass mortality, especially early in the cycle, or if the fish's health status restricts handling. If the total biomass at sea was 1% lower than our estimates, this would result in an change in value of EUR -7.1 million. The quality of the biomass: The quality of the biomass can be difficult to assess prior to harvesting, if the reason for downgrading is related to muscle quality (e.g. the effect of Kudoa in Canada). In Norway downgraded fish is normally priced according to standard rates of deduction compared to a Superior quality fish. In our fair value model for salmon of Norwegian origin, we have used EUR 0.21 and EUR 0.61 as deductions from Superior grade for Ordinary and Production grade quality respectively. In other countries the price deductions related to quality are not as standardised. The quality of harvested fish has been good in 2022. For the Group as a whole, 91% of the fish were graded as Superior quality. A one percentage point change from Superior quality to Production grade quality would result in a change in value of EUR -3.2 million. The size distribution: Fish in sea grow at different rates, and even in a situation with good estimates for the average weight of the fish there can be a considerable spread in the quality and weight of the fish. The size distribution affects the price achieved for the fish, as each size category of fish is priced separately in the market. When estimating the biomass value, a normal size distribution is applied. Cost: For the estimation of future costs, there is uncertainty with regard to feed prices, other input costs and biological development. Mowi measures cost deviations vs. budget as part of the follow up of business units. Excluding special situations (incidents etc.), the deviations in costs vs budgets are normally limited for a group of sites, although individual sites might show deviations. The estimation of costs influences the biomass value through the recognised fair value adjustment in the statements of comprehensive income and financial position (calculated as fair value less accumulated biological costs). Mortality: Normalised mortality will affect the fair value estimates both as a reduction of estimated harvesting volumes and because cost to completion includes cost incurred on fish that eventually will perish. Market price: The market price assumption is very important for the valuation and even minor changes in the market price will result in significant changes in the valuation. The methodology used for establishing the market price is explained in Note 2. A EUR 0.1 decrease in the market price would result in a decrease in value of EUR 15.9 million. The market price risk is reduced through fixed price/volume customer contracts and financial contracts, as well as our downstream integration as explained in Note 13. Climate Risk : Climate risk is included in the assessment for calculating the Fair value of live fish. Due to the short time period relevant for the Fair value uplift (maximum of 2 years) climate risk has not had a material effect on the valuation of biomass in sea. Financial statements and notes / Group 198 Integrated Annual Report 2022 WRITE-DOWN OF BIOMASS AND INCIDENT-BASED MORTALITY Incident-based mortality is accounted for when a site either experiences elevated mortality over time or substantial mortality due to an incident at the farm (outbreak of disease, lack of oxygen etc). The cost of incident based mortality is included in “cost of materials” in the statement of comprehensive income. The fair value element is adjusted through fair value adjustment on incident based mortality, and included in net fair value adjustment in the statement of comprehensive income. RECONCILIATION OF CHANGES IN THE CARRYING AMOUNT OF BIOLOGICAL ASSETS (EUR MILLION) 2022 2021 Carrying amount as of 01.01 1 529.5 1 416.6 Cost to stock 2 259.3 1 821.8 Net fair value adjustment 113.7 119.8 Mortality for fish in sea -88.7 -96.0 Cost of harvested fish -1 964.5 -1 729.2 Write-downs -18.3 -49.8 Effects of business combinations 83.3 — Currency translation differences -1.9 46.4 Total carrying amount of biological assets as of 31.12 1 912.5 1 529.5 FAIR VALUE ADJUSTMENT ON BIOLOGICAL ASSETS IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) 2022 2021 Mowi Norway 305.5 224.3 Mowi Chile 48.2 39.8 Mowi Canada 26.9 14.6 Mowi Scotland 52.3 36.6 Mowi Faroe Islands 8.9 7.2 Mowi Ireland 0.2 3.7 Arctic Fish 15.2 — Total fair value adjustment included in carrying amount in the statement of financial position 457.2 326.2 Biomass at cost 1 455.3 1 203.4 Total biological assets 1 912.5 1 529.5 FAIR VALUE ADJUSTMENT ON BIOLOGICAL ASSETS IN THE STATEMENT OF COMPREHENSIVE INCOME (EUR MILLION) 2022 2021 Mowi Norway 843.7 492.1 Mowi Chile 120.1 87.2 Mowi Canada 82.4 24.6 Mowi Scotland 126.2 83.1 Mowi Faroe Islands 15.7 14.4 Mowi Ireland 10.4 8.4 Total fair value adjustment in the statement of comprehensive income 1 198.6 709.8 Financial statements and notes / Group 199 Integrated Annual Report 2022 FAIR VALUE ADJUSTMENT ON HARVESTED FISH IN THE STATEMENT OF COMPREHENSIVE INCOME (EUR MILLION) 2022 2021 Mowi Norway -752.9 -388.8 Mowi Chile -112.0 -87.0 Mowi Canada -73.7 -14.1 Mowi Scotland -102.7 -69.8 Mowi Faroe Islands -13.8 -9.0 Mowi Ireland -13.1 -13.2 Total fair value uplift in the statement of comprehensive income -1 068.2 -581.8 FAIR VALUE ADJUSTMENT ON INCIDENT BASED MORTALITY IN THE STATEMENT OF COMPREHENSIVE INCOME (EUR MILLION) 2022 2021 Mowi Norway -12.0 -7.5 Mowi Chile -2.1 -0.6 Mowi Canada 4.2 3.5 Mowi Scotland -5.7 -2.1 Mowi Faroe Islands -0.2 -0.8 Mowi Ireland -0.7 -0.6 Total fair value uplift in the statement of comprehensive income -16.6 -8.1 NET FAIR VALUE ADJUSTMENT IN THE STATEMENT OF COMPREHENSIVE INCOME (EUR MILLION) 2022 2021 Mowi Norway 78.8 95.8 Mowi Chile 6.0 -0.4 Mowi Canada 12.9 14.0 Mowi Scotland 17.8 11.3 Mowi Faroe Islands 1.7 4.6 Mowi Ireland -3.4 -5.4 Total fair value uplift in the statement of comprehensive income 113.7 119.8 VOLUMES OF BIOMASS (TONNES) 2022 2021 Volume of biomass harvested during the year (gutted weight) 463 635 465 600 Volume of biomass in the sea at year-end (live weight) 295 279 293 388 Financial statements and notes / Group 200 Integrated Annual Report 2022 SENSITIVITY EFFECT ON FAIR VALUE (SALMON ONLY) AT YEAR-END (EUR MILLION) PRICE -0.1 EUR BIOMASS -1% LWT QUALITY -1% SUP Mowi Norway -9.4 -4.7 -0.6 Mowi Chile -2.1 -0.6 -0.4 Mowi Canada -1.8 -0.8 -1.1 Mowi Scotland -2.1 -0.6 -1.1 Mowi Faroe Islands -0.3 -0.1 — Mowi Ireland -0.2 — -0.1 Arctic Fish -0.1 -0.3 — Total sensitivity effect on fair value -15.9 -7.1 -3.2 INCIDENT-BASED MORTALITY 2022 (SALMON ONLY) INCIDENT-BASED MORTALITY (1000 TONNES) INCIDENT-BASED MORTALITY IN % OF TOTAL MORTALITY (VOLUME) Mowi Norway 8.5 23.0% Mowi Chile 1.9 27.9% Mowi Canada 0.9 17.1% Mowi Scotland 4.4 42.3% Mowi Faroe Islands 0.1 14.1% Mowi Ireland 2.0 53.8% Mowi Group 17.7 27.9% FORWARD PRICES USED IN FAIR VALUE CALCULATION 1) QUARTER EUR/KG Q1 2023 8.57 Q2 2023 8.96 Q3 2023 7.16 Q4 2023 7.31 Q1 2024 8.01 Q2 2024 8.01 1) Norway, Faroe Islands and Arctic Fish only. Before reduction of export costs. NOTE 7 - INVENTORY INVENTORY (EUR MILLION) 2022 2021 Raw materials and goods in process 421.5 245.3 Finished goods 182.4 138.8 Total inventory 603.9 384.1 The amounts above are net after provision for obsolete goods, EUR 23.1 million (EUR 17.6 million). The amount of inventory recognised as an expense during the period totalled EUR 1 802.2 million (EUR 1 772.5 million). Financial statements and notes / Group 201 Integrated Annual Report 2022 NOTE 8 - IMPAIRMENT TESTING OF INTANGIBLE ASSETS At year-end 2022, the market value of the Group’s equity was significantly higher than the carrying amount of equity, which is an indication that the market considers the value of the Group’s assets to exceed the carrying amount. For all cash generating units (CGUs), the recoverable amount has been determined based on a value-in-use calculation using cash flow projections based on approved budgets for the first year. The four next years are based on the approved long-term plan, followed by a terminal value calculation. The net present value of the cash flow is compared to the carrying amount in the CGU. If the carrying amount is higher than the calculated value in use, an impairment loss is recognised in profit or loss, reducing the asset value to the calculated value in use. The estimated cash flows are based on the assumption of continued operation as part of the Mowi Group. There has been no changes in the identified CGUs for the year 2022. KEY ASSUMPTIONS The key assumptions used in the calculation of value in use are harvested volume, EBIT(DA)/margins, capital expenditure, discount rates and the terminal growth rates. Please see the table below for a summary of the key assumptions for each CGU. Harvest volume The expected harvest volume is based on the fish currently being held at sea, forward stocking plan and adjusted for the expected future increase in production given today's licenses. This evaluation has been performed CGU by CGU and is updated yearly. EBIT(DA)/Margins The key profit target for salmon farming and sales is EBIT per kg, while value-added operations are measured in terms of EBIT/EBITDA in % of sales. EBIT per kg is highly volatile due to fluctuations in the price of salmon. Costs can under normal circumstances be forecast with a relatively high level of accuracy. As Mowi has entered into long-term sales contracts for a proportion of the volume to be harvested in 2023, the margin for 2023 can be forecasted with a higher level of accuracy than the margin for the years beyond (2023-2026). With regards to the terminal, an expected long-term EBIT pr kg has been used in the Farming entities and an expected EBIT in % of sales has been used for other operations. In the calculation we have used the EBIT margin from the Long Term Plan per entity, and reduced this to 90%. This principle has been applied in all Farming entities for the terminal value. Capital expenditure In the five-year forecast period, the capital expenditure necessary to meet the expected growth in revenue and profit is taken into consideration. Consistent with the Group’s plan, the capital expenditure level for 2023 is high to further grow the operations. Beyond 2023, capital expenditures are aligned with growth and replacement plans. Capital expenditure to comply with current laws and regulations has been included. Capital expenditure related to committed and approved efficiency improvement programs has also been included to support the inclusion of the benefits in the applied margin. Changes in applicable laws and regulations may affect future estimated capital expenditure needs; this is not reflected in the figures used in the impairment test. Beyond the forecast period, capital expenditure will in general equal depreciation and relate to maintenance investments. Discount rate The discount rates are based on the Weighted Average Cost of Capital (WACC) methodology. The cost of equity is based on Capital Asset Pricing Model (CAPM). The cost of debt is based on the risk-free rate in the applicable country. In the model, a ten-year risk-free rate has been used. Calculation of the final discount rates (WACC) also takes into account market risk premium, debt risk premium, gearing and beta value. In the calculations, the Group has applied estimated cash flows before tax and the corresponding discount rates before tax. Terminal growth rates Growth after the five-year forecast period has in general been set independently for each cash-generating unit based on the five year average historic inflation rate. The maximum growth rate applied beyond the forecast period is 1.8%. This is lower than the expected growth rates in the first five years and lower than the historic growth rate in salmon demand. Sensitivity With regard to the assessment of recoverable amount, the Group is of the view that no reasonably likely change in any of the above key assumptions would cause the carrying value to materially exceed the recoverable amount for any of the CGUs. With regards to Climate change we have performed an sensitivity analysis and the Group is in the view that climate change will not materially change the carrying amounts. The Group try to incorporate all expected effects of climate change, inflation, wars, pandemics etc in the updated budget assumptions for 2023 and long term plan for 2024-2027. In general we expect a good market in 2023. The significant key assumptions with regards to sensitivity are expected harvest volumes and EBIT(DA)/Margins. Financial statements and notes / Group 202 Integrated Annual Report 2022 ASSUMPTIONS CASH GENERATING UNITS HARVEST VOLUME 2022 (GWT) WACC TERMINAL BEFORE TAX VALUE GROWTH % 2022 2021 2022 2021 Mowi Norway Farming 293 720 11.7% 8.9% 1.6% 0.8% Mowi Chile Farming 65 737 11.3% 10.4% 1.8% 1.6% Mowi Canada Farming 41 095 9.8% 9.3% 1.6% 0.8% Mowi Scotland Farming 48 374 9.2% 7.9% 1.6% 0.6% Mowi Ireland Farming 6 845 8.0% 6.9% 1.6% 0.3% Mowi Faroe Islands Farming 7 864 9.4% 8.5% 1.6% 0.8% Mowi Consumer Products Europe — 9.0% 7.9% 1.5% 0.2% Mowi Asia — 9.9% 9.0% 1.6% 0.8% Mowi USA — 11.1% 10.4% 1.6% 1.6% Mowi Feed — 9.5% 8.7% 1.6% 0.8% Total 463 635 Please see table below for an overview of the CGU's with allocated intangible assets as of December 31, 2022 and 2021. CASH GENERATING UNITS (EUR MILLION) GOODWILL LICENSES 2022 2021 2022 2021 Mowi Norway Farming 185.9 185.9 568.1 564.0 Mowi Scotland Farming 7.3 7.7 75.2 66.1 Mowi Canada Farming 39.0 39.1 157.8 158.0 Mowi Chile Farming — — 126.9 122.9 Mowi Ireland Farming — — 2.2 2.2 Mowi Faroe Islands Farming — — 6.6 6.6 Mowi Iceland 51.2 — 257.4 — Mowi Consumer Products 88.0 88.4 — — Total 371.4 321.1 1 194.2 919.7 Financial statements and notes / Group 203 Integrated Annual Report 2022 NOTE 9 - INTANGIBLE ASSETS SPECIFICATION OF INTANGIBLE ASSETS 2022 (EUR MILLION) GOODWILL LICENSES OTHER INTANGIBLE ASSETS 1) TOTAL Acquisition cost as of 01.01 586.4 1 093.4 65.4 1 745.1 Additions in the year as a result of acquisitions1) 53.4 283.4 — 336.8 Additions in the year — 2.3 5.4 7.7 Reclassification — -0.4 — -0.4 Disposals / scrapping in the year — — -0.7 -0.7 Foreign currency adjustments 3.7 -1.2 0.7 3.2 Total acquisition cost as of 31.12 643.4 1 377.5 70.9 2 091.8 Accumulated amortisation and impairment losses as of 01.01 265.2 173.6 38.7 477.6 Amortisation in the year — — 2.8 2.8 Impairment losses in the year — 3.8 — 3.8 Reclassification — -0.4 -0.3 -0.7 Disposals/ scrapping in the year — — -0.7 -0.7 Foreign currency adjustments 6.8 6.3 0.4 13.5 Total accumulated amortisation and impairment losses as of 31.12 272.0 183.3 41.0 496.4 Total carrying amount as of 31.12 371.4 1 194.2 29.8 1 595.4 Estimated lifetime 3 - 25 years Amortisation method Linear 1) Additions in the year as a result of acquisitions are related to the purchase of Arctic Fish and Wester Ross Fisheries. SPECIFICATION OF INTANGIBLE ASSETS 2021 (EUR MILLION) GOODWILL LICENSES OTHER INTANGIBLE ASSETS 1) TOTAL Acquisition cost as of 01.01 569.7 1 038.1 59.1 1 666.9 Additions in the year2) 4.3 20.5 4.8 29.6 Disposals / scrapping in the year — — — — Foreign currency adjustments 12.4 34.7 1.5 48.6 Total acquisition cost as of 31.12 586.4 1 093.4 65.4 1 745.1 Accumulated amortisation and impairment losses as of 01.01 256.3 165.2 35.0 456.5 Amortisation in the year — — 2.9 2.9 Impairment losses in the year — — — — Disposals/scrapping in the year — — 0.1 0.1 Foreign currency adjustments 9.0 8.4 0.8 18.1 Total accumulated amortisation and impairment losses as of 31.12 265.2 173.6 38.7 477.6 Total carrying amount as of 31.12 321.1 919.7 26.7 1 267.5 Estimated lifetime 3 - 25 years Amortisation method Linear 1) Other intangible assets includes assets under construction. 2) Additions on goodwill and licences are related to the purchase of Lofoten Aqua. Financial statements and notes / Group 204 Integrated Annual Report 2022 SPECIFICATION OF SEAWATER LICENSES NUMBER OF LICENSES/ TENURES NUMBER OF LICENSES/ TENURES IN USE TOTAL CURRENT PRODUCTION CAPACITY 3) (T TONNES) OTHER LIMITATIONS Mowi Norway1) 232.9 232.9 300 MAB limitation per license Mowi Chile 186 30-40 120-130 Mowi Scotland 74 51 89 MAB limitation per license Mowi Canada 95 46 97 MAB limitation per license Mowi Ireland 25 15 14 Mowi Faroe Islands2) 3 3 11 Arctic Fish 10 10 27 1) CAC licenses not included. 2) Total capacity is 16 tonnes over a 18 month cycle. 3) Total production capacity HOG, full utilisation. SPECIFICATION LICENSES 2022 TOTAL CURRENT PRODUCTION CAPACITY 2) (T TONNES) HARVEST VOLUME (SALMON ONLY) UTILISATION BASED ON PRODUCTION CAPACITY BOOK VALUE 1) (EUR MILLION) BOOK VALUE PER PRODUCTION VOLUME Mowi Norway 300 293 720 98% 568.1 1.9 Mowi Chile 120-130 65 737 51%-55% 126.9 1.9 Mowi Scotland 89 48 374 54% 75.2 1.6 Mowi Canada 97 41 095 47% 157.8 3.8 Mowi Ireland 14 6 845 49% 2.2 0.3 Mowi Faroe Islands 11 7 864 74% 6.6 0.8 Arctic Fish 27 n.a. n.a. 257.4 n.a. Total 463 635 1 194.2 2.0 1) Book value includes freshwater licenses in addition to seawater licenses. 2)Total production capacity HOG, full utilisation. The recognised value of our fish farming licenses in our Statement of Financial Position was EUR 1 194.2 million and EUR 919.7 million in December 31, 2022 and 2021 respectively. Measured in EUR per kg salmon harvested the values were EUR 2.0 and EUR 2.0 respectively. Financial statements and notes / Group 205 Integrated Annual Report 2022 NOTE 10 - PROPERTY, PLANT AND EQUIPMENT SPECIFICATION OF PPE 2022 (EUR MILLION) LAND & BUILDINGS MACHINERY & EQUIPMENT TRANSPORT NETS, PENS & MOORINGS UNDER CONSTRUCTION /PREPAYMENTS OTHER TANGIBLE TOTAL Acquisition cost as of 01.01 928.7 1 209.2 341.5 471.3 246.7 64.0 3 261.3 Acquisitions through business combinations 67.0 4.0 20.1 16.3 — — 107.5 Additions in the year 58.2 68.0 30.2 58.5 96.9 8.3 320.0 Reclassification — -1.3 — — 0.6 -0.9 -1.5 Disposals / scrapping in the year -6.5 -19.8 -4.1 -8.9 -0.1 -1.9 -41.3 Foreign currency adjustments -8.3 0.1 -2.0 -1.3 -10.8 1.0 -21.2 Total acquisition cost as of 31.12 1 039.1 1 260.1 385.7 535.9 333.4 70.7 3 625.0 Accumulated depreciation and impairment losses as of 01.01 355.9 862.9 172.3 293.5 22.5 50.5 1 757.5 Depreciation in the year 41.1 71.8 25.7 43.3 — 3.5 185.4 Impairment losses and reversal of previous write-downs in the year 7.6 6.8 1.0 0.1 0.5 — 16.1 Reclassification 1.5 -3.2 0.1 1.2 — -0.8 -1.2 Disposals / scrapping in the year -5.7 -19.0 -3.9 -8.7 -0.2 -1.9 -39.3 Foreign currency adjustments 0.4 5.1 -1.2 -0.2 -9.6 1.0 -4.5 Total accumulated depreciation and impairment losses as of 31.12 400.8 924.4 194.0 329.2 13.3 52.4 1 914.0 Total carrying amount as of 31.12 638.3 335.9 191.7 206.6 320.1 18.3 1 711.0 Estimated lifetime Land; infinite Buildings; 0-20 years 5-20 years 3-10 years 5-10 years n/a 3-10 years Depreciation method Linear Linear Linear Linear n/a Linear Financial statements and notes / Group 206 Integrated Annual Report 2022 SPECIFICATION OF PPE 2021 (EUR MILLION) LAND & BUILDINGS MACHINERY & EQUIPMENT TRANSPORT NETS, PENS & MOORINGS UNDER CONSTRUCTION /PREPAYMENTS OTHER TANGIBLE TOTAL Acquisition cost as of 01.01 864.0 1 140.4 290.3 429.3 184.6 58.2 2 966.8 Additions in the year 73.8 64.1 33.8 39.1 44.8 5.1 260.8 Reclassification -15.9 -1.6 15.3 -3.4 -1.4 — -7.0 Disposals / scrapping in the year -18.0 -39.1 -4.5 -14.0 -0.3 -1.6 -77.5 Foreign currency adjustments 24.7 45.4 6.6 20.2 19.0 2.4 118.4 Total acquisition cost as of 31.12 928.7 1 209.2 341.5 471.3 246.7 64.0 3 261.3 Accumulated depreciation and impairment losses as of 01.01 330.6 800.2 137.4 258.5 -1.0 46.5 1 572.1 Depreciation in the year 36.7 68.9 24.8 41.2 — 3.1 174.7 Impairment losses and reversal of previous write-downs in the year 2.9 3.8 0.5 0.5 12.1 0.1 19.9 Reclassification -8.4 -3.0 10.5 -5.6 -0.8 0.2 -7.0 Disposals /scrapping in the year -13.5 -35.6 -4.3 -13.8 -0.2 -1.6 -69.1 Foreign currency adjustments 7.5 28.7 3.4 12.7 12.3 2.3 66.9 Total accumulated depreciation and impairment losses as of 31.12 355.9 862.9 172.3 293.5 22.5 50.5 1 757.5 Total carrying amount as of 31.12 572.8 346.5 169.1 177.8 224.2 13.5 1 504.0 Estimated lifetime Land; infinite Buildings; 0-20 years 5-20 years 3-10 years 5-10 years n/a 3-10 years Depreciation method Linear Linear Linear Linear n/a Linear Sale of non-current assets Non-current tangible assets have been sold during the year, and the net gain on the sale of assets (included in the line item Other operating expenses in the consolidated statement of comprehensive income) amounts to EUR 3.8 million in 2022. The corresponding figure for 2021 is EUR 0.5 million. Impairment testing of non-current assets Impairment tests for specific non-current assets are performed when there are indications of impairment. In 2022, a net loss in fixed assets of EUR 15.3 million was booked in Canada, EUR 0.7 million in Norway, EUR 0.1 million in Poland and EUR 0.2 million in Japan. Based on evaluation no additional impairment due to climate risk and no changes in useful life. Contractual commitments Mowi has entered into significant contractual commitments for the acquisition of property, plant and equipment at year-end 2022. The significant commitments are related to Farming Norway with EUR 154.6 million, Farming Scotland with EUR 12.3 million, Farming Chile with EUR 6.9 million, Farming Faroes with 1.3 and Consumer Products Europe with EUR 1.1 million. Financial statements and notes / Group 207 Integrated Annual Report 2022 NOTE 11 - INTEREST-BEARING DEBT INTEREST-BEARING DEBT (EUR MILLION) 2022 2021 Non-current interest-bearing bank debt 1 377.7 811.8 Green bond 199.1 199.8 Schuldschein loan 149.0 148.8 Bond — 198.6 Total non-current interest-bearing debt 1 725.8 1 358.9 Current interest-bearing bank debt 11.6 0.1 Bond 200.0 — Current interest-bearing debt 211.6 0.1 Total interest-bearing debt 1 937.4 1 358.9 Financing of the Mowi Group is mainly carried out through the parent company Mowi ASA. External financing is obtained by subsidiaries only if this is optimal for the Group. Mowi complied with its loan covenants at the end of 2022. The following programmes are the main sources of financing for the Mowi Group as of December 31, 2022: EUR 1800 MILLION SUSTAINABILITY-LINKED REVOLVING CREDIT FACILITY In September 2021, Mowi signed a senior secured five-year, EUR 1 800 million multicurrency sustainability-linked revolving credit facility (the "Facility Agreement") with DNB, Nordea, ABN Amro, Rabobank, Danske Bank, SEB and Crédit Agricole. The Facility Agreement includes an accordion increase option, which provides flexibility for the parties to agree to increase the size of the Facility Agreement by an additional EUR 300 million during the five-year term. The principal financial covenant of the Facility Agreement is an equity ratio of minimum 35%, with the calculation of the ratio being adjusted for the effects of IFRS 16. Furthermore, the ability of the Group to take on new debt is regulated by the loan agreement. The facility has final maturity in September 2026. The facility is available to Mowi ASA and selected subsidiaries. In addition, the revolving credit facility may be allocated in part as bilateral credits (including overdraft facilities and facilities for the issuance of guarantees) between syndicate banks and group companies. Drawings at year end 2022 on the syndicated credit facility amount to EUR 1 310.0 million, up from 810.7 million at year end 2021. Financial statements and notes / Group 208 Integrated Annual Report 2022 EUR 150 MILLION SCHULDSCHEIN LOAN In May 2019, Mowi entered into a EUR 120 million, seven-year senior unsecured loan in the German Schuldschein market, increased to EUR 150 million in August 2019. The loan consists of two floating-rate tranches of EUR 99 million and EUR 30 million, and a fixed-rate tranche of EUR 21 million, and the sole financial covenant is an equity ratio of minimum 30%. Mowi pays semi-annual interest of six-month EURIBOR (floored at 0%) plus 1.70% p.a. on the floating-rate tranches and, through a corresponding interest rate swap, six-month EURIBOR plus 1.705% p.a. on the fixed-rate tranche. All tranches are non-amortising and are repayable in May 2026. EUR 200 MILLION GREEN BOND In January 2020, Mowi issued the first green bond in the seafood sector, with a principal amount of EUR 200 million. The bond issue carries a coupon of three-month EURIBOR (floored at 0%) plus 1.60% p.a., payable quarterly, and the sole financial covenant is an equity ratio of minimum 30%. The green bond is unsecured and is repayable in January 2025 with no interim instalments. The proceeds from the green bond issue has been used to finance or refinance green projects as further defined by Mowi's green bond framework, which received a medium green shading from CICERO. The bond is listed on the Oslo Stock Exchange and in Euronext ESG Bonds section with ISIN: N0 0010874050. EUR 200 MILLION BOND In June 2018, Mowi issued an unsecured bond with a principal amount of EUR 200 million, listed on the Oslo Stock Exchange with ISIN: NO 0010824006. The bond issue carries a coupon of three-month EURIBOR (floored at 0%) plus 2.15% p.a., payable quarterly, and the sole financial covenant is an equity ratio of minimum 30%. The full principal amount is repayable in June 2023 and the bond is therefore presented as Current interest-bearing debt. EUR 100 MILLION REVOLVING CREDIT AND CONSTRUCTION FACILITIES, ARCTIC FISH In December 2020 Arctic Fish signed a three-year, EUR 67 million senior secured multi-currency credit facility with a one-year extension option with Arion Bank and DNB to finance day-to-day operation and future growth (the "Arctic Fish Facility Agreement"). Subsequent amendments have increased the facility size to EUR 100 million. Drawings on the facility at year end 2022 amount to EUR 75.8 million. For details, see note 22 Business combinations. CASH MOVEMENTS FINANCING ACTIVITIES CASH MOVEMENTS FINANCING ACTIVITIES (EUR MILLION) INTEREST-BEARING DEBT DERIVATIVES Balance at January 1, 2022 1 358.9 7.0 Proceeds from loans and borrowings 499.9 — Total changes from financing cash flows 499.9 — Changes from business combinations 78.3 The effect of changes in foreign exchange rates -3.4 — Changes in fair value — 4.9 Liability-related 74.9 4.9 Capitalised borrowing cost 1.7 — Interest expense 36.3 4.1 Interest paid -34.3 -4.1 Total liability-related other changes 3.7 — Balance at December 31, 2022 1 937.4 11.9 In addition Mowi has paid EUR 12.7 million in interest expenses for leasing during 2022. For cash details in regards to leasing, please see note 29. Financial statements and notes / Group 209 Integrated Annual Report 2022 CASH MOVEMENTS FINANCING ACTIVITIES (EUR MILLION) INTEREST-BEARING DEBT DERIVATIVES Balance at January 1, 2021 1 565.5 30.1 Proceeds from loans and borrowings -209.6 — Transaction cost related to loans and borrowings -10.8 — Total changes from financing cash flows -220.4 — The effect of changes in foreign exchange rates 11.0 — Changes in fair value — -23.1 Liability-related 11.0 -23.1 Capitalised borrowing cost 2.5 — Interest expense 28.0 12.5 Interest paid -27.7 -12.5 Total liability-related other changes 2.8 — Balance at December 31, 2021 1 358.9 7.0 In addition Mowi paid EUR 15.6 million in interest expenses for leasing during 2021. Financial statements and notes / Group 210 Integrated Annual Report 2022 NOTE 12 - FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS IMPACT ON COMPREHENSIVE INCOME (EUR MILLION) 2022 2021 Interest expenses -36.3 -40.5 Interest expenses leasing -12.7 -15.6 Amortised interest cost -3.6 -3.0 Interest expenses -52.6 -59.0 Net currency effects on interest-bearing debt 2.1 -11.1 Net currency effects on cash, trade receivables and trade payables 3.6 24.6 Gain/loss on short-term currency swaps -6.5 3.0 Gain/loss on long-term currency swaps -6.1 20.2 Currency effects on leasing (IFRS 16) 8.4 0.3 Net currency effects 1.4 37.0 Interest income 2.0 0.5 Gain/loss on salmon derivatives non-operational -0.8 0.4 Change in fair value other financial instruments 2.9 12.1 Change in fair value other shares -0.1 — Net other financial items -5.8 0.1 Other financial items -1.8 13.1 Total financial items -52.9 -8.9 CATEGORIES OF FINANCIAL INSTRUMENTS IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) FINANCIAL ASSETS AND LIABILITIES DECEMBER 31, 2022 DEBT INSTRUMENTS AT AMORTISED COST FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS NON-FINANCIAL ASSETS AND LIABILITIES TOTAL Non-current assets Other non-current financial assets — 2.7 — 2.7 Current assets Trade receivables 600.1 — — 600.1 Other receivables 98.4 — 85.3 183.7 Other current financial assets — 10.0 — 10.0 Cash 178.5 — — 178.5 Non-current liabilities Non-current interest-bearing debt -1 725.8 — — -1 725.8 Current liabilities Current interest-bearing debt -211.6 — — -211.6 Trade payables -437.0 — — -437.0 Other current financial liabilities — -11.9 — -11.9 Other current liabilities 98.2 — -341.4 -243.3 Total -1 399.2 0.8 Fair value1) -1 401.1 0.8 1) Difference in fair value is related to Non-current interest-bearing debt (Bond). Financial statements and notes / Group 211 Integrated Annual Report 2022 CATEGORIES OF FINANCIAL INSTRUMENTS IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) FINANCIAL ASSETS AND LIABILITIES 31 DECEMBER 2021 DEBT INSTRUMENTS AT AMORTISED COST FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS NON-FINANCIAL ASSETS AND LIABILITIES TOTAL Non-current assets Other non-current financial assets — 1.9 — 1.9 Current assets Trade receivables 492.1 — — 492.1 Other receivables 86.2 — 91.0 177.2 Other current financial assets — 33.0 — 33.0 Cash 101.7 — — 101.7 Non-current liabilities Non-current interest-bearing debt -1 358.9 — — -1 358.9 Current liabilities Current interest-bearing debt -0.1 — — -0.1 Trade payables -392.8 — — -392.8 Other current financial liabilities — -7.0 — -7.0 Other current liabilities -96.0 — -149.0 -244.9 Total -1 167.8 27.9 Fair value1) -1 178.8 27.9 1) Difference in fair value is related to Non-current interest-bearing debt (Bond). There has not been any reclassification between the categories of financial assets or liabilities in 2022, or 2021. Details regarding the criteria for recognition and the basis for measurement of each class of financial instrument are disclosed in Note 2 Significant accounting principles. OTHER CURRENT FINANCIAL ASSETS (EUR MILLION) 2022 2021 Market value of other financial instruments 6.0 8.2 Currency swaps 4.0 24.7 Other current financial assets as of 31.12 10.0 33.0 OTHER CURRENT FINANCIAL LIABILITIES (EUR MILLION) 2022 2021 Currency swaps 10.2 2.5 Interest rate swaps 1.7 4.5 Other current financial liabilities as of 31.12 11.9 7.0 Financial statements and notes / Group 212 Integrated Annual Report 2022 FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value of financial instruments carried at amortised cost The Group considers that the carrying amount of financial assets and liabilities recognised at amortised cost in the financial statements approximates their fair value. Fair value measurements recognised in the statement of financial position Financial instruments that are measured at fair value subsequent to initial recognition are grouped into a hierarchy of three different levels, based on the degree to which the fair value is observable: Level 1: Fair value determined directly by reference to published quotations. Level 2: Fair value estimated using valuation technique based on input other than quoted prices included in level 1 that are observable. Level 3: Fair value estimated using a valuation technique based on unobservable data. ASSETS AND LIABILITIES MEASURED AT FAIR VALUE (EUR MILLION) 2022 2021 LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 1 LEVEL 2 LEVEL 3 Financial assets/liabilities to fair value through profit or loss: Other financial instruments — — — — -6.3 — Current currency swaps — 4.0 — — 24.7 — Interest swaps — -1.7 — — -4.5 — Current currency swaps — -10.2 — — -2.5 — BONDS AT AMORTISED COST, FAIR VALUE — -545.0 — — -558.1 — The own non-performance risk as at December 31, 2022 was assessed to be insignificant. There were no transfers between the levels in 2022 or 2021. Financial statements and notes / Group 213 Integrated Annual Report 2022 NOTE 13 - CAPITAL MANAGEMENT AND RISK MANAGEMENT LEVERAGE AND CAPITAL ACCESS Leverage and Capital access (i.e. Capital management) refers to the process of acquiring and utilising capital in the most efficient manner compared to the available alternatives. The primary objective of the Group’s capital management is to ensure access to capital contributing to satisfactory operations and maximum generation of shareholder value. The Group manages its capital structure and makes adjustments in light of changes in underlying economic conditions. Access to borrowed capital is continuously monitored and the Group has a continuous dialogue with its lenders. The syndicated loan facility sets forth an equity ratio as the only financial covenant. The remaining portfolio of interest bearing debt does not include more restrictive financial covenants. Mowi