Stop parsing PDFs. Get the API. Request Access

AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Mowi ASA

Earnings Release • Nov 1, 2017

3665_rns_2017-11-01_e3735bbf-f861-4e4d-8cef-48924742f9f2.pdf

Earnings Release

Open in Viewer

Opens in native device viewer

Marine Harvest

1

Q3 2017 Presentation 1 November 2017

Forward looking statements

This presentation may be deemed to include forward-looking statements, such as statements that relate to Marine Harvest's contracted volumes, goals and strategies, including strategic focus areas, salmon prices, ability to increase or vary harvest volume, production capacity, expectations of the capacity of our fish feed plants, trends in the seafood industry, including industry supply outlook, exchange rate and interest rate hedging policies and fluctuations, dividend policy and guidance, asset base investments, capital expenditures and net working capital guidance, NIBD target, cash flow guidance and financing update, guidance on financial commitments and cost of debt and various other matters concerning Marine Harvest's business and results. These statements speak of Marine Harvest's plans, goals, targets, strategies, beliefs, and expectations, and refer to estimates or use similar terms. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties.

Marine Harvest disclaims any continuing accuracy of the information provided in this presentation after today.

Highlights

  • -All-time high third quarter Operational EBIT of EUR 194 million
  • High salmon prices on strong demand
  • Cost decrease in Norway, Chile and Canada compared to Q2 2017 mainly on higher volumes
  • Continued performance improvements in Consumer Products
  • Quarterly dividend of NOK 3.40 per share

Key financials

Gr
f
Ma
ine
Ha
t
in
ig
r
rve
s
ou
p
- m
a
ur
es
Un
dite
d E
UR
mi
llio
au
n		 Q
3
2
0
1
7		 Q
3
2
0
1
6		 Y
T
D
Q
3
2
0
1
7		 Y
T
D
Q
3
2
0
1
6		 2
0
1
6
Op
ion
l re
d o
he
inc
t
t
era
a
ve
nu
e a
n
r
om
e		 8
6
7.
8
2%		 8
5
0.
0		 2
6
4
3.
8		 2
4
9
1.
7		 3
5
0
9.
8
Op
t
ion
l
E
B
I
T
1)
era
a		 1
9
4.
2
8%		 1
7
9.
9		 6
1
1.
3		 4
4
0.
8		 7
0
0.
2
Ca
f
fro
h
low
t
ion
s
m
op
era
s		 1
3
2.
6		 1
6
6.
6		 5
4
2.
8		 5
3
0.
0		 6
9
3.
2
Ne
t
in
ter
t-
be
ing
de
b
t
(
N
I
B
D
)
es
ar		 6
6
4.
0		 8
6.
7
7		 6
6
4.
0		 8
6.
7
7		 8
9
0.
0
Ba
ic
E
P
S
(
E
U
R
)
s		 0.
3
1		 0.
3
5		 0.
9
2		 0.
3
7		 1.
2
0
1)
Un
de
ly
ing
E
P
S
(
E
U
R
)
r		 0.
2
9		 0.
2
9		 0.
9
6		 0.
1
7		 1.
1
3
1)
f
(
)
Ne
t c
h
low
ha
E
U
R
as
p
er
s
re		 0.
1
2		 0.
2
6		 0.
7
4		 0.
9
8		 1.
2
3
1)
O
C
R
E		 2
8.
8
%		 2
9.
5
%		 3
1.
5
%		 2
3.
5
%		 2
8.
1
%
1)
A
d
j
d e
i
io
te
ty
t
us
q
u
ra		 5
4.
3
%		 4
0.
9
%		 5
4.
3
%		 4
0.
9
%		 4
0.
1
%
(
)
Ha
t v
lum
t
te
d w
ig
h
t
ton
lm
rve
s
o
e
g
u
e
ne
s s
a
on		 9
5
3
3
8
-2%		 9
7
2
1
5		 2
5
7
7
1
8		 2
8
0
9
8
7		 3
8
0
6
2
1
1) -
Op
t
ion
l
E
B
I
T -
E
U
R
kg
To
ta
l
era
a
p
er		 2.
0
4		 1.
8
5		 2.
3
7		 1.
5
7		 1.
8
4
No
rw
ay		 2.
2
4		 1.
9
8		 2.
4
0		 1.
9
9		 2.
1
8
Sc
t
lan
d
o		 2.
3
3		 0.
6
0		 2.
9
3		 0.
5
8		 0.
9
1
Ca
da
na		 1.
7
3		 2.
6
3		 2.
4
3		 2.
3
0		 2.
5
3
C
h
i
le		 1.
3
0		 1.
4
3		 1.
4
7		 0.
5
3
-		 0.
1
1

Salmon prices – weekly reference prices

High salmon prices in all markets in the quarter

Price achievement (1), contract & superior share

C
t
t
h
o
n
r
a
c
s
a
r
e		 %
3
8		 %
5
3		 %
0		 %
1
6
S
i
h
u
p
e
r
o
r
s
a
r
e		 %
9
4		 %
9
6		 %
9
2		 %
8
9

1) Price achievement includes contribution from all business areas

Norway

SA
LM
ON
O
F N
OR
WE
GIA
N O
RIG
IN
EUR
illio
m
n		 Q
3 2
01
7		 Q
3 2
01
6
Op
ion
l
E
B
I
T
t
er
a
a		 2
1
2
4.		 1
2
8.
3
Ha
t v
lum
(
G
W
E
)
rve
s
o
e		 5
5
3
6
9		 6
4
6
4
0
Op
(
)
t
ion
l
E
B
I
T
kg
E
U
R
er
a
a
p
er		 2.
2
4		 1.
9
8
f w
h
ic
h
Fe
d
- o
e		 0.
2
0		 0.
1
9
f w
h
ic
h
Ma
ke
ts
- o
r		 0.
1
2		 0.
1
5
f w
h
ic
h
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
1
4		 0.
0
4
Ex
t
ion
l
i
tem
inc
l
in
E
B
I
T
ce
p
a
s
op		 2
5.
4
-		 3
3.
7
-
Ex
t
ion
l
i
tem
kg
(
E
U
R
)
ce
p
a
s p
er		 0.
4
6
-		 0.
5
2
-
/re
fer
Pr
ice
h
iev
t
ice
ac
em
en
en
ce
p
r		 %
1
0
7		 %
9
1
Co
tra
t s
ha
n
c
re		 3
8
%		 4
0
%
Su
ior
ha
p
er
s
re		 9
4
%		 9
1
%

costs

costs

  • Good earnings supported by higher contract prices
  • Lower harvest volumes than expected
  • Sea lice and connected biological issues
  • Improved biology on 17G vs 16G

Note: Marine Harvest Norway's fixed price/fixed volume contracts with third party customers and MH's processing entities. MH's processing entities cover a large proportion of their sales exposure through third party end-product contracts.

