Mowi ASA

Earnings Release • Aug 26, 2020

Operational EBIT of EUR 99 million in the second quarter for Mowi

Operational EBIT of EUR 99 million in the second quarter for Mowi

(Bergen, 26 August 2020) Mowi achieved an operational EBIT of EUR 99 million in

the second quarter of 2020, compared with EUR 211 million in the corresponding

quarter of 2019.

Mowi's results in the second quarter were substantially impacted by Covid-19 and

the extensive lockdown measures. Prices for salmon declined in all markets

during the quarter resulting in reduced profits.

"Despite current market and logistical disruptions caused by Covid-19, Mowi's

operations have been running close to normal so far. We have implemented a wide

range of protective measures to limit the spread of the virus in our operations.

The safety and well-being of our employees is always top priority and we will do

whatever we can to keep operations running without compromising health and

safety," says Mowi CEO, Ivan Vindheim.

Mowi Consumer Products benefitted from a shift in demand from foodservice to

retail due to the global lockdown measures, and delivered all-time high sold

volumes and results for a second quarter.

"This is an impressive result under the prevailing circumstances and

demonstrates yet again the importance of Mowi's downstream strategy," says

Vindheim.

Mowi reported operational revenues of EUR 911 million (EUR 1 021 million) in the

second quarter of 2020. Total harvest volume in the quarter of 104 303 tonnes

(98 483) was approximately in line with guidance. Full year harvest guidance for

2020 is reduced by 8 000 tonnes to 442 000 tonnes due to biological issues in

Scotland.

Mowi introduced a cost saving programme in 2018 and the company has cut cost by

EUR 118 million to date. However, Mowi continues to experience cost pressure in

its farming operations from more challenging biology, stricter regulations and a

general cost increase from input factors. This also impacts the rest of the

value chain. After feed, labour is the most important cost item in Mowi. The

Board has therefore decided to include a productivity programme in the cost

saving programme, targeting a 10% reduction in headcount for Mowi as-is by 2024.

"Addressing cost will continue to be of utmost importance in the future. This

will be realized through automation, digitalisation, improvement of production

processes and rightsizing of the organisation. Mowi's strategy is still to grow

the company and the aim is to continue to be a net job creator," says Vindheim.

Distributing dividends to its shareholders is an essential part of Mowi's

financial strategy. At the same time the Board considers it is key to maintain a

strong financial position, particularly in light of the ongoing Covid-19

pandemic. Hence, under the prevailing circumstances the Board has not found it

appropriate to distribute a quarterly dividend for the first and second quarter.

For further information, please contact:

Kristian Ellingsen, CFO, +47 905 14 275

Kim Galtung Døsvig, IR Officer & Head of Treasury, +47 908 76?339

Ola Helge Hjetland, Group Communications Director, +47 970 67 932

About Mowi ASA

Mowi is the world's leading seafood company and the largest producer of farm-

raised salmon in the world. As the first global seafood company with an end-to-

end supply chain, Mowi brings supreme quality salmon and other seafood to

consumers around the world.

With headquarters in Bergen, Norway, Mowi employs about 15 000 people in 25

countries worldwide, and is listed on the Oslo Stock Exchange.

For more information, please visit www.mowi.com (http://www.mowi.com).

Forward looking statements

This release may be deemed to include forward-looking statements, such as

statements that relate to Mowi's goals and strategies, salmon prices, ability to

increase or vary harvest volume, production capacity, trends in the seafood

industry, restructuring initiatives, exchange rate and interest rate

fluctuations, expected research and development expenditures, business prospects

and positioning with respect to market, demographic and pricing trends,

strategic initiatives, and the effects of any extraordinary events and various

other matters (including developments with respect to laws, regulations and

governmental policies regulating the industry and changes in accounting

policies, standards and interpretations) on Mowi's business and results.

Forward-looking statements are typically identified by words or phrases, such as

"believe," "expect," "anticipate," "intend," "estimate," "may increase," "may

fluctuate," "plan," "goal," "target," "strategy," and similar expressions or

future or conditional verbs such as "may," "will," "should," "would," and

"could." Forward-looking statements are Mowi's current estimates or expectations

of future events or future results. Actual results could differ materially from

those indicated by these statements because the realization of those results is

subject to many risks and uncertainties. Mowi ASA's Annual

Report contains additional information about factors that could affect actual

results, including: changes to the price of salmon including the value of our

biological assets; hedging risks; risks related to fish feed; economic and

market risks; environmental risks; operational risks; risks related to escapes,

disease and sea lice; product risks; risks related to our acquisitions;

financing risks; regulation risks including relating to food safety, the

aquaculture industry, processing, competition and anti-corruption; trade

restriction risks; litigation risks; tax and accounting risks; strategic and

competitive risks; and reputation risks. All forward-looking statements included

in this release are based on information available at the time of the release,

and Mowi assumes no obligation to update any forward-looking statement.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.