complied with the financial covenants in its loan agreements during and at the end of 2022. Details relating to the main loan programmes in the Group are described in Note 11. Mowi intends to maintain an equity base suited to the characteristics of its operations, taking into consideration that fish farming is a cyclical business. At year-end 2022, the equity of Mowi amounted to EUR 3 687.1 million. The equity share, defined by equity/total assets, was at the same time 49.0%. Net interest bearing debt, defined as total interest-bearing debt less cash was EUR 1 758.9 million at year-end, above the long-term target of EUR 1 400 million, excluding effects of IFRS 16. The Board of Directors of Mowi ASA considers the equity in the Group appropriate for the scale of the operation. Mowi’s ambition is to create long-term value for the shareholder through both positive share price development and a growing dividend in line with long-term earnings. In 2020 the Board decided to make dividend payments more predicable and transparent by operationalising the dividend policy and introducing ordinary and extraordinary dividends. The dividend policy states that: –The quarterly ordinary dividend shall under normal circumstances be at least 50% of underlying earnings per share (EPS). –Excess capital will be paid out as extraordinary dividends. –When deciding excess capital the Board of Directors will take into consideration expected cash flow, capital expenditure plans, financing requirements and appropriate financial flexibility. Further to this a long-term target level for net interest-bearing debt is determined, reviewed and updated on a regular basis. –Shareholder returns are distributed primarily as cash dividends with the option of using share buybacks as a complementary supplement on an ad-hoc basis. The Board of Directors of Mowi ASA has been given proxies from the Annual General Meeting on 13 June 2022 for the following: –(1) To approve the distribution of dividends based on the Company’s annual accounts for 2022. The authority may be used to approve the distribution of dividends up to an aggregate amount of NOK 7 500 000 000. The authority is valid for dividends from the date of the Annual General Meeting on 13 June 2022 until the AGM in 2023, however no later than June 30, 2023. –(2) To purchase up to 51 711 109 shares in the Company (representing 10% of the shares in issue at the time) during the period up until the AGM in 2023, however no later than June 30, 2023. –(3a) To increase the Company’s share capital by up to 51 711 109 shares (representing 10% of the shares in issue at the time) provided that the the combined number of shares that are issued pursuant to this authorisation and the authorisation in item 3b below shall not in aggregate exceed 10% of the Company's current share capital. The authority did not define the purpose(s) of such a capital increase. The authority expires at the AGM in 2023, however no later than June 30, 2023. –(3b) To take up convertible bond loans of up to NOK 3 200 million (par value), convertible to a share capital equivalent of up to 51 711 109 shares provided that the the combined number of shares that are issued pursuant to this authorisation and the authorisation in item 3a above shall not in aggregate exceed 10% of the Company's current share capital. The authority expires at the AGM in 2023, however no later than June 30, 2023. The Group’s principal financial liabilities, other than loans, consist of non-convertible bonds, derivatives and trade payables. These financial liabilities constitute the majority of the Group’s third party financing. The Group holds financial assets such as trade receivables, cash and shares. The Group uses financial derivatives, mainly currency forward contracts, interest rate swaps and financial salmon futures, using large international banks and Fish Pool ASA as counterparts. The purpose of these derivatives is to manage the interest rate, currency and salmon price risks arising from the operations of the Group. With the exception of financial salmon futures, no trading activities in financial instruments are undertaken. On a selective basis, the Group also enters into other financial derivatives such as equity forward contracts. Financial statements and notes / Group 214 Integrated Annual Report 2022 Details regarding significant accounting policies for financial assets and liabilities are disclosed in Note 2 Significant accounting policies. FINANCIAL RISK MANAGEMENT The Group monitors and manages financial risks arising from operations. These include currency risks, interest rate risk, credit risk and price/liquidity risk. The Group seeks to manage these risks through operational measures or (where such measures are not available) through the use of financial derivatives. A policy on the management of these risks has been approved by the Board of Directors. The policy includes principles on currency risk, interest rate risk, price risk, the use of financial instruments and other operational means as well as limits on the maximum and minimum levels of these exposures. CURRENCY RISK In the Mowi Group, several Business Units carry out a large number of business transactions in currencies different from the domestic currency. For the Group, the relative importance of these transactions is substantially larger on the revenue side than on the cost side. To mitigate the potential fluctuation effects on its cash flows, the Group maintains a foreign exchange strategy designated to manage these exposures both in the short and long term. For each of Mowi’s units, the Group has defined a hedging strategy not designated for hedge accounting. According to the hedging strategy, units located in the following regions generate cash flow in currencies (main hedging currencies) according to the below table. REGION HEDGING CURRENCY Europe ex. UK EUR UK GBP Americas USD Asia USD For some units the main hedging currency is different from the functional currency. Transaction exposures arise from firm commitments made to transact in a currency different from the main currency. Each transaction exposure depends on the duration of the associated commitment, but these are normally be of relatively short duration. Hedging transactions undertaken to manage transaction exposures are referred to as transaction hedges. Through hedging of transaction exposures, each Business Unit aims to ensure that its net cash flows in currencies other than its main hedging currency are hedged towards this currency. Further exposures arise from structural imbalances between the main currencies on the revenue side and those on the expense side. These imbalances are predominantly a result of production taking place in a different country from that in which the product is sold. Due to their structural nature, such exposures are of a longer duration than transaction exposures and are therefore quantified based on estimates of future revenues and expenses. For these purposes, the focus is on the underlying currency structure of the individual revenue and cost item while the actual currency in which transactions are invoiced is of lesser importance. The Mowi Group normally has a net positive cash flow exposure towards EUR, GBP, USD and JPY and a net negative cash flow exposure towards NOK, CAD and CLP. To hedge Group cash flows against exchange rate fluctuations Mowi has a policy for long-term hedging of the most predominant net exposures. The Group currently hedges up to 30% of its underlying exposure between EUR/NOK and USD/CAD with a horizon of two years. As of December 31, 2022 the Group held a portfolio of derivative instruments designed to mitigate transaction and cash flow exposure with a total contract value of EUR 544.4 million (EUR 728.4 million). Instruments equivalent to 96% (74%) of the contract value mature in 2023 and no instrument matures after December 2024. The portfolio had a net market value of EUR -6.7 million (EUR 22.2 million) at year end. Currency exposure in the statement of financial position As a consequence of the Group’s net cash flows being generated in EUR, GBP and USD, the interest-bearing debt should reflect this currency structure. On December 31, 2022, the portfolio was in line with policy. CURRENCY STRUCTURE OF NET INTEREST-BEARING DEBT (EUR MILLION) NOK USD EUR GBP JPY DKK CAD PLN OTHER TOTAL Cash and cash equivalents 33.5 31.0 78.5 7.4 8.4 2.7 7.0 0.3 9.7 178.5 Current interest-bearing debt — — 211.6 — — — — — — 211.6 Non-current interest-bearing debt 76.6 56.4 1 547.3 45.2 — — — — 0.3 1 725.8 Net interest-bearing debt 43.1 25.4 1 680.4 37.8 -8.4 -2.7 -7.0 -0.3 -9.4 1 758.9 Financial statements and notes / Group 215 Integrated Annual Report 2022 The carrying amount of interest-bearing debt has been reduced by EUR 9.4 million (EUR 13.0 million) in transaction costs. There are no significant differences between the carrying amount and the fair value of non-current interest-bearing debt and leasing. SENSITIVITY ANALYSIS - CHANGE IN EXCHANGE RATES IMPACT ON RESULT The main sources of sensitivity to exchange rate movements are the long-term hedges of exposure to EUR/NOK and USD/CAD and loans in NOK, USD and GBP under the multicurrency revolving credit facility. Based on the exposure as of December 31, 2022, the effect of a 15% change in exchange rates on the long-term currency hedges and the multicurrency loan positions has been estimated. As no hedge accounting no impact on other comprehensive income. CURRENCY PAIR (EUR MILLION) EUR/NOK EUR/USD EUR/GBP USD/CAD Effect in EUR from a 15% increase in the value of EUR EUR EUR CAD Effect on profit before tax -6.3 7.4 5.9 6.6 INTEREST RATE RISK Mowi ASA shall over time hedge 0%-35% of the Group’s long-term interest bearing debt by currency with fixed interest or interest rate derivatives for the first 5 years, and 0% thereafter. Interest-bearing debt includes external interest-bearing debt and leasing in the parent company or subsidiaries. The interest rate hedges shall be based on the targeted currency composition. Interest rate exposure in other currencies than EUR, USD, GBP and NOK shall not be hedged. All interest rate hedging shall be executed from the parent company. At year end 2022 the Group's overall interest rate swap portfolio had a contract nominal value of EUR 77.4 million (EUR 498.3 million) and a net market value of EUR -1.7 million (EUR -4.5 million). A 0.50% point parallel increase in all relevant yield curves will cause a EUR 0.2 million decrease (EUR 0.3 million increase) in the market value of the overall interest swap portfolio. This change would be recognised through profit and loss. Based on the debt and interest rate swaps outstanding as of December 31, 2022 a 0.50% point parallel increase in all relevant yield curves would result in an estimated increase in the Group's annual interest cost of EUR 9.7 million. CREDIT RISK The Group trades only with recognised, creditworthy third parties. It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis and as a rule the Group’s trade receivables are fully credit insured. The Group monitors exposure towards individual customers closely and is not substantially exposed to any individual customer or contractual partner as of December 31, 2022. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables, with reference to Note 17. The Group considers the concentration of risk with respect to trade receivables as low, as its customers are located in various jurisdictions and operate in different markets. The Group only enters into derivative transactions with counterparties with an established business relationship to the Group. PRICE/LIQUIDITY RISK The Group is continuously monitoring liquidity and estimates expected liquidity development on the basis of budgets and monthly updated forecasts from the business units. Mowi’s financial position and development depend significantly on spot price developments for salmon, and these prices have historically been volatile. As such Mowi is exposed to movements in supply and demand for salmon. Mowi has to some extent mitigated its exposure to spot prices by entering into bilateral fixed price/volume contracts with its customers. The contract share has normally varied between 20% and 50% of our sold volume, however hedged volumes can increase up to 65% under special circumstances, and the duration of contracts has typically been three to eighteen months. Furthermore Mowi reduces its exposure to spot price movements through value added processing activities and tailoring of products for its customers. Other key liquidity risks are fluctuations in production and harvest volumes, biological issues, and changes in the feed price, feed being the most important individual factor on the cost side. Feed costs are correlated to the marine and agricultural commodity prices of the ingredients. Mowi’s aim is to maintain a balance between long-term financing and flexibility by using credit facilities, new borrowings and bonds. Financial statements and notes / Group 216 Integrated Annual Report 2022 MATURITY PROFILE OF THE FINANCIAL LIABILITIES AND DERIVATIVES BASED ON CONTRACTUAL UNDISCOUNTED PAYMENTS, INCLUDING INTEREST: 2022 (EUR MILLION) CARRYING AMOUNT CONTRACTUAL CASH FLOWS WITHIN 1 YEAR 1 -2 YEARS 2 - 5 YEARS MORE THAN 5 YEARS Non-derivative financial liabilities Syndicated loan 1 310.7 -1 506.2 -59.5 -52.4 -1 394.4 — Unsecured bond 200.5 -204.9 -204.9 — — — Unsecured Schuldschein loan 150.1 -172.6 -6.7 -7.1 -158.9 — Unsecured Green bond 200.2 -219.8 -8.7 -9.2 -201.9 — Arctic Fish bank facility 75.6 -86.1 -14.7 -71.4 — — Other debt 1.0 -0.8 -0.1 -0.1 -0.1 -0.4 Trade payables and other liabilities 437.0 -437.0 -437.0 — — — Derivative financial liabilities Interest rate swaps — — — — — — Cash flow instruments 4.4 -4.4 -4.4 — — — Transaction instruments 6.3 -6.3 -6.0 -0.2 — — Total financial liabilities 1) 2 385.5 -2 638.1 -742.0 -140.4 -1 755.3 -0.4 MATURITY PROFILE OF THE FINANCIAL LIABILITIES AND DERIVATIVES BASED ON CONTRACTUAL UNDISCOUNTED PAYMENTS, INCLUDING INTEREST: 2021 (EUR MILLION) CARRYING AMOUNT CONTRACTUAL CASH FLOWS WITHIN 1 YEAR 1 -2 YEARS 2 - 5 YEARS MORE THAN 5 YEARS Non-derivative financial liabilities Syndicated loan 811.0 -875.4 -10.9 -10.9 -853.6 — Unsecured bond 200.0 -206.5 -4.3 -202.2 — — Unsecured Schuldschein loan 149.4 -161.0 -2.4 -2.4 -156.1 — Unsecured Green bond 199.2 -214.4 -3.2 -3.2 -208.0 — Other debt 1.2 -1.2 -0.3 -0.2 -0.2 -0.5 Trade payables and other liabilities 392.8 -392.8 -392.8 — — — Derivative financial liabilities Interest rate swaps 5.1 -5.3 -4.8 -0.5 — — Cash flow instruments 1.0 -1.0 — -0.9 — — Transaction instruments 1.6 -1.6 -1.4 -0.1 — — Total financial liabilities 1) 1 761.1 -1 858.9 -420.1 -220.5 -1 217.9 -0.5 1) For maturity profile of financial liabilities related to leasing debt, please see note 29 Financial statements and notes / Group 217 Integrated Annual Report 2022 NOTE 14 - REMUNERATION SALARY AND PERSONNEL EXPENSES (EUR MILLION) 2022 2021 Salaries -406.1 -378.1 Cash bonuses -31.0 -27.1 Social security taxes -54.9 -51.8 Pension expenses -16.9 -13.7 Share price based bonus -4.6 -3.6 Temporary labor -70.7 -66.8 Other benefits -28.6 -27.3 Total salary and personnel expenses -612.6 -568.3 Average number of FTEs 13 930 14 315 At year-end 2022 there were 13 726 FTEs (full-time employee equivalent) in the Group. REMUNERATION TO GROUP MANAGEMENT TEAM (EUR MILLION) 2022 2021 Salaries and other short-term employee benefits -3.4 -3.1 Post-employment benefits -0.1 -0.1 Share-based payments -2.6 -2.3 Total remuneration to Group Management Team -6.1 -5.5 SHARE OPTION SCHEME Mowi Group has a share-price based payment scheme for senior executives, and management and key experts of Business Areas, subsidiaries and group functions: OUTSTANDING OPTIONS PER ALLOTMENT 2022-ALLOTMENT OF CALL OPTIONS 2021-ALLOTMENT OF CALL OPTIONS 2020-ALLOTMENT OF CALL OPTIONS 2019-ALLOTMENT OF CALL OPTIONS Distributed options 1 570 000 1 675 000 1 125 000 1 470 000 Forfeited options -15 000 -95 000 -100 000 -430 000 Dividend adjustment 34 736 82 714 59 208 99 099 Total options outstanding at year end 1) 1 589 736 1 662 714 1 084 208 1 139 099 Strike price December 31, 2022 (NOK) 246.50 234.85 198.35 203.06 Number of employees in the scheme at year end 30 30 28 23 1) None of the options were exercisable at year-end 2022. The Share-Price-Based Payment Scheme comprises annual allocations by the Board of Directors of a number of European call options with a strike price of 107.5% of the share price of Mowi’s shares at the date of the annual general meeting authorising allocations under the scheme. The options have a term of four years but will become exercisable immediately if a mandatory bid is made for all of the shares in Mowi or if Mowi is the non-surviving entity in a merger with another company. If the holder of the options exercises the options, the company may settle its obligation through the issue of new shares or, alternatively, by selling treasury shares to the option holder. There will be no lock-up obligation on the shares the option holder receives through the exercise of the option. The exercise of the option is conditional upon the option holder being employed in a non-terminated position in the Group on the date of exercise. The number of shares and the strike price will be adjusted for dividends and changes in equity capital during the term of the option in accordance with Oslo Stock Exchange derivative rules (A.2.2.8(1)b). Total profit through the exercise of the option in a year is capped at two years’ salary for the option holder for the 2019, 2020- and 2021-allotment of options. Financial statements and notes / Group 218 Integrated Annual Report 2022 For the 2022-allotment, the exercise of 50% of the options awarded to an option holder is conditional on achievement of performance criteria, measured in the development of the share price of the Company's shares compared with those of peers ("Performance-based Options"). The exercise of the remaining 50% of the options awarded to an option holder is not conditional on achievement of such performance criteria ("Ordinary Options"). Total profit through the exercise of Performance-based Options in a year is capped at one year's salary for the option holder, and total profit through the exercise of Ordinary Options in a year is capped at one year's salary for the option holder. If the profit exceeds these limits, the number of shares to be issued will be reduced accordingly. Following the 2022 annual general meeting (the "AGM"), the Board of Directors allocated 1 570 000 options with a strike price corresponding to 107.5% of the volume-weighted average share price on the OSE on the day of the AGM (NOK 252.0070) to a total of 31 individuals. Eligibility to the senior executive share option scheme is limited to: Group CEO, other Senior Executives and management and key experts of Business Areas, subsidiaries and group functions, based on the following criteria: –the position and individual is important in realising the Mowi Group ambitions; –the individual is considered critical for the Business Unit(s); –the individual is expected to continue in a role covered by the scheme; –the individual will not retire during the first year of the scheme SHARE PURCHASE PROGRAM In 2022 all permanent employees in Mowi ASA and its Norwegian subsidiaries, as well as permanent employees in Mowi Scotland and Mowi Canada, had the opportunity to acquire shares in the Company. For the year 2022 these provisions entitled this group of employees to receive a taxable benefit of NOK 6 000 in connection with their participation in such a scheme. All employees were offered funding of the purchase price through an interest-free advance on salary from Mowi. No other loans or guaranties have been granted to key management personnel. PENSION PLANS Pension plans in the Group are mainly defined contribution plans. There are a few defined benefits plans, which are considered to be immaterial for the Group's financial statements. PENSION PLANS (EUR MILLION) PENSION COST PENSION NET LIABILITY (FUND) 31.12 Mowi Norway 1) -9.3 4.2 Mowi Scotland -2.1 -10.6 Mowi Canada -2.2 — Other entities -3.3 2.0 Total 2022 -16.9 -4.3 Total 2021 -13.7 -12.7 1) The term Mowi Norway includes all Norwegian entities including corporate. Financial statements and notes / Group 219 Integrated Annual Report 2022 NOTE 15 - TAXES INCOME TAXES FOR THE YEAR IN THE STATEMENT OF COMPREHENSIVE INCOME (EUR MILLION) 2022 2021 Norway -339.8 -63.5 Foreign units -56.4 -31.7 Tax on profits (current tax) -396.3 -95.3 Norway 166.9 -21.2 Foreign units 13.9 10.9 Change in deferred tax 180.8 -10.2 Total income taxes related to profit for the year -215.5 -105.5 RECONCILIATION BETWEEN NOMINAL AND EFFECTIVE TAX RATES (EUR MILLION) 2022 2021 Profit before tax 1 000.9 593.4 Nominal tax rate 22% 22% Tax calculated with nominal tax rate -220.2 -130.5 Non-taxable income/loss on sale of shares 5.0 — Non-taxable income/loss from associated companies and joint ventures 13.1 21.3 Effect of changed tax rate on deferred tax positions -3.1 -2.4 Effect of adjustment of income tax from previous years -2.4 4.1 Effect of recognition of previously non-recognised tax assets -3.1 1.6 Effect of non-recognition of losses and tax assets -0.4 1.2 Withholding tax — -2.9 Other permanent differences -6.8 -9.2 Effect of different tax rates compared to nominal rate 2.4 11.5 Total income taxes -215.5 -105.5 Financial statements and notes / Group 220 Integrated Annual Report 2022 TAX PREPAID/RECEIVABLE IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) 2022 2021 Tax prepaid/receivable in Norway 8.2 16.8 Tax prepaid/receivable in foreign units 11.7 11.8 Total tax prepaid/receivable in the statement of financial position 19.9 28.6 TAX PAYABLE IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) 2022 2021 Tax payable in Norway 339.0 72.1 Tax payable in foreign units 38.4 7.8 Total tax payable in the statement of financial position 377.4 79.9 SPECIFICATION OF DEFERRED TAX AND BASIS FOR DEFERRED TAX/TAX ASSETS TAX INCREASING/REDUCING TEMPORARY DIFFERENCES (EUR MILLION) 2022 2021 Non-current assets 1 309.9 926.7 Current assets 84.8 910.9 Debt -53.7 -46.4 Pension obligation -6.6 -7.2 Tax losses carried forward -133.3 -81.0 Other differences 40.8 58.2 Total temporary differences 1 241.8 1 761.2 Tax losses carried forward in Norway -7.0 -12.7 Other temporary differences in Norway 548.8 1 309.1 Tax losses carried forward abroad -126.3 -68.4 Other temporary differences abroad 826.4 533.1 Total temporary differences 1 241.8 1 761.2 TOTAL DEFERRED TAX ASSET/LIABILITIES IN THE STATEMENT OF FINANCIAL POSITION (EUR MILLION) 2022 2021 Deferred tax assets 69.1 51.1 Deferred tax liabilities -332.4 -441.4 Net deferred tax in the statement of financial position -263.3 -390.3 Mowi has recognised deferred tax assets related to tax losses carried forward. This is based on the expectation of probable sufficient earnings in the future. The expectations are based on current earnings and approved budgets. Deferred tax assets related to tax losses carried forward at a total of EUR 115.4 million have not been recognised due to uncertain utilisation. Deferred tax assets linked to tax losses are offset against deferred tax liabilities in the tax jurisdictions, where acceptable. Financial statements and notes / Group 221 Integrated Annual Report 2022 MATURITY OF TAX LOSSES WHERE DEFERRED TAX LOSS IS RECOGNISED TO YEAR (EUR MILLION) NORWAY ABROAD TOTAL 2023 — 2.2 2.2 2024 — 0.3 0.3 2025 — 2.1 2.1 2026 — 6.0 6.0 2027 — 1.7 1.7 2028 — 1.5 1.5 2029 — 9.6 9.6 2030 — 3.6 3.6 2031 — — — 2032+ — 69.7 69.7 Unlimited 7.0 29.6 36.6 Total 2022 7.0 126.3 133.3 Total 2021 12.7 68.4 81.0 MATURITY OF TAX LOSSES FOR WHICH NO DEFERRED TAX ASSET IS RECOGNISED TO YEAR (EUR MILLION) NORWAY ABROAD TOTAL 2023 — — — 2024 — — — 2025 — 2.4 2.4 2026 — 0.7 0.7 2027 — — — 2028 — 0.1 0.1 2029 — 1.7 1.7 2030 — — — 2031 — — — 2032+ — 0.9 0.9 Unlimited — 109.6 109.6 Total 2022 — 115.4 115.4 Total 2021 — 104.6 104.6 TAX RATES APPLIED (SELECTED COUNTRIES) 2022 2021 Japan 30.6% 30.6% USA 21.0% 21.0% Belgium 25.0% 25.0% Germany 29.5% 29.5% France 25.0% 27.5% Norway 22.0% 22.0% China 25.0% 25.0% Netherlands 25.8% 25.0% Scotland 19.0% 19.0% Canada West 27.0% 27.0% Canada East 29.0% 29.0% Faroe Islands 18.0% 18.0% Chile 27.0% 27.0% Poland 19.0% 19.0% Ireland 12.5% 12.5% Financial statements and notes / Group 222 Integrated Annual Report 2022 NOTE 16 - CASH CASH (EUR MILLION) 2022 2021 Cash in bank 170.9 94.9 Employees' tax deduction 7.0 6.8 Other restricted cash1) 0.6 — Total cash 178.5 101.7 1) Other restricted cash is mainly composed of deposits to fulfil collateral requirements. NOTE 17 - TRADE RECEIVABLES, OTHER RECEIVABLES AND PREPAYMENTS SPECIFICATION OF RECEIVABLES (EUR MILLION) 2022 2021 Trade receivables 603.4 495.5 Provisions for expected credit losses -3.3 -3.4 Net trade receivables 600.1 492.1 Prepayments 53.9 37.9 Pension fund 11.0 20.4 Tax prepaid/receivable 19.9 28.6 Other 99.1 90.2 Trade receivables, other receivables and prepayments 183.7 177.2 Total trade receivables, other receivables and prepayments 783.8 669.3 Based on the nature of business, the Group does not have any material contract assets. AGE DISTRIBUTION OF TRADE RECEIVABLES (EUR MILLION) 2022 2021 Receivables not overdue 510.2 440.6 Overdue 0-6 months 84.9 48.9 Overdue more than 6 months 8.3 6.0 Total trade receivables 603.4 495.5 MOVEMENT IN PROVISIONS FOR CREDIT LOSSES (TRADE RECEIVABLES) At the beginning of 2022, provisions for credit losses amounted to EUR 3.4 million. During 2022, EUR 0.7 million were considered lost. Adjusted for additional provisions for credit losses of EUR 0.5 million the provision at year-end amounted to EUR 3.3 million for 2022. See also Note 13. CURRENCY EXPOSURE TO TRADE RECEIVABLES The Business Units generally complete their sales in the main trading currency in the country of destination. The carrying amount of trade receivables per currency is presented below. CURRENCY SPLIT ACCOUNTS RECEIVABLES 2022 2021 EUR 53% 54% USD 17% 17% GBP 9% 10% NOK 8% 5% PLN 4% 3% JPY 4% 5% CAD 2% 2% Other 3% 5% Financial statements and notes / Group 223 Integrated Annual Report 2022 NOTE 18 - TRADE PAYABLES AND OTHER CURRENT LIABILITIES CURRENT LIABILITIES (EUR MILLION) 2022 2021 Trade payables 1) 437.0 392.8 Other current liabilities Salaries and vacation pay due 65.5 58.1 Social security and other taxes 44.9 21.2 Accrued expenses 93.8 93.6 Other liabilities 39.2 72.1 Total other current liabilities 243.3 244.9 1) As of year-end 2022 the payable related to the Supply Chain Financing was 136.0 million EUR (120.6 million EUR at year-end 2021). Based on the nature of business, the Group does not have any material contract liabilities. CURRENT LEASING LIABILITIES (EUR MILLION) 2022 2021 Current part (first year) leases 173.5 182.7 Total current leasing liabilities 173.5 182.7 UNUSED DRAWING RIGHTS (EUR MILLION) 2022 2021 Unused part of bank overdraft facility (to be renewed within one year) 7.3 7.0 Unused part of bank overdraft facility (to be renewed in more than one year) 66.0 66.0 Unused part of other drawing rights (to be renewed in more than one year) 402.5 899.1 Total unused drawing rights 475.8 972.1 NOTE 19 - SECURED LIABILITIES AND GUARANTEES DEBT SECURED BY MORTGAGES AND PLEDGES (EUR MILLION) 2022 2021 Debt to financial institutions 1 526.4 933.7 Leasing debt 1.0 1.2 Total debt secured by mortgages and pledges 1 527.4 934.9 Guarantee commitments 20.0 18.7 The Mowi Group syndicated loan facility has been established with security in current assets, licenses (where applicable), fixed assets and guarantees from some of the entities in the Group. In addition the shares in larger subsidiaries have been pledged in favour of the bank syndicate. ASSETS PLEDGED AS SECURITY FOR DEBT (EUR MILLION) 2022 2021 Tangible non-current assets and licenses 1 750.1 1 731.0 Inventory and biological assets 2 215.1 1 716.5 Trade receivables 369.0 299.7 Other assets 190.7 176.5 Total assets pledged as security 4 524.9 3 923.7 Financial statements and notes / Group 224 Integrated Annual Report 2022 NOTE 20 - OTHER NON-CURRENT LIABILITIES OTHER NON-CURRENT LIABILITIES (EUR MILLION) 2022 2021 Net pension obligations 6.6 7.6 Other non-current liabilities 1.5 11.6 Total other non-current liabilities 8.2 19.3 NOTE 21 - INVESTMENTS IN ASSOCIATED COMPANIES AND INTEREST IN JOINT VENTURES Associated companies are recorded in Mowi Group statements in accordance with the equity method. None of the associated companies are listed. ASSOCIATED COMPANIES (EUR MILLION) HEAD OFFICE OWNER- SHIP OWNED BY AQUISITION COST CARRYING AMOUNT 01.01.22 SHARE OF PROFIT 2022 DIVIDENDS RECEIVED 2022 OTHER CHANGES 2022 1) CARRYING AMOUNT 31.12.22 Nova Sea AS Lovund 49% Mowi Holding AS 28.2 192.8 60.0 -32.5 -10.7 209.7 Others 0.3 3.1 -0.8 — -0.1 2.2 Total 28.6 195.9 59.2 -32.5 -10.8 211.7 1) Other changes mainly relates to foreign currency adjustments and movements in loans. Finnøy Fisk AS has been fully consolidated in 2022 ASSOCIATED COMPANIES 100 % BASIS (EUR MILLION) DIVIDEND RECEIVED FAIR VALUE ADJUSTMENT BIOMASS 1) TOTAL REVENUE TOTAL PROFIT AND LOSS TOTAL NON- CURRENT ASSETS TOTAL BIOLOGICAL ASSETS TOTAL OTHER CURRENT ASSETS TOTAL NON- CURRENT LIABILITIES TOTAL CURRENT LIABILITIES 2022 Nova Sea AS 32.5 25.8 383.7 110.1 211.7 91.9 126.3 0.9 97.8 2021 Nova Sea AS 16.2 18.1 296.4 69.3 193.6 83.6 104.1 24.1 46.1 1) Effect of adjusting Mowis share of total biological assets as of December 31 presented above to fair value. The effect is shown after tax. As of 31 December 2022 Mowi had no significant investment in joint ventures. Financial statements and notes / Group 225 Integrated Annual Report 2022 NOTE 22 - BUSINESS COMBINATIONS, ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS BUSINESS COMBINATIONS Arctic Fish In October 2022 Mowi entered into a conditional agreement to acquire 51.28% of the shares in the salmon farmer Arctic Fish, situated in the West Fjords of Iceland for NOK 115 per share amounting to EUR 179.5 million in total. The transaction was subject to approval by the EU Commission and other closing conditions. In December 2022, Mowi obtained a No Action Letter from the EU Commission. The transaction was closed on 29 December 2022 which has been identified as the acquisition date. Arctic Fish has licenses for 10 ASC approved sites in total, providing a maximum allowed biomass of 27,100 tonnes and another 4,800 tonnes pending approval. Expected harvest volume for 2023 is 15,000 GWT. The Icelandic salmon farming industry is set for extensive development and growth in the coming years and the purchase of Arctic Fish is of strategic importance, and the benefits include expansion into a new country for Mowi. Icelandic waters provide excellent growth and living conditions for salmon, combined with Arctic Fish's geographical footprint and competent organisation and Mowi's strong financial position this will be beneficial for growth and local communities. We have performed a Provisional Purchase Price Allocation at year end and all values are based on the purchase price of NOK 115 per share. The recognised goodwill of EUR 51 million arises from expected synergies from combining the assets and activities of Arctic Fish with Mowi. Goodwill is not deductible for income tax purposes. The table below summarizes the consideration paid for Arctic Fish and the assessed fair value of the assets acquired and liabilities assumed, recognised at the acquisition date. Acquisition-related costs of EUR 0.7 million have been recognised as other operating expenses in the consolidated statement of comprehensive income in accordance with IFRS 3, all in 2022. If consolidated as of January 1 the combined revenue would have been EUR 4 998.8 million and profit would have been EUR 791.2 million for the year 2022. Recognised amounts of identifiable assets acquired and liabilities assumed EUR Million Provisional fair value Deferred tax assets 0 Licenses 257 Property, plant and equipment 100 Other assets 1 Biological assets 68 Other inventory 3 Trade receivables 4 Other receivables 6 Cash and cash equivalents 9 Deferred tax liabilities -51 Other long term debt -67 Other current liabilities -13 Trade payables -18 Total identifiable net assets 300 Goodwill 51 Consideration on 100% basis 351 Cash consideration for 51.28% 180 Non-controlling Interests 171 Wester Ross Fisheries In June 2022, Mowi Scotland acquired Wester Ross Fisheries with MAB of 2 600 LWT operating in three cluster locations in the North. Wester Ross has been consolidated from Q2 2022. ASSETS HELD FOR SALE Mowi had no Assets held for sale at year end 2022. DISCONTINUED OPERATIONS Mowi had no material results from discontinued operations in 2022 and 2021. Financial statements and notes / Group 226 Integrated Annual Report 2022 NOTE 23 - CONSOLIDATED ENTITIES The consolidated financial statements include the following companies: PARENT COMPANY COUNTRY Mowi ASA Norway SUBSIDIARIES - NORWAY COUNTRY OWNERSHIP % Mowi Seawater Norway AS Norway 100.00% Mowi Feed AS Norway 100.00% Mowi Genetics AS Norway 100.00% Mowi Holding AS Norway 100.00% Mowi Minority Holding AS Norway 100.00% Mowi Markets Norway AS Norway 100.00% Mowi Norway FOU AS Norway 100.00% Waynor Trading AS Norway 100.00% Arctic Fish Holding AS Norway 51.28% Finnøy Fisk AS Norway 45.05% Centre for Aquaculture Competence AS Norway 33.30% SUBSIDIARIES - AMERICAS COUNTRY OWNERSHIP % Mowi North America Inc Canada 100.00% Mowi Canada West Inc Canada 100.00% Mowi Canada East Inc Canada 100.00% Englewood Packing Company Ltd Canada 100.00% Mowi Chile S.A Chile 100.00% Salmones Tecmar S.A Chile 100.00% Processadora De Productos Marinos Delifish S.A Chile 100.00% Delifish Farming SPA Chile 100.00% Mowi Ducktrap LLC USA 100.00% Mowi USA Holding LLC USA 100.00% Mowi USA LLC USA 100.00% SUBSIDIARIES - ASIA COUNTRY OWNERSHIP % Mowi China Co. Ltd China 100.00% Mowi Japan Co. Ltd Japan 100.00% Mowi Korea Co. Ltd South Korea 100.00% Mowi Singapore Pte Ltd Singapore 100.00% Morpol Holdings Singapore Pte Ltd Singapore 100.00% Mowi Taiwan Co. Ltd Taiwan 100.00% Mowi Vietnam Company Ltd Vietnam 100.00% Financial statements and notes / Group 227 Integrated Annual Report 2022 SUBSIDIARIES - EUROPE COUNTRY OWNERSHIP % Mowi Belgium NV Belgium 100.00% Mowi Czech s.r.o. Czech Republic 100.00% Mowi Faroe Islands P/F Faroes 100.00% Mowi France SAS France 100.00% Mowi Boulogne SAS France 100.00% Mowi Bretagne SAS France 100.00% Mowi Rennes SAS France 100.00% Mowi Cuisery SAS France 100.00% Laschinger Seafood GmbH Germany 100.00% Mowi Harsum DACH GmbH Germany 100.00% Mowi Germany Verwaltungs GmbH Germany 100.00% Mowi Germany GmbH & Co. KG Germany 100.00% Belisco Ehf Iceland 100.00% Arctic Fish Ehf Iceland 51.28% Arctic Smolt Ehf Iceland 51.28% Arctic Sea Farm Ehf Iceland 51.28% Arctic Oddi Ehf Iceland 51.28% Comhlucht Iascaireachta Fanad Teoranta Ireland 100.00% Bradan (Maoil Rua) Teoranta Ireland 100.00% Bradan Fanad Teoranta Ireland 100.00% Fanad Pettigo Teoranta Ireland 100.00% Feirm Farraige Oilean Chliara Teoranta Ireland 92.03% Silverking Seafoods Ltd Ireland 100.00% Mowi Italia S.R.L. Italy 100.00% Mowi Netherlands BV Netherlands 100.00% Mowi Lemmer BV Netherlands 100.00% Mowi Poland SA Poland 100.00% Mowi Lebork Sp. z.o.o. Poland 100.00% Mowi Technology Sp.z.o.o. Poland 100.00% Mowi Strzelino Sp. z.o.o. Poland 100.00% Mowi Poland Sales SA Poland 100.00% Mowi Nutrition Goleniów Sp. z.o.o Poland 100.00% Mowi Iberia SLU Spain 100.00% Mowi Sweden AB Sweden 100.00% Mowi Turkiye Su Ürunleri Ticaret A.