Note: Including contribution from all business areas

Scotland

S
A
M
O
N
O
F
S
C
O
T
T
I
S
H
O
R
I
G
I
N
L
EU
R m
illio
n		 Q
3
2
0
1
7		 Q
3
2
0
1
6
Op
io
l
E
B
I
T
t
er
a
na		 4
2
5.		 9
5.
Ha
t v
lum
(
G
W
E
)
rve
s
o
e		 1
0
9
1
2		 9
8
1
1
Op
(
)
t
io
l
E
B
I
T
kg
E
U
R
er
a
na
p
er		 2.
3
3		 0.
6
0
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
2
8		 0.
2
9
f w
h
ic
h
M
H
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
1
9		 0.
0
0
Ex
t
ion
l
i
tem
inc
l
in
E
B
I
T
ce
p
a
s
op		 2.
1
-		 5.
8
-
(
)
Ex
t
ion
l
i
tem
kg
E
U
R
ce
p
a
s p
er		 0.
2
0
-		 0.
9
5
-
Pr
ice
h
iev
/re
fer
ice
t
a
c
em
en
en
ce
p
r		 1
1
6
%		 9
%
7
Co
tra
t s
ha
n
c
re		 5
3
%		 7
0
%
Su
ior
ha
p
er
s
re		 9
6
%		 9
4
%
  • Good results supported by higher contract prices
  • Improved costs year-over-year
  • Biological performance somewhat more challenging going forward
  • Costs expected to increase in the fourth quarter 2017

Canada

S
A
L
M
O
N
O
F
C
A
N
A
D
I
A
N
O
R
I
G
I
N
EU
R m
illio
n		 Q
3
2
0
1
7		 Q
3
2
0
1
6
Op
io
l
E
B
I
T
t
er
a
na		 3
1
9.		 2
0
7.
(
G
)
Ha
t v
lum
W
E
rve
s
o
e		 1
1
1
1
5		 1
0
2
8
4
Op
t
io
l
E
B
I
T
kg
(
E
U
R
)
er
a
na
p
er		 1.
7
3		 2.
6
3
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
1
4		 0.
2
0
f w
h
ic
h
M
H
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
0
0		 0.
0
0
Ex
ion
l
i
inc
l
in
E
B
I
T
t
tem
ce
p
a
s
op		 0.
7
-		 0.
0
Ex
ion
l
i
kg
(
E
U
R
)
t
tem
ce
p
a
s p
er		 0.
0
7
-		 0.
0
0
Pr
ice
h
iev
t
/re
fer
ice
a
c
em
en
en
ce
p
r		 9
9
%		 9
9
%
Co
tra
t s
ha
n
c
re		 %
0		 %
0
Su
ior
ha
p
er
s
re		 9
2
%		 8
8
%
  • Decent profit in the quarter
  • High prices, however, quarterly decline from record high levels
  • Satisfactory operational performance in a challenging environment

Chile

S
A
L
M
O
N
O
F
C
H
I
L
E
A
N
O
R
I
G
I
N
EU
R m
illio
n		 Q
3
2
0
1
7		 Q
3
2
0
1
6
Op
io
l
E
B
I
T
t
er
a
na		 1
8
7.		 9.
9
Ha
t v
lum
(
G
W
E
)
rve
s
o
e		 1
3
7
2
1		 6
8
9
4
Op
(
)
t
io
l
E
B
I
T
kg
E
U
R
er
a
na
p
er		 1.
3
0		 1.
4
3
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
3
1		 0.
4
3
f w
h
ic
h
M
H
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
0
0		 0.
0
0
Ex
t
ion
l
i
tem
inc
l
in
E
B
I
T
ce
p
a
s
op		 0.
4
-		 0.
0
Ex
ion
l
i
kg
(
E
U
R
)
t
tem
ce
p
a
s p
er		 0.
0
3
-		 0.
0
0
Pr
ice
h
iev
t
/re
fer
ice
a
c
em
en
en
ce
p
r		 1
0
9
%		 1
0
1
%
Co
tra
t s
ha
n
c
re		 %
1
6		 %
1
8
Su
ior
ha
p
er
s
re		 8
9
%		 9
%
5
  • Improved profits post algal issue in 2016
  • Better cost performance on higher volumes
  • Full cost in box USD 4.47 per kg (GWE) in the quarter
  • Price achievement in the fourth quarter expected to be negatively impacted by approx. USD 1.1m related to maturity issues
  • Costs expected to increase somewhat in the fourth quarter

Ireland and Faroes

S
A
L
M
O
N
O
F
I
R
I
S
H
O
R
I
G
I
N
EU
R m
illio
n		 Q
3
2
0
1
7		 Q
3
2
0
1
6
Op
t
io
l
E
B
I
T
er
a
na		 1
0.
1		 4.
6
Ha
lum
(
G
W
E
)
t v
rve
s
o
e		 3
1
2
0		 2
9
0
1
Op
t
io
l
E
B
I
T
kg
(
E
U
R
)
er
a
na
p
er		 3.
2
3		 1.
6
0
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
0
0		 0.
0
1
f w
h
ic
h
M
H
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
1
1		 0.
0
2
Ex
t
ion
l
i
tem
inc
l
in
E
B
I
T
ce
p
a
s
op		 2.
5
-		 1.
0
-
Ex
t
ion
l
i
tem
kg
(
E
U
R
)
ce
p
a
s p
er		 0.
7
9
-		 0.
3
3
-
/re
fer
Pr
ice
h
iev
t
ice
a
c
em
en
en
ce
p
r		 na na
Co
ha
tra
t s
n
c
re		 8
1
%		 8
0
%
Su
ior
ha
p
er
s
re		 8
8
%		 9
1
%
S
A
M
O
N
O
F
F
A
R
O
E
S
E
O
R
I
G
I
N
L
EU
R m
illio
n		 Q
3
2
0
1
7		 Q
3
2
0
1
6
Op
t
io
l
E
B
I
T
er
a
na		 2.
4		 9.
0
Ha
t v
lum
(
G
W
E
)
rve
s
o
e		 1
0
6
5		 2
6
8
4
Op
t
io
l
E
B
I
T
kg
(
E
U
R
)
er
a
na
p
er		 2.
2
5		 3.
3
7
f w
h
ic
h
M
H
Ma
ke
ts
- o
r		 0.
9
5		 0.
1
6
f w
h
ic
h
M
H
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
0
3		 0.
0
0
Ex
t
ion
l
i
tem
inc
l
in
E
B
I
T
ce
p
a
s
op		 0.
0		 0.
0
(
)
Ex
t
ion
l
i
tem
kg
E
U
R
ce
p
a
s p
er		 0.
0
0		 0.
0
0
/re
fer
Pr
ice
h
iev
t
ice
a
c
em
en
en
ce
p
r		 %
1
1
2		 %
1
0
5
Co
ha
tra
t s
n
c
re		 6
%		 0
%
Su
ior
ha
p
er
s
re		 9
1
%		 8
9
%
  • Continued very good contribution from Marine Harvest Ireland
  • Costs expected to increase in the fourth quarter
  • First month of harvesting in September for Marine Harvest Faroes since January
  • Favourable markets for Faroes salmon

Consumer Products

C
O
N
S
U
M
E
R
P
R
O
D
U
C
T
S
EU
R m
illi
on		 Q
3
2
0
1
7		 Q
3
2
0
1
6
O
ing
t
p
e
ra
re
ve
nu
e
s		 3
6
8.
0		 3
4
0.
5
O
t
io
l
E
B
I
T
p
e
ra
na		 1
0.
4		 2.
6
O
io
l
E
B
I
T
%
t
p
e
ra
na		 2.
8
%		 0.
8
%
Vo
lu
l
d
(
t
d.
ig
h
t
)
m
e
s
o
o
nn
e
s
p
ro
e
w		 2
8
5
1
5		 3
1
9
6
1
Ex
t
io
l
i
t
c
e
p
na
e
m
s		 0 0
Vo
lu
ha
lm
m
e
s
re
s
a
o
n		 %
7
7		 %
8
0
Re
ha
lm
ve
nu
e
s
re
s
a
o
n		 8
4
%		 8
3
%
  • Continued performance improvements across Consumer Products
  • Developments of MAP (skin-packed) sales particularly good
  • Value of salmon sold continue to rise across all key markets