Ş. Turkey 100.00% Mowi Scotland Ltd UK 100.00% Meridian Salmon Group Ltd UK 100.00% Meridian Salmon Processing Ltd UK 100.00% Meridian Salmon Farms (Argyll) Ltd UK 100.00% Lakeland Smolt Ltd UK 100.00% Mowi Consumer Products UK Ltd UK 100.00% Dorset Cleanerfish Ltd UK 100.00% Anglesey Aquaculture Ltd UK 100.00% Ocean Matters Ltd UK 100.00% OM Penmon Ltd UK 100.00% Financial statements and notes / Group 228 Integrated Annual Report 2022 SUBSIDIARIES - EUROPE COUNTRY OWNERSHIP % Ferguson Salmon Ltd UK 100.00% Finfish Limited UK 100.00% Scalpay Multi-Trohpic Aquaculture Ltd UK 100.00% Wester Ross Fisheries Ltd UK 100.00% Ardessie Salmon Ltd UK 100.00% Wester Ross Property Investment Ltd UK 100.00% Marine Harvest Atlantic Inc changed name to Mowi Canada East Inc during 2022 Northern Harvest Sea Farms Newfoundland Inc and Northern Harvest Smolt Inc was merged with Mowi Canada East Inc during 2022 Arctic Fish is partly owned and 48.72% of the equity is held by non-controlling interests. For a summarised statement of financial position as at 31 December 2022 please refer to note 22. Financial statements and notes / Group 229 Integrated Annual Report 2022 NOTE 24 - SHARE CAPITAL SHARE CAPITAL 2022 2021 Total number of shares as of 01.01 517 111 091 517 111 091 Shares issued during the year — — Total number of shares as of 31.12 517 111 091 517 111 091 Treasury shares as of 01.01 — — Treasury shares purchased during the year 1 170 034 887 905 Treasury shares sold during the year -1 170 034 -887 905 Treasury shares as of 31.12 — — Nominal value as of 31.12 (NOK) 7.50 7.50 Share capital (total number of shares at nominal value) (EUR million) 404.8 404.8 Other paid-in capital (EUR million) 1 274.7 1 274.7 OVERVIEW OF THE LARGEST SHAREHOLDERS 31.12.22 NUMBER OF SHARES SHAREHOLDING % Geveran Trading Co Ltd1) 74 289 287 14.37% Folketrygdfondet 41 727 039 8.07% BlackRock, Inc. 22 971 027 4.44% Vanguard Group Holdings 16 111 774 3.12% DnB ASA 13 981 376 2.70% Svenska Handelsbanken AB 12 983 667 2.51% UBS AG 11 830 921 2.29% Schroders PLC 10 163 765 1.97% Groupe Bruxelles Lambert S.A. 9 854 959 1.91% Storebrand Kapitalforvaltning 9 852 683 1.91% Altshuler Shaham Mutual Funds Management Ltd. 9 508 580 1.84% Amundi Asset Management, SAS 9 450 271 1.83% Kommunal Landspensjonskasse 9 193 568 1.78% Deutsche Bank AG Group 6 871 644 1.33% Danske Bank Group 6 368 370 1.23% CPP Investment Board 6 031 367 1.17% Legal & General Group Plc 5 766 401 1.12% Nordea AB 5 747 128 1.11% Janus Henderson Investors Group 5 263 480 1.02% Northern Trust Corporation 4 824 647 0.93% Total 20 largest shareholders 292 791 954 56.62% Total other shareholders 224 319 137 43.38% Total number of shares 31.12.22 517 111 091 100.00% 1) In addition to the shares included above Geveran Trading Co Ltd had per 31 December 2022 entered into a Total Return Swap ("TRS") agreement with underlying exposure to 4 000 000 shares in Mowi. Expiry date for the TRS agreement was 6 March 2023 and the TRS price was NOK 153.55 per share. Financial statements and notes / Group 230 Integrated Annual Report 2022 SHAREHOLDERS PER COUNTRY NUMBER OF SHARES SHARE % Norway 136 499 841 26.40% USA 77 754 335 15.04% Cyprus 74 293 327 14.37% Great Britain 59 879 837 11.58% Germany 33 645 825 6.51% Other countries 135 037 926 26.11% Total number of shares 31.12.22 517 111 091 100.00% SHARES OWNED BY BOARD MEMBERS, GROUP MANAGEMENT AND THEIR RELATED PARTIES AS OF 31.12.22 NUMBER OF SHARES Board of Directors Ole-Eirik Lerøy (Chair) 1 501 495 Kristian Melhuus 1 495 Lisbet K. Nærø 1 495 Kathrine Fredriksen1) 263 Michal Chalaczkiewicz 263 Renate Larsen 263 Peder Strand 263 Jørgen J. Wengaard 600 Marianne Andersen 1 179 Roger Petterssen 1 883 Total number of shares held by Board members 1 509 199 Group Management Ivan Vindheim, CEO 7 750 Kristian Ellingsen, CFO 1 090 Catarina Martins, Chief Technology Officer and Chief Sustainability Officer 2 535 Øyvind Oaland, COO Farming Norway 5 478 Ben Hadfield, COO Farming Scotland, Ireland and Faroes 7 960 Fernando Villarroel, COO Farming Americas 5 502 Ola Brattvoll, COO Sales and Marketing 10 321 Atle Kvist, COO Feed 633 Anne Lorgen Riise, Chief HR Officer 1 448 Total number of shares held by Group management 42 717 Total number of shares held by Board members and Group management 1 551 916 Total number of shares held by Board members and Group management in % of total outstanding shares 0.30% 1) Kathrine Fredriksen is a member of the class of Beneficiaries of the Trusts which indirectly control Geveran Trading Co Limited. Financial statements and notes / Group 231 Integrated Annual Report 2022 SHAREHOLDERS RIGHTS There are no current limitations on voting rights or trade limitations related to the Mowi share. The Board of Directors has been granted the following authorisations which may impact the share capital: 1.To acquire shares in the company ("own shares") on behalf of the company with a total nominal value of up to NOK 387 833 318. The authorisation is valid until the ordinary general meeting in 2023, however no longer than 30 June 2023." 2.To increase the company's share capital by up to NOK 387 833 318 provided that the combined number of shares that are issued pursuant to this authorisation and the authorisation 3) below shall not in aggregate exceed 10% of the Company's current share capital. The authorisation is valid until the ordinary general meeting in 2023, however no longer than 30 June 2023." 1.To take up convertible loans with a total principal amount of up to NOK 3,200,000,000. Upon conversion of loans taken up pursuant to this authorisation, the company’s share capital may be increased by up to NOK 387 833 318, provided that the combined number of shares that are issued pursuant to this authorisation and the authorisation 2) above shall not in aggregate exceed 10% of the Company's current share capital. The authorisation is valid until the ordinary general meeting in 2023, however no longer than 30 June 2023." Financial statements and notes / Group 232 Integrated Annual Report 2022 NOTE 25 - EARNINGS PER SHARE BASIC AND DILUTED EARNINGS PER SHARE 2022 2021 Profit for the year attributable to owners of Mowi ASA Profit from continuing operations attributable to the owners of the parent (EUR million) 782.4 487.6 Profit for the year attributable to owners of Mowi ASA (EUR million) 782.4 487.6 Time-weighted average of shares issued and outstanding (million) 517.1 517.1 Basic earnings per share attributable to the owners of Mowi ASA Basic earnings per share from continuing operations (EUR) 1.51 0.94 Basic earnings per share (EUR) 1.51 0.94 Diluted earnings per share attributable to the owners of Mowi ASA Diluted earnings per share from continuing operations (EUR) 1.51 0.94 Diluted earnings per share (EUR) 1.51 0.94 Basic Earnings per share (EPS) is calculated on the weighted average number of shares outstanding during the period. NOTE 26 - RELATED PARTY TRANSACTIONS TRANSACTIONS WITH ASSOCIATED COMPANIES The figures presented below are with associated companies, mainly Nova Sea AS. RELATED PARTY TRANSACTIONS (EUR MILLION) 2022 2021 Revenue 0.8 8.1 Purchase -2.3 -10.3 Trade receivables 0.1 3.0 Trade payables -0.3 — All significant transactions are mainly related to the sale or purchase of fish or smolt and related services. SHAREHOLDERS In 2022 and 2021 Mowi Group had no material transactions with any of its shareholders. At year-end 2022, Geveran Trading's affiliated ownership in Mowi was 74 289 287 shares, constituting 14.37% of the total share capital. Geveran Trading Co Ltd is indirectly controlled by trusts established by John Fredriksen for the benefit of his immediate family. Financial statements and notes / Group 233 Integrated Annual Report 2022 NOTE 27 - CONTINGENT LIABILITIES AND PROVISIONS UPDATE ON THE ALLEGATIONS OF PRICE COLLUSION Further to the European Commission inspections in 2019. The European Commission is still at the investigation stage and has not initiated formal proceedings in the case, and no decision has been made. Furthermore, Mowi has been named a defendant in a class action complaint in Canada. This civil law case is still at the pre-trial stage. Mowi considers that there is no basis for any competition concerns and that the investigations and civil law case clearly lack merit and are entirely unsubstantiated. OTHER CASES We are routinely involved in various legal matters arising from the course of our business. While the outcome of these proceedings cannot be predicted with certainty, we believe that, when resolved, they will not have any material adverse effect on our results, financial position or liquidity. Please refer to note 30 for an overview of the financial impact of provisions recognised in the financial statements. NOTE 28 - OTHER OPERATING EXPENSES SPECIFICATION OF OTHER OPERATING EXPENSES (EUR MILLION) 2022 2021 Maintenance -206.7 -200.6 Electricity and fuel -142.3 -97.8 Rent, leases and third-party services -48.9 -36.3 Insurance -42.3 -43.1 Consultancy and audit fees -44.1 -43.5 IT costs -24.7 -24.6 Travel cost -9.4 -5.2 Sales and marketing costs -25.5 -24.7 Other operating costs -63.5 -58.6 Total other operating expenses -607.4 -534.4 Financial statements and notes / Group 234 Integrated Annual Report 2022 NOTE 29 - LEASES SPECIFICATION OF RIGHT OF USE ASSET 2022 (EUR MILLION) LAND & BUILDINGS MACHINERY & EQUIPMENT TRANSPORT NETS, PENS & MOORINGS OTHER TOTAL Opening balance 64.3 13.5 760.2 7.7 5.2 850.8 New contracts 6.7 13.9 110.5 — 0.1 131.2 Extension and other adjustments of existing agreements 1.3 — 41.9 — — 43.2 Termination of agreements -4.7 -6.7 -151.7 -0.7 -0.2 -164.0 Foreign currency adjustments 0.2 -0.1 -5.0 -0.1 0.1 -4.9 Total acquisition cost as of 31.12 67.7 20.6 755.8 7.0 5.1 856.3 Accumulated depreciation and impairment losses as of 01.01 21.6 7.1 304.4 3.1 1.6 337.7 Depreciation in the year 9.1 5.8 180.8 1.5 1.1 198.4 Impairment — — 13.4 — — 13.4 Accumulated depreciation on terminated contracts -4.6 -6.5 -129.0 -0.7 -0.2 -141.1 Foreign currency adjustments — — -4.2 — — -4.1 Total accumulated depreciation as of 31.12 26.0 6.4 365.5 3.9 2.5 404.2 Total carrying amount as of 31.12 41.7 14.3 390.4 3.1 2.6 452.1 Depreciation method Linear Linear Linear Linear Linear SPECIFICATION OF RIGHT OF USE ASSET 2021 (EUR MILLION) LAND & BUILDINGS MACHINERY & EQUIPMENT TRANSPORT NETS, PENS & MOORINGS OTHER TOTAL Opening balance 61.7 18.4 658.6 7.1 3.9 749.7 New contracts 3.3 3.9 119.4 0.9 1.9 129.4 Extension and other adjustments of existing agreements 2.7 -0.2 74.0 — — 76.6 Termination of agreements -5.6 -9.4 -110.6 -0.5 -0.7 -126.8 Foreign currency adjustments 2.3 0.8 18.7 0.1 0.1 22.0 Total acquisition cost as of 31.12 64.3 13.5 760.2 7.7 5.2 850.8 Accumulated depreciation and impairment losses as of 01.01 16.1 10.0 183.9 2.0 1.3 213.3 Depreciation in the year 9.3 4.7 179.2 1.5 0.8 195.6 Reclassification — — 5.1 — — 5.1 Accumulated depreciation on terminated contracts -4.4 -8.1 -69.4 -0.5 -0.6 -83.0 Foreign currency adjustments 0.6 0.4 5.6 — — 6.7 Total accumulated depreciation as of 31.12 21.6 7.1 304.4 3.1 1.6 337.7 Total carrying amount as of 31.12 42.7 6.5 455.7 4.6 3.6 513.2 Depreciation method Linear Linear Linear Linear Linear Financial statements and notes / Group 235 Integrated Annual Report 2022 RECONCILIATION RIGHT-OF-USE LIABILITIES (EUR MILLION) 2022 2021 Opening balance 518.4 533.1 New contracts 131.2 129.4 Extensions and other adjustments of existing agreements 43.2 76.6 Termination of agreements -20.9 -43.2 Down payment leasing debt (cash movement) -199.6 -192.7 Currency effects -9.4 15.2 Closing balance 31.12 462.9 518.4 Of which non-current liabilities 289.4 335.7 Of which current liabilities 173.5 182.7 MATURITY ANALYSIS COMMENCED LEASES (EUR MILLION) 2022 2021 Less than 1 year 183.9 193.7 1-2 years 125.2 136.8 2-3 years 83.0 90.0 3-4 years 51.4 50.0 4-5 years 20.5 34.1 More than 5 years 31.0 47.7 Sum 31.12 495.0 552.1 Commenced leases consists of future cash flow related to down payment of leases and interest. The group has various contracts that have not yet commenced as of 31 December 2022. The future lease payments for these non-cancellable lease contracts are EUR 26.2 million within one year (EUR 4.4 million), EUR 161.9 million within five years (EUR 31.6 million) and EUR 24.9 million thereafter (EUR 7.1 million). LEASES EXPENSED (EUR MILLION) 2022 2021 Leases not reported as right of use assets 1) 37.6 33.1 1) Short term leases with contract period less than one year and low value leases. SUBLEASES (EUR MILLION) 2022 2021 Income from subleases 2.6 8.2 Financial statements and notes / Group 236 Integrated Annual Report 2022 NOTE 30 - PROVISIONS SPECIFICATION OF PROVISIONS 2022 (EUR MILLION) RESTRUCTURING AND OTHER PROVISIONS ONEROUS CONTRACTS OTHER TOTAL PROVISIONS Provisions as of 01.01 33.7 3.2 28.4 65.4 New provisions in the year 11.8 — 1.8 13.6 Utilised provisions -33.3 — -20.5 -54.0 Non cash utilisation — 8.0 — 8.0 Currency adjustment 0.2 -0.1 0.4 0.6 Provisions as of 31.12 12.4 11.2 10.1 33.7 The majority of restructuring cost in 2022 was related to Mowi Canada West with the amount of EUR 11.1 million. SPECIFICATION OF PROVISIONS 2021 (EUR MILLION) RESTRUCTURING AND OTHER PROVISIONS ONEROUS CONTRACTS OTHER TOTAL PROVISIONS Provisions as of 01.01 13.7 — 11.8 25.4 New provisions in the year 24.9 — 19.5 44.4 Utilised provisions -5.7 — -3.4 -9.1 Non cash utilisation — 3.2 — 3.2 Currency adjustment 0.9 — 0.5 1.4 Provisions as of 31.12 33.7 3.2 28.4 65.4 Provisions related to onerous contracts are mainly due to the technical accounting treatment of fair value of biomass. NOTE 31 - RESEARCH AND DEVELOPMENT RESEARCH AND DEVELOPMENT EXPENSES (EUR MILLION) 2022 2021 R&D expenses 35.0 39.6 The reported expenditures are gross values and exclude any related income from our R&D activities. In addition, a fee of 0.3% of Mowi Norway's export value is paid to the Norwegian Seafood Research Fund (EUR 5.6 million for 2022, and EUR 4.1 million for 2021). This fee is not included in the R&D expenses. Mowi Group has not capitalised any R&D expenditures during 2022 or 2021. Financial statements and notes / Group 237 Integrated Annual Report 2022 NOTE 32 - AUDITOR’S FEES FEES TO AUDITORS 2022 (EUR MILLION) EY OTHER APPOINTED AUDITORS Audit services -1.6 -0.1 Tax services -1.1 — Other non-audit fees -0.1 — Total fees for 2022 -2.7 -0.1 FEES TO AUDITORS 2021 (EUR MILLION) EY OTHER APPOINTED AUDITORS Audit services -1.4 -0.1 Tax services -0.3 — Other non-audit fees -0.2 — Total fees for 2021 -1.8 -0.1 Auditor’s fees are stated exclusive value added tax. NOTE 33 - NEW IFRS STANDARDS NEW STANDARDS APPLIED No new standards have been applied in 2022. NEW STANDARDS - NOT YET IMPLEMENTED At the end of 2022, there are some amendments to existing standards/interpretations that are not yet effective but will be relevant for Mowi Group at implementation. Mowi Group intends to adopt these standards, if applicable, when they become effective. There are no amendments that is expected to have a significant impact on the Group's financial statements. NOTE 34 - SUBSEQUENT EVENTS There have been no material events after the reporting period for 2022. Financial statements and notes / ASA 238 Integrated Annual Report 2022 Mowi ASA Financial statements and notes 239 Statement of profit and loss 240 Statement of financial position 242 Statement of changes in equity 243 Statement of cash flow 244 Note 1 - General information and accounting policies 244 Note 2 - Business segments 245 Note 3 - Intercompany transactions 246 Note 4 - Remuneration 246 Note 5 - Other operating expenses 247 Note 6 - Auditor's fees 247 Note 7 - Financial items 248 Note 8 - Taxes 249 Note 9 - Intangible assets 250 Note 10 - Property, plant and equipment 251 Note 11 - Shares in subsidiaries, associated companies and others 251 Note 12 - Inventory and biological assets 252 Note 13 - Cash 252 Note 14 - Interest-bearing debt 252 Note 15 - Other liabilities 253 Note 16 - Financial instruments 253 Note 17 - Assets pledged as security and guarantee liabilities 253 Note 18 - Subsequent events 254 Directors' Responsibility Statement 255 Auditor’s report, Financial audit 260 Auditor’s report, GRI audit Financial statements and notes / ASA 239 Integrated Annual Report 2022 STATEMENT OF PROFIT AND LOSS MOWI ASA (EUR MILLION) NOTE 2022 2021 Revenue 1,2,3 2 033.2 1 407.4 Other income 1,3 41.5 41.9 Revenue and other income 2 074.7 1 449.2 Cost of materials 3 -885.5 -702.5 Salary and personnel expenses 4 -185.8 -161.8 Other operating expenses 5,6 -292.6 -250.7 Depreciation and amortisation 9,10 -68.5 -65.5 Impairment losses & write-downs 9,10 -0.7 -0.5 License/production fees -11.7 -10.7 Income/loss from associated companies 11 — 0.9 Restructuring and other non-operational items -22.7 -37.9 Earnings before financial items (EBIT) 607.2 220.6 Interest expenses 7 -50.9 -58.1 Net currency effects 7 42.6 44.2 Other financial items 7 97.7 639.7 Earnings before taxes (EBT) 696.7 846.4 Income taxes 8 -139.4 -54.6 Profit or loss for the year 557.3 791.8 Allocation of profit To other equity 557.3 791.8 Profit or loss for the year 557.3 791.8 Financial statements and notes / ASA 240 Integrated Annual Report 2022 STATEMENT OF FINANCIAL POSITION MOWI ASA (EUR MILLION) NOTE 2022 2021 ASSETS Non-current assets Licenses, goodwill and other intangible assets 9 16.8 333.6 Total intangible assets 16.8 333.6 Property, plant and equipment 10 639.3 515.9 Total tangible assets 639.3 515.9 Investments in subsidiaries 11 2 715.9 2 450.7 Investment in associated companies 11 0.9 0.9 Intercompany non-current receivables 3 411.9 388.5 Other non-current financial assets 3 1.3 15.8 Total financial assets 3 129.9 2 856.0 Total non-current assets 3 786.0 3 705.4 Current assets Inventory 12 39.3 28.3 Biological assets 12 72.5 638.2 Trade receivables 3 4.6 8.1 Intercompany current receivables 3 1 958.8 714.3 Other current receivables 3 11.8 13.7 Other current financial assets 10.0 33.0 Restricted cash 13 5.9 5.7 Cash in bank 13 68.4 18.7 Total current assets 2 171.2 1 460.0 Total assets 5 957.2 5 165.4 Financial statements and notes / ASA 241 Integrated Annual Report 2022 MOWI ASA (EUR MILLION) NOTE 2022 2021 EQUITY AND LIABILITES Equity Share capital 404.8 404.8 Other paid-in capital 1 274.7 1 274.7 Total paid-in capital 1 679.5 1 679.5 Other equity 1 429.2 1 252.3 Total equity 3 108.6 2 931.8 Non-current liabilities Deferred tax liabilities 8 38.7 156.8 Non-current interest-bearing debt 14 1 658.7 1 358.6 Other non-current liabilities 15 2.8 3.1 Total non-current liabilities 1 700.2 1 518.5 Current liabilities Trade Payables 46.4 49.3 Current interest-bearing debt 14 200.0 — Intercompany current liabilities 3 492.9 467.0 Other current liabilities 3,15 409.1 198.9 Total current liabilities 1 148.4 715.2 Total liabilities 2 848.6 2 233.7 Total equity and liabilities 5 957.2 5 165.4 BERGEN, MARCH 21, 2023 Ole-Eirik Lerøy Chair of the Board Kristian Melhuus Vice Chair of the Board Lisbet K. Nærø Katrine Fredriksen Renate Larsen Peder Strand Michal Chalaczkiewicz Marianne Andersen Employee representative Jørgen J. Wengaard Employee representative Roger Pettersen Employee representative Ivan Vindheim Chief Executive Officer Financial statements and notes / ASA 242 Integrated Annual Report 2022 STATEMENT OF CHANGES IN EQUITY SPECIFICATIONS OF CHANGES IN EQUITY IN 2022 (EUR MILLION) SHARE CAPITAL OTHER PAID IN CAPITAL SHARE BASED PAYMENT OTHER EQUITY TOTAL EQUITY Equity 01.01.22 404.8 1 274.7 6.5 1 245.8 2 931.8 Dividend — — — -378.2 -378.2 Other changes — — 1.3 -3.5 -2.2 Profit or loss for the year — — — 557.3 557.3 Total Equity 31.12.22 404.8 1 274.7 7.8 1 421.4 3 108.6 SPECIFICATIONS OF CHANGES IN EQUITY IN 2021 (EUR MILLION) SHARE CAPITAL OTHER PAID IN CAPITAL SHARE BASED PAYMENT OTHER EQUITY TOTAL EQUITY Equity 01.01.21 404.8 1 274.7 5.4 685.9 2 370.8 Dividend — — — -226.8 -226.8 Other changes — — 1.1 -5.3 -4.2 Profit or loss for the year — — — 791.8 791.8 Total Equity 31.12.21 404.8 1 274.7 6.5 1 245.8 2 931.8 SHARE CAPITAL For information related to shareholders and share capital reference is made to Note 24 in Mowi Group financial statements. Financial statements and notes / ASA 243 Integrated Annual Report 2022 STATEMENT OF CASH FLOW MOWI ASA (EUR MILLION) NOTE 2022 2021 Cash flow from operations Earnings before taxes 696.7 846.4 Interest expenses 7 50.9 58.1 Net currency effects 7 -42.6 -44.2 Other financial items 7 -97.7 -639.7 Impairment losses, depreciation and amortization 9,10 69.1 66.0 Taxes paid 8 -54.3 -3.8 Change in inventory, acc. payables and acc. receivables 612.6 23.0 Change in restricted cash 13 -0.2 -0.3 Restructuring and other non-operational issues -38.1 41.0 Other adjustments -7.8 8.9 Cash flow from operations 1 188.5 355.5 Cash flow from investments Payments from sale of fixed assets 9,10 315.1 4.5 Payments made for purchase of fixed assets 9,10 -209.3 -113.8 Purchase of shares and other investments -242.4 -81.5 Cash flow from investments -136.6 -190.8 Cash flow from financing Proceeds (payments of) interest-bearing debt (current and non-current) 500.0 -210.1 Paid interest (net) -36.3 -52.7 Received interest group internal (net) 3 38.5 21.7 Net change in intercompany balances -1 186.0 -284.5 Realised currency effects 34.2 -7.0 Dividends received 7 25.5 593.3 Dividend paid -378.2 -226.8 Cash flow from financing -1 002.3 -166.0 Net change in cash in period 49.6 -1.3 Cash - opening balance 18.7 20.0 Cash - closing balance total 13 68.4 18.7 Financial statements and notes / ASA 244 Integrated Annual Report 2022 NOTE 1 - GENERAL INFORMATION AND ACCOUNTING POLICIES Mowi ASA is the parent company in the Mowi Group and consists of corporate management and the farming business in Norway. The separate financial statements of Mowi ASA have been prepared in accordance with the Norwegian Accounting Act from 1988 and Generally Accepted Accounting Principles in Norway. The financial statements for Mowi Group have been prepared in accordance with International Financial Reporting Standards and interpretations issued by the International Accounting Standards Board (IASB) as adopted by the EU (EU-IFRS). For accounting policies used, reference is made to Note 2 in Mowi Group financial statements. The accounting principles used in the financial statements for Mowi ASA are similar to the accounting principles used for Mowi Group’s financial statements, except for: –Acquisition costs in Business Combinations are in the Group financial statements recognised as expenses in profit and loss in the periods in which the cost are incurred and the services are received. In the separate financial statements for Mowi ASA these expenses are included as part of the acquisition price. –Biological assets are valued at the lower of cost and net realisable value. Acquisition cost are direct costs and a proportional part of indirect variable and fixed costs. Proportion of fixed costs is limited to utilisation of normal capacity. –Finance leases that transfer substantially all the risks and benefits incidental to ownership of the leased item to the entity, are capitalised at the commencement of the lease at the fair value of the leased asset, or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and a reduction of the lease liability. A leased asset is depreciated over the useful life of the asset. Operational lease payments are recognised as an operating expense on a straight-line basis over the lease term. Investment in subsidiaries and intercompany loans are measured to the lowest of fair value and cost. Financial derivatives within Mowi Group are measured to fair value. The statements of profit and loss and changes in equity in the separate financial statement divert from the statements for Mowi Group as other comprehensive income still is treated as equity transactions in the separate financial statements. Other income consists mainly of management fee charged to the Business Units, in addition to income from sale of smolt, roe, by-products and slaughter services. Mowi ASA is responsible for external financing of the Mowi Group. Note 2 - Business Segments The main source of revenue for Mowi ASA is sales of Atlantic salmon. In 2022 Mowi ASA had a revenue from sale of Atlantic salmon of EUR 2 033.2 million (EUR 1 407.4 million). The sale of Atlantic salmon is mainly to Mowi Markets Norway AS. Financial statements and notes / ASA 245 Integrated Annual Report 2022 NOTE 3 - INTERCOMPANY TRANSACTIONS INTERCOMPANY TRANSACTIONS (EUR MILLION) 2022 2021 Group internal receivables and liabilities Intercompany non-current receivables Group companies 411.9 388.5 Other non current financial assets Associated companies — 14.6 Net intercompany non-current receivables Group companies 411.9 388.5 Associated companies — 14.6 Trade receivables Group companies 19.3 1.7 Associated companies — 3.5 Trade payables Group companies -17.3 -12.4 Associated companies — -3.0 Group financing receivable Group companies 1 939.5 712.6 Associated companies — 10.6 Group financing payable Group companies -475.6 -452.8 Other current liabilities Group companies — -1.7 Net current receivables/liabilities Group companies 1 466.0 247.3 Associated companies — 11.1 Group internal revenue and cost Revenue Group companies 2 068.9 1 426.0 Associated companies 0.8 5.3 Other income Group companies 19.0 18.8 Cost of materials Group companies -690.9 -467.9 Associated companies -0.6 -8.0 Group internal financial income and expense Dividend from subsidiaries 25.5 592.5 Interest income group companies 49.7 36.2 Interest expense group companies -11.2 -14.4 Financial statements and notes / ASA 246 Integrated Annual Report 2022 NOTE 4 - REMUNERATION SALARY AND PERSONNEL EXPENSES (EUR MILLION) 2022 2021 Salaries and other short-term employee benefits -140.3 -125.6 Social security taxes -13.3 -12.0 Pension expenses -8.0 -5.6 Share option scheme including social security taxes -2.4 -2.0 3rd party staff -15.9 -12.2 Other benefits -5.9 -4.5 Total salary and personnel expenses -185.8 -161.8 Average number of FTEs 2 206 2 124 FTEs at year-end 2 272 2 140 See Group note 14 for details regarding the share option scheme. Details regarding remuneration to senior executives will be presented in a separate report according to Allmennaksjeloven (The Public Limited Liability Companies Act) § 6-16 b. The report will be made available on the company website www.mowi.com. Pension plans Mowi ASA has a defined contribution plan where the contribution is limited to 8% of salaries up to 12G. There were 2 367 members in the plan as of December 31, 2022. The pension plan is in accordance with the legal requirements in Norway. NOTE 5 - OTHER OPERATING EXPENSES SPECIFICATION OF OTHER OPERATING EXPENSES (EUR MILLION) 2022 2021 Maintenance -88.6 -80.6 Electricity and fuel -49.1 -33.7 Rent and leases -45.7 -39.8 Consultancy and audit fees -21.0 -19.9 IT costs -11.5 -10.9 Travel costs -3.0 -1.9 Other operating cost -73.7 -64.0 Total other operating expenses -292.6 -250.7 Mowi ASA has significant activity in relation to Research and Development (R&D). In 2022 Mowi ASA had a total cost of EUR 35.0 million (EUR 15 million) including salaries in relation to R&D projects. In 2022 EUR 0.5 million (EUR 0.5 million) has been booked as a cost reduction in the financial statement related to tax refunds. Financial statements and notes / ASA 247 Integrated Annual Report 2022 NOTE 6 - AUDITOR'S FEES FEES TO AUDITORS (EUR MILLION) 2022 2021 Audit services -0.6 -0.5 Tax services -0.1 -0.1 Other non-audit fees -0.1 -0.1 Total fees -0.7 -0.6 Auditor ’s fee is stated exclusive value added tax. NOTE 7 - FINANCIAL ITEMS FINANCIAL ITEMS (EUR MILLION) 2022 2021 Interest expense -50.9 -58.1 Net currency effects 42.6 44.2 Dividend from subsidiaries 25.5 592.5 Interest income from subsidiaries 49.7 36.2 Gain on sale of subsidiaries1) 22.5 — Change in fair value - other financial instruments 2.9 12.1 Other financial items -2.8 -1.1 Net other financial items 97.7 639.7 1) Divestment of development licenses Financial statements and notes / ASA 248 Integrated Annual Report 2022 NOTE 8 - TAXES TAXES (EUR MILLION) 2022 2021 Specification of this year´s tax expense Withholding tax — -2.9 Payable tax -257.6 -52.2 Changes in deferred taxes 118.2 0.5 Total income tax expense -139.4 -54.6 Specification of temporary differences and losses carried forward Non-current assets 191.9 316.2 Current assets -7.7 390.1 Debt -0.7 -0.7 Pension obligation -2.8 -3.1 Other differences -4.9 10.5 Total basis for deferred tax 175.8 712.9 Nominal tax rate 22% 22% Deferred taxes asset/deferred tax liability -38.7 -156.8 Total recognised deferred tax asset/deferred tax liability (-) -38.7 -156.8 Reconciliation between nominal and effective tax rate Profit before tax 696.7 846.4 Nominal tax rate 22% 22% Tax calculated with nominal tax rate -153.3 -186.2 Withholding tax — -2.9 Correction of earlier year ’s taxes -0.1 10.9 Dividends 5.3 130.3 Effect of conversion to NOK 3.9 -7.5 Sale of shares 5.0 — Other differences -0.2 0.7 Total income tax expense in the statement of profit and loss -139.4 -54.6 Financial statements and notes / ASA 249 Integrated Annual Report 2022 NOTE 9 - INTANGIBLE ASSETS SPECIFICATION OF INTANGIBLE ASSETS 2022 (EUR MILLION) GOODWILL LICENSES OTHER INTANGIBLE ASSETS 2) TOTAL Acquisition cost as of 01.01 26.8 326.4 27.9 381.1 Additions in the year — 2.3 1.3 3.7 Disposals / scrapping in the year 1) — -326.4 -0.2 -326.6 Total acquisition cost as of 31.12 26.8 2.3 29.0 58.1 Accumulated amortisation and impairment losses as of 01.01 13.0 14.0 20.5 47.5 Amortisation in the year 4.8 — 0.8 5.7 Disposals / scrapping in the year 1) — -14.0 -0.2 -14.1 Total accumulated amortisation and impairment losses as of 31.12 17.8 — 21.2 39.0 Total carrying amount as of 31.12 9.0 2.3 7.8 19.1 Estimated useful life 10 years 20 years/unlimited 3-5 years Amortisation method Linear Linear Linear 1) Disposals of licenses are related to the transfer of licenses to subsidiary Mowi Seawater Norway AS as a contribution in kind at carrying values. 2) Other intangible assets includes assets under construction. SPECIFICATION OF INTANGIBLE ASSETS 2021 (EUR MILLION) GOODWILL LICENSES OTHER INTANGIBLE ASSETS 2) TOTAL Acquisition cost as of 01.01 22.6 306.0 25.9 354.4 Acquisitions through merger 1) 4.3 20.4 — 24.7 Additions in the year — — 2.0 2.0 Total acquisition cost as of 31.12 26.8 326.4 27.9 381.1 Accumulated amortisation and impairment losses as of 01.01 8.4 14.0 19.3 41.6 Amortisation in the year 4.6 — 1.3 5.9 Total accumulated amortisation and impairment losses as of 31.12 13.0 14.0 20.5 47.5 Total carrying amount as of 31.12 13.8 312.4 7.3 333.6 Estimated useful life 10 years 20 years/unlimited 3-5 years Amortisation method Linear Linear Linear 1) Related to merger of Mowi ASA and Lofoten Aqua AS. 2) Other intangible assets includes assets under construction. Financial statements and notes / ASA 250 Integrated Annual Report 2022 NOTE 10 - PROPERTY, PLANT AND EQUIPMENT SPECIFICATION OF PPE 2022 (EUR MILLION) LAND & BUILDINGS MACHINERY & EQUIPMENT TRANSPORT NETS, PENS & MOORINGS UNDER CONSTRUCTION /PREPAYMENTS OTHER TANGIBLE TOTAL Acquisition cost as of 01.01 281.4 273.0 208.0 173.3 125.9 13.4 1 075.1 Additions in the year 28.5 20.2 18.2 30.3 81.6 8.5 187.2 Disposals / scrapping in the year -0.3 -2.9 -0.7 -3.6 — — -7.5 Total acquisition cost as of 31.12 309.6 290.2 225.4 200.1 207.5 21.9 1 254.7 Accumulated depreciation and impairment losses as of 01.01 129.7 214.0 100.5 105.1 2.0 7.8 559.0 Depreciation in the year 14.1 15.8 14.6 16.9 — 1.4 62.8 Impairment losses and reversal of previous write-downs in the year 0.7 — — — — — 0.7 Disposals / scrapping in the year -0.3 -2.7 -0.7 -3.5 — — -7.2 Total accumulated depreciation and impairment losses as of 31.12 144.2 227.1 114.4 118.4 2.0 9.2 615.3 Total carrying amount as of 31.12 165.4 63.1 111.0 81.6 205.5 12.7 639.3 Estimated lifetime Land; infinite Buildings; 10 years 3-10 years 3-10 years 5-10 years NA 3-5 years Depreciation method Linear Linear Linear Linear NA Linear Annual rent for leased assets that are not capitalised was EUR 45.7 million in 2022. There were no capitalised leases as of 31 December 2022. SPECIFICATION OF PPE 2021 (EUR MILLION) LAND & BUILDINGS MACHINERY & EQUIPMENT TRANSPORT NETS, PENS & MOORINGS UNDER CONSTRUCTION /PREPAYMENTS OTHER TANGIBLE TOTAL Acquisition cost as of 01.01 270.1 281.2 198.3 163.3 62.9 11.3 987.1 Additions in the year 14.3 15.5 12.4 16.4 63.0 2.2 123.9 Disposals / scrapping in the year -3.0 -23.7 -2.8 -6.4 — -0.1 -35.9 Total acquisition cost as of 31.12 281.4 273.0 208.0 173.3 125.9 13.4 1 074.9 Accumulated depreciation and impairment losses as of 01.01 116.9 218.8 89.6 95.7 2.0 7.2 530.1 Depreciation in the year 13.2 16.2 13.6 15.9 — 0.7 59.6 Impairment losses and reversal of previous write-downs in the year 0.5 — — — — — 0.5 Disposals / scrapping in the year -1.0 -21.0 -2.7 -6.4 — -0.1 -31.2 Total accumulated depreciation and impairment losses as of 31.12 129.7 214.0 100.5 105.1 2.0 7.8 559.0 Total carrying amount as of 31.12 151.7 59.0 107.5 68.2 123.9 5.7 515.9 Estimated lifetime Land; infinite Buildings; 10 years 3-10 years 3-10 years 5-10 years NA 3-5 years Depreciation method Linear Linear Linear Linear NA Linear Financial statements and notes / ASA 251 Integrated Annual Report 2022 NOTE 11 - SHARES IN SUBSIDIARIES, ASSOCIATED COMPANIES AND OTHERS Shares in subsidiaries COMPANY (EUR MILLION) BUSINESS ADDRESS DATE OF PURCHASE OWNER- SHIP % NUMBER OF SHARES EQUITY AS OF 31.12.22 PROFIT THIS YEAR CARRYING AMOUNT 31.12.22 Mowi Holding AS Bergen, Norway 04.07.2006 100% 590 452 560 815.5 73.9 2 353.0 Mowi Seawater Norway AS Bergen, Norway 15.12.2022 100% 10 84.8 — 84.8 Mowi Faroe Islands P/F Kollafjordur, Faroes 11.01.1999 100% 10 81.1 13.6 31.9 Mowi Bretagne SAS Pollaouen, France 04.11.1997 100% 7 005 366 17.0 -1.8 62.8 Mowi Norway FoU AS Bergen, Norway 07.10.2017 100% 30 000 2.0 0.8 3.1 Arctic Fish Holding AS Stavanger, Norway 29.12.2022 51% 16 346 824 98.1 5.8 179.9 Finnøy Fisk AS Stavanger, Norway 15.09.1996 45% 473 6.8 3.0 0.5 Centre for Aquaculture Competence AS Hjelmeland, Norway 09.10.2001 33% 150 1.1 — — Total 1 106.4 95.3 2 715.9 Shares in subsidiaries are recognised according to the cost method and yearly tested for impairment. The ownership share listed above are equal to the voting rights for each company. Associated companies COMPANY (EUR MILLION) BUSINESS ADDRESS DATE OF PURCHASE OWNER- SHIP % NUMBER OF SHARES EQUITY AS OF 31.12.22 PROFIT THIS YEAR CARRYING AMOUNT 31.12.22 Namdal Rensefisk AS 1) Flatanger 30.09.2015 24.76% 1 921 4.2 0.2 0.9 Blue Revolution Center AS Frøya 05.24.2017 33.33% 10 000 — — — Total 4.2 0.2 0.9 1) Equity and profit from 2021. Note 12 - Inventory and biological assets INVENTORY (EUR MILLION) 2022 2021 Raw materials 39.3 28.3 Biological assets 72.5 638.2 Total inventory 111.8 666.5 The amounts above are net after provision for obsolete goods. Value of inventory is manufacturing cost. Raw materials are packing material, fish feed and health articles. Biological assets consist of broodstock, smolt, roe in hatchery and cleaner fish. By the end of 2022, our farming activities and living salmon in seawater have organizationally been transferred to a subsidiary of Mowi ASA - Mowi Seawater Norway AS. The deferred gain from the common control transaction is booked towards shares in subsidiary. Financial statements and notes / ASA 252 Integrated Annual Report 2022 NOTE 13 - CASH CASH (EUR MILLION) 2022 2021 Cash at bank 68.4 18.7 Restricted cash / withheld taxes 5.9 5.7 Cash 74.3 24.4 NOTE 15 - OTHER LIABILITIES OTHER LIABILITIES (EUR MILLION) 2022 2021 Pension liability 2.8 3.1 Total other non-current liabilities 2.8 3.1 Financial instruments 12.3 7.0 Tax liabilities 322.2 63.1 Other accruals 74.6 128.7 Total other current liabilities 409.1 198.9 NOTE 14 - INTEREST-BEARING DEBT INTEREST-BEARING DEBT (EUR MILLION) 2022 2021 Non-current interest-bearing debt1) 1 310.7 811.4 Bond — 199.8 Schuldschein loan 149.0 148.8 Green Bond 199.1 198.6 Total non-current interest-bearing debt 1 658.7 1 358.6 Bond 200.0 — Current interest-bearing debt1) 200.0 — Total interest-bearing debt 1 858.7 1 358.6 1) For specification of interest-bearing debt reference is made to Note 11 to Mowi Group financial statements. Financial statements and notes / ASA 253 Integrated Annual Report 2022 NOTE 16 - FINANCIAL INSTRUMENTS FOREIGN EXCHANGE RISK At the end of 2022 Mowi ASA had a portfolio of currency hedging instruments against third party counterparts with a total contract value of EUR 544.4 million (EUR 728.4 million). The portfolio had a net negative market value of EUR 6.7 million (EUR positive 22.2 million). The portfolio is described in further detail in Note 13 to Mowi Group financial statements. The subsidiaries are required to do all their currency hedging with Mowi ASA as their counterparty. In addition to the portfolio of external derivatives, Mowi ASA also holds a portfolio of foreign exchange hedges with its subsidiaries as counterparty. This portfolio offsets the external portfolio with respect to amounts, maturities and market values. The forward contracts are recognised at fair value in the statement of financial position. INTEREST RATE RISK Mowi ASA hedges all interest rate risk on behalf of Mowi Group. For positions held in interest rate derivatives and their value, reference is made to Note 12 and Note 13 of Mowi Group financial statements. SALMON PRICE RISK At the end of 2022, Mowi ASA held a portfolio of financial forward contracts for purchase and sale of salmon with third parties. The portfolio had a positive market value of EUR 6.0 million (EUR 8.2 million). Subsidiaries are required to do their financial hedging of salmon prices with Mowi ASA as their counterparty, and Mowi ASA then enters into corresponding forward contracts with third parties. Therefore the portfolio of third-party forward contracts is largely offset with respect to amounts, maturities and market values, by the portfolio of internal contracts. NOTE 17 - ASSETS PLEDGED AS SECURITY AND GUARANTEE LIABILITIES ASSETS PLEDGED AS SECURITY AND GUARANTEE LIABILITIES The syndicated loan facility in Mowi is secured by guarantees from, as well as certain assets pledged by, the larger subsidiaries in the Group. The pledges are set up partly as a pledge in favour of a third party and partly as security for the fulfilment of the guarantee obligations. Mowi ASA has pledged the ownership in its subsidiaries, as well as certain assets. ASSETS PLEDGED AS SECURITY AND GUARANTEE LIABILITIES (EUR MILLION) 2022 2021 Secured Group debt 1 310.0 810.7 Carrying amount of assets pledged as security Receivables 1 126.0 970.9 Shares in subsidiaries 2 535.5 2 450.7 Total carrying amount of assets pledged as security 3 661.5 3 421.6 Guarantee liabilities 11.4 14.3 Nominal value of guarantee liabilities 11.4 14.3 NOTE 18 - SUBSEQUENT EVENTS Please refer to Note 34 of Mowi Group financial statements. Financial statements and notes / ASA 254 Integrated Annual Report 2022 DIRECTORS' RESPONSIBILITY STATEMENT Today, the Board of Directors and the Chief Executive Officer reviewed and approved the Board of Director’s report and the consolidated and separate annual financial statements for Mowi ASA, for the year ended December 31, 2022 (Annual report 2022). Mowi ASA’s consolidated financial statements have been prepared in accordance with IFRSs and IFRICs as adopted by the EU and applicable additional disclosure requirements in the Norwegian Accounting Act. The separate financial statements for Mowi ASA have been prepared in accordance with the Norwegian Accounting Act and Norwegian accounting standards as of December 31, 2022. The Board of Directors’ report for the Group and the parent company is in accordance with the requirements in the Norwegian Accounting Act and Norwegian accounting standard no 16, as of December 31, 2022. To the best of our knowledge: –The consolidated and separate annual financial statements for 2022 have been prepared in accordance with applicable financial reporting standards –The consolidated and separate annual financial statements give a true and fair view of the assets, liabilities, financial position and profit as a whole as of December 31, 2022 for the Group and the parent company –The Board of Directors’ report for the Group and the parent company includes a fair review of: The development and performance of the business and the position of the Group and the parent company The principal risks and uncertainties the Group and parent company face. BERGEN, MARCH 21, 2023 Ole-Eirik Lerøy Chair of the Board Kristian Melhuus Vice Chair of the Board Lisbet K. Nærø Katrine Fredriksen Renate Larsen Peder Strand Michal Chalaczkiewicz Marianne Andersen Employee representative Jørgen J. Wengaard Employee representative Roger Pettersen Employee representative Ivan Vindheim Chief Executive Officer Financial statements and notes / ASA 255 Integrated Annual Report 2022 Auditor’s report, financial audit Financial statements and notes / ASA 256 Integrated Annual Report 2022 Financial statements and notes / ASA 257 Integrated Annual Report 2022 Financial statements and notes / ASA 258 Integrated Annual Report 2022 Financial statements and notes / ASA 259 Integrated Annual Report 2022 Financial statements and notes / ASA 260 Integrated Annual Report 2022 Auditor’s report, GRI audit Financial statements and notes / ASA 261 Integrated Annual Report 2022 Analytical information 262 Integrated Annual Report 2022 Analytical and share information, APM, RISK, GRI, TCFD and ESG index 4 Analytical information 263 Integrated Annual Report 2022 GRI Index 296 SASB Index 303 ESG Index 312 Analysing Mowi We want to contribute to the correct pricing of our share by giving the market in-depth, relevant and accurate information about the salmon farming industry in general and our activities in particular. This is why we include an extensive overview of our industry, its key drivers and Alternative Performance Measures (APM) in a separate section of the integrated annual report. We use APMs in our operational follow up as we believe these provide additional insight when analysing our Group's development. For more information see also our industry handbook at mowi.com. Share information and market capitalisation At year-end 2022 the market capitalisation of Mowi was NOK 86.5 billion (107.9 billion). The share price at year-end 2022 was NOK 167.2 (208.7). We paid NOK 7.35 (4.45) in dividend per share in 2022, translating into a dividend yield of 4.4% (2.1%) for the year. Risk and risk management Risk relates to the uncertainty and the factors that may prevent us from generating the expected returns, reaching our goals and deliver on our strategy. At Mowi, we split our defined risks into subcategories within our four guiding principles - Profit, Planet, Product and People - to ensure that they are addressed by our most capable people within each area. Global Reporting Initiative (GRI) Mowi uses the GRI Standards for voluntary reporting of sustainable development. The guidelines comprise economic, environmental and social dimensions relating to an enterprise's activities, products and services. GRI collaborates with the United Nations Environment Program and UN Global Compact. Mowi has reported according to GRI since 2010. The report is externally assured by our auditor (EY). Task force on climate-related financial disclosures (TCFD) Mowi integrates climate-related disclosures in this Annual report (see our Planet and the Risk and Risk management sections) and in addition, we have also summarised the risks and opportunities arising from climate change, our strategic approach towards a low carbon economy and our corporate targets in this TCFD report. For a more extensive description of our GHG emissions and climate strategy please see our CDP report. ESG Index - Mowi Environmental and Social Statement 2022 Mowi collects and reports on a large number of sustainability metrics. This index consolidates our environmental and social data to help with further analysis. Analytical information 264 Share and shareholder information 274 Alternative performance measures (APM) – Non-IFRS measures 279 Risk and risk management 287 Task Force on Climate-related Financial Disclosures (TCFD) report 304 Analytical information 264 Integrated Annual Report 2022 Analytical information We want to contribute to the correct pricing of our share by giving the market in-depth, relevant and accurate information about the salmon farming industry in general and our activities in particular. Farm-raised Atlantic salmon – a healthy source of protein We engage in aquaculture, which involves cultivating aquatic organisms under controlled conditions. Aquaculture is a fast-growing food producing sector. 70% of our planet is covered with water, yet the United Nations Food and Agriculture organisation (FAO) estimates that only approximately 2% of the world’s food supply comes from the ocean. In 2022, the aquaculture industry contributed 55% of the fish destined for human consumption and is expected to continue to increase long term. The aquaculture industry’s output has soared since the mid-1990s, while the wild fish harvest in the same period has been stable. It is estimated that the global population will grow from 7.7 billion to almost 9.7 billion by 2050, resulting in increased demand for protein-rich food. According to the FAO, at least an additional 50 million tonnes of aquatic food will be required by 2050. Our main product is farm-raised Atlantic salmon. Consumption of Atlantic salmon is recognised as healthy because of its high content of protein, Omega-3 fatty acids, vitamins and minerals. Atlantic salmon farming started on an experimental level in the 1960s, and became an industry in Norway in the 1980s. Salmon farming consists of raising juvenile salmon, or smolt, to fully grown salmon in large pens located in the sea, fjords and bays. Salmon farming also includes raising smolt from salmon eggs, which takes place in freshwater, typically in lakes or tanks on land. Almost all commercially available Atlantic salmon is farmed. Due to biological constraints, seawater temperature requirements and other natural limitations, farm-raised salmon is produced in Norway, Chile, Scotland, North America, Faroe Islands, Ireland, Iceland and New Zealand/Tasmania. Atlantic salmon is a small but growing part of the global protein supply. Despite an increase in production of Atlantic salmon of more than 1 000% since 1990 (CAGR 8%), the total global supply of salmon is still marginal compared to most other major seafood categories. This is because the sector has reached a production level where biological boundaries are being pushed. Future growth requires the implementation of measures to reduce the industry’s biological footprint. This will necessitate progress in technology, non-pharmaceutical techniques, industry regulations and intercompany cooperation. Our approach – an integrated protein provider We are the world's largest producer of farm-raised salmon, both by volume and revenue, offering fresh, whole salmon, processed salmon and other processed seafood products to customers in 70 countries worldwide. We currently engage in three principal types of production activities: –salmon feed production in Norway and Scotland; –salmon farming and primary processing of salmon in Norway, Scotland, Canada, Chile, Ireland, the Faroe Islands and Iceland; and –secondary processing of seafood in Norway, Chile, Ireland, the United States, Scotland, Canada, France, Belgium, the Netherlands, Poland, Germany, Spain, Turkey, Japan, Vietnam, Taiwan, China and South Korea. We continue the process of transforming ourselves from a production-driven fish farming company into an integrated marine protein provider, by expanding in fish feed and broadening our farming and secondary processing operations. Our feed performs very well, an essential quality as feed is the most important input factor in salmon production. Mowi is self-sufficient for feed in Europe with our state-of-the-art plants in Valsneset, Norway and Kyleakin, Scotland. Our feed plant at Valsneset, Norway, supplied almost all of our Norwegian fish feed requirements in 2022 and produced 371 876 tonnes of fish feed, close to full capacity of 400 000 tonnes. The Scottish feed plant at Kyleakin on the Island of Skye, Scotland produced 143 140 (123 133) tonnes of feed (capacity of 240 000 tonnes). Through in-sourcing of feed, we expect to obtain lower feed costs as well as improved growth, lower feed conversion rates and higher end-product quality. Internal sourcing of feed is also an important element with regards to our sustainability and branding strategies. Our fish farming operations cover the entire salmon life cycle from egg to harvest. We also have facilities for harvesting and primary processing of our fish. We have our own breeding and genetics department and our strategy is to produce our own eggs to secure the selection of the best genetic properties. We hold our own brood stock and invest significant efforts and resources to improve the performance, disease resistance, quality and welfare of the Analytical information 265 Integrated Annual Report 2022 fish. Juvenile fish (smolt) are transferred to the sea at different weights depending on the requirements of the sites to be stocked and our smolt production capacity. The average weight of smolt put to sea in 2022 was 163 grams. Adjusted for a higher share of smolt put out to sea earlier in the year, the average weight was relatively stable in 2022. The fish are then nurtured in the sea for a period of 12-22 months depending on the size of the smolt stocked, the temperature of the seawater, our farming practices and the biological situation. At harvest weight, approximately five to six kilogram live weight equivalent, or LWE, the salmon undergoes primary processing into gutted weight equivalent (GWT) which is the main commodity marketed and used in most reference prices. The customers of our primary processed salmon are retailers, secondary processors, including our own operations, and distributors. Our secondary processing operations turn the gutted fish into products such as fillets, steaks and other portions of fish - smoked, fresh and frozen. This division consists of all our downstream activities, including our steadily growing production of consumer-ready products. The broadening of our secondary processing operations started with the acquisition of Morpol, a world leading secondary processor of salmon, in 2012/2013. Reflecting the success of our sales of fresh prepacked products in the US market, we opened a new plant in Dallas, Texas in December 2016. In September 2018 the expansion of the Ducktrap facility in the state of Maine was completed, which increased Ducktrap's production capacity by 75%. In 2019 we expanded to a larger location in Florida, US and in 2021 we opened a brand new factory in Bretagne, France. We currently operate 21 secondary processing facilities, the largest of which are located in Ustka, Poland; Bruges, Belgium; Rosyth, Scotland; and Boulogne, France. Secondary processing activities include further preparation to create ready-to-heat or ready-to-eat products and packaging the products. Purchasers of secondary processed salmon include retailers, such as grocery stores, food service providers such as hotels and other service and catering entities, as well as industry customers including meal and salad producers. Business areas and segments We are organised into three Business Areas: Feed, Farming and Sales & Marketing. 1. Fish feed production, comprises our two feed plants in Norway and Scotland. 2. Farming comprises a single operating segment composed of our farming operations in Norway, Scotland, Canada, Chile, Ireland, the Faroe Islands and Iceland, and our Breeding & Genetics program. This segment also includes primary processing activities and some filleting activities (a secondary processing activity). 3. Sales & Marketing is composed of two operating segments: –Markets: the segment comprises activities relating to sales of our primary processed products obtained from the Farming business and, to a lesser extent, purchased from third parties. It also includes logistics and delivery of our products to third-party customers, as well as to our internal secondary processing operations (including Consumer Products) and some secondary processing activities; and –Consumer Products: the segment includes our main secondary processing and value added operations, as well as end-product sales, including logistics.Branding is also part of the Sales & Marketing segment. Research & development supports all Business's segments. In addition to our principal operating segments, we have a group of “Other” activities, consisting of corporate functions. Analytical information 266 Integrated Annual Report 2022 Value creation measured by country of origin Our Farming business is engaged in the production, harvesting and primary (and some secondary) processing of fish. For reporting purposes, Farming sells its main products (i.e. salmon gutted weight) to the Markets segment at prices quoted by Nasdaq OMX (Nasdaq price) or similar salmon pricing indices. If Markets have entered into medium or short-term contracts with third parties, salmon is sold from Farming to Markets at prices reflected in such contracts. The Markets segment resells the primary processed salmon to (i) third parties or (ii) Consumer Products for further processing. Markets also include some secondary processing activities. Consumer Products secondary process salmon purchased from Markets, together with salmon and other seafood purchased from third parties, and sells these products to third parties. We assess the overall value creation of our operations based on the salmon’s source of origin, using Operational EBIT per kg of fish harvested as a key measure of performance. For this reason Operational EBIT related to our Feed and Sales & Marketing operations is allocated back to the country of origin. The relationship between our functional segments and our operational reporting per country of origin is illustrated on the following page. Our most important value drivers KEY FACTORS AFFECTING REVENUE Our primary source of revenue is the sale of primary and secondary processed seafood (including value added products), mainly salmon. Revenue generated by our products is derived from volumes sold and the price that we achieve for our products. Our products are shipped long distances by road, air and water. Our revenues therefore include a substantial freight element, since the freight cost generally is paid by customers. Sales of salmon and salmon-derived products represented 92.6% and 90.8% of our revenue for the years ended December 31, 2022 and 2021, respectively. Fresh whole salmon (i.e. primary processed salmon) represented 37.0% of our total revenues in 2022, compared to 32.0% in 2021. In the same periods, elaborated salmon, including smoked/marinated, MAP, sushi and other prepared and value-added products accounted for 63.0% (68.0%) of our revenues. The share of elaborated products was positively impacted by the changed consumption pattern during and after the Covid-19 pandemic in 2021. We sell salmon and other seafood directly to retailers, hotels, restaurants as well as to third-party processors and distributors in approximately 70 countries. Volume Primary processed products (harvested volume) Harvested volume primarily depends on the quantities of smolt introduced into our operations, which are determined by us (one to two) years prior to harvesting, fish growth rates and our harvesting schedule. The quantities of smolt introduced into our operations are based on our expectations for the demand for finished product at harvest time, anticipated product prices and our organic growth ambitions in light of regulatory constraints (e.g. maximum standing biomass in production established by our farming licenses). Fish growth rates are affected by water temperature, disease and other biological issues. As salmon is a cold-blooded animal, seawater temperature plays an important role for its growth rate. With high seawater temperatures, disease risk increases, while temperatures below freezing cause mass mortality. Similarly, biological factors, disease, sea lice and stress of fish each negatively impact the rate of growth of our fish and may result in reduced fish survival. Volumes in a period are also affected by our harvest schedule, i.e. when we decide to harvest fish from a particular location. Our harvest window is effectively limited by fish age, as fish must be harvested prior to maturation. Nevertheless, we do have a limited ability to accelerate or delay harvest (typically, by a matter of weeks) to optimise price achievement. Secondary processed products The majority of our secondary processing occurs in our Consumer Products segment in Europe, Asia and the Americas, while some secondary processing also occurs in our Markets segment. Some filleting activities are also carried out by our Farming operations. The volume of secondary processed salmon, including value added products that we produce depends on market demand for our secondary processed seafood and the production capacities of our operations. The majority of the fish used in our secondary processing business in Consumer Products was produced by our fish farms. We have a constant supply of raw materials used in production and can vary our volume of secondary processed seafood based on projected customer demand. In addition to sales of salmon-based products, which represents the clear majority of sales to third-party customers in Consumer Products, we also sell products based on other fish species, such as cod, pangasius, saithe, Alaska pollock, sockeye and haddock. Prices The price received for our products is determined by the relevant market prices. Our achieved prices may deviate from market prices due to differences in the quality of our product, sales contracts, which typically fix the sales price for a period of three to 12 months, but sometimes longer, and our ability to place our products efficiently in the market. We aim to sell our products at or above market prices, and we measure our ability to do so through price achievement, which measures the prices at which we sell our products against the relevant salmon price index or reference price. We have been actively pursuing strategies to reduce our dependence on market prices for salmon by increasing our capacity to produce more value-added products, which are generally associated with more stable consumer prices. Analytical information 267 Integrated Annual Report 2022 Reference prices for salmon Several price indices for salmon are publicly available. The two most important indices for Norwegian salmon are Nasdaq/Fish Pool provided by NOS Clearing ASA, a subsidiary of Nasdaq OMX Group Inc., and the official statistics of Norway by Statistics Norway, or SSB, a Norwegian governmental entity. Urner Barry in the United States provides a reference price for Chilean salmon in Miami and North American salmon in Seattle. Price correlation across regional markets is generally strong for Atlantic salmon, but we have recently seen a tendency of reduced correlation between prices in America and Europe. Historically, reference prices for salmon have been subject to significant fluctuations, as demand for salmon has been growing steadily, whereas supply has fluctuated strongly due to variations in factors such as smolt release and biological status, including disease. Although the market price of salmon is established through supply and demand for the product, in the short term, salmon producers are expected to be price takers. The long production cycle and a short time window available for harvesting leave salmon farmers with limited flexibility to manage their short-term supply. In addition, salmon is generally sold as a fresh commodity with a limited product lifespan, further restricting producers’ ability to control short-term supply. As our Irish operation produces mainly organic salmon, there is no reference price available for benchmarking our salmon of Irish origin. Salmon from our Irish operations is sold mainly on contracts. Prices for the products produced by Consumer Products are primarily driven by customer demand and the cost of the raw materials used in their production. Because secondary processed/elaborated products, including value added products, are to some extent considered to be premium products, demand fluctuates with the state of regional and global economies and the consumers’ general wealth. In addition, global trends in consumer tastes affect demand for such products. The cost of raw materials is largely dependent on reference prices, especially Atlantic salmon prices, most of which we supply internally from our Farming operations. In 2022 average raw material prices increased in line with increased salmon prices. Quality The quality of our fish may greatly affect the price we are able to achieve in comparison to the reference price. Diseases, sea lice, biological issues (such as Kudoa) and stress may all impact the quality of our fish, resulting in downgrading and lower achieved prices. In addition, when salmon reach reproductive maturity, or maturation, the flesh colour and meat quality changes, resulting in lower product quality. Fish may be classified as superior, ordinary or production quality. Superior quality fish is a product without damage or defect that provides a positive overall impression. Ordinary quality fish is a product with limited external or internal faults, damage or defects. Production quality fish is a product that does not satisfy the requirements of either superior or ordinary quality due to product faults, damage or defects. In Norway, downgraded fish are normally priced according to standard rates of deduction compared to Analytical information 268 Integrated Annual Report 2022 a superior quality fish. For fish classified as ordinary the standard rate of reduction is in the range of EUR 0.20 per kg gutted weight. For fish classified as production grade the typical rate of reduction is EUR 1.75 to EUR 2.75 per kg gutted weight, depending on the reason for downgrading. In other countries, price deductions related to quality are not as standardised, but the same general principles apply. Contracts and derivative Instruments To limit our exposure to short- and medium-term fluctuations in salmon prices, we enter into sales contracts for future deliveries of our products. Our sales contracts generally have a duration of three to 12 months, but sometimes longer. Our target is to optimise the contract portfolio to attain the best possible mix of contracts and spot sales, with an average contract coverage ratio typically between 20% and 50%. Contracts mitigate our exposure to fluctuations in salmon prices, but can also result in us selling our products at prices that are lower than reference price. We also utilise salmon derivatives to hedge our exposure to fluctuations in reference prices. Salmon derivatives provide the same hedge against exposure to spot price fluctuations as contracts for future sales of salmon to customers, so we use hedging instruments as well as contracts to achieve our contract coverage goals described above. Price achievement The average price achievement measures the prices that we are able to achieve on our products against a salmon price index. The achievement is measured against Nasdaq for salmon of Norwegian, Scottish and Faroese origin, and Urner Barry for salmon of Canadian and Chilean origin. The average price achievement measure demonstrates our ability to sell our products at above market rates and is thus an important measure of