Feed

F
E
E
D
EU
R m
illio
n		 Q
3
2
0
1
7		 Q
3
2
0
1
6
Op
ing
t
er
a
re
ve
nu
es		 2
1
3
2.		 1
4
0.
4
O
t
io
l
E
B
I
T
p
er
a
na		 4
9.		 1
2.
4
Op
ion
l
E
B
I
T
%
t
er
a
a		 7.
1
%		 8.
8
%
Fe
d s
l
d v
lum
e
o
o
e		 1
1
4
2
0
3		 1
1
4
6
8
5
Fe
d
du
d v
lum
e
p
ro
ce
o
e		 8
9
4
5
7		 9
3
4
2
5
Ex
t
ion
l
i
te
ce
p
a
m
s		 0 0
  • Seasonally high volume quarter
  • Lower raw material costs offset by reduced sales price
  • Construction of the new feed plant in Scotland on schedule

Construction site of new feed plant in Scotland

Third Quarter 2017 Financials, Markets and Harvest Volumes

Profit and Loss

Ma
rin
e H
est
G
arv
rou
p
EUR
mil
lion		 Q
3 2
017		 Q
3 2
016		 YT
D Q
3 2
017		 YT
D Q
3 2
016		 20
16
Op
tio
l re
nd
ot
he
r in
era
na
ve
nu
e a
co
me		 86
7.8		 2% 850
.0		 26
43
.8		 24
91
.7		 3 5
09
.8
Op
tio
l E
BIT
1)
era
na		 194
.2		 8% 179
.9		 61
1.3		 44
0.8		 70
0.2
Ch
e i
aliz
ed
inte
l m
in
ang
n u
nre
rna
arg		 8
-5.		 -18
.2		 2
-7.		 -16
.9		 -22
.1
Ga
in/l
fro
de
riva
tive
oss
m
s		 -3.
3		 -0.
2		 -8.
0		 1.1 8.3
Ne
t fa
ir v
alu
dju
stm
ent
of
bio
ntr
act
e a
ma
ss
, o
ner
ous
co
s		 27
.1		 97
.2		 -12
5.9		 20
2.8		 27
7.5
Re
stu
ctu
ring
sts
co		 0.1 0.0 0.0 -4.
6		 -5.
4
Oth
tio
nal
ite
er
non
-op
era
ms		 -0.
1		 0.0 0.3 1.3 1.3
Inc
e f
iate
d c
ies
om
rom
as
soc
om
pan		 13
.5		 15
.2		 20
.9		 41
.6		 62
.6
Imp
air
los
- f
ixe
d a
nt
ts
me
ses
sse		 -0.
2		 -0.
3		 -2.
1		 -19
.4		 -31
.2
EB
IT		 22
5.4		 27
3.6		 48
9.2		 64
6.9		 99
1.2
Ne
t fi
cia
l ite
nan
ms		 -28
.0		 -44
.7		 30
.0		 -16
3.5		 -23
2.0
Ea
rni
s b
efo
tax
ng
re		 19
7.4		 22
9.0		 51
9.2		 48
3.5		 9.2
75
Pro
fit
los
s f
the
rio
d
or
or
pe		 15
0.6		 15
7.9		 43
4.5		 32
8.4		 53
9.3
Ba
sic
EP
S (
EU
R)		 0.3
1		 0.3
5		 0.9
2		 0.7
3		 1.2
0
S (
R)
Un
de
rly
ing
EP
EU		 0.2
9		 0.2
9		 0.9
6		 0.7
1		 1.1
3
Ne
t c
h fl
har
e (
EU
R)
as
ow
pe
r s		 0.1
2		 0.2
6		 0.7
4		 0.9
8		 1.2
3
Div
ide
nd
dec
lare
d a
nd
id p
sha
(
NO
K)
pa
er
re		 3.2
0		 3.2
0		 9.0
0		 6.3
0		 8.6
0
Op
tio
nal
EB
IT m
in
era
arg		 22
.4%		 21
.2%		 23
.1%		 17
.7%		 19
.9%
Ha
vol
GW
E t
(s
alm
ids
)
st
rve
um
e,
on
nes
on		 95
33
8 -		 2% 97
215		 25
18
7 7		 28
0 9
87		 38
0 6
21
Op
tio
nal
EB
IT p
kg
inc
l m
in f
Sa
les
d M
ark
eti
1)
era
er
arg
rom
an
ng		 2.0
4		 1.8
5		 2.3
7		 1.5
7		 1.8
4
1)
RO
CE		 28
.8
%		 29
.5
%		 31
.5
%		 23
.5
%		 28
.1
%

Financial position

Gr
Ma
in
Ha
t
r
e
rv
es
ou
p
EU
R m
illio
n		 3
0.
0
9.
2
0
1
7		 3
0.
0
9.
2
0
1
6		 3
1.
1
2.
2
0
1
6
No
t a
ts
n-c
urr
en
ss
e
Cu
(
for
)
t a
ts
inc
lu
d
ing
ts
he
l
d
les
rre
n
ss
e
a
ss
e
s
a
To
ta
l a
ts
ss
e		 2
2
4
7.
5
2
2
4
1.
6
4
4
8
9.
1		 2
2
0
1.
8
2
2
4
1.
5
4
4
4
3.
3		 2
2
8
5
5.
2
5
5
4.
5
4
8
1
0.
4
Eq
i
ty
u
No
t
l
ia
b
i
l
i
t
ies
n-c
urr
en
Cu
t
l
ia
b
i
l
i
t
ies
rre
n
To
ta
l e
i
ty
d
l
ia
b
i
l
i
t
ie
q
u
an
s		 2
2
4.
2
5
1
1
3
6.
9
8
2
8.
1
4
4
8
9.
1		 1
9
6
8.
4
1
7
6
5.
5
7
0
9.
4
4
4
4
3.
3		 2
0
6
9.
3
1
8
9
8.
0
8
4
3.
1
4
8
1
0.
4
Ne
t
in
te
t-
be
ing
de
b
t
res
ar
A
d
j
te
d e
i
ty
t
io
us
q
u
ra		 6
6
4.
0
5
4.
3
%		 8
7
6.
7
4
0.
9
%		 8
9
0.
0
4
0.
1
%

Cash Flow and Net Interest Bearing Debt

Ma
rin
e H
t G
arv
es
rou
p
EUR
mil
lion		 Q
3 2
01
7		 Q
3 2
01
6		 YT
D Q
3 2
01		 7 Y
TD
Q
3 2
01
6		 20
16
of
NIB
D b
inn
ing
rio
d
eg
pe		 50
.9
- 5		 - 8
32
.4		 -89
0.0		 -99
9.7		 -99
9.7
Op
tio
l E
BIT
DA
era
na		 23
1.7		 21
4.6		 72
3.4		 54
6.7		 84
2.7
Ch
in w
ork
ing
ita
l
an
ge
ca
p		 -71
.9		 -19
.7		 -14
.2		 90
.3		 -14
.9
Ta
aid
xe
s p		 -16
.7		 8
-7.		 -14
7.9		 -82
.2		 -92
.6
Ot
he
dju
stm
ts
r a
en		 -10
.5		 -20
.6		 -18
.5		 -24
.8		 -42
.0
Ca
sh
flo
fro
tio
w
m
op
era
ns		 13
2.6		 16
6.6		 54
2.8		 53
0.0		 69
3.2
Ne
t C
ap
ex		 -57
.9		 -49
.6		 -17
9.1		 -14
1.0		 -19
9.2
Ca
sh
eiv
ed
fro
le o
f s
ha
rec
m
sa
res		 0.0 0.0 0.0 52
.3		 52
.3
Ot
he
r in
d d
ivid
ds
eiv
ed
tm
ts
ves
en
an
en
rec		 -3.
3		 -0.
3		 14
.1		 13
.4		 14
.3
Ca
sh
flo
fro
inv
tm
ts
w
m
es
en		 -61
.2		 -50
.0		 -16
5.0		 -75
.4		 -13
2.6
Ne
t in
nd
fina
ial
ite
id
ter
t a
es
nc
ms
pa		 0
-7.		 3
-5.		 -19
.1		 -16
.4		 -22
.9
Ot
he
r it
em
s		 -8.
3		 4.6 -27
.1		 -17
.2		 -7.
2
Bo
nds
rte
d t
ity
co
nve
o e
qu		 0.0 0.0 34
9.1		 0.0 0.0
Div
ide
nd
dis
trib
d
ute		 -16
9.0		 -15
5.2		 -46
6.6		 -30
4.2		 -41
8.1
Tra
lat
ion
ef
fec
n i
t-b
ring
de
bt
t o
nte
ns
res
ea		 -0.
3		 1
-5.		 11
.9		 6.3 -2.
7
NIB
D e
nd
of
rio
d
pe		 - 6
64
.0		 - 8
76
.7		 - 6
64
.0		 - 8
76
.7		 - 8
90
.0
1):
De
bt
dis
trib
uti
on
EU
R		 66
%		 70
%		 66
%		 70
%		 70
%
US
D		 13
%		 13
%		 13
%		 13
%		 13
%
GB
P		 4% 4% 4% 4% 4%
Ot
he
cie
r c
urr
en
s		 17
%		 13
%		 17
%		 13
%		 13
%