our success. Price achievement is primarily affected by contract coverage, fish quality and our ability to place our products efficiently in the market. Analytical information 269 Integrated Annual Report 2022 KEY FACTORS AFFECTING COSTS Our costs are primarily affected by the cost of our fish feed, other purchases (including third-party raw material sourcing), salaries, other operational costs and biological factors. We use these cost categories to track our costs at consolidated level. Costs in our Farming segment are categorised into feed costs, other seawater cost and non-seawater costs and we track these costs per kg of fish harvested, where: –fish feed costs measure the cost of fish feed; –other seawater costs measure costs relating to smolt, salaries, insurance, medication and other direct and indirect costs attributable to fish production at sea; and –non-seawater costs are the cost of bringing the fish from the seawater site to the primary processing facility, primary processing costs, administration costs, exceptional mortality costs and other non-seawater costs incurred by the respective farming operations. These costs (fish feed, other seawater costs and non-seawater costs) represent the total cost for one kg gutted salmon packed in a standard box for shipping (“cost in box”, also referred to as full cost and cost per kg Farming). The term “cost in box” is widely used by the industry and analyst community as an indicator of operational efficiency in fish farming operations. These costs are included in the following line items in our consolidated statement of operations: cost of materials, salary and personnel expenses, other operating expenses and depreciation. The total of feed cost and other seawater costs is the cost of harvested fish in seawater, before transportation to the processing plant. We refer to these costs as biomass costs or biological costs. Costs in our Feed operations are primarily composed of raw material costs (e.g. fish meal, fish oil, vegetable meals and oils) and costs associated with running feed operations, such as salaries and utilities. Costs in our Sales & Marketing Business Area are primarily composed of raw material costs (e.g. primary processed salmon), which we to a large extent produce internally for our Consumer Products operations, and costs associated with running secondary processing operations, such as salaries and utilities. We measure our secondary processing operational efficiency through yield and throughput. Yield measures the number of kilograms (kg) of end product we are able to produce from one kg of raw materials. Throughput measures our secondary processing cost per kg produced. Because it takes two to three years to bring a salmon to harvest size, fish feed prices and prices for other costs associated with the farming of fish accumulate over multiple periods (i.e., the entire life of the fish), and affect the cost of materials recognised in the period when our fish is harvested and sold. Costs associated with secondary processing are expensed in the period in which the product is sold, unless goods are produced for stock to be sold in a later period. The table below shows the estimated effect on our Operational EBIT of a change in market price, harvest volume and cost of fish feed. ESTIMATED SENSITIVITIES ON ANNUAL RESULTS 2022 CHANGE FACTOR CHANGE EFFECT ON OPERATIONAL EBIT FIXED CONTRACT SHARE Change in global average sales price with contracts 1) 0.10 EUR per kg GWT 32 30% 1.00 EUR per kg GWT 325 30% 2.50 EUR per kg GWT 812 30% Change in global average sales price without contracts 2) 0.10 EUR per kg GWT 46 0% 1.00 EUR per kg GWT 464 0% 2.50 EUR per kg GWT 1 160 0% Change in total harvest volume 3) 10 000 tonnes GWT 15 Change in global feed price 4) -0.05 EUR per kg feed 31 -0.50 EUR per kg feed 309 -1.00 EUR per kg feed 619 1) Assuming 30% of sales on fixed price contracts and 70% in the spot market 2) Assuming all sales in the spot market 3) Assuming margin per kg harvested of EUR 1.5 4) Annual harvest volume converted to live weight multiplied with the feed conversion rate Note that the effect in Operational EBIT will be recognised when the fish is harvested and sold Analytical information 270 Integrated Annual Report 2022 Fish feed Fish feed is our largest expense category, and it accounted for approximately 45% of our “cost in box” per kg in 2022. In addition to own production of feed, we procure our fish feed from a limited number of suppliers globally. Our arrangements with the suppliers generally provide that we acquire the fish feed at prices tied to the market prices for the raw materials used in producing the feed, such as fish meal, fish oil, vegetable oils and meals. The arrangements are subject to a minimum fee per kg of fish feed, structured to cover the suppliers’ operational costs and margins. Our arrangements generally do not contain minimum or maximum fish feed purchase quantities. The feed cost accumulate over multiple periods (i.e., the entire life of the fish) and is recognised in the period when our fish is harvested and sold. The yield generated from our fish feed is affected by the feed conversion rates, which is the number of kg of fish feed needed to increase a fish’s bodyweight by one kg. Our feed conversion rate is typically between 1.1 and 1.2 kg of feed per kg of fish produced. Other seawater costs in Farming Other seawater costs in Farming represent costs associated with smolt purchases, employee salaries, insurance, medication and other direct and indirect costs attributable to fish production at sea. These costs accumulate over multiple periods (i.e., the entire life of the fish) and are recognised in the period when our fish is harvested and sold. Non-seawater costs in Farming In Farming, non-seawater costs represent the cost of bringing the fish from seawater sites to primary processing facilities, primary processing costs, administration costs, exceptional mortality costs and other relevant costs for the fish harvested in the period. Non-seawater costs are generally incurred and expensed in the same period. As the majority of these costs are fixed, this category is subject to substantial scale effects based on the volumes of salmon harvested. Biological factors Biological factors, such as fish mortality, fish diseases and sea lice affect our harvest volumes and therefore our revenue, but also our costs. We may be required to expend resources to mitigate the effects of the foregoing factors (e.g. costs of vaccines) and the cost per kg harvested increases if fish die or growth is impaired. Fish survival Raised in nature at sea, farm-raised salmon are naturally exposed to various infectious and non-infectious diseases. An outbreak of a disease represents a cost for us through direct loss of fish. In addition, disease can result in lost growth of fish, accelerated harvesting and reduced quality of harvested fish, which would affect our revenues. In some cases, a disease outbreak may be followed by a subsequent period of reduced production resulting in lower revenues and increased cost per kg fish harvested. Fish survival rates are affected by a number of factors, including infectious and non-infectious diseases, predators attacks, environmental conditions and fish handling. We expense incident-based mortality in the period when incidents occur. The cost associated with normal mortality is included in the value of the remaining inventory, contributing to the increased cost of the fish when harvested and sold. Sea lice management Sea lice, of which there are several species, are naturally occurring seawater parasites. They graze on the salmon’s skin and, if not controlled, they can cause lesions, secondary infections and mortality. Sea lice can be controlled through good husbandry and management practices, cleaner fish (wrasse and lumpsuckers that eat sea lice off the salmon’s skin), freshwater baths, other non-medicinal tools (e.g. skirts around pens), thermolicers, hydrolicers, FLS flushers and the use of pharmaceutical products. Effective sea lice management is important for fish welfare and ensuring lice on our farms do not negatively impact wild salmonid stocks. At present sea lice represent a significant cost to the industry. Analytical information 271 Integrated Annual Report 2022 Analytical information 272 Integrated Annual Report 2022 Farmed-raised Atlantic salmon analysis Analytical information 273 Integrated Annual Report 2022 Analytical information 274 Integrated Annual Report 2022 Share and shareholder information We aim to be open and transparent in our communications with the market in order to develop and retain investor confidence, and to deliver an attractive return to our shareholders. The history of our shares Mowi AS was founded in Norway in 1964, changing names and owners several times before being acquired by Pan Fish ASA in 2006. Pan Fish AS was founded in 1992 and listed on the Oslo Stock Exchange in 1997. Pan Fish also acquired Fjord Seafood ASA in 2006, a company founded in 1996 as Torgnes Invest AS and listed on the Oslo Stock Exchange in 2000. Pan Fish ASA changed its name to Marine Harvest ASA in 2007 and Marine Harvest AS changed name to Mowi ASA in 2018. Mowi ASA’s shares are listed on the Oslo Stock Exchange under the ticker MOWI. On January 28, 2014 Mowi ASA listed and commenced trading of its American Depositary Shares (ADS), each representing one ordinary share, represented by American Depositary Receipts (ADR) on the New York Stock Exchange (NYSE). On February 14, 2017, the Board of Directors resolved to delist the Mowis ADS and to terminate the registration of the ADSs due to the low trading volume and the significant cost of maintaining the listing and registration. We maintain the ADR program as a Sponsored Level I program and the ADSs are tradable over-the-counter. As of year end 2022 we had 517 111 091 shares outstanding (517 111 091 shares) traded at NOK 167.2 (NOK 208.7), valuing our company at NOK 86.5 billion (107.9 billion). Please see charts at the end of this section for further information of our share performance over the last ten years. For additional information about our shares, please see Note 24 to the Group financial statements. Share capital As of December 31, 2022, Mowi had 517 111 091 ordinary shares with a nominal value of NOK 7.50. Shareholders As of December 31, 2022, we had 36 801 shareholders, with our 20 largest shareholders holding 56.6% of our shares. The majority of our shares are held in Norway, the US, Cyprus and Great Britain. The two main shareholders of Mowi are Geveran Trading Co Ltd and affiliates (14.4%) and Folketrygdfondet (8.1%). For additional information on share ownership, please see Note 24 to the Group financial statements. Our senior executives hold shares in the Company, please see Note 24 to the Group financial statement for further details. As of December 31, 2022 Mowi ASA had 7 164 251 ADR’s outstanding, representing 1.4% of total shares outstanding. In term of total volume of Mowi shares traded in Norway and in the US, the ADR’s represented 5.0% of volumes in 2022. Payment of dividends Mowi’s ambition is to create long-term value for the shareholder through both positive share price development and a growing dividend in line with long-term earnings. In 2020 the Board decided to make dividend payments more predicable and transparent by operationalising the dividend policy and introducing ordinary and extraordinary dividends. The dividend policy states that: The quarterly ordinary dividend shall under normal circumstances be at least 50% of underlying earnings per share (EPS). Excess capital will be paid out as extraordinary dividends. When deciding excess capital the Board of Directors will take into consideration expected cash flow, capital expenditure plans, financing requirements and appropriate financial flexibility. Further to this a long-term target level for net interest-bearing debt is determined, reviewed and updated on a regular basis. Shareholder returns are distributed primarily as cash dividends with the option of using share buybacks as a complementary supplement on an ad-hoc basis. Dividend declared and paid in 2022 was NOK 7.35 (4.45) per share as normal dividend. See charts at the end this section displaying dividend paid per share and total dividend paid for the last ten years. Communication - financial calendar We expect to present our results in 2023 as follows: Annual General Meeting 2023 at June 1, 2023 Presentation Q1 2023 at May 10, 2023 Presentation Half-yearly Report (Q2) 2023 at August 23, 2023 Presentation Q3 2023 at November 8, 2023 Our presentations will be webcast at 8:00 a.m. CET, and presentation material will be available on our website at 06:30 a.m. CET on the day of release. Please see our website for further details. Analytical information 275 Integrated Annual Report 2022 SHAREHOLDERS BY COUNTRY 1) NUMBER OF SHARES SHAREHOLDING IN % 2022 2021 2020 2022 2021 2020 Norway 136 499 841 118 854 089 130 581 215 26.4% 23.0% 25.3% USA 77 754 335 85 723 424 85 710 185 15.0% 16.6% 16.6% Cyprus 74 293 327 74 289 287 73 090 369 14.4% 14.4% 14.1% Great Britain 59 879 837 61 790 054 51 434 844 11.6% 11.9% 9.9% Germany 33 645 825 30 950 163 34 780 207 6.5% 6.0% 6.7% Other countries 135 037 926 145 504 074 141 514 271 26.1% 28.1% 27.4% Total number of shares 517 111 091 517 111 091 517 111 091 100.0% 100.0% 100.0% 1) Shareholder by country, based on actual ownership behind the nominee accounts. SHARE OWNERSHIP (NUMBER OF SHARES) NUMBER OF SHAREHOLDERS OWNERSHIP IN % 1 - 100 18 951 0.1% 101 - 500 9 732 0.5% 501 - 1 000 3 126 0.5% 1 001 - 5 000 3 225 1.4% 5 001 - 10 000 581 0.8% 10 001 - 100 000 819 5.3% 100 001 - 1 000 000 279 16.5% > 1 000 000 88 74.9% Total 36 801 100.0% RANK SHAREHOLDER 31.12.2022 31.12.2021 Change 1 Geveran Trading Company, Ltd. 14.4% 14.4% 0.0% 2 Folketrygdfondet 8.1% 8.7% -0.6% 3 BlackRock, Inc. 4.4% 4.6% -0.2% 4 Vanguard Group Holdings 3.1% 2.8% 0.3% 5 DnB ASA 2.7% 2.0% 0.7% 6 Svenska Handelsbanken AB 2.5% 2.2% 0.3% 7 UBS AG 2.3% 2.7% -0.4% 8 Schroders PLC 2.0% 1.0% 1.0% 9 Groupe Bruxelles Lambert 1.9% 7.0% -5.1% 10 Storebrand Kapitalforvaltning 1.9% 1.8% 0.1% 11 Altshuler Shaham Mutual Funds Management Ltd. 1.8% 0.0% 1.8% 12 Amundi Asset Management, SAS 1.8% 0.8% 1.0% 13 Kommunal Landspensjonskasse 1.8% 1.6% 0.2% 14 Deutsche Bank AG Group 1.3% 0.6% 0.7% 15 Danske Bank Group 1.2% 1.1% 0.1% 16 CPP Investment Board 1.2% 2.3% -1.2% 17 Legal & General Group Plc 1.1% 1.0% 0.2% 18 Nordea AB 1.1% 0.6% 0.5% 19 Janus Henderson Investors Group 1.0% 1.5% -0.5% 20 Northern Trust Corporation 0.9% 1.1% -0.2% Total owned by top 20 56.6% 58.0% -1.4% Analytical information 276 Integrated Annual Report 2022 Market capitalisation and multiples Key figures Enterprise Value ("EV") to capital employed indicates how the market values Mowi compared to the capital that has been invested in our assets. The value of a large portion of our assets (i.e. the majority of the our licenses and buildings) were assigned in 2006/2007. Since then these assets have multiplied in value, but as they are not subject to fair value adjustment, the recognised values have remained relatively unchanged. This explains the increasing difference between EV and capital employed. EV to EBIT or Operational EBIT measures the market valuation of Mowi compared to the past year's result. As EBIT includes the change in fair value of biological assets, market participants prefer using EV/Operational EBIT as valuation metric. The same analogy applies to the reported earnings versus underlying earnings. Underlying earnings excludes the fair value adjustment of biological assets, hence P/E (underlying) is a preferred valuation metric compared to P/E (basic). Looking back at the history, results in 2015 were mixed but the outlook was positive, which explains the fluctuation in the EV/OP EBIT ratio. 2020 was also a challenging year as Covid-19 impacted demand for salmon and impacted earnings negatively. In 2021 the salmon markets partially recovered, earnings improved and multiples contracted compared with the previous year despite higher market capitalisation. In 2022 Mowi delivered its best result ever and multiples contracted further. Mowi has yielded an annualised total shareholder return in the past 10 year period of 17%. This compares to 10% of OSEBX and 20% of the Oslo Børs Seafood Index. In the past year Mowi has yielded a total shareholder return of -16%, compared to -1% of OSEBX (higher commodity price for energy dominant index) and -18% of the Oslo Børs Seafood Index. Market data 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Market capitalisation (NOK million) 86 461 107 921 98 768 118 005 94 280 68 133 70 078 53 830 42 228 30 306 Number of shares outstanding (million) 517.1 517.1 517.1 517.1 516.0 490.2 450.1 450.1 410.4 410.4 Average number of shares traded per day (million) 1.1 0.9 1.7 1.4 1.9 2.5 2.5 2.2 2.6 1.8 Share price year-end 167.2 208.7 191.0 228.2 182.7 139.0 155.7 119.6 102.9 73.9 - High 266.7 248.2 229.8 235.4 206.2 166.0 157.1 119.6 103.5 73.9 - Low 133.6 183.0 150.7 176.9 130.0 129.6 110.9 87.8 63.1 50.2 Earnings per share, basic (EUR) 1.51 0.94 0.23 0.92 1.15 0.97 1.20 0.36 0.27 0.85 Underlying earnings per share (EUR) 1.42 0.71 0.43 0.99 1.11 1.23 1.13 0.52 0.84 0.68 Net cash flow per share (EUR) 0.35 0.85 0.01 0.59 0.51 0.74 1.23 -0.02 0.80 -0.05 Dividend declared and paid per share (NOK) 7.35 4.45 2.60 10.40 10.40 12.40 8.60 5.20 8.30 2.25 Dividend yield (%) 4.4% 2.1% 1.4% 4.6 % 5.7 % 8.9 % 5.5 % 4.3 % 8.1 % 3.0 % Total shareholder return (%) -16.4% 11.6% -15.2% 30.6 % 38.9 % -2.8 % 37.4 % 21.3 % 50.6 % 48.6 % ROCE % 23.7% 13.4% 8.3% 19.9 % 24.9 % 26.7 % 28.1 % 13.1 % 20.2 % 18.5 % EV/Capital Employed 2.3 3.0 2.6 3.6 3.4 3.1 3.2 2.5 2.4 1.8 EV/EBIT 9.9 19.7 57.3 21.6 11.8 16.9 8.5 20.5 14.1 8.2 EV/Operational EBIT 10.3 22.7 31.1 18.5 14.5 10.3 12.0 20.4 12.1 11.9 P/E, adj 11.7 28.9 41.1 23.4 17.1 12.1 14.8 25.7 14.7 13.9 Analytical information 277 Integrated Annual Report 2022 Analytical information 278 Integrated Annual Report 2022 Dividend and underlying earnings Analytical information 279 Integrated Annual Report 2022 Alternative performance measures (APM) – Non-IFRS measures KEY PERFORMANCE INDICATORS AND ALTERNATIVE PERFORMANCE MEASURES (NON-IFRS MEASURES) As we believe the financial figures set forth in our consolidated statement of income and financial position do not always reflect the underlying performance of our operations, we continuously work to develop key operational performance indicators and alternative performance measures (non-IFRS measures) that we think provide additional insight when analysing our Group's development. Our APMs present useful information which supplements the financial statements. These measures are not defined under IFRS and may not be directly comparable with APMs for other companies. The APMs represent important measures for how management monitors the company and its business activity. The APMs are not intended to be a substitute for, or superior to, any IFRS measures of performance. Some of the financial information presented in our Annual report contains APMs. These include Operational EBIT, Operational EBITDA, Operational Revenues, NIBD, ROCE, Underlying EPS, Operational EBIT % (Margin) and Adjusted Equity Ratio. Below we define these APMs and reconcile them with IFRS measures. Operational EBIT and Operational EBIT per kg harvested Operational EBIT is a non-IFRS financial measure, calculated by excluding each of the following items from earnings before financial items and taxes, or EBIT, as set forth in our consolidated statement of income prepared in accordance with IFRS: –change in unrealised internal margin –gain/loss from derivatives –fair value adjustment on harvested fish –fair value adjustment on incident-based mortality –fair value adjustment on biological assets –provision for onerous contracts –restructuring costs –income/loss from associated companies –impairment losses and write-downs –sales taxes/license fees/production fees and other non-operational items (accrual for contingent liabilities and provisions) We exclude these items from our EBIT as we believe they affect the comparability of our operational performance from period to period, given their non-operational or non-recurring nature. Operational EBIT is used by management, analysts, rating agencies and investors in assessing our performance. Accordingly, we believe that the presentation of Operational EBIT provides useful information to investors. Our use of Operational EBIT should not be viewed as an alternative to EBIT or to profit or loss for the year, which are measures calculated in accordance with IFRS. Operational EBIT has limitations as an analytical tool in comparison to EBIT or other profit and loss measures prepared in accordance with IFRS. Some of these limitations are: 1. it does not reflect the impact of earnings or charges that we consider not to be indicative of our on-going operations, 2. it does not reflect financial items and income tax expense; and 3. other companies, including other companies in our industry, may calculate Operational EBIT differently than we do, limiting its usefulness as a comparative measure. We present Operational EBIT at Group level, by country of origin and by segment. For a reconciliation of our Operational EBIT by segment to EBIT, see Note 4 to the Group financial statements. Operational EBIT % (Margin) Operational EBIT % is a non-IFRS financial measure. We calculate Operational EBIT % by dividing Operational EBIT by Operational Revenue, each a non-IFRS financial measure. Management employs Operational EBIT % to assess operational performance of some of our segments, disregarding certain non-recurring and non-operational items, excluded from Operational EBIT and Operational Revenue. The usefulness of Operational EBIT % is inherently limited as further described in Operational EBIT and Operational Revenue paragraphs above. A table setting forth our calculation of Operational EBIT % is set forth below. Operational Revenue Operational Revenue is a non-IFRS financial measure, calculated by including realised gain/loss from currency derivatives related to contract sales of Norwegian origin and excluding change in unrealised salmon derivatives from revenue and other income as set forth in our consolidated statement of comprehensive income prepared in accordance with IFRS. We exclude change in unrealised salmon derivatives from our revenue and other income as we believe it affects the comparability of our operational performance Analytical information 280 Integrated Annual Report 2022 from period to period, given its non-operational nature. Our use of Operational Revenue should not be viewed as an alternative to revenue and other income, which is a measure calculated in accordance with IFRS. Operational Revenue has limitations as an analytical tool in comparison to revenue. Some of these limitations include the fact that changes in unrealised salmon derivatives may need to be cash settled at a future date. Our Operational Revenue is reconciled to revenue and other income in footnotes to our interim financial statements included in documents incorporated herein by reference. Net interest-bearing debt - NIBD Our NIBD as of the end of a period (for purposes of calculating average NIBD) is equal to our non-current interest-bearing debt minus our total cash, plus our current interest-bearing debt, plus the net effect of currency derivatives on interest-bearing financial debt. Return on capital employed - ROCE ROCE is a non-IFRS financial measure, calculated by dividing Adjusted EBIT by average capital employed. Adjusted EBIT is calculated as EBIT, as set forth in our consolidated statement of income prepared in accordance with IFRS, adjusted for: –fair value uplift on harvested fish –fair value adjustment on biological assets –impairment losses and write downs –provision for onerous contracts –gain/loss on sale of subsidiaries/associated companies –other non-operational items (accrual for contingent liabilities and provisions) Average capital employed is calculated as the average of the beginning of the period and end of the period capital employed except when there are material transactions during the year. Capital employed is the sum of net interest bearing debt, or NIBD, as of the end of the period plus equity as of the end of the period adjusted for: –fair value adjustment on biological assets –provision for onerous contracts –net assets held for sale We use ROCE to measure the return on capital employed, regardless of whether the financing is through equity or debt. In our view, this measure provides useful information for both management and our investors about our performance during periods under evaluation. We believe that the presentation of ROCE provides useful information to investors because ROCE can be used to determine whether capital invested in us yields competitive returns. Our use of ROCE should not be viewed as an alternative to EBIT or to profit or loss for the year, which are measures calculated in accordance with IFRS or ratios based on these figures. The usefulness of ROCE is also inherently limited by the fact that it is a ratio and thus does not provide information as to the absolute amount of our income, debt or equity. It also excludes certain items from the calculation and other companies may use a similar measure but calculate it differently. Underlying EPS Underlying Earnings per Share, or Underlying EPS, is a non-IFRS financial measure. We calculate Underlying EPS by dividing Adjusted Operational EBIT, calculated as Operational EBIT net of accrued payable interest (net), minority share of profit and tax expense calculated based on estimated tax rates, divided by the weighted average number of shares outstanding during the period. Management employs Underlying EPS to assess our operational performance, disregarding non-operational items like amortised interest, net currency effects and net other financial items with the exception of cash costs, and not reflecting permanent and temporary differences in the computation of taxes. We view Underlying EPS as a useful tool reflecting our operational performance per ordinary share outstanding. The usefulness of Underlying EPS is inherently limited. Some of these limitations are that Underlying EPS does not reflect the impact of earnings or charges that we consider not to be indicative of our on-going operations and Underlying EPS. A table setting forth our calculation of Underlying EPS is set forth below. For further details about our financial performance, please see the Profit section and Statements and Notes. Covenants Equity Ratio Covenant Equity Ratio is a non-IFRS financial measure. We calculate Covenant Equity Ration by excluding effects related to IFRS 16 (leasing) from equity. A table setting forth our calculation of Covenant Equity % is set forth below. Net Cash Flow per share Net Cash Flow per share is a non-IFRS financial measure. We calculate Net Cash Flow per share as cash flow from operations and investments (capex), net financial items paid and realised currency effects - divided by the weighted average number of shares outstanding during the period. Effects related to IFRS 16 (leasing) are excluded. Analytical information 281 Integrated Annual Report 2022 Reconciliations Operational EBIT The following tables reconciles our Operational EBIT to EBIT in EUR million and EUR per kg for the Group and for our Farming units for the years ended December 31, 2022 and 2021: RECONCILIATION GROUP (EUR MILLION) 2022 2021 Group Operational EBIT 1 005.1 522.6 Change in unrealised internal margin -10.4 6.6 Gain/loss from derivatives -4.7 8.5 Net fair value adjustment biomass 113.7 119.8 Onerous contracts provision -8.3 -3.2 Restructuring costs -13.7 -22.6 Income/loss from associated companies and joint ventures 59.2 97.5 Impairment losses & write-downs -59.5 -74.8 Production/license/sales taxes -25.6 -21.9 Other non-operational items -2.1 -30.3 Group EBIT 1 053.8 602.2 RECONCILIATION GROUP (EUR per kg) 2022 2021 Group Operational EBIT 2.17 1.12 Change in unrealised internal margin -0.02 0.01 Change in unrealised salmon derivatives -0.01 0.02 Net fair value adjustment biomass 0.25 0.26 Onerous contracts provision -0.02 -0.01 Restructuring costs -0.03 -0.05 Income/loss from associated companies and joint ventures 0.13 0.21 Impairment losses & write-downs -0.13 -0.16 Production/license/sales taxes -0.06 -0.05 Other non-operational items 0.00 -0.07 Group EBIT 2.27 1.29 RECONCILIATION NORWEGIAN ORIGIN (EUR MILLION) 2022 2021 Operational EBIT—Salmon of Norwegian Origin 806.1 389.4 Gain/loss on derivatives 2.3 -3.7 Net fair value adjustment biomass 78.8 95.8 Onerous contracts provision 1.1 -2.2 Restructuring costs -0.6 — Income/loss from associated companies and joint ventures 59.2 44.4 Impairment losses & write-downs -0.7 -0.5 Production/license/sales taxes -11.8 -10.7 Other non-operational items -0.7 -0.9 EBIT—Salmon of Norwegian Origin 933.6 511.6 Analytical information 282 Integrated Annual Report 2022 RECONCILIATION NORWEGIAN ORIGIN (EUR per kg) 2022 2021 Operational EBIT—Salmon of Norwegian Origin 2.74 1.43 Gain/loss on derivatives 0.01 -0.01 Net fair value adjustment biomass 0.27 0.35 Onerous contracts provision — -0.01 Income/loss from associated companies and joint ventures 0.20 0.16 Production/license/sales taxes -0.04 -0.04 EBIT—Salmon of Norwegian Origin 3.18 1.87 RECONCILIATION SCOTTISH ORIGIN (EUR MILLION) 2022 2021 Operational EBIT—Salmon of Scottish Origin 42.6 77.2 Net fair value adjustment biomass 17.8 11.3 Onerous contracts provision -4.6 -1.0 Restructuring costs — -0.3 Impairment losses — -0.1 Production/license/sales taxes -1.5 -2.0 EBIT—Salmon of Scottish Origin 54.3 85.1 RECONCILIATION SCOTTISH ORIGIN (EUR per kg) 2022 2021 Operational EBIT—Salmon of Scottish Origin 0.88 1.20 Net fair value adjustment biomass 0.37 0.18 Onerous contracts provision -0.10 -0.01 Restructuring costs — 0.00 Production/license/sales taxes -0.03 -0.03 EBIT—Salmon of Scottish Origin 1.12 1.32 RECONCILIATION CANADIAN ORIGIN (EUR MILLION) 2022 2021 Operational EBIT—Salmon of Canadian Origin 65.8 -10.4 Net fair value adjustment biomass 12.9 14.0 Restructuring costs -8.0 -7.6 Impairment losses & write-downs -54.9 -73.2 Production/license/sales taxes -6.2 -3.6 Other non-operational items -2.5 -0.6 EBIT—Salmon of Canadian Origin 7.1 -81.4 RECONCILIATION CANADIAN ORIGIN (EUR per kg) 2022 2021 Operational EBIT—Salmon of Canadian Origin 1.60 -0.23 Net fair value adjustment biomass 0.31 0.31 Restructuring costs -0.19 -0.17 Impairment losses & write-downs -1.33 -1.62 Production/license/sales taxes -0.15 -0.08 Other non-operational items -0.06 -0.01 EBIT—Salmon of Canadian Origin 0.17 -1.80 Analytical information 283 Integrated Annual Report 2022 RECONCILIATION CHILEAN ORIGIN (EUR MILLION) 2022 2021 Operational EBIT—Salmon of Chilean Origin 76.9 47.1 Net fair value adjustment biomass 6.0 -0.4 Onerous contracts provision -4.8 — Impairment losses & write-downs -3.6 — Production/license/sales taxes -2.8 -2.5 Other non-operational items 0.0 0.8 EBIT—Salmon of Chilean Origin 71.8 45.1 RECONCILIATION CHILEAN ORIGIN (EUR per kg) 2022 2021 Operational EBIT—Salmon of Chilean Origin 1.17 0.71 Net fair value adjustment biomass 0.10 -0.01 Onerous contracts provision -0.07 — Impairment losses & write-downs -0.06 — Production/license/sales taxes -0.04 -0.04 Other non-operational items 0.00 0.01 EBIT—Salmon of Chilean Origin 1.09 0.68 RECONCILIATION IRISH ORIGIN (EUR MILLION) 2022 2021 Operational EBIT—Salmon of Irish Origin 6.0 14.2 Net fair value adjustment biomass -3.4 -5.4 Production/license/sales taxes -0.2 -0.2 EBIT—Salmon of Irish Origin 2.4 8.6 RECONCILIATION IRISH ORIGIN (EUR per kg) 2022 2021 Operational EBIT—Salmon of Irish Origin 0.88 2.09 Net fair value adjustment biomass -0.50 -0.80 Production/license/sales taxes -0.03 -0.03 EBIT—Salmon of Irish Origin 0.35 1.27 RECONCILIATION FAROESE ORIGIN (EUR MILLION) 2022 2021 Operational EBIT—Salmon of Faroese Origin 19.6 12.7 Net fair value adjustment biomass 1.7 4.6 Production/license/sales taxes -3.1 -2.9 EBIT—Salmon of Faroese Origin 18.2 14.3 RECONCILIATION FAROESE ORIGIN (EUR per kg) 2022 2021 Operational EBIT—Salmon of Faroese Origin 2.49 1.28 Net fair value adjustment biomass 0.22 0.46 Production/license/sales taxes -0.39 -0.29 EBIT—Salmon of Faroese Origin 2.32 1.44 Analytical information 284 Integrated Annual Report 2022 NIBD, ROCE The following tables set forth our calculation of ROCE, requiring reconciliation of Adjusted EBIT to EBIT and NIBD to non-current interest-bearing debt, for the years ended December 31, 2022 and 2021: CALCULATION OF ROCE, RECONCILIATION OF ADJUSTED EBIT AND NET INTEREST BEARING DEBT (EUR MILLION, EXCEPT ROCE) 2022 2021 Adjusted EBIT 1 032.0 543.9 Net fair value adjustment biomass 113.7 119.8 Onerous contracts provision -8.3 -3.2 Impairment losses & write downs -59.5 -74.8 Other non-operational items -24.7 -26.4 Other adjustments — -15.0 Income from associated companies and joint ventures1) — 53.1 IFRS16 Effects 0.5 4.8 EBIT 1 053.8 602.2 Net interest-bearing debt (NIBD) 1 758.9 1 257.3 Cash 178.5 101.7 Current interest-bearing debt -211.6 -0.1 Non-current interest-bearing debt 1 725.8 1 358.9 NIBD 1 758.9 1 257.3 Total equity 3 694.9 3 135.2 Fair value adjustment on biological assets -457.2 -326.2 Onerous contracts provision 11.2 3.2 Capital employed as of the end of the period 4 657.6 4 069.6 Average capital employed2) 4 363.6 4 044.2 Adjusted EBIT 1 032.0 543.9 ROCE 23.7% 13.4% 1) Realised gain of EUR 53.1 million from the sale of Dess Aquaculture Shipping. 2) Calculated as the average capital employed as of the beginning and the end of the period, except when there are material transactions during the year. Capital employed as of the end of the period for 2022 is adjusted with EUR 350 million due to the Arctic Fish transaction. Underlying EPS The following table set forth our calculation of Underlying EPS for the year ended December 31, 2022, and 2021: UNDERLYING EARNINGS PER SHARE (EUR MILLION) 2022 2021 Operational EBIT ex IFRS 16 991.2 512.7 Accrued payable interest (NET) -38.1 -41.8 Calculated tax expense -216.9 -103.6 Minority share of profit -3.0 -0.2 Operational EBIT adjusted for above items 733.2 367.0 Shares outstanding (average) 517 111 091 517 111 091 Underlying EPS (EUR Per share) 1.42 0.71 Analytical information 285 Integrated Annual Report 2022 Operational EBIT % (Margin) The following table set forth our calculation of Operational EBIT % for the Group and our segments for the year ended December 31, 2022 and 2021. GROUP OPEBIT % (EUR MILLION) 2022 2021 Group Operational EBIT 1 005.1 522.6 Operational revenues 4 946.0 4 207.6 Group Operational EBIT % 20.3% 12.4% CONSUMER PRODUCTS OPEBIT % (EUR MILLION) 2022 2021 Operational EBIT - Consumer Products 112.1 95.6 Operational revenues 3 165.5 2 810.4 Operational EBIT % - Consumer Products 3.5% 3.4% MARKETS OPEBIT % (EUR MILLION) 2022 2021 Operational EBIT - Markets 61.1 50.5 Operational revenues 3 725.6 2 863.3 Operational EBIT % - Markets 1.6% 1.8% FARMING OPEBIT % (EUR MILLION) 2022 2021 Operational EBIT - Farming 817.2 370.5 Operational revenues 3 305.5 2 576.0 Operational EBIT % - Farming 24.7% 14.4% FEED OPEBIT % (EUR MILLION) 2022 2021 Operational EBIT - Feed 30.8 18.4 Operational revenues 986.2 679.1 Operational EBIT % - Feed 3.1% 2.7% Covenant equity ratio The following table set forth our calculation of Covenants Equity Ratio, requiring reconciliation of Equity to Covenant Equity Ratio, for the year ended December 31, 2022 and 2021. Covenant Equity Ratio (EUR MILLION) 2022 2021 Total equity 3 687.1 3 131.4 Right of use assets -452.1 -513.2 Non current leasing liabilities 289.4 335.7 Current leasing liabilities 173.5 182.7 Deferred tax liability -3.2 -1.4 Adjusted total equity 3 694.7 3 135.3 Adjusted total equity and liabilities 7 079.4 5 746.4 Covenant Equity Ratio 52.2% 54.6% Analytical information 286 Integrated Annual Report 2022 Net Cash Flow per share The following table set forth our calculation of Net Cash Flow per share, requiring specification of total net cash flow, for the year ended December 31, 2022 and 2021. Net Cash Flow per share (EUR MILLION) 2022 2021 Cash flow from investments -469.4 -133.7 Cash flow from operations 667.3 833.1 Effects of IFRS 16 on cash flow from operations -190.3 -205.5 Acquisition adjustments 179.5 — Net financial items paid and realised currency effects -19.7 -66.6 Effects of IFRS 16 on cash flow from financing 12.7 12.9 Total Net Cash Flow1) 180.1 440.1 Shares outstanding (Average) 517 111 091 517 111 091 Net Cash Flow per share 0.35 0.85 1) Excluding effects of IFRS 16 Analytical information 287 Integrated Annual Report 2022 Risk and risk management Risk relates to uncertainty and the factors that may prevent us from generating the expected returns, reaching our goals and deliver on our strategy. Through our risk management processes we identify, quantify, and define actions to manage the risks we are facing. We split our defined risks into subcategories within our four guiding principles - Profit, Planet, Product and People to ensure that they are addressed by our most capable people within each area. Risk and how we work to manage it Our ambition is to be a leading, integrated provider of proteins from the ocean. We aim to be a leader in all key areas from production of fish feed to meeting the needs of the market: –Manufacturing high-quality salmon feed. –Farming healthy and safe salmon for own value added processing and third-party whole fish sales. –Processing and selling healthy, delicious and innovative value added seafood products. Through our materiality assessment we have identified areas of opportunity and risk that could influence our ability to achieve our goals and deliver on our strategy. Risk management is what we do to manage our risk in order to provide reasonable assurance to our stakeholders that we will achieve our goals. Different risk management frameworks are in use globally, the most widely used being the COSO 1) enterprise risk framework, which divides risk into four categories: 1. Operational risk 2. Strategic risk 3. Reporting risk 4. Compliance risk We consider our operational risk to cover several individually important subcategories, and have therefore chosen to divide our operational risks into the following sub categories: a. Risks related to the sale/supply of our products b. Risks related to governmental regulations c. Risks related to our fish farming operations d. Risks related to our supply of fish feed and feed operations e. Risks related to our industry f. Risks related to our business g. Risks related to our financial arrangements h. Risks related to tax and legal matters i. Risks related to climate change j. Risk related to cyber security and technological innovation All risk categories could, if not properly managed, have a material adverse effects on our business operations and financial results. Each risk category includes one or more identified risks factors that individually and/or in combination with others could significantly affect our performance. We are continuously working to mitigate identified risks and capitalise on opportunities by tracking and following up key performance indicators within the framework of our four guiding principles. We believe that our long-term success depends on our ability to manage the relevant risks associated with our operations, strategy, reporting and compliance. An overview of our identified risk factors, along with our mitigation efforts and what we do to manage our risk, is outlined in the table below. For more detailed descriptions of the risks/ challenges and opportunities associated with our operations, please see the referenced sections in this Integrated Annual Report. We apply the precautionary approach to risk management through our materiality assessment. Mowi reports in accordance with the Global Reporting Initiative requirements. The appendix found on our website mowi.com provides the required additional disclosures including the GRI disclosure index. 1) Committee of Sponsoring organisations Analytical information 288 Integrated Annual Report 2022 RISK AND RISK MANAGEMENT RISK SHORT DESCRIPTION MITIGATION ACTION REFERENCE 1a Risks related to the sale and supply of our products I Our results depend on salmon prices. Our results are substantially dependent on salmon prices, and salmon prices are subject to large short and long-term fluctuations due to variations in supply and demand caused by factors such as smolt transfer, biological factors, quality, shifts in consumption and license changes. Short- or long-term decreases in the price of farm-raised salmon may have a materially adverse effect on our financial figures. –Sales contract policy to reduce exposure to fluctuations Downstream integration to reduce dependence on spot whole-fish prices Product innovation to grow overall salmon sales –Commitment to sustainable development of the industry and information exchange with authorities to ensure a sustainable operational framework for steady growth –Profit –Note 13 Group –Leading the Blue Revolution –Product –Planet –R&D –Analytical information II A reduction in the price of salmon may trigger substantial reduction in the value of our biological assets. A reduction in the price of salmon may trigger substantial reduction in the value of our biological assets, as the price of salmon is a significant factor in the valuation of these assets. –Ref Salmon prices above –Ref Salmon prices above –Note 6 Group III We may be unable to effectively hedge our exposure to short- and medium-term fluctuations in salmon prices. We seek to manage our exposure to short and medium-term fluctuations in salmon reference prices through sales contracts and Fish Pool financial futures, as well as through our secondary processing activities. An inability to effectively hedge our exposure to short- and medium-term fluctuations in salmon prices may have a materially adverse effect on our financial figures. –Sales contract policy to reduce exposure to fluctuations –Downstream integration to reduce dependence on spot whole-fish prices –Profit –Note 13 Group –Analytical information –Leading the Blue Revolution IV Market demand for our products may decrease. Increased competition, consolidation and overcapacity may lead to reductions in the price of competing products that could curtail demand for our products. Inflation could lead to higher prices on all goods and effect the price of salmon. This may have a materially adverse effect on our financial figures. –Focus on health benefits of salmon consumption –Continuous effort to find sustainable, more affordable raw materials for feed production and focus on best operational practices to reduce operational costs –Branding strategy –Product –Planet –R&D V Changes in consumer preferences/lack of product innovation may have an adverse effect on our business. Our continued success will depend in part on our ability to anticipate, identify and respond quickly to changing consumer preferences for fish, especially secondary processed seafood. If we are unable to do so, this may have a materially adverse effect on our financial figures. –Focus on health benefits of salmon consumption –Product innovation to grow overall salmon sales –Continue to strengthen our market and new product development –Product –R&D VI Disruptions to our supply chain may impair our ability to bring our products to market. We source and transport our salmon over long distances. As most of our products are perishable and can be stored only for a limited time, disruptions to our supply chain due to weather, earthquakes, natural disaster, fire or explosion, terrorism, pandemics, strikes, government action, environmental incidents or other matters beyond our control could impair our ability to bring our products to the market (timely or at all). –Emergency plans to mitigate consequences –Global footprint for farming and processing enabling cross-production –Branding strategy –Analytical information VII Natural disasters, catastrophes, fire or other unexpected events could cause significant losses of operational capacity. Our facilities could be materially damaged by natural disasters, and we could incur uninsured losses and liabilities arising from such events, including damage to our reputation and/or suffer material losses in operational capacity. –Risk-based insurance coverage –Emergency plans to mitigate consequences –Strict standards for construction of operating units –Global footprint for farming and processing enabling cross-production –Analytical information Analytical information 289 Integrated Annual Report 2022 RISK SHORT DESCRIPTION MITIGATION ACTION REFERENCE 1b Risks related to governmental regulations I Governmental regulations affect our business. The fish farming and processing industries are subject to local, regional and national government regulations relating to the farming, processing, packaging, storage, distribution, advertising, labeling, quality and safety of food products. Our operations are also subject to extensive and increasingly stringent regulations administered by environmental agencies in the jurisdictions in which we operate. –Continuous dialog with the authorities in the countries in which we operate to secure a sustainable operational framework –Active participation, alone or through joint industry groups, in consultative processes for new or updated regulatory frameworks –Rigorous testing to ensure that our products are safe and healthy –Third-party certification –Leading the Blue Revolution –R&D –Product II Trade restrictions could have a negative impact on price in some countries. Trade restrictions resulting in suboptimal distribution of salmon may be intensified, creating a negative impact on price in some countries. Many of our production sites are located outside our principal markets, leaving us exposed to trade restrictions. The effects of trade restrictions may have a significant negative impact on our ability to sell in certain regions or our ability to charge competitive prices for our products in such regions. –Dialog with authorities to ensure access to markets globally –Sales contract policy to reduce exposure to fluctuations –Global farming and processing footprint to mitigate the effects of trade restrictions with regional reach –Promotion of health benefits of salmon –Leading the Blue Revolution –Profit –Note 13 Group –Analytical information III We may face restrictions with regard to operating sites located close to protected or highly sensitive areas. Some of our sites are located close to or within sensitive areas with respect to biodiversity. The effect of salmon farming on the environment and biodiversity is being intensively discussed and new regulations in this area could result in the closure of sites or require the implementation of costly measures. In addition, new regulations could result in restrictions to certain additives used in fish feed and in medication becoming prohibited at these sites if they are believed to have an adverse impact on the environment. Compliance with such laws, rules and regulations, or a breach of them, may have a materially adverse effect on our business and financial figures. Continuous dialog with the authorities in the countries in which we operate to document that biodiversity is not adversely affected by our operations Cooperation agreement with WWF Norway for mutual exchange of ideas and information Environmental testing and documentation to ensure that our operations do not leave a lasting footprint Leading the Blue Revolution R&D Planet BoD report IV Our fish farming operations are dependent on fish farming licenses. In the jurisdictions in which we operate, we are required to obtain licenses in order to farm fish. We have obtained and currently hold such licenses for our operations. Governments may, however, change the way licenses are distributed, or otherwise dilute or invalidate our licenses. If we are unable to maintain existing or obtain new fish farming licenses, or if a new licensing regulation dilutes the value of our licenses, this may have a materially adverse effect on our business. Continuous dialog with the authorities in the countries in which we operate to discuss our and their role in securing the sustainable development of the industry Dear stakeholders Leading the Blue Revolution R&D Note 9 Group V Antitrust and competition regulations may restrict further growth in some of the jurisdictions in which we operate. Our business and operations are subject to regulation by antitrust or competition authorities, particularly due to our significant market shares in the jurisdictions in which we operate. The risks of infringing competition laws and regulations are higher in markets in which we hold a leading position. In an acquisition setting, we may be forced to divest certain parts of the acquisition, which may have a materially adverse effect on our business and financial figures. Continuous dialog with the authorities in the countries in which we operate to discuss the potential benefits of industry consolidation from a sustainability point of view Dear stakeholders Leading the Blue Revolution VI We could be adversely affected by violations of the acceptable anti-corruption laws. Applicable anti-corruption laws, including the US Foreign Corrupt Practices Act and the UK Bribery Act of 2010, generally prohibit companies and their intermediaries from making improper payments, and require companies to keep accurate books and records as well as appropriate internal controls. We operate in some parts of the world that have experienced governmental corruption, and if we were found liable for violations of anti-corruption laws, we may incur civil and criminal penalties which could have a materially adverse effect on our business, financial figures and reputation. Code of Conduct Leadership Principles Leading the Blue Revolution People Corporate governance Analytical information 290 Integrated Annual Report 2022 RISK SHORT DESCRIPTION MITIGATION ACTION REFERENCE 1c Risks related to our fish farming operations I Fish are adversely affected by sea lice, and we may incur significant costs and be exposed to regulatory actions if the challenge is not addressed. The authorities in all countries with an aquaculture industry have set limits for the acceptable number of sea lice per fish. A failure to control sea lice levels may result in an increased number of treatments, compromised fish welfare, higher costs and the possibility of regulatory actions. Implementation of our sea lice strategy. Continuous R&D efforts on most effective lice strategy, as well as new tools to control sea lice in a sustainable manner –R&D –Planet II We may be exposed to criticism and regulatory actions arising from our farming of and use of wild caught cleaner fish for sea lice control. Our sea lice control strategy is primarily based on using non-medicinal tools and includes the use of cleaner fish. Catch, farming and use of cleaner fish have raised concerns with regards to protection of wild stocks, husbandry practices, fish welfare and survival. Therefore, the use of cleaner fish could result in negative publicity, reputational harm and possibly regulatory actions. –R&D in key areas including fish health, fish nutrition and husbandry –Good farming practices (identification and implementation of best practices during farming of cleaner fish, as well as at the salmon farms) –R&D –Planet III Our fish stocks, operations and reputation can be adversely affected by various diseases. Our fish are affected by diseases caused by viruses, bacteria and parasites which may have an adverse effect on fish survival, health, growth and welfare and result in reduced harvest weight and volume, downgrading of products, claims from customers and increased costs. Continued disease problems may also attract negative media attention and public concerns. –Disease registration and tracking of reasons for reduced survival to monitor development and prioritise R&D –Applying best farming practices for disease control –R&D efforts within disease management and control, including more knowledge of best farming practices, vaccine testing and use, breeding program which includes selection of best genetics related to fish robustness and resistance to diseases –R&D –Planet IV Our fish stocks can be depleted by environmental factors such as plankton, low oxygen levels and fluctuating seawater temperatures. Our salmon farming operations are subject to a number of environmental risks which may impact profitability and cash flows through adverse effects on growth, harvest weight, harvest volume, mortality, downgrading and claims. –Continuous R&D effort to manage the challenges including the use of skirts around the pens and continuous oxygen monitoring systems at the bottom of the pens –Plankton (including algae) surveillance systems –Planet V Our fish stocks are subject to risks associated with fish escapes and predation. Salmon escapes are most commonly caused by human error, severe weather and structural issues at our farming sites. In addition to affecting our salmon count, escaped farmed salmon may impact wild salmonid stocks by genetic interaction and the risk of transferring disease. This may result in negative publicity and penalties or other sanctions from governmental authorities. Our salmon is also subject to predation by other animals which can affect our salmon count and adversely impact our results of operations. –Escape prevention and mitigation plans –Tracking of all escape incidents and investigation for cause of incident for information sharing and learning –Applying best practices for escape prevention –Continuous R&D effort to test farming equipment for severe weather conditions –R&D –Planet –BoD report VI Intensive production may result in physical deformities, leading to downgrading and/or losses of biomass as well as to reputational harm. Intensified production may push the boundaries for how fast fish can grow, and cause production-related disorders relating to physical deformities and cataracts. High water temperatures of more than 14 degrees Celsius early in the freshwater stage, water quality and diet composition may all be contributing factors. Deformities and cataracts may lead to financial losses and damage to the industry and our reputation. –R&D - feed research trials to document that the diets used in commercial salmon farming are not compromising fish health and welfare –R&D salmon growth trials to develop best farming practices for growth –R&D –Planet VII Our fish stocks might be exposed to contaminants, leading to product recalls, product liability, negative publicity and governmental sanctions Farm-raised salmon may be exposed to contamination by undesirable substances through raw materials and ingredients in the fish feed, polluted waters, poor processing hygiene and cross-contamination during handling. Contamination may affect food safety, fish health and the environment, and reduce the publics confidence in eating salmon. –Vigorous product testing to document that our products are safe –Requirements to suppliers and certification of raw materials used in our fish feed –Testing of raw materials and feed used in our farming operations –R&D –Planet –Product Analytical information 291 Integrated Annual Report 2022 RISK SHORT DESCRIPTION MITIGATION ACTION REFERENCE VIII Our fish may be exposed to pollutants from open seas resulting in mortality and poor end-product quality Fish farming is conducted using open net pen systems located in marine environments. Operations are therefore exposed to pollution from the open sea, including potential oil leaks or spills. Oil products floating into a farm will severely affect the fish’s normal oxygen uptake, reduce fish survival and leave an unpleasant taste on surviving fish, making it inedible. –Testing of end-products to document that they are safe and of high quality –Locating farms in areas with clean waters and a low risk of pollution –R&D –Product IX Inclement weather could hurt our stocks negatively affect our operations and damage our facilities Unusually warm or cold temperatures, altered oxygen levels in the sea resulting from annual variations, as well as extreme weather in the regions where we operate could cause impairment of the health and growth of our fish or result in fish escapes, loss of biomass, lost feeding days, repair costs, damage to infrastructure, etc. –Ref Fish Escapes above –New technology –Evaluation of environmental conditions and use of equipment fit for the conditions in the area –Ref Fish Escapes above –R&D X Our operations are exposed to risks related to biological events or natural phenomena for which insurance coverage is expensive, limited and potentially inadequate. Our business operations are subject to a number of adverse biological risks, including risks relating to sea lice, fish mortality, disease, predation and other biological risks. There will always be a risk that certain biological events or natural phenomena may occur for which no or only partial insurance coverage is payable. –Ref Sea lice above –Ref Disease above –Risk-based insurance coverage –Ref Sea lice above –Ref Disease above 1d Risks related to our supply of fish feed and our feed operations I Reduced availability of the main ingredients used in fish feed production could result in higher costs for fish feed. Fish feed is a main cost driver approximately 40-50% of our “cost in box”. Global inventories, currency fluctuations and seawater temperatures all affect the supply of feed ingredients. Fish oil and fish meal are produced using wild caught fish such as anchovies. The extensive use of fish oil combined with a growing fish farming industry presents a sustainability challenge for the industry. Other key ingredients such as canola oil, soy bean protein and wheat are subject to unpredictable price changes caused by supply and demand fluctuations, weather, size of harvest, transportation and storage cost, global policies, etc. –Continuously working in-house and with feed suppliers to ensure that the feed recipes are altered based on relative prices to secure the lowest possible cost without compromising fish health –Efforts to test and document feeds with lower levels of marine ingredients without compromising fish health/performance –R&D –Profit –Planet –Analytical information II Termination of one or more of our feed contracts at short notice could result in material additional costs. We still depend on third-party feed suppliers. The fish feed industry is dominated by three large, global suppliers, which normally adapt their production volumes to prevailing supply commitments. If one or more of our feed contracts were terminated at short notice prior to their respective expiration dates, we may be forced to find alternative suppliers at short notice, incurring additional costs. –Long-term supply contracts with termination clauses –Own feed production –Leading the Blue Revolution III Production issues in our own feed operations could cause us to incur material additional costs. If our feed operation were to encounter production challenges, including those related to contaminated fish feed/feed ingredients, labour stoppages, disruptions in the supply chain and environmental and regulatory issues, we may be forced to find alternative suppliers in the market at short notice, incurring additional costs and potential disruptions to our farming operations. We could also be liable for losses incurred by third party feed customers. –Certification of raw materials used –Testing of feed ingredients –Employee HSE surveys –Use of numerous suppliers of feed ingredients –Planet –People IV A reduction in the quality of our fish feed could have a materially adverse effect on our production. Fish feed is essential to our fish production, as its quality affects the quality and volume of our harvests. Our feed conversion rate may increase due to lower quality or a suboptimal mix of ingredients used. –Testing to document that our feed is of high quality, contributing to good growth and favourable feed conversion rates –R&D –Planet V Inferior or contaminated fish feed could result in product liability or other serious adverse consequences for us. Harmful substances may be found in feed ingredients, and although we have implemented risk analysis and screening protocols to prevent the contamination of our feed, undetected contamination could cause severe damage to the salmon, potentially causing health issues for consumers and resulting in liability claims. –Certification of raw materials used –Testing of feed ingredients –Testing of end products –Risk analysis and screening protocols –R&D –Planet –Product Analytical information 292 Integrated Annual Report 2022 RISK SHORT DESCRIPTION MITIGATION ACTION REFERENCE 1e Risks related to our industry I Our facilities may be the target of sabotage by environmental organisations. Some environmental organisations have the eradication of salmon farming as one of their stated aims. A risk of sabotage can therefore not be ruled out. –Stakeholder dialog for the exchange of information and ideas –Leading the Blue Revolution II The aquaculture industry may be subject to negative media coverage. Farm-raised salmon has in some instances been subject to criticism from various research communities and NGOs, which may affect consumer attitudes towards farm-raised salmon. Such negative consumer attitudes may result in a lower demand for our products. –Stakeholder dialog for the exchange of information and ideas –Documentation of our farming practices and third-party certification –Leading the Blue Revolution –Planet –Product 1f Risks related to our business I We derive nearly all our revenues from sales of Atlantic salmon and are heavily dependent on the market for Atlantic salmon. Our business consists primarily of raising and selling Atlantic salmon, and we expect this to continue for the foreseeable future. Accordingly, our business is heavily dependent on the market for Atlantic salmon. –Ref Market demand for our products above –Ref Change in consumer preferences above –Ref Market demand for our products above –Ref Change in consumer preferences above II We rely heavily on the services of key personnel. We depend substantially on the leadership of a small number of executive officers and other key employees. The loss of the services provided by these individuals could have a materially adverse effect on our business. We may also find it difficult to attract the necessary employee resources in the remote areas in which we operate. –Roll out our leadership principles and continue to build a winning culture that supports employee development and attracts new employees –Remuneration of key management personnel –Leading the Blue Revolution –People –Note 14 Group –Note 15 ASA III We are subject to risks associated with our international operations and our expansion into emerging markets. Our global operational footprint means we are subject to various risks and uncertainties relating to our international operations. These include the imposition of trade protection measures, corruption, the impact of exchange rate fluctuations, political, social and economic conditions, compliance with domestic and international laws, different regulatory structures, differing tax regimes and distribution. Negative consequences in these regards could limit our ability to transact business in current or future markets. –Identification of risk and risk mitigating actions prior to entering new markets –Risk mapping on a continuous basis –Risk an Risk Management IV Political instability may have a material adverse effect on our business, results of operation and financial condition. Political instability has in the past, and may in the future, adversely affect our operational results. The Russian ban on imports of salmon products from certain countries and the Chinese restrictions on imports of Norwegian salmon are recent examples in this regard. –Global farming, processing and supply footprint expanding the opportunities if political actions target a specific place of origin only –Analytical information V We depend on the availability of and good relations with our employees. Our operations depend on the availability, retention and relative cost of labour, and on maintaining satisfactory relations with employees and labour unions. Labour relation issues may arise from time to time, which could result in strikes or other labour disputes. –Roll out our leadership principles and continue to build a winning culture that supports employee development and attracts new employees –Fair compensation –Cooperation with employees organisations and unions –Leading the Blue Revolution –People VI We depend on a small number of contractors for key industry supplies, such as fish feed and well boats. We depend on major industry suppliers of well boats and fish feed. We hire most of our well boats, and we purchase a significant share of our fish feed from third parties. There is a limited number of key suppliers of these items to our industry, and failure to maintain good business relationships with these suppliers may have a significantly adverse effect on us. –Own feed production –Stakeholder dialog –Leading the Blue Revolution Analytical information 293 Integrated Annual Report 2022 RISK SHORT DESCRIPTION MITIGATION ACTION REFERENCE VII Some steps of the production process are outside our control. We purchase seafood from third parties as an input factor in some of our secondary processing activities. We do not control the production process for the seafood we purchase, and it may contain foreign elements that are harmful or prohibited under the laws of the countries in which we distribute the product. Furthermore, substantial sales of generic and private label products mean that we do not always control the brand under which our products are sold. This may have a negative impact on our reputation in addition to making it difficult for us to build brand loyalty. –Brand building to differentiate our products –Product