1) Debt distribution including effect of cross currency sw aps.

2017 Cash Flow Guidance

  • Working capital buildup EUR ~120m
  • Support further organic growth
  • -Capital expenditures EUR ~250m
  • Interest paid EUR ~25m
  • Taxes paid EUR ~180m
  • Quarterly dividend payment in Q4 2017 of NOK 3.40 per share (repayment of paid in capital)

Overview financing

  • Refinanced bank facility: EUR 1,206m Facility Agreement
  • Maturity: 5 years
  • Covenant: 35% equity ratio
  • Accordion option: EUR 200m
  • Lenders: DNB, Nordea, ABN Amro, Rabobank, Danske Bank and SEB
  • EUR 340m convertible bond issued in November 2015
  • Tenor 5 years, annual coupon 0.125%(1), conversion price EUR 14.1849
  • NOK 1,250m bond issued in March 2013
  • Tenor 5 years, NIBOR + 3.5%
  • Long term NIBD target remains at EUR 1,050m
E
t
i
t
d
s
m
a
e		 l
v
o
u
m
e
s		 C
d
t
o
m
p
a
r
e
o		 Q
3
2
0
1
6		 E
t.
l
s
v
o
u
m
e
s
S
l
i
u
p
p
e
r
s		 Q
3
2
0
1
7		 Q
3
2
0
1
6		 V
l
o
u
m
e		 % Q
2
2
0
1
7
N
o
r
a
w
y		 2
8
3
6
0
0		 2
7
1
8
0
0		 1
1
8
0
0		 %
4.
3		 2
3
5
2
0
0
S
l
d
t
c
o
a
n		 4
0
0
0
0		 3
6
3
0
0		 3
7
0
0		 1
0.
2
%		 4
0
8
0
0
F
I
l
d
a
r
o
e
s
a
n
s		 1
6
0
0
0		 1
4
8
0
0		 1
2
0
0		 %
8.
1		 2
2
0
0
0
I
l
d
r
e
a
n		 4
1
0
0		 4
4
0
0		 3
0
0
-		 6.
8
%
-		 5
1
0
0
T
l
E
t
o
a
u
r
o
p
e		 3
4
3
0
0
7		 3
2
3
0
0
7		 1
6
4
0
0		 0
%
5.		 3
0
3
1
0
0
C
h
i
l
e		 1
2
2
1
0
0		 1
0
1
1
0
0		 2
1
0
0
0		 2
0.
8
%		 1
1
3
0
0
7
N
t
h
A
i
o
r
m
e
r
c
a		 3
8
9
0
0		 3
7
5
0
0		 1
4
0
0		 %
3.
7		 3
5
8
0
0
T
t
l
A
i
o
a
m
e
r
c
a
s		 1
6
1
0
0
0		 1
3
8
6
0
0		 2
2
4
0
0		 1
6.
2
%		 1
5
3
1
0
0
A
t
l
i
u
s
r
a
a		 1
3
8
0
0		 1
1
1
0
0		 2
7
0
0		 2
4.
3
%		 1
2
2
0
0
O
t
h
e
r		 4
9
0
0		 4
6
0
0		 3
0
0		 %
6.
5		 7
0
0
0
T
t
l
o
a		 5
2
3
4
0
0		 4
8
1
6
0
0		 4
1
8
0
0		 %
8.
7		 4
7
5
4
0
0

Supply development

  • Supply growth in all main markets (Norway, Chile, Scotland and Canada) in line with guidance
  • Europe: Approx 16,000 tonnes more harvested than in the third quarter 2016
  • Chile: Approx 21,000 tonnes more harvested than in the same period last year due to recovery from algal bloom
Q
3
2
0
1
7		 C
ha
ng
e v
s		 Q
3
2
0
1
7		 C
ha
ng
e v
s
Ma
ke
t
r		 Q
3
2
0
1
6		 N
O
K		 Q
3
2
0
1
6

Development in reference prices

Ma
ke
t
r		 Q
3
2
0
1
6		 N
O
K		 Q
3
2
0
1
6
No
(
1
)
rw
ay		 E
U
R
6.
0
1		 6.
3
%
-		 N
O
K
5
6.
1
6		 5.
7
%
-
C
(
)
h
i
le
2
C
h
i
le,
G
W
E
(
3
)		 S
U
D
4.
9
3
U
S
D
2
5.
7		 %
9.
5
-
9.
9
%
-		 O
N
K
3
9.
2
0
N
O
K
4
1
5.
5		 %
1
3.
5
-
1
3.
9
%
-
No
h
Am
ica
(
4
)
t
r
er
No
t
h
Am
ica
G
W
E
(
3
)
r
er
,		 U
S
D
3.
2
5
U
S
D
6.
7
5		 4.
2
%
-
3.
4
%
-		 N
O
K
2
8
2
5.
N
O
K
5
3.
7
1		 8.
%
5
-
7.
7
%
-

Notes:

(1) NASDAQ average superior GWE/kg (gutted weight equivalent)