testing –Supplier commitment to our code of conduct –Product –People 1g Risks related to our financing arrangements I If we are unable to access capital, we may be unable to grow or implement our strategy as designed. Feed production, salmon farming and seafood processing are capital intensive industries. Our future development and growth may depend on access to external capital in the form of debt and/ or equity capital. A lack of access to such capital, or material changes in the terms and conditions of our external financing could limit our future growth and strategy. –Ref all actions to safeguard profit and reduce/manage costs –Ref Salmon price, market demand, sea lice, disease, Kudoa above –Ref salmon price, market demand, sea lice, disease, kudoa, contractors for key industry supplies above –Note 13 Group –BoD report II We are highly leveraged and subject to restrictions in our financing agreements that impose constraints on our operating and financing flexibility. We have substantial debts outstanding. We may need to refinance some or all of our borrowings, and may not be able to do so at attractive terms or at all. We may incur additional debt in the future, subject to limitations under our credit facilities and bond terms. –Ref all actions to safeguard profit and reduce/manage costs –Ref salmon price, market demand, sea lice, disease, Kudoa above –Using a portfolio of financing options to reduce dependence on our syndicated credit facility –Ref salmon price, market demand, sea lice, disease, kudoa, contractors for key industry supplies above –Note 11 Group –Note 13 Group –BoD report III Fluctuations in the value of the derivatives used to hedge our exposure to salmon prices may adversely impact our operating results. Our business is exposed to fluctuating salmon prices, and we use contracts and derivative financial instruments to reduce such exposure. The use of derivative financial instruments reduces our exposure to changes in prices, but may also limit our ability to benefit from favourable trends in salmon prices, while our contracts can adversely affect our profitability when spot prices are rising. –Ref salmon price above –Ref salmon price above –Note 13 Group –BoD report IV Fluctuations in foreign exchange rates may adversely impact our operating results. We are exposed to changes in foreign exchange rates as a part of our business operations. Although we seek to hedge our exposure to currency risk, such hedging arrangements may not be effective, which may ultimately have a materially adverse effect on our business and financial figures. –Foreign Exchange Strategy –Hedging Policy –Note 13 Group –BoD report V We are subject to fluctuations in interest rates due to the prevalence of floating interest rates in our debt. We are partly financed at floating interest rates, and our hedges against interest rate fluctuations in the main currencies related to our interest-bearing debt may be ineffective in protecting us from the effects of interest rate increases. –Hedging policy - interest rate swaps –Note 13 Group –BoD report VI If our customers fail to fulfill their contractual obligations we may suffer losses. We are exposed to the risk of losses if one or more contractual partners do not meet their obligations. We cannot guarantee that we will be able to recover losses from trade receivables from credit insurance companies or that our credit evaluations of trading partners will be effective. –Insurance policy –Credit ratings of all customers –Close follow up of customers –Note 13 Group –BoD report Analytical information 294 Integrated Annual Report 2022 RISK SHORT DESCRIPTION MITIGATION ACTION REFERENCE 1h Risks related to tax and legal matters I We are exposed to potentially adverse changes in the tax regimes of the jurisdictions in which we operate. Significant changes in the tax regimes in the countries in which we operate may have a materially adverse effect on our financial figures. –Dialogue with politicians and stakeholders to ensure correct understanding of existing tax contributions – not just from corporate tax, but also various additional taxes we already pay in the countries we operate, e.g. license fees –Explain potential negative effects of significant changes to tax regimes –Tax optimisation within the laws of the countries in which we operate –Note 15 Group II We may become involved in legal disputes. We may from time to time become involved in legal disputes. We could be involved in criminal or civil proceedings relating to product liability, environmental, food safety, competition or anti-bribery regulations, and other types of dispute which may have a materially adverse effect. –Contract negotiations –Use of expert advisers in complex matters – Note 27 Group 1i Risks related to climate change I Physical related risks: the tangible effect of climate change have the potential to damage fish farming facilities, disrupt production activities and could cause us to incur significant costs. Climate change could affect the severity of weather, sea levels and temperatures, the frequency of algae blooms, and the availability of the raw materials for our fish feeds. If any such effects were to occur, they may have a materially adverse effect on our business and financial figures. –Doing our part: to reducing our carbon footprint and build up mitigation strategies connected with more resilient equipment –Testing of alternative raw materials in feed and focusing on low carbon footprint feed raw materials –Assessment of specific risks related to each facility used in our operation –R&D –Planet II Transitional related risks: climate change rules and regulations could increase the costs of operating our facilities or transporting our products. Climate change and its link to the emission of greenhouse gases is receiving more and more attention. Certain countries and regions have adopted, or are considering, legislation or regulations imposing overall caps or taxes on greenhouse gas emissions, or mandating the increased use of electricity from renewable energy sources. These actions could increase our operating costs. –Doing our part: endorsing global sustainability issues and addressing climate change by implementing our low carbon transition plan –Dear stakeholder –Planet 1J Risk related to cyber security and technological innovation I We are subject to risks related to IT and cyber security. As dependency on IT systems increases in all parts of our business, and conflict levels escalate around the world, the risk of falling victim to a sophisticated cyberattack is rising to companies in general, Mowi being no exception. –Monitoring and testing of IT systems, including backup / restoration procedures –Crisis management plan –Extensive mandatory security training. Non-compliant users disabled. “Ethical hacking” and use of expert advisers in complex matters –Reporting / blocking of phishing emailsand Multi-factor authentication enabled People II We are subject to risks related to Access Management and IT Change Management. With enterprise systems there is a risk of 1) unauthorized system access, 2) authorised users not getting access to the necessary data, 3) authorized access is not sufficiently restricted. Changes to IT Applications introduce new functionality which can have an unintended negative impact on operations –Strict Access Management procedures defined, with supporting tools Regular audits of access –Strong documentation and approval procedures for software changes. –Strong documentation and approval procedures for software changes. People III We are subject to IT risks related to our operations and operational risk. As IT systems become ubiquitous in our business, the risk of business disruptions if the mission-critical systems are unavailable or if support is not readily available. –Monitoring of factory systems, networks, cloud solutions Network maintenance and patching –Global ServiceDesk –Enfocing best practices regarding patching and updating of systems –Enfocing best practices regarding patching and updating of systems –BoD report –Corporate Governance Analytical information 295 Integrated Annual Report 2022 RISK SHORT DESCRIPTION MITIGATION ACTION REFERENCE IV We are subject to IT risks related to implementation of new systems and improvement projects Implementation of standard enterprise applications and new Information Technology can put demands on the organisation, on processes and on the ability to change the way of working. –Formal approval of new projects –Project governance with strong IT / Business partnership –Framework to track quality, timeliness and cost of project / program deliverables –Framework to track quality, timeliness and cost of project / program deliverables –BoD report –Corporate Governance 2 Risks related to our strategy - acquisitions and expansions I The construction and potential benefits of our fresh water expansion projects are subject to risks and uncertainties. The expected benefits are higher quality and larger smolt, produced in a controlled environment and at a lower cost. The anticipated benefits may not be achieved or if achieved, may not be achieved in the expected time frame. –Build on group wide know how and skills in the construction and production processes. –Leading the Blue Revolution II We would be adversely affected if we expanded our business through acquisitions or greenfield projects but failed to successfully integrate them or run them efficiently or retain the associated fish farming licenses. We regularly evaluate expansion opportunities, such as acquiring other businesses, or building new processing plants and expanding our fish farming operations, or expanding into new related areas of operations. Significant expansion involves risks, and if we are unable to integrate acquired businesses or newly formed operations, expansion may have a materially adverse effect on our business and financial figures. –Draw on internal key resources –Recruitment of experienced staff –Use of expert advisers in complex matters –People 3 Risks related to reporting I A failure to run an effective risk assessment process and update our internal control system accordingly, could imply that there is a risk of material mistakes in our financial figures. As of December 31, 2021 we consider our internal control system to be effective, but there can be no assurance that, going forward, our efforts will effectively prevent material misstatements in our consolidated statements. If we are unable to maintain effective internal control, this could have a materially adverse effect on our business. –Global risk and risk management focus –BoD report –Corporate Governance 4 Risks related to other legal matters I Developments related to antitrust investigations could have a materially adverse effect. We are subject to a variety of laws and regulations that govern our business, including those relating to competition (antitrust). If we are found to have violated the competition laws in a jurisdiction, we may be fined, which could have a materially adverse effect on our financial figures. –Use of expert advisers in complex matters –Specific training of personnel including training sessions performed by external experts –Code of Conduct including testing –Note 27 Group II Failure to ensure food safety and compliance with food safety standards could result in serious adverse consequences for us. The food industry in general experiences high levels of customer awareness with respect to food safety and product quality, information and traceability. We may fail to meet new and exacting customer requirements, which could reduce demand for our products. –Applying best practices related to food safety at all stages of the production chain –Vigorous product testing to document that our products are safe –Third-party certification with respect to best practices in hygiene and food safety –R&D –Product III Any failure to comply with laws and regulations in the countries in which we operate could result in serious adverse consequences for us. Our global operational footprint makes us subject to various risks and uncertainties relating to our international operations, including compliance with domestic and international laws. Any failure to comply with the laws and regulations in the countries in which we operate could result in fines, withdrawal of operating rights and other serious adverse consequences for us. –Use of expert advisers in complex matters –Recruitment of highly skilled employees –Code of Conduct –Independent Whistleblower channel –People Analytical information 296 Integrated Annual Report 2022 GRI Index Mowi’s report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards for the period from 01.01.2022 to 31.12.2022. The guidelines comprise economic, environmental and social dimensions relating to an enterprise's activities, products and services. GRI collaborates with the United Nations Environment Program and UN Global Compact. Mowi has reported according to GRI since 2010. We believe that our reporting practice is consistent with GRI's reporting principles in all material respects. The report is externally assured by our auditor EY. As outlined in the independent assurance report, EY is not aware of any material modifications that should be made in Mowi’s reporting in accordance to GRI Standards for the year ended 31.12.2022. The GRI index, including the full definition of each indicator and references to specific sections in this report as well as additional information, can be found on our website Mowi.com and the index is also presented in this integrated annual report. GRI Standards, both general and specific, are comprised of requirements. The general standard applies to all reporting organisations depending on the chosen ‘in accordance’ level. The specific standard is selected with regard to the materiality principle. In order to report ‘in accordance’ with the core requirements Mowi has answered each of the requirements for the required standards. Only in exceptional cases, if certain required information has not been possible to disclose, accepted reasons for omission have been applied. The Index is a reference to the disclosed information and gives an overview over the omissions and the reasons why omissions are applied. Any page reference in the index refers to Mowi's Annual Report. Profit Kristian Ellingsen Chief Financial Officer Planet Catarina Martins Chief Sustainability Officer and Chief Technology Officer Product Ola Brattvoll Chief Operating Officer Sales & Marketing People Anne Lorgen Riise Chief Human Resource Officer Analytical information 297 Integrated Annual Report 2022 GRI 2 General Disclosures Disclosure No. Disclosure description Mowi Response / Source Assured by third party The organization and its reporting practices 2-1 Organizational details a.MOWI ASA b.Part 3, Corporate Governance, Note 24, Share capital in Group Financial Statements (page 229) and Part 4, Share and shareholder information (pages 274-278) c.Sandviksboder 77AB 5035 Bergen, Norway d.Part 1, Map of Business Areas (pages 4, 5) & Part 3, Note 4 (page 193) Yes 2-2 Entities included in the organization's sustainability reporting All Business Unit's are included in the Sustainability reporting, no significant differences to the financial reporting, Part 3 , page 193 note 4 Yes 2-3 Reporting period, frequency and contact point 01.01.2022 - 31.12.2022 Annual report Published March 22nd 2023 Chief Technology and Sustainability Officer Yes 2-4 Restatement of information No material restatements of information Yes 2-5 External assurance Integrated Annual Report and GRI Reporting are assured by our external auditor EY. Auditor's report, GRI audit (page 255) Yes Activities and workers 2-6 Activities, value chain and other business relationships Part 1 Business areas, pages 4-5. No changes during the reporting period Yes 2-7 Employees Part 2, People (pages 106-127) Yes 2-8 Workers who are not employees Part 2, People (pages 106-127) Yes Governance 2-9 Governance structure and composition Part 1, Leading the Blue Revolution (pages 14-27). Part 2, People (pages 106-127), Part 3 Corporate Governance (pages 166-177) Yes 2-10 Nomination and selection of the highest governance body Part 3. Corporate Governance (page 170) Yes 2-11 Chair of the highest governance body Part 3. Corporate Governance (pages 170, 171) Yes 2-12 Role of the highest governance body in overseeing the management of impacts Part 3. Corporate Governance (pages 166 - 177) Yes 2-13 Delegation of responsibility for managing impacts Part 3. Corporate Governance (pages 166 - 177) Yes 2-14 Role of the highest governance body in sustainability reporting Part 3. Corporate Governance (pages 166 - 177) Yes 2-15 Conflicts of interest Part 3. Corporate Governance (page 169) Yes 2-16 Communication of critical concerns Part 3, Corporate Governance (page 173), Part 2 People (page 113) Yes 2-17 Collective knowledge of the highest governance body Part 3. Corporate Governance (pages 166 - 177) Yes 2-18 Evaluation of performance of the highest governance body Part 3. Corp Governance (page 170) Yes 2-19 Remuneration policies Part 3. Corp Governance (page 173) Yes 2-20 Process to determine remuneration Part 3, Corporate Governance (page 173) Yes 2-21 Annual total compensation ratio Part 3, Corporate Governance (page 173), Compensation report at mowi.com Yes Analytical information 298 Integrated Annual Report 2022 Disclosure No. Disclosure description Mowi Response / Source Assured by third party Strategy, policies and practices 2-22 Statement on sustainable development strategy Part 1, Dear stakeholder (CEO, pages 6-11 and materiality analysis, page 23), Part 3, Board Report (pages 150-161) Yes 2-23 Policy commitments Part 1, Dear stakeholder (CEO, pages 6-11 and materiality analysis, page 23), Part 3, Board Report (pages 150-161) Yes 2.24 Embedding policy commitments Part 1, Dear Stakeholder (Materiality analysis, page 23), Part 2, People (pages 106-127) Yes 2-25 Process to remediate negative impacts Part 2, People (pages 106-127) Yes 2-26 Mechanisms for seeking advice and raising concerns Part 3, Corporate Governance (page 177) Yes 2-27 Compliance with laws and regulations Part 3, Integrated Annual Report, note 27, (page 225). Part 2, People (pages 113,114) Yes 2-28 Membership associations Part 1, Leading the Blue Revolution, Key Partnerships Yes Stakeholder engagement 2-29 Approach to stakeholder engagement Part 1, Leading the Blue Revolution, Stakeholder Engagement (pages 18-20); Part 2, People (pages 106-127), and Part 3, Corporate Governance (pages 166-177) Yes 2-30 Collective bargaining agreements Part 2, People (page 109) Yes GRI 3 Material Topics 3-1 Process to determine material topics Part 1, Materiality analysis (page 23) Yes 3-2 List of material topics Part 1, Materiality analysis (page 23) Yes Specific Standard disclosures Disclosure No. Disclosure description Reference Omission Reason for omission Explanation of omission Assured by third party Mowi Material topic: Climate friendly food production GRI 3: Material Topics 3-3 Management of material topics Part 2, Planet, The Global Picture - Climate Friendly Food production (pages 46-52) & Biodiversity (page 65-69) No Yes GRI 201: Economic Performance 201-2 Financial implications and other risks and opportunities due to climate change Risks related to climate change in Part 4, Risk and Risk Management (page 294) and TCFD report (section 4, pages 204-311) No Yes GRI 302: Energy 302-1 Energy consumption within the organisation Part 2, Planet, The Global Picture - Climate Friendly Food production (pages 46-52) No Yes Analytical information 299 Integrated Annual Report 2022 Disclosure No. Disclosure description Reference Omission Reason for omission Explanation of omission Assured by third party GRI 303: Water and effluents 303-3 * Water withdrawal Part 2, Planet, Freshwater use (page 67) No Yes GRI 305: Emissions 305-1 ** Direct (Scope 1) GHG emissions Part 2, Planet, The Global Picture - Climate Friendly Food Production & Salmon: The Climate Friendly Protein (page 52) No Yes 305-2 Energy indirect (Scope 2) GHG emissions (location based) Part 2, Planet, The Global Picture - Climate Friendly Food Production & Salmon: The Climate Friendly Protein (page 52) No Yes 305-3 Other indirect (Scope 3) GHG emissions Disclosed in Part 2, Planet, The Global Picture - Climate Friendly Food Production (pages 50, 52) No Yes Mowi own disclosure No. and percentage of sites ASC certified and % of harvest volume certified with a GSSI recognised standard Part 2, Planet, The Global Picture (pages 53, 54) No Yes Mowi Material topic: Fish escape prevention GRI 3: Material Topics 3-3 Management of material topics Part 2, Planet, Escape Prevention (pages 56-58) No Yes Mowi own disclosure Number of salmon escaped and not recaptured Part 2, Planet, Escape Prevention (pages 56-58) No Yes Mowi Material topic: Fish welfare, health and robustness GRI 3: Material Topics 3-3 Management of material topics Part 2, Planet, Fish Health and Welfare (pages 59-61) No Yes Mowi own disclosure Main causes of mortality Part 2, Planet, Fish Health and Welfare (pages 59-61) No Yes Mowi own disclosure % survival in sea Part 2, Planet, Fish Health and Welfare (pages 59-61) No Yes Mowi own disclosure % survival in freshwater Part 2, Planet, Fish Health and Welfare (pages 59-61) No Yes Mowi own disclosure Average monthly standing stocking density Part 2, Planet, Fish Health and Welfare (pages 59-61) No Yes Mowi Material topic: Sea lice management GRI 3: Material Topics 3-3 Management of material topics Part 2, Planet, Sea Lice Management (pages 62-64) No Yes Mowi own disclosure Sites above national action limits Part 2, Planet, Sea Lice Management (page 63) No Yes Mowi Material topic: Responsible use of medicines and chemicals GRI 3: Material topics 3-3 Management of material topics Part 2, Planet, Medicine Use (pages 53-64) No Yes Analytical information 300 Integrated Annual Report 2022 Disclosure No. Disclosure description Reference Omission Reason for omission Explanation of omission Assured by third party Mowi own disclosure % sites using cleaner fish Part 2, Planet, Sea Lice Management (page 64) No Yes Mowi own disclosure % treated fish using non-medicinal tools Part 2, Planet, Sea Lice Management (page 64) No Yes Mowi own disclosure % reduction in total medicine use Part 2, Planet, Sea Lice Management (page 64) No Yes Mowi own disclosure Antimicrobial use- active substance use per tonne biomass produced Part 2, Planet, Medicine Use (page 80) No Yes Mowi Material topic: Responsible and circular nutrient and waste management GRI 3: Material topics 3-3 Management of material topics Part 2, Planet, Biodiversity (pages 65-71) No Yes Mowi own disclosure % of sites operating within nationally acceptable benthic levels Part 2, Planet, Biodiversity (page 70) No Yes Mowi Material topic: Wildlife interactions GRI 3: Material topics 3-3 Management of material topics Part 2, Planet, Biodiversity (page 70) No Yes GRI 304: Biodiversity 304-1 *** Biodiversity area impacts Part 2, Planet, Biodiversity (page 65) No Yes 304-2 Description of biodiversity impacts Part 2, Planet, Biodiversity (page 65) No Yes Mowi Material topic: Efficient and sustainable fish feed GRI 3: Material topics 3-3 Management of material topics Planet, Part 2, Sustainable Feed (pages 72-74) No Yes Mowi own disclosure Fish-in fish-out ratio (FIFO), forage fish dependency ratio - oil (FFDRo) and meal (FFDRm) Planet, Part 2, Sustainable Feed (pages 76, 82) No Yes Mowi own disclosure Source of feed raw materials (% origin) Planet, Part 2, Sustainable Feed (page 76) No Yes Mowi own disclosure % certified feed raw materials (fish and soy) Planet, Part 2, Sustainable Feed (pages 72, 73) No Yes Mowi own disclosure Fish meal inclusion in % per tonne feed used Planet, Part 2, Sustainable Feed (page 81) No Yes Mowi own disclosure Fish oil inclusion in % per tonne feed used Planet, Part 2, Sustainable Feed (page 81) No Yes Mowi Material topic: Ensure food safety and quality GRI 3: Material topics 3-3 Management of material topics Part 2, Product, Safe Seafood (pages 98,99) No Yes GRI 416- Customer health & safety 416-1 Products assessed for risks to customer health & safety Part 2, Product, Safe Seafood (pages 90,91) No Yes Mowi own disclosure Level of dioxins and dioxin-like PCBs (pg-WHO-TEQ/g) Part 2, Product, Data section (page 98) No Yes Analytical information 301 Integrated Annual Report 2022 Disclosure No. Disclosure description Reference Omission Reason for omission Explanation of omission Assured by third party Mowi own disclosure Level of mercury (mg/kg) Part 2, Product, Data section (page 98) No Yes Mowi Material topic: Healthy seafood GRI 3: Material topics 3-3 Management of material topics Part 2, Product, Healthy Seafood (pages 101-103) No Yes Mowi own disclosure Omega 3 levels in harvested fish and other nutrient levels Part 2, Product, Data section (page 103) No Yes Mowi Material topic: Ethical business conduct GRI 3: Material topics 3-3 Management of material topics Part 2, People, Ethical Business Conduct (pages 113,114) No Yes GRI 205: Anti-corruption 205-1 Operations assessed for risks related to corruption Part 4, Risk & Risk Management (page 289) No Yes 205-3 Confirmed incidents of corruption and actions taken Part 2, People (page 113) No Yes GRI 205: Anti-competitive behaviour 206-1 Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices Part 4, Risk Management (page 289) No Yes GRI 307: Environmental compliance 307-1 Non-compliance with environmental laws and regulations Part 2, People, Ethical Business Conduct (page 114) No Yes GRI 419: Socioeconomic compliance 419-1 Non-compliance with laws and regulations in the social and economic area Part 2, People, Ethical Business Conduct (pages 113,114) No Yes Mowi Material topic: Ensure employee safety and security GRI 3: Material topics 3-3 Management of material topics Part 2, People, Employee Health and Safety (pages 115-117) No Yes GRI 403: Occupational health and safety 403-1 Occupational health and safety management system Part 2, People, Employee Health and Safety (pages 115-117) No Yes 403-2 Hazard identification, risk assessment, and incident investigation Part 2, People, Employee Health and Safety (pages 115-117) No Yes 403-3 Occupational health services Part 2, People, Employee Health and Safety (pages 115-117) No Yes 403-4 Worker participation, consultation, and communication on occupational health and safety Part 2, People, Employee Health and Safety (pages 115-117) No Yes 403-5 Worker training on occupational health and safety Part 2, People, Employee Health and Safety (pages 115-117) No Yes Analytical information 302 Integrated Annual Report 2022 Disclosure No. Disclosure description Reference Omission Reason for omission Explanation of omission Assured by third party 403-6 Promotion of worker health Part 2, People, Employee Health and Safety (pages 115-117) No Yes 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Part 2, People, Employee Health and Safety (pages 115-117) No Yes 403-9 Work-related injuries Part 2, People, Employee Health and Safety (pages 115-117) No Yes Mowi Material topic: Purpose driven organisation GRI 3: Material topics 3-3 Management of material topics Part 1, Leading the Blue Revolution (pages 16,17), Part 2, People, Providing safe and meaningful jobs (pages 107-124) No Yes GRI 201: Economic Performance 201-3 Coverage of the organisation’s defined benefit plan obligations Part 1, Leading the Blue Revolution: Part 2, Profit : Part 3, Financial statement, notes, analytical information (page 246) No Yes GRI 406: Non-discrimination 406-1 Incidents of discrimination and corrective actions taken Part 2, People, Ethical Business Conduct (pages 113,114) No Yes Mowi Material topic: Respectful use of local areas GRI 3: Material topics 3-3 Management of material topics Part 2, People, Commitment to local Communities (pages 118,119) No Yes Mowi Material topic: Local jobs and value creation GRI 3: Material topic 3-3 Management of material topics Part 2, People, Commitment to local Communities (pages 118,119) No Yes GRI 203: Indirect economic impacts 203-1 Infrastructure investments and services supported Part 2, People, Commitment to local Communities (pages 118,119) No Yes * GRI 303-3 aiii and 303-3biii. Seawater withdrawal is not applicable as a GRI disclosure for our business as Atlantic salmon grows at sea in pens. ** GRI 305-1. Biogenic CO2 emissions (tCO2) are not material for our operations. *** GRI 304-1 aii and v. These disclosures are not applicable to our business as our salmon is grown at sea. Analytical information 303 Integrated Annual Report 2022 SASB Index The Sustainability Accounting Standards Board (SASB) is an independent standards-setting organisation that promotes disclosure of material sustainability information to meet investor needs. The table below references selected indicators from the SASB standards for the Meat, Poultry & Dairy industry which is an industry wide standard. Therefore, only part of the disclosures are applicable to Mowi. We will continue to work towards an improvement of additional SASB related disclosures that are relevant to our business. Disclosure no. Disclosure Description Reference Comment Energy management and GHG Emissions SASB FB-MP-130.a.1 (1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable Part 2, Planet, The Global Picture - Climate Friendly Food Production Partial overlap with GRI 302-1 SASB FB-MP-110a.1 Gross global Scope 1 emissions Part 2, Planet, The Global Picture - Climate Friendly Food Production See GRI 305-1 SASB FB-MP-110.a.2 Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emission reduction targets, and an analysis of performance against those targets Part 2, Planet, The Global Picture - Climate Friendly Food Production & TCFD report Partial overlap with GRI 201-2 Food Safety SASB FB-MP-250.a.1 Global Food Safety Initiative (GFSI) audit (1) non-conformance rate and (2) associated corrective action rate for (a) major and (b) minor non-conformances Part 2, Product, Quality Seafood Partial overlap with GRI 103. SASB FB-MP-250.a.2 Percentage of supplier facilities certified to a Global Food Safety Initiative (GFSI) food safety certification program Part 2, Product, Quality Seafood See GRI 416-1 SASB FB-MP-250.a.3 (1) Number of recalls issued and (2) total weight of products recalled Part 2, Product, Safe Seafood Partial overlap with GRI 416-1. SASB FB-MP-250.a.4 Discussion of markets that ban imports of the entity's products Part 2, Product, Safe Seafood See GRI 416-1 Workforce Health & Safety SASB FB-MP-320.1 (1) Total recordable incident rate (TRIR) and (2) fatality rate Part 2, People, Employee Health and Safety Partial overlap with GRI 403 Water Management SASB FB-MP 140 a.1 (1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress Part 2, Planet, Biodiversity, Freshwater Use and Policy See GRI 303-3 SASB FB-MP 140 a.2 Description of water management risks and discussion of strategies and practices to mitigate those risks Part 2, Planet, Biodiversity, Freshwater Use and Policy See GRI 303-3 Activity Metric SASB FB-MP-000.A Number of processing and manufacturing facilities See Business Areas prior to Part 1 SASB FB-MP-000.B Animal protein production, by category; percentage outsourced See Business Areas prior to Part 1 Analytical information 304 Integrated Annual Report 2022 Task Force on Climate-related Financial Disclosures (TCFD) report Climate change and food security remain the biggest challenges facing humanity. We recognise the growing significance of climate change on our business and the increasing role of producing food from the ocean as a solution to climate change. As a climate-friendly food producer, we disclose climate-related risks and opportunities by adopting the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Mowi had adopted a global approach to climate change which is aligned with climate science (our targets are approved by the SBTi) and the Paris Agreement to limit the increase in the global average temperature to well below 2°C, and ideally no more than 1.5°C, above pre-industrial levels by the end of the century. Mowi integrates climate-related disclosures in this Annual report (see our Planet and the Risk and Risk management sections) and in addition, we have also summarised the risks and opportunities arising from climate change, our strategic approach towards a low carbon economy and our corporate targets in this TCFD report. For a more extensive description of our GHG emissions and climate strategy please see our CDP report. Analytical information 305 Integrated Annual Report 2022 Mowi Climate- Related Risks and Opportunities Regulatory risks Compliance to existing regulation is a requirement for all our operations across all our business areas (feed, farming and sales & marketing). Any risk that can result in potential non-compliance should be included in our internal risk assessments at business level. For example, our farming operations in Europe could be impacted by regulations of fuel prices leading to an increase cost of production at sites