(2) Urner Barry average D trim 3-4 lbs FOB Miami

(3) Reference price converted back-to-plant equivalent in GWE/kg

(4) Urner Barry average GWE 10-12 lbs FOB Seattle

Es
tim
ate
d v		 olu
me
s		 Co
d t
mp
are		 o Q 3 2
01
6		 Es
t. v
olu
me
s		 12
mo		 nth
ari
co
mp
so		 n
Ma
rke
ts		 Q
3 2
01
7		 Q
3 2
01
6		 Vo
lum
e		 % Q
2 2
01
7		 LT
M		 PT
M		 %
EU 24
7 0
00		 24
4 5
00		 2 5
00		 1.0
%		 20
3 6
00		 90
5 1
00		 96
1 4
00		 -5.
9%
Ru
ssi
a		 17
80
0		 17
40
0		 40
0		 2.3
%		 13
10
0		 65
00
0		 73
30
0		 -11
.3%
Ot
her
Eu
rop
e		 21
70
0		 17
60
0		 4 1
00		 23
.3%		 17
60
0		 78
30
0		 70
0
75		 3.4
%
To
tal
Eu
rop
e		 28
6 5
00		 27
9 5
00		 7 0
00		 %
2.5		 23
4 3
00		 1 0
48
40
0		 1 1
10
40
0		 6%
-5.
US
A		 99
40
0		 89
50
0		 9 9
00		 11
.1%		 97
60
0		 38
4 5
00		 38
9 8
00		 -1.
4%
Bra
zil		 20
20
0		 18
90
0		 1 3
00		 6.9
%		 18
10
0		 78
30
0		 89
20
0		 -12
.2%
Ot
her
Am
eri
cas		 26
00
0		 23
50
0		 2 5
00		 .6%
10		 25
80
0		 10
4 6
00		 10
2 2
00		 %
2.3
To
tal
Am
eri
ca
s		 14
5 6
00		 13
1 9
00		 13
70
0		 10
.4%		 14
1 5
00		 56
7 4
00		 58
1 2
00		 -2.
4%
Ch
ina
/ H
Ko
ong
ng		 22
50
0		 19
60
0		 2 9
00		 14
.8%		 18
50
0		 77
30
0		 79
60
0		 -2.
9%
Ja
pa
n		 13
30
0		 14
60
0		 -1
30
0		 -8.
9%		 14
50
0		 58
40
0		 59
80
0		 -2.
3%
So
uth
Ko
/ T
aiw
rea
an		 11
80
0		 9 0
00		 2 8
00		 31
.1%		 11
80
0		 43
20
0		 41
90
0		 3.1
%
Ot
her
As
ia		 20
90
0		 14
70
0		 6 2
00		 42
.2%		 21
00
0		 90
0
77		 69
70
0		 11
.8%
To
tal
As
ia		 68
50
0		 57
90
0		 10
60
0		 .3%
18		 65
80
0		 25
6 8
00		 25
1 0
00		 %
2.3
All
oth
rke
ts
er
ma		 25
70
0		 25
80
0		 -10
0		 -0.
4%		 22
90
0		 10
4 0
00		 10
3 2
00		 0.8
%
To
tal		 52
6 3
00		 49
5 1
00		 31
20
0		 6.3
%		 46
4 5
00		 1 9
76
60
0		 2 0
45
80
0		 -3.
4%
Inf
US
fro
low
to
Eu
m
rop
e		 21
50
0		 19
20
0		 2 3
00		 .0%
12		 23
50
0		 91
00
0		 79
50
0		 .5%
14
Inf
low
to
EU
fro
Ch
ile
m		 10
20
0		 11
00
0		 -80
0		 -7.
3%		 6 2
00		 34
30
0		 50
50
0		 -32
.1%

Global volume by market

Adjusted for higher contract prices, the value of salmon in all main markets continue to grow

EU: Consumption up by approximately 5% in value terms

US: Access to more Chilean salmon and import growth of large sized European salmon continues

Asia: Impressive consumption growth continues

Source: Kontali

Note: Atlantic Salmon (GWE tonnes), LTM Last twelve months, PTM Previous twelve months 25

y I
d
t
n
u
s
r		 l
s
u
p
p		 t
h
y
g
r
o
w
--- --------------------------------- ----------------------- ---------------------------------
201
4		 20
15		 20
16		 20
17		 Est
im
ate		 s 2
017		 Est
im
ate
s 2
018
GW
E to
(
tho
and
nn
es
us		 s) tim
ate
es		 Lo
w		 Y/Y
th
gr
ow		 Hig
h		 Y/Y
th
gr
ow		 Lo
w		 Y/Y
th
gr
ow		 Hig
h		 Y/Y
th
gr
ow
Nor
w a
y		 1 0
79		 1 1
11		 1 0
54		 1 0
87		 1 0
82		 3 % 1 0
92		 4 % 1 1
40		 5 % 1 1
90		 9 %
UK 153 150 142 157 157 11
%		 158 11
%		 155 -1
%		 165 5 %
Far
Isla
nds
oe		 74 68 70 74 73 5 % 75 8 % 70 -4
%		 77 3 %
To
tal
Eur
op
e		 1 3
07		 1 3
28		 1 2
65		 1 3
18		 1 3
12		 4 % 1 3
25		 5 % 1 3
65		 4 % 1 4
32		 8 %
Ch
ile		 525 538 454 493 489 8 % 497 9 % 515 5 % 555 12
%
Nor
th A
rica
me		 107 140 148 144 142 -4
%		 145 -2
%		 145 2 % 155 7 %
To
tal
Am
eri
cas		 632 678 602 636 63
1		 5 % 642 7 % 660 5 % 710 11
%
Oth
er		 67 79 79 92 91 15
%		 93 18
%		 95 5 % 105 13
%
To
tal		 2 0
05		 2 0
85		 1 9
46		 2 0
46		 2 0
33		 4 % 2 0
59		 6 % 2 1
20		 4 % 2 2
47		 9 %
Q4
20
14		 Q4
20
15		 Q4
20
16		 Q4
20
17		 s Q
4 2
017
GW
E to
(
tho
nn
es
us		 and
s)		 tim
ate
es		 Lo
w		 Q/Q
th
gr
ow		 Hig
h		 Q/Q
th
gr
ow
Nor
w a
y		 30
1		 310 290 319 314 8 % 324 12
%
UK 36 41 37 41 40 9 % 41 12
%
Far
Isla
nds
oe		 23 22 20 22 21 5 % 23 15
%
To
tal
Eur
op
e		 360 372 346 382 375 8 % 388 12
%
Ch
ile		 138 152 116 135 13
1		 13
%		 139 20
%
Nor
th A
rica
me		 31 37 37 40 38 2 % 41 10
%
To
tal
Am
eri
cas		 169 189 153 175 169 11
%		 180 18
%
Oth
er		 19 22 20 24 23 17
%		 25 27
%
To
tal		 547 583 519 580 567 9 % 593 14
%
  • 2017 guidance: Global growth of 4-6%
  • 2018 guidance: Global growth of 4-9% (Europe 6%, Americas 8%)
  • 2019: Kontali expects 3% global growth

Actual harvest volumes will be affected by e.g. water temperatures, development in biological growth, biological challenges such as diseases, algal blooms etc. and market developments. 26

Sa
lm
ies
on
sp
ec
G
W
E
ton
(
1
0
0
0
)
ne
s		 2
0
1
5
Ac
tua
l		 Q
1
2
0
1
6
Ac
tua
l		 Q
2
2
0
1
6
Ac
tua
l		 Q
3
2
0
1
6
Ac
tua
l		 Q
4
2
0
1
6
Ac
tua
l		 2
0
1
6
Ac
tua
l		 Q
1
2
0
1
7
Ac
tua
l		 Q
2
2
0
1
7
Ac
tua
l		 Q
3
2
0
1
7
Ac
tua
l		 Q
4
2
0
1
7
Gu
i
da
nc
e		 2
0
1
7
Gu
i
da
nc
e		 2
0
1
8
Gu
i
da
nc
e
No
rw
ay		 2
5
5		 5
4		 5
4		 6
5		 6
4		 2
3
6		 4
9		 3
9		 5
5		 6
6		 2
1
0		 2
4
9
Sc
lan
d
t
o		 5
0		 1
3		 1
1		 1
0		 1
2		 4
5		 1
8		 1
9		 1
1		 1
0		 5
7		 4
7
Ca
da
na		 4
0		 1
2		 1
2		 1
0		 1
0		 4
3		 9 9 1
1		 1
2		 4
1		 4
6
C
h
i
le		 6
2		 1
5		 7 7 8 3
7		 6 8 1
4		 1
8		 4
6		 3
5
O
t
he
Un
i
ts
r		 1
3		 3 4 6 7 1
9		 2 4 4 6 1
6		 1
6
To
l
ta		 4
2
0		 9
7		 8
7		 9
7		 1
0
0		 3
8
1		 8
4		 9
7		 9
5		 1
1
1		 3
6
9		 4
1
0

MHG 2017 and 2018 volume guidance

  • 2017 volume guidance reduced from 377,000 GWE to 369,000 GWE
  • Norway reduced by 7,000 GWE
  • 2018 volume guidance of 410,000 tonnes GWE
  • Partial recovery of volumes in Norway
  • Scotland to decline temporarily due to change in stocking pattern

Actual harvest volumes will be affected by e.g. water temperatures, development in biological growth, biological challenges such as diseases, algal blooms etc. and market developments. 27

Outlook

  • Strong financial position
    • Several important organic growth initiatives ongoing (Feed, Farming, Consumer Products)
  • Strong demand and modest supply growth expected going forward
  • Future prices (NASDAQ) next twelve months EUR 6.1 per kg (NOK 59 per kg)
  • Quarterly dividend of NOK 3.40 per share (repayment of paid in capital)

Appendix

Dividend policy

  • The quarterly dividend level shall reflect the present and expected future cash flow generation of the Company
  • To this end, a target level for net interest bearing debt is determined, reviewed and updated on a regular basis
    • When the target is met, at least 75% of the annual free cash flow after operational and financial commitments will be distributed as dividends
  • Long term NIBD target of EUR 1,050m
  • EUR 1.8 per kg harvest volume (equivalent to ca NOK 15 per kg)
  • Residual attributed to non-farming businesses

Contract coverage and sales contract policy

S
A
E
S
C
O
N
T
R
A
C
T
P
O
I
C
Y
L
L
M
in
he
dg
ing
(
1
)
te
ra		 Ma
he
dg
ing
(
1
)
te
x
ra
(
)
(
)
No
2
3
rw
ay		 %
2
2.
5		 %
5
0.
0
Sc
t
lan
d
o		 %
4
0.
0		 %
7
5.
0
Ca
da
na		 %
0.
0		 %
3
0.
0
C
(
)
h
i
le
3		 %
2
2.
5		 %
5
0.
0
Ire
lan
d		 %
4
0.
0		 %
1
0
0.
0
Fa
roe
s		 %
0.
0		 %
3
0.
0

Notes:

(1) Hedging rates for the next quarter, limits dropping over time

(2) External and internal contract (including financial futures)

(3) Contract rate can be increased to 65% under special circumstances

Q4 2017 contract shares (% of guided volume):

  • Norway 39%
  • Scotland 75%
  • Canada 0%
  • Chile 15%
  • Contracts typically have a duration of 3-12 months
  • Contracts are entered into on a regular basis
  • Policy opens for contracts of up to 48 month duration

Quarterly segment overview

SO UR
CE
S O
F O
RIG
EUR
mill
ion		 No
rwa
y		 Sc
otl
d
an		 Ca
da
na		 Ch
ile		 Ire
lan
d		 Fa
roe
s		 1)
Oth
er		 Gro
up
OP
ION
ER
AT
AL
EB
IT
FA
RM
ING		 99.
3		 20.
3		 17.
7		 13.
6		 9.7 1.4 16
1.9
SA
LES
AN
D M
AR
KE
TIN
G
Ma
rke
ts		 6.4 3.1 1.6 4.2 0.0 1.0 0.0 16.
3
Co
r P
rod
uct
nsu
me
s		 7.7 2.0 0.0 0.0 0.3 0.0 0.3 10.
4
SU
BTO
TA
L		 113
.3		 25.
4		 19.
3		 17.
8		 10.
1		 2.4 0.3 188
.6
Fee
d		 10.
9		 -1.5 9.4
1)
Oth
ntit
ies
er e		 -3.8 -3.
8
TO
TA
L		 124
.2		 25.
4		 19.
3		 17.
8		 10.
1		 2.4 -5.
0		 194
.2
Ha
lum
e (
GW
E,
sal
n)
t vo
rves
mo		 55
369		 10
912		 11
151		 13
721		 3 1
20		 1
065		 95
338
1) -
Op
tion
al E
BIT
r kg
(
EU
R)
tota
l G
era
pe
rou
p		 2.2
4		 2.3
3		 1.7
3		 1.3
0		 3.2
3		 2.2
5		 2.0
4
- of
wh
ich
Fe
ed		 0.2
0		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.1
0
- of
wh
ich
Ma
rke
ts		 0.1
2		 0.2
8		 0.1
4		 0.3
1		 0.0
0		 0.9
5		 0.1
7
- of
wh
ich
Co
r P
rod
uct
nsu
me
s		 0.1
4		 0.1
9		 0.0
0		 0.0
0		 0.1
1		 0.0
3		 0.1
1
ICA
AN
AL
YT
L D
AT
A
1)
Pric
chi
nt/r
efe
ice
(
%)
e a
eve
me
ren
ce
pr		 107
%		 116
%		 99% 109
%		 na 112
%		 107
%
Co
har
e (
%)
ntra
ct s		 38% 53% 0% 16% 81% 0% 33%
Qu
alit
erio
r sh
(
%)
y -
sup
are		 94% 96% 92% 89% 88% 91% 93%
Exc
tion
al i
s in
clu
ded
in
Op
tion
al E
BIT
tem
ep
era		 -25
.4		 -2.
1		 -0.
7		 -0.4 -2.
5		 0.0 0 -31
.2
Exc
tion
al i
tem
er k
(
EU
R)
ep
s p
g		 -0.4
6		 -0.
20		 -0.
07		 -0.
03		 -0.
79		 0.0
0		 -0.
33
GU
NC
IDA
E
Q4
20
17
har
t vo
lum
e (
GW
E)
ves		 66
00
0		 9
500		 11
50
0		 18
00
0		 2
000		 4
000		 11
1 0
00
201
7 h
est
lum
e (
GW
E)
arv
vo		 21
0 0
00		 57
00
0		 41
00
0		 45
50
0		 9
500		 6
000		 36
9 0
00
201
8 h
lum
e (
GW
E)
est
arv
vo		 24
9 0
00		 47
00
0		 46
00
0		 52
50
0		 7
500		 8
000		 41
0 0
00
Q4
20
17
trac
t s
har
e (
%)
con		 39% 75% 0% 15% 85% 11% 34%

YTD segment overview

SO
UR
CE
S O
F O
RIG
IN
YT
D
EUR
mill
ion		 No
rwa
y		 Sc
otl
d
an		 Ca
da
na		 Ch
ile		 Ire
lan
d		 Fa
roe
s		 1)
Oth
er		 Gro
up
OP
ER
AT
ION
AL
EB
IT
ING
FA
RM		 285
.8		 120
.2		 66.
7		 34.
6		 22.
3		 6.2 535
.6
SA
LES
AN
D M
AR
KE
TIN
G
Ma
rke
ts		 19.
6		 11.
9		 4.7 6.4 0.0 0.9 0.0 43.
6
Co
r P
rod
uct
nsu
me
s		 27.
3		 6.2 0.0 0.0 0.9 0.1 1.4 35.
9
SU
BTO
TA
L		 332
.7		 138
.3		 71.
4		 41.
0		 23.
2		 7.1 1.4 615
.1
Fee
d		 13.
0		 -1.7 11.
3
1)
Oth
ntit
ies
er e		 -15
.0		 -15
.0
TO
TA
L		 345
.6		 138
.3		 71.
4		 41.
0		 23.
2		 7.1 -15
.3		 611
.3
Ha
t vo
lum
e (
GW
E,
sal
n)
rves
mo		 143
76
8		 47
199		 29
353		 27
798		 7 3
87		 2
213		 257
71
8
1) -
Op
tion
al E
BIT
r kg
(
EU
R)
l G
tota
era
pe
rou
p		 2.4
0		 2.9
3		 2.4
3		 1.4
7		 3.1
3		 3.2
3		 2.3
7
- of
wh
ich
Fe
ed		 0.0
9		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
0		 0.0
4
- of
wh
ich
Ma
rke
ts		 0.1
4		 0.2
5		 0.1
6		 0.2
3		 0.0
0		 0.4
2		 0.1
7
- of
wh
ich
Co
r P
rod
uct
nsu
me
s		 0.1
9		 0.1
3		 0.0
0		 0.0
0		 0.1
2		 0.0
3		 0.1
4
AN
AL
YT
ICA
L D
AT
A
1)
Pric
chi
nt/r
efe
ice
(
%)
e a
eve
me
ren
ce
pr		 97% 104
%		 100
%		 100
%		 na 110
%		 99%
Co
ntra
ct s
har
e (
%)		 51% 43% 0% 21% 80% 5% 41%
Qu
alit
erio
r sh
(
%)
y -
sup
are		 93% 96% 90% 88% 89% 87% 93%
Exc
tion
al i
tem
s in
clu
ded
in
Op
tion
al E
BIT
ep
era		 -64
.2		 -4.
3		 -0.
7		 -1.
8		 -3.
9		 0.0 0 -74
.9
(
R)
Exc
tion
al i
tem
er k
EU
ep
s p
g		 -0.4
5		 -0.
09		 -0.
03		 -0.
06		 -0.
53		 0.0
0		 -0.
29