relying on diesel use as the main energy source. Another example is the risks arising from the implementation of regulations that require CO2 labelling on products in some European countries including France which is our biggest European market. Not adapting to this regulation may jeopardise our access to those markets. Emerging regulation Risks associated with emerging regulation are always included in organisation's climate-related assessment as long as they may imply higher operational costs, disruption in production capacity or inability to do the business. Where known, such emerging regulations which impacts our business should be assessed in terms of impact and likelihood. An example of the risk arising from the emerging regulation is increased carbon taxation for road and air freight transportation which could increase downstream transportation costs from Norway to the other markets. Another example of risk arising from emerging regulation are restrictions to fish farming due to climate change in specific areas which may be introduced in countries where we operate. Technology The energy efficiency of new technology is considered when evaluating its implementation potential and risks for our climate change strategy. For example, the use of Recirculating Aquaculture Technologies which bring several advantages from an environmental point of view including very low risk of escapes, can lead to an increase of energy use/tonne of fish produced. This risk has been pointed out by a number of peer-reviewed studies which show that RAS systems are more energy-intensive than the net pen technology. Market The market status and dynamics regarding acceptance of our product is always monitored and part of our risk-assessment at business level. An example is an increased focus on planetary diets where vegetables, fruits and fish are positioned as recommended future diets. However, the communication lines towards consumers often seems to be made towards reducing the consumption of all animal-based products which could lead to consumers reducing their consumption also of fish. This is a risk of decreasing market and hence revenue. Reputation Reputational risks are always included in organisation's climate-related assessment as long as they may imply reduced stock price (market valuation). An example of reputational risk is critical journalism based on statements and publications from various research communities and Non-Governmental Organisations (NGOs). This type of attack has had and may potentially result in temporary damage to the industry and can only be countered by good practices and well-documented information from the industry. Acute physical Acute physical risks are always included in organisation's climate-related assessments as long as they may imply disruption in production capacity. An example of acute physical risk is change in frequency of extreme weather events that may cause storms, flooding, landslides, resulting in damage especially to fish farm sites with sea water cages. This may have consequences for the safety of employees and insurance costs. Chronic physical Chronic physical risks are always included in organisation's climate-related assessment as long as they may imply disruption in production capacity. An example of chronic physical risk are changes to oceanic circulation and uncertain climate variability patterns (i.e. El Nino) that may impact the productivity of farms in the future. Another example of chronic physical risk is change in mean (average) precipitation. Mowi's salmon farming operations are subject to a number of biological risk elements which might impact profitability and cash flows through adverse effect on factors such as growth, harvest weight, harvest volume, mortality, downgrading percentage and claims from customers. The biological parameters are impacted by e.g. diseases, algae blooms, low oxygen levels and fluctuating sea water temperatures. Another example are difficult weather conditions with excessive snowing and low temperatures that can impact the distribution of fresh products. If the goods do not reach the market on time, it can lead to increased capital cost, reduce the demand for goods due to reputational risk and stock prices. This risk is also indirect as it may impact our suppliers. Analytical information 306 Integrated Annual Report 2022 TCFD MATRIX : RESULTS 2022 # DISCLOSURE RESPONSE REFERENCE GOVERNANCE 1 Describe the Board’s oversight of climate related risk and opportunities The Board of Directors take overall accountability and oversight of all risks and opportunities, including climate change (see section Board of Directors for an overview of Board members which have an ESG responsibility including our climate change agenda). Follow-up and implementation is carried out by the Chief Sustainability Officer (member of the group’s management team and reporting directly to the CEO) and the heads of our Business Units. The Board of Directors have an oversight of the group's progress towards our Science-Based Targets (SBT) for reduction of GHG emissions as well as progress on Mowi's low carbon transition plan. In addition, the board oversees significant financial decisions such as issuing the Green Bond and investments such as the construction of the new feed plants. The location of these feed plants allows a more efficient supply chain reducing the emissions linked with inbound and outbound logistics while at the same time ensuring feed raw materials are sourced from sustainable sources. For more information about our risk management, see Part 3 - Corporate Governance and Board of Directors report in the Annual Report 2 Describe management's role in assessing and managing climate-related risks and opportunities The integration of Mowi's sustainability strategy, Leading the Blue Revolution Plan, into our business strategy is ensured by the Group Management Team (GMT) which includes a Chief Sustainability Officer (CSO). The CSO reports directly to the CEO and runs Global Operational Sustainability Networks to drive the implementation of our sustainability strategy across the business units. In addition, a Strategic Sustainability Network is also in place as part of our governance groups to support strategic discussions on climate-related risks and opportunities.The management team and the strategic networks have an oversight of the quarterly and annual energy use and GHG emission’s results. Mowi has a global policy on climate change, internal standards on energy use, reporting and energy-saving initiatives and technical reports on energy use and GHG emissions for all business areas which are revised frequently by the management team. Climate change is also identified as a material topic in Mowi's materiality and risk assessment and specific KPIs as well as reduction targets have been developed and reported internally (technical quarter reports) and externally (annual report, CDP and TCFD). For more information about our climate strategy, see Part 2 - Planet in the Annual Report. For more information about our risk management, see Part 3 - Corporate Governance and Board of Directors report in the Annual Report STRATEGY 3 Describe the climate-related risks and opportunities the organisation has identified over the short, medium and long term Climate change has been identified as an operational, strategic, reporting and compliance risk to Mowi which can potentially impact our business in the short, medium and long term. Mowi follows the COSO (Committee of Sponsoring Organisations) enterprise risk framework to assess and identify risks, including climate change risks. The physical related climate risks and opportunities relate to extreme weather events, sea levels and temperatures, the frequency of algae blooms, and the availability of the raw materials for our fish feeds (medium to long term impact). Climate change is likely to influence the water temperature along the coast of Norway. Some areas in the North of Norway could experience higher sea water temperatures leading to an increased production. This could lead to shorter production cycles at sea which would lead to a reduced GHG emissions/tonne of fish produced at sea. Mowi is acting towards capturing this opportunity by considering the potential benefit of sea water temperature profiles when planning new sites. The transition risks and opportunities include legislation or regulations imposing overall caps or taxes on greenhouse gas emissions, or mandating the increased use of electricity from renewable energy sources (short-term impact). An increased recognition of seafood as a low carbon footprint protein is a transitional opportunity for Mowi. For more information about our climate change risks and mitigation actions, see our risk and risk management section in the Annual Report. Analytical information 307 Integrated Annual Report 2022 TCFD MATRIX : RESULTS 2022 # DISCLOSURE RESPONSE REFERENCE 4 Describe the impact of climate-related risks and opportunities on the organisations's business strategy and financial planning The physical and transition risks and opportunities identified above have driven the development of Mowi's low carbon transition plan including key business strategy and financial planning in our core business areas. Feed - Our largest impact originates from sourcing of feed raw materials. Our actions include purchasing only deforestation-free soy and working with our suppliers in Brazil to receive suppliers-specific LCA data, include carbon footprint of feed raw materials in our formulation criteria, designing feeds for optimal FCR, operating energy-efficient feed plants and optimising inbound and outbound logistics. Farming - Our actions include reducing the dependency on diesel to run our farming sites by connecting them to land power or introducing hybrid generators. Increasing the share of renewable electricity at our freshwater and processing plants is also part of our action plan. Sales & Marketing - Our actions include optimising logistics, working with our suppliers to promote a climate-friendly supply chain and running more energy-efficient processing plants with increasing share of renewable electricity. 5 Describe the resilience of the organisations's strategy, taking into consideration different climate-related scenarios, including a 2.0°C or lower scenario Mowi has chosen to pursue the Representative Concentration Pathways (RCP) 2.6 pathways and the climate scenario that will limit the global average temperature to 2°C above pre-industrial levels. As part of this process we also run a high-level assessment of the impact of 2°C and 4°C global warming scenarios to inform our strategy and financial planning. The main impacts of the 2°C scenario relate with regulatory changes. The Norwegian Climate act sets ambitious goals to reduce GHG emissions ( at least 40 % by 2030 compared with the reference year 1990). Therefore a number of actions including increased carbon-related taxes are already being applied and can be expected to increase. According to the ‘below 2°C’ Sustainable Development Scenario (SDS) from the International Energy Agency (IEA), direct carbon pricing schemes are likely to expand both in scope and in pricing level, with carbon costs going past €100 per tonne of CO2 in Europe and reaching €120 in Canada by 2030. Mowi based its risk analysis linked to carbon pricing on this scenario. A further increase on fuel taxation will impact production costs as fuel is still mainly used in marine vessels that support farming operations and as an energy source of feeding equipment at sea sites. Therefore, if a transition to clean energy is not done an increased operational cost can be expected. Mowi is already transitioning to a low carbon economy. An example is the transition from diesel generations at our sea site operations to land power as a source of electricity and an increased share of renewable electricity use at our processing plants. The main impact of the 4°C scenario relate with acute and chronic risks like extreme weather events, increased seawater temperatures and frequency of algae blooms. These could affect production volumes due to increased mortality and escape events. Availability of feed raw materials can also be affected by weather events. Our business model is adapting to these risks by increasing the robustness of our farming equipment, adopting technical standards and increasing forecasting, monitoring and mitigation actions related to algae blooms. In addition, we source only from deforestation-free areas and are working towards increasing the flexibility of our feed raw material alternatives. Analytical information 308 Integrated Annual Report 2022 TCFD MATRIX : RESULTS 2022 # DISCLOSURE RESPONSE REFERENCE RISK MANAGEMENT 6 Describe the organisations processes for identifying and assessing climate-related risks. Our materiality analysis is conducted by our Group management team with input from key environmental resources, and allows us to take a close and considered look at the sustainability and climate change related issues that are deemed critical for Mowi and our stakeholders, in that they could significantly affect our ability to execute our business strategy and operations. Our stakeholders include a wide range of groups and individuals that affect our operations and that are affected by our actions. In our assessment we have evaluated how our business affects the different stakeholder groups, which issues are of the highest importance to them and to what extent these stakeholders have a significant interest in the development of Mowi. The materiality analysis highlights areas of both opportunity and risk. The results of the analysis define our priorities and direct our R&D efforts, both at group-wide and asset level. In conducting our materiality analysis, we began with an evaluation of stakeholder concerns related to climate change, such as reputational risks on a global level and physical and regulatory risks at asset level. Regulatory, physical and other risks are assessed as the combination of likelihood that an incident will occur and the consequence or impact it could potentially have for the entire Mowi group. Since we export our products all over the world, a risk at asset level can impact global operations. First, we assessed the potential strategic impact and significance of each area of concern (aspect). Then each aspect was assessed and ranked according to the significance of its potential impact, and the significance of related business risks. Mowi’s process to respond to climate-related risks and opportunities that were identified to have a substantive financial or strategic impact is centred in Global Networks which include one representative from each business unit. This representative has the responsibility to bring climate-related risks and opportunities identified in their own business units. When significant risks and opportunities are identified by the global network this is then discussed with the Managing Directors and several of the C-suite officers, including e.g. Chief Sustainability officer and the CEO. Technical reports produced every month are used to support the decision-making process as well as the outcome of stakeholder engagement. The criteria for determining priorities are based on likelihood and total impact of the potential risk. Described process for documentation, identification, assessment and response to climate-related risks and opportunities applies for all time horizons 7 Describe the organisations processes for managing climate related risks. Mowi responds to climate-related risks through: –internal policies and procedures, –KPis monitoring –Development and implementation of a low carbon transition plan –Global Sustainability Networks to ensure operationalisation of Mowi's sustainability strategy including actions on climate change –insurance programs 8 Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organisations’s overall risk management Mowi uses the Committee of Sponsoring Organization (COSO) enterprise risk framework, which divides risk into four categories: 1.Operational risk 2.Strategic risk 3.Reporting risk 4.Compliance risk Analytical information 309 Integrated Annual Report 2022 TCFD MATRIX : RESULTS 2022 # DISCLOSURE RESPONSE REFERENCE 8 We consider our operational risk to cover several individually important subcategories, and have therefore chosen to divide our operational risks into the following sub categories: a.Risks related to the sale/supply of our products b.Risks related to governmental regulations c.Risks related to our fish farming operations d.Risks related to our supply of fish feed and feed operations e.Risks related to our industry f.Risks related to our business g.Risks related to our financial arrangements h.Risks related to tax and legal matters i.Risks related to climate change j.Risk related to cyber security and technological innovation All risk categories could, if not properly managed, have a material adverse effects on our business operations and financial results. Each risk category includes one or more identified risks factors that individually and/or in combination with others could significantly affect our performance. We are continuously working to mitigate identified risks and capitalise on opportunities by tracking and following up key performance indicators within the framework of our four guiding principles. We believe that our long-term success depends on our ability to manage the relevant risks associated with our operations, strategy, reporting and compliance. An overview of our identified risk factors, along with our mitigation efforts and what we do to manage our risk, is outlined in our Annual report including risks related to Climate Change. We apply the precautionary approach to risk management through our materiality assessment. Mowi reports in accordance with the Global Reporting Initiative requirements. METRICS & TARGETS 9 Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process Risk 1 - Emerging regulation/Enhanced emissions-reporting obligations Potential financial impact figure : from 3 up to 20 MEUR cost on scope 1 emissions in 2030 in a ‘below 2°C’ scenario, and possible additional pass-through costs on scope 2 emissions. Explanation: in the ‘below 2°C’ Sustainable Scenario described by the IEA, direct carbon costs are expected to expand in scope (covering more geographies and more activities) and to increase rapidly. By 2030, in a worst-case scenario where 100% of Mowi’s activities were covered by pricing schemes and with approximately the same carbon footprint observed in 2022, carbon costs for scope 1 emissions would reach 11-13 MEUR for farming, 2-4 MEUR for fish feed and 2-4 MEUR for sales and processing. In a less ambitious scenario in terms of carbon pricing like the Stated Policies Scenario, with the same carbon emissions total carbon costs for scope 1 could range between 3 MEUR (50% activity coverage) and 10 MEUR (100 activity coverage) by 2030. Regarding scope 2 emissions, the observed pass-through carbon cost from energy providers to energy consumers reaches 80-100%. Thus, in the ‘below 2°C’ Sustainable Scenario, as direct carbon prices are expected to increase quickly, an additional share of electricity-related carbon cost would be passed through to Mowi (up to 15 MEUR in a very conservative approach, assuming a 100% pass-through and Mowi’s market-based scope 2 emissions). However, these pass-through costs mostly depend on the suppliers’ energy production mix and would be included in the final electricity prices, which also result from a wide range of other factors. Analytical information 310 Integrated Annual Report 2022 TCFD MATRIX : RESULTS 2022 # DISCLOSURE RESPONSE REFERENCE 9 Risk 2 - Acute physical/Increased severity and frequency of extreme weather events such as cyclones and floods leading to escape incidents Potential financial impact figure (MEUR): 15 MEUR Explanation: The financial impact assumes an escape event where 600 000 fish escape from one site. Considering the harvest values of 5kg fish at 5 EUR/kg, the financial impact would be approximately 15 MEUR). Risk 3 - Acute physical/Increased seawater temperatures leading to increased frequency of Harmful Algae Blooms (HAB) and mortality Potential financial impact figure (MEUR): 0.05 - 60 MEUR Explanation: The potential costs of increased HAB can vary significantly from partial mortality at one pen to mass mortalities in the entire site. The number of sites affected can also differ significantly depending on how large the affected area is. The estimate presented here is based on the estimated volume lost in peer-Norwegian companies (Mowi Norway was not affected) after a HAB event during 2019 (approx 12 000 tonnes were lost). If we take a sales price of 5 EUR/kg the total financial impact would be 12 000 000 kg * 5 = 60 MEUR. Therefore, the impact of this risk would be significant for the company. On the minimum financial impact, we can simulate a scenario where 1% of the number of fish of one pen is affected (1% of a maximum of 200 000 individual on one pen = 2000 fish lost). If we take a sales price of 5 EUR/kg the total financial impact would be 2000 fish * end harvest weight of 5kg * 5 EUR/kg = 50 000 EUR Opportunity 1 - Increased revenues resulting from increased production capacity in farming Potential financial impact figure (MEUR): > 2 MEUR Explanation: Assuming an increase of 1 % of production volume (463 579 tonnes in 2022) as a result of an increase of seawater temperature by 1 °C in the northern parts of Norway and harvest values of 5 kg fish at 5 EUR/kg, the financial impact of additional production volumes (4 636 tonne) would be approx MEUR 23. Realization of this opportunity may significantly impact the company. Opportunity 2 - Use of new technology to reduce dependency of fossil fuels Potential financial impact figure (MEUR): 2 MEUR Explanation: The potential financial impact refers to reducing diesel consumption by 50% at 40 sea sites in Norway. An assumption of 100 000 liter of diesel used per site and per year was used (at 1 EUR per liter). The yearly cost related with diesel use in one site powered by traditional diesel generators would be 1 00 000 EUR (4 000 000 EUR for 40 sites). A reduction of 50% diesel use would mean 2 000 000 EUR saved in one year. 10 Disclose Scope 1, Scope 2 and scope 3 greenhouse gas (GHG) emissions, and the related risks. See Mowi's Scope 1, Scope 2 and Scope 3 emissions in Part 2 - The climate friendly food production, in the Annual Report 2022 See Mowi's Scope 1, Scope 2 and Scope 3 emissions in Part 2 - The climate friendly food production, in the Annual Report 2022 11 Describe the targets used by the organisation to manage climate-related risks and opportunities and performance-against targets. Our approved science-based targets are: –Reduce absolute scope 1 and 2 GHG emissions 35% by 2030 and 72% by 2050 from a 2016 base year –Reduce absolute scope 3 GHG emissions 35% by 2030 and 72% by 2050 from a 2018 base year See Part 2 of our Annual report - The Climate friendly food production. Analytical information 311 Integrated Annual Report 2022 Analytical information 312 Integrated Annual Report 2022 ESG Index 2022 Mowi collects and reports on a large number of sustainability metrics. The table below consolidates our environmental and social data to help with further analysis. Mowi Group 2022 2021 2020 Energy consumption Direct energy consumption (Scope 1) 1 699 2 006 2 212 Indirect energy consumption (Scope 2) 1 507 1 476 1 578 Total energy consumption (TJ) 3 206 3 482 3 790 % renewable electricity 28% 25% 8% GHG emissions Direct energy consumption (Scope 1) 119 191 137 374 159 961 Indirect energy consumption (Scope 2), market-based 120 379 126 285 162 875 Indirect energy consumption (Scope 2), location-based 77 958 85 131 96 114 Total GHG emissions - scope 1 and 2 (tonne CO2e; market-based scope 2) 239 570 263 659 322 836 Indirect energy consumption (Scope 3) 1 774 230 1 825 745 1 941 085 Total GHG emissions - scope 1, 2 and 3 (tonne CO2e; market-based scope 2) 2 013 800 2 089 404 2 263 921 Sustainability certifications % of the harvested volume certified by a GSSI recognised standard 99% 98% 100% Number of ASC sites certified 120 133 128 % of total sites that are ASC certified 47% 50% 45% Plastic Packaging % reusable, recyclable or compostable 77% 74% n/a % recycled content 15% 12% n/a % of farming plastic equipment reused or recycled 94% 88% 85% Waste to landfill % of waste volume sent to landfill 5% 4% 18% Analytical information 313 Integrated Annual Report 2022 Mowi Group 2022 2021 2020 Escape Prevention Number of escape incidents 11 7 17 Number of escaped fish 50 138 20 599 146 873 % of escaped fish/total number of fish in sea 0.03% 0.01% 0.10% Fish Welfare Average monthly survival in Seawater, Group (% numbers) 99.2% 99.2% 99.3% Average monthly survival in Seawater, Norway (% numbers) 99.4% 99.4% 99.4% Average monthly survival in Freshwater, Group (% numbers) 99.2% 99.3% 99.5% Average monthly stocking density (kg/m3) 7.4 7.4 8.1 Operational Welfare Indicator (OWI) rating 1.8 1.6 n/a Mortality % in seawater reported in accordance with the Global Salmon Initiative (GSI) methodology: (total # mortality in sea last 12 months / (closing # in sea last month + total # mortality # in sea last 12 months + total # harvested last 12 months + total # culled fish in sea) X 100)/12 Antimicrobial use Active substance (gram) per tonne biomass produced 76 91 54 Sea Lice Management % of fish treated with non-medicinal treatment systems 60% 56% 64% % of sites above national lice limits at any time 5% 3% 6% Active substance per tonne biomass produced: Oral (g-1 t) 0.2 0.1 0.2 Active substance per tonne biomass produced: Topical (g-1 t) 2.0 1.1 1.6 Active substance per tonne biomass produced: Peroxide (ltr-1 t / 10) 0.3 0.4 0.7 Freshwater Withdrawal Total freshwater withdrawal (x1000 m3) 367 268 387 105 386 245 Total freshwater withdrawal from third-party (x1000 m3) 32 337 26 480 40 747 Total freshwater consumption (x1000 m3) 491.0 492.0 n/a Intensity of freshwater withdrawal (m3/kg produced) 0.65 0.70 0.70 % freshwater withdrawal from water-stress areas 0.10% 0.08% n/a Benthic Impact % of sites with minimal benthic impact 92% 95% 93% Wildlife Interactions Accidental mortalities - Birds * 0.2 0.2 0.3 Intentional mortalities - Birds 0.0 0.0 0.0 Accidental mortalities - Mammals * 0.0 0.0 0.0 Intentional mortalities - Mammals * 0.0 0.0 0.1 Analytical information 314 Integrated Annual Report 2022 Mowi Group 2022 2021 2020 # Biodiversity related projects 30 26 18 Sustainable Feed Fish in-Fish Out Ratio (FIFO)** 0.76 0.80 0.68 Recapture FIFO (rFIFO) 0.65 0.68 0.57 Feed conversion ratio (FCR) 1.15 1.16 1.18 Forage fish dependency ratio - oil (FFDRo) - Group 1.80 1.80 1.60 Norway 1.77 1.80 1.50 Scotland 2.48 1.70 1.90 Ireland 0.90 0.20 0.80 Faroe Islands 1.56 2.40 1.80 Canada 2.20 2.60 1.80 Chile 1.30 1.70 1.90 Forage fish dependency ratio - meal (FFDRm) - Group 0.48 0.50 0.40 Norway 0.52 0.60 0.50 Scotland 0.74 0.50 0.60 Ireland 0.80 0.40 0.60 Faroe Islands 0.45 0.90 0.50 Canada 0.30 0.50 0.20 Chile 0.17 0.30 0.20 % soy originated from deforestation-free areas 100% 100% 100% Compliance of marine raw materials with our sourcing policy 100% 100% 100% % inclusion of emerging feed raw materials 3% 4% n/a FFDRo and FFDRm calculated according to the ASC standard Food Safety Audits External food safety audits 263 236 266 Internal food safety audits 337 339 405 Employees & FTE FTE total, (number) 13 726 13 984 14 645 Employees permanent, (number) 10 381 10 484 11 684 Employees, temp, (number) 1 160 1 334 558 Employees, 3rd party, (number) 2 184 2 166 2 403 Employees, disability, (number) 240 301 n/a Employees, female (%) 38% 39% 40% Employees, male (%) 62% 61% 60% Employees, younger than 30, (%) 18% 19% n/a Analytical information 315 Integrated Annual Report 2022 Mowi Group 2022 2021 2020 Employees, aged 30-50, (%) 56% 53% n/a Employees, older than 50, (%) 26% 28% n/a Female managers (%) 26% 25% 25% Male managers (%) 74% 75% 75% Turnover Turnover total (%) 16% 17% n/a Turnover, female (%) 46% 39% n/a Turnover, male (%) 54% 61% n/a Turnover of employees younger than 30 (%) 31% 39% n/a Turnover of employees aged 30-50, (%) 48% 46% n/a Turnover of employees older than 50 (%) 21% 15% n/a Employees who have taken out retirement (% of turnover) 6% 5% n/a Turnover of employees with seniority < 5 years 59% 72% n/a Turnover of employees with seniority 5-10 years 29% 18% n/a Turnover of employees with seniority 10-20 years 11% 8% n/a Turnover of employees with seniority Seniority > 20 2% 2% n/a Turnover, white collars (% of total turnover) 18% n/a n/a Turnover, blue collars (% of total turnover) 82% n/a n/a New hires New hires total (number) 2 134 1 830 n/a New hires, female (%) 37% 44% n/a New hires, male (%) 63% 56% n/a New hires, younger than 30 (%) 39% 36% n/a New hires, aged 30-50 (%) 48% 49% n/a New hires, older than 50 (%) 13% 15% n/a New hires, male applicants (external %) 68% n/a n/a New hires, female applicants (external %) 20% n/a n/a New hires, applicant gender not stated (external %) 12% n/a n/a Promotions internal Employees who were promoted during the period, promotions, (number) 836 325 n/a Female promotions, (%) 50% 39% n/a Male promotions, (%) 50% 61% n/a Analytical information 316 Integrated Annual Report 2022 Mowi Group 2022 2021 2020 Insurance, Unionisation, Employment terms Employees with occupational injury insurance (%) 100% 100% 100% Employees in labour unions total (%) 23% 17% 24% Employees with written employment terms (%) 100% 100% 100% Employee Survey Responses to global employee survey, (number) n/a 5 797 n/a Training and further education Employees who took part in training initiatives, (number) 9 794 7 434 6 000 Total hours of training delivered, (number) 212 619 116 231 n/a Female participants, (%) 26% 35% n/a Male participants, (%) 74% 65% n/a Employees younger than 30 who participated (%) 17% 22% n/a Employees aged 30-50 who participated (%) 57% 50% n/a Employees older than 50 who participated (%) 27% 28% n/a Employees with seniority < 5 years, (%) 42% 39% n/a Employees with seniority 5-10 years, (%) 35% 29% n/a Employees with seniority 10-20 years, (%) 16% 19% n/a Employees with seniority > 20 years, (%) 7% 13% n/a Employees who took part in health & safety training , (number) 7 481 7 105 n/a Employees who took part in leadership development training , (number) 608 312 n/a Code of conduct training, white colours,(%) 100% 100% 100% Trainees, Apprentices, Internships Trainees, (number) 17 18 n/a Apprentices, (number) 109 137 n/a Internships, (number) 64 24 n/a Mobility Employees on international assignment, (number) 65 75 58 Health and Safety Absence rate in % of total hours worked (own employees) 5.4% 5.2% 5.1% Female absence, (%) 47% 41% n/a Male absence, (%) 53% 59% n/a Employees younger than 30 who was absent, (%) 22% 12% n/a Employees aged 30-50 who was absent, (%) 46% 37% n/a Analytical information 317 Integrated Annual Report 2022 Mowi Group 2022 2021 2020 Employees older than 50 who was absent, (%) 32% 51% n/a LTI per million hours worked (own employees) 2.3 2.5 2.7 Total number of incidents, LTI, (own employees) (number) 59 67 75 LTI subcontractors 11 6 15 LTI grading - Low (situations/occurrences that are not dangerous), (number) 42 27 50 LTI grading - Medium (moderately dangerous situations/occurrences), (number) 37 22 14 LTI grading - High (extremely dangerous situations/occurrences), (number) 20 18 11 LTI category - injury caused by slip, stumble, fall (%) 27 42 39 LTI category - injury caused by squeeze, cut, punch (%) 36 37 45 LTI category - injury caused by fallen objects (%) 6 n/a n/a LTI category - injury caused by collisions/rollover (%) 7 n/a n/a LTI category - injury caused by wear damage (%) 3 n/a n/a LTI category - injury caused by gas/ smoke/ chemicals (%) 6 9 — LTI category - injury caused by other (%) 15 12 16 Fatalities, (number) — — 2 Whistleblowing Whistleblowing cases (number) 21 17 13 Cases involving sexual harassment, (number) 1 2 — Cases involving harassment, (number) 7 4 4 Cases involving breach of policy, (number) 3 8 3 Cases involving related to claims of breach of law 6 3 7 Human rights breach, (number) — — — Local communities complaints 4 n/a n/a Community engagement Events, (number) 96 430 467 People outreach, (number) 31 396 37 736 n/a Amount spent / sponsoring, (number) 1 613 900 1 088 316 2 184 700 Volunteer work (hours) 3 074 n/a n/a (total interactions/total number of sites), n/a = Numbers not available FIFO=((%FM in diet + %FO in diet)/ (%yield FM+%yield FO))eFCR; where FM is fish meal and FO is fish oil and eFCR is economic feed conversion ratio. rFIFO=((%rFM in diet + %rFO in diet)/ (%yield FM+%yield FO))*eFCR; Where rFM and rFO is the recaptured fish meal and fish oil (i.e. fish meal and oil produced from by-products originated from salmon processing) 318 Integrated Annual Report 2022 Design/print: Aksell 319 Integrated Annual Report 2022 320 Integrated Annual Report 2022 mowi.com Sandviksboder 77 AB P.O. Box 4102 Sandviken 5835 Bergen, Norway