Quarterly segment overview

MH Operating Units FARMING MH Sales and Marketing Consumer
EUR million Norway Scotland Canada Chile Ireland Faroes Markets Products MH Feed Other Elim Group*
Revenues and other income 330.2 70.9 66.1 71.0 30.4 6.8 664.9 368.0 132.2 3.9 $-876.7$ 867.8
Operating EBITDA 114.1 24.5 21.6 17.6 10.6 1.8 17.5 15.9 11.2 $-3.0$ 0.0 231.7
Operating EBIT 99.3 20.3 17.7 13.6 9.7 1.4 16.3 10.4 9.4 $-3.8$ 0.0 194.2
Fair Value adj on biomass, contracts/ unrealised derivatives 59.9 $-2.8$ $-8.3$ $-18.6$ $-8.4$ 5.0 $-2.1$ $-0.3$ $-0.2$ $-0.4$ 0.0 23.8
Unrealized margin adjustment 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $-5.8$ $-5.8$
Restructuring cost 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.1
Other non-operational items 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $-0.1$ 0.0 0.0 0.0 $-0.1$
Income/loss from associated companies 13.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $-0.1$ 0.0 13.5
Write-down of fixed assets/intangibles 0.0 0.0 0.0 $-0.1$ 0.0 0.0 0.0 $-0.1$ 0.0 0.0 0.0 $-0.2$
EBIT 172.7 17.5 9.4 $-5.0$ 1.3 6.4 14.2 9.9 9.2 $-4.3$ $-5.8$ 225.4
Contribution to operational EBIT from S&M 14.1 5.1 1.6 4.2 0.3 1.0 $-16.3$ $-10.4$ 0.3 0.0
Contribution to operational EBIT from Feed 10.9 $-9.4$ $-1.5$ 0.0
Operational EBIT incl contribution from S&M 124.2 25.4 19.3 17.8 10.1 2.4 0.0 0.0 0.0 $-5.0$ 0.0 194.2
Harvest / sales volume 55 369 10 912 11 151 13 721 3 1 2 0 1 0 6 5 28 5 15 114 203
Operational EBIT/kg incl contribution from S&M (EUR) 2.24 2.33 1.73 1.30 3.23 2.25 2.04
-of which S&M 0.25 0.47 0.14 0.31 0.11 0.98 0.28
-of which Feed 0.20 0.10

Development in harvest volumes

20
12		 20
13		 20
14		 20
15		 20
16		 20
17		 20
18
E
To
tal		 To
tal		 To
tal		 Q
1		 Q
2		 Q
3		 Q
4		 To
tal		 Q
1		 Q
2		 Q
3		 Q
4		 To
tal		 Q
1		 Q
2		 Q
3		 Q
4E		 To
tal		 To
tal
No
rw
ay		 5.3
25		 2.5
22		 25
8.0		 65
.2		 64
.0		 .9
58		 66
.6		 25
4.8		 54
.0		 53
.7		 .6
64		 63
.6		 23
6.0		 49
.0		 39
.4		 .4
55		 66
.2		 21
0.0		 24
9.0
Sc
otl
d
an		 .3
40		 .4
48		 48
.9		 7.1 12.
4		 6
16.		 14.
1		 50
.1		 12.
6		 10.
8		 9.8 11.
8		 45
.0		 17.
8		 18.
5		 9
10.		 9.8 57
.0		 47
.0
Ca
da
na		 .2
40		 .1
33		 26
.7		 10
.5		 11.
6		 8.7 9.4 40
.1		 11.
6		 11.
7		 3
10.		 9.8 43
.3		 8.9 9.4 2
11.		 11
.6		 41
.0		 46
.0
Ch
ile		 .2
40		 .3
28		 67
.5		 16
.1		 13.
2		 4
18.		 14.
8		 62
.5		 15.
4		 7.1 6.9 7.6 36
.9		 6.3 7.7 7
13.		 17
.7		 45
.5		 52
.5
Ot
he
r (
1)		 .3
16		 .5
11		 17
.8		 0.6 2.9 3.4 5.7 12
.7		 3.1 3.8 5.6 6.9 19
.3		 1.8 3.6 4.2 5.9 15
.5		 15
.5
To
tal		 2.3
39		 3.8
34		 8.9
41		 99
.5		 .2
104		 .0
106		 .6
110		 0.1
42		 .6
96		 .2
87		 .2
97		 .6
99		 0.6
38		 .8
83		 .6
78		 .3
95		 1.3
11		 9.0
36		 41
0.0

GROWTH RELATIVE TO SAME PERIOD IN PREVIOUS YEAR

20
12		 20
13		 20
14		 20
15		 20
16		 20
17		 20
18
E
To
tal		 To
tal		 To
tal		 Q
1		 Q
2		 Q
3		 Q
4		 To
tal		 Q
1		 Q
2		 Q
3		 Q
4		 To
tal		 Q
1		 Q
2		 Q
3		 Q
4E		 To
tal		 To
tal
No
rw
ay		 17
%		 -13
%		 16
%		 18
%		 -7
%		 -8
%		 -5
%		 -1
%		 -17
%		 -16
%		 10
%		 -5
%		 %
-7		 -9
%		 -27
%		 -14
%		 4 % -11
%		 19
%
Sc
otl
d
an		 -20
%		 20
%		 1 % %
-32		 %
-32		 %
21		 1 %
12		 3 % %
77		 %
-12		 %
-41		 %
-16		 -10
%		 %
41		 %
71		 %
11		 %
-17		 27
%		 -18
%
Ca
da
na		 %
19		 %
-18		 %
-19		 65
%		 79
%		 23
%		 38
%		 %
50		 10
%		 1 % 19
%		 4 % 8 % -23
%		 -20
%		 8 % 19
%		 %
-5		 %
12
Ch
ile		 55
%		 -30
%		 13
9 %		 -9
%		 -19
%		 10
%		 -11
%		 -7
%		 -4
%		 -47
%		 -63
%		 -49
%		 -41
%		 -59
%		 9 % 99
%		 13
4 %		 23
%		 15
%
Ot
he
r (
1)		 7 % -29
%		 54
%		 -76
%		 -32
%		 -38
%		 6 % -29
%		 39
9 %		 28
%		 64
%		 21
%		 53
%		 -42
%		 -4
%		 -25
%		 -14
%		 -20
%		 0 %
To
tal		 14
%		 -12
%		 22
%		 8 % -9
%		 -1
%		 5 % 0 % -3
%		 -16
%		 -8
%		 -10
%		 -9
%		 -13
%		 -10
%		 -2
%		 12
%		 -3
%		 11
%

Notes:

(1) Ireland and the Faroes

Net capital expenditure guidance

Guidance on financial commitments and cost of debt

Nova Sea

Ha t v
rv
es
o		 lu
(
G
W
m
e		 )
E		 (
I
1
E
B
T		 )
kg
p
er		 N
I
B
D
E
U
Rm
h
Ow
ip
%
ne
rs		 2
0
1
5		 2
0
1
6		 Q
3
2
0
1
6		 Q
3
2
0
1
7		 2
0
1		 5
2
0
1
6		 Q
3
2
0
1
6		 Q
3
2
0
1
7		 Q
3
2
0
1
7
No
Se
va
a		 4
8
%		 3
7
4
2
2		 3
7
0
6
4		 1
3
0
5
1		 9
4
3
1		 1.
5		 7
2.
9
7		 3.
4
1		 2.
3
3		 1
3.
2
  • Leading integrated salmon producer in Northern Norway
  • 33.33 wholly owned licenses
  • 4 partly owned licenses
  • Marine Harvest has an ownership in Nova Sea of ~48% through direct and indirect shareholdings
  • 2016 dividends of NOK 650m (paid in Q2-17 & Q3-17)
  • Marine Harvest's direct share NOK ~277m
  • Proportion of income after tax reported as income from associated companies in Marine Harvest Norway
  • EUR 13.7m in Q3 2017

Debt distribution and interest rate hedging

(1)
DE
BT
VO
LU
ME
HE
DG
ED
AN
D F
IXE
D R
AT
ES
O
F IN
TE
RE
ST
RA
TE
HE
DG
ES
(
MA
RC
H-M
AR
CH
)
CU
RR
EN
CY		 DE
BT
20
17		 20
18		 20
19		 202
0		 202
1		 202
2
(2)
30/
09/
20
17		 Nom
inal
valu
e		 Fixe
d rat
e(3)		 Nom
inal
valu
e		 Fixe
d rat
e(3)		 Nom
inal
valu
e		 Fixe
d rat
e(3)		 Nom
inal
valu
e		 Fixe
d rat
e(3)		 Nom
inal
valu
e		 Fixe
d rat
e(3)		 Nom
inal
valu
e		 Fixe
d rat
e(3)
EU
R m		 .9
479		 .0
586		 1.3
5 %		 .3
860		 2.1
6 %		 5
1 2
96.		 2.5
0 %		 .6
716		 1.2
4 %		 .0
380		 2.2
0 %		 - 0.0
0 %
US
D m		 .0
122		 .5
138		 2 %
3.1		 .5
138		 1 %
3.2		 .5
167		 3 %
2.9		 .3
78		 1 %
2.3		 .3
78		 1 %
2.3		 .0
60		 3 %
4.1
GB
P m		 .1
29		 0
34.		 3.1
3 %		 .0
34		 3.1
3 %		 .0
34		 3.1
3 %		 .5
23		 2.8
3 %		 .5
23		 2.8
3 %		 - 0.0
0 %
Oth
(
)
EU
R m
er		 133
.2
Ma
rke
t va
lue
of
IRS
ntra
cts
in
ME
UR
(
30/
09/
17)
co
:		 -76
.8
(4):
Ma
rk t
ark
alu
atio
ffec
t in
Q3
et v
o m
n e		 1.1
Diff
in
fixe
d v
s fl
oat
ing
te
set
tled
in
h in
Q3
ere
nce
ra
cas		 -2.
8

Notes:

(1) MHG chooses March as the starting month for all new interest hedging contracts

(2) Debt at book value after taking cross currency swaps into account

(3) Financing margin not included

(4) Quarterly change in market value booked against P/L

  • External interest bearing debt is distributed as follows: EUR 66%, USD 13%, GBP 4%, other currencies 17%
  • Policy: Marine Harvest ASA shall over time hedge 0%-35% of the Group's long-term interestbearing debt by currency with fixed interest or interest rate derivatives for the first 5 years and 0% 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 other currencies than EUR, USD, GBP and NOK shall not be hedged

Hedging and long term currency exposure

POLICY

  • EUR/NOK
  • Marine Harvest shall hedge between 0% and 30% of its assumed annual expenses in NOK against the EUR with a horizon of two years. The annual hedging shall be evenly distributed across the months of the year.
  • USD/CAD
  • Marine Harvest shall hedge between 0% and 30% of its assumed annual expenses in CAD against the USD with a horizon of two years. The annual hedging shall be evenly distributed across the months of the year.
  • USD/CLP
  • Marine Harvest shall not hedge the USD/CLP exposure
  • Internal transaction hedging relating to bilateral sales contracts
  • All bilateral sales contracts are subject to internal currency hedging of the exposure between the invoicing currency and EUR
  • The operating entities hedge this exposure towards the parent company. In accordance with the general hedging policy, this exposure is not hedged towards external counterparties
  • The purpose of the internal hedging is to allow for a more accurate comparison between the MH Farming entities (including contribution from Sales) and peers with respect to price achievement and operational EBIT

Strategic currency hedging

EU
R/N		 OK US
D/C
AD
ST
RA
TE
GIC
CU
RR
EN
CY
HE
DG
ING		 ME
UR		 Ra
te		 MU
SD		 Ra
te
20
17		 49
.8		 9.6
4		 7.2 1.3
2
20
18		 19
9.2		 9.5
4		 28
.8		 1.3
2
20
19		 14
9.4		 9.4
8		 16
.8		 1.3
2
P/L
ef
fec
t o
f c
tra
cts
ali
sed
in
Q
3
on
re		 2.0 (
ME
UR
)
ME
UR
Ma
rke
t v
alu
e 3
0/0
6/2
017		 -6.
9
Ch
e (
1)
ang		 9.0
Ma
rke
t v
alu
e 3
0/0
9/2
017		 2.1
DE
SIG
NA
TE
D M
AR
KE
T C
UR
RE
NC
IES
No
rwa
y		 EU
R
Ch
ile		 US
D
Ca
nad
a		 US
D
Sc
otla
nd		 GB
P
Fee
d		 EU
R
VA
P		 EU
R
Mo
l
rpo		 EU
R
Fa
roe
s		 EU
R
As
ia		 US
D

Tax losses carried forward (YE 2016)

Gr
Ma
ine
Ha
t
3
1.
1
2.
2
0
1
6
r
rve
s
ou
p
EU
R m
illio
n		 Re
ise
d
*
co
g
n		 Un
ise
d
re
co
g
n		 To
l
ta
U
S
A		 8.
2		 2
6.
7		 3
5.
0
Po
lan
d		 8.
0		 7.
2		 1
5.
3
Fra
nc
e		 4.
6		 4
1
5.		 4
9.
7
C
h
i
le		 0.
0		 1
3
0.
3		 1
3
0.
3
I
ta
ly		 0.
0		 0.
4		 0.
4
Ta
iwa
n		 0.
0		 1.
1		 1.
1
C
h
ina		 0.
7		 0.
0		 0.
7
No
rw
ay		 1
3.
2		 0.
0		 1
3.
2
O
t
he
r		 0.
2		 0.
0		 0.
2
To
ta
l		 3
4.
9		 2
1
0.
9		 2
4
5.
8

*Deviation from the Annual report 2016 is related to changes in tax rates and reported specification.

  • Most of the deferred tax assets have not been recognised on the statement of financial position
  • The NOL's will be used to offset taxable profit in the countries going forward
  • The utilisation of the deferred tax asset on NOL's gives rise to a tax expense in the accounts which do not normally have any cash effect

More from Mowi ASA

Regulatory Filings 2025
Dec 22
Earnings Release 2025
Dec 22
Report Publication Announcement 2025
Dec 5
Capital/Financing Update 2025
Nov 27
Director's Dealing 2025
Nov 26
Director's Dealing 2025
Nov 26
Share Issue/Capital Change 2025
Nov 26
Capital/Financing Update 2025
Nov 25
Regulatory Filings 2025
Nov 20
Regulatory Filings 2025
Nov 20
View all filings →

Talk to a Data Expert

Have a question? We'll get back to you promptly.