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Mowi ASA

Investor Presentation • Oct 30, 2019

3665_rns_2019-10-30_8065a9c3-7df6-4603-b89d-958f7802344d.pdf

Investor Presentation

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Q3 2019 presentation

30 October 2019

Forward looking statements

This presentation may be deemed to include forward-looking statements, such as statements that relate to Mowi'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 Mowi's business and results. These statements speak of Mowi'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.

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

Highlights

  • •Q3 operational EBIT of EUR 148 million
  • •Record high Q3 turnover on all-time high volumes in all business areas
  • • Volatile market prices on high seasonal supply
  • •Positive contributions from contracts
  • •Increased Farming costs driven by biological incidents
  • •Successful start-up of the new feed plant in Scotland
  • •Completed acquisition of K. Strømmen Lakseoppdrett AS in Norway
  • •Quarterly dividend of NOK 2.60 per share to be paid in Q4 2019

Key financials

i
Gr
in
f
ig
M
ow
ou
p
- m
a
ur
es
d
ite
d E
ill
ion
Un
UR
au
m		 Q
3
2
0
1
9		 Q
3
2
0
1
8		 Y
T
D
Q
3
2
0
1
9		 Y
T
D
Q
3
2
0
1
8		 2
0
1
8
Op
t
io
l re
d
t
he
inc
er
a
na
ve
nu
e
an
o
r
om
e		 1,
0
2
2.
8		 3
%		 9
9
0.
2		 3,
0
2
3.
6		 2,
7
4
0.
7		 3,
8
1
4.
5
io
1)
Op
t
l
E
B
I
T
er
a
na		 1
4
7.
8		 %
-29		 2
0
7.
1		 5
5
5.
2		 5
3
9.
9		 7
5
2.
8
E
B
I
T		 9.
9
-5		 3
0.
1
7		 3
8
3.
1		 6
9
4.
9		 9
2
4
5.
Ca
h
f
low
fro
t
io
s
m
o
p
er
a
ns		 1
8
7.
3		 2
0
9.
1		 6
0
9.
3		 5
1
3.
4		 6
2
0.
9
1)
2)
in
ing
(
)
Ne
t
te
t-
be
de
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t
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re
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1
8.
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3
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2		 1,
2
1
8.
2		 1,
0
3
7.
2
ic
(
)
Ba
E
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5
3		 0.
8
3		 1.
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1)
de
ly
ing
S
(
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Un
E
P
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r		 0.
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0		 0.
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7		 0.
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t c
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5		 0.
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1
1)
R
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E		 6.
6
%
1		 2
6.
9
%		 2
0.
3
%		 2
3
%
5.		 2
4.
9
%
1)
Co
t e
i
ty
t
io
ve
na
n
q
u
ra		 5
3.
1
%		 4
7.
2
%		 5
3.
1
%		 4
7.
2
%		 5
6.
0
%
Ha
t v
lum
(
G
W
T
)
rv
es
o
e		 6
9
8
9
1
1		 6
%		 0
9
8
9
6
1		 3
9
9
1
5
1		 2
6
9
4
4
5		 3
2
3
7
5
7
1) -
io
Op
t
l
E
B
I
T -
E
U
R
kg
To
ta
l
er
a
na
p
er		 1.
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8
8		 1.
7
4		 2.
0
0		 2.
0
1
No
rw
ay		 1.
6
4		 2.
2
5		 2.
0
2		 2.
3
4		 2.
3
7
Sc
t
la
d
o
n		 1.
3
4		 6
1.
3		 2.
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1		 1.
8
6		 2.
0
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da
na		 -0
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1.
0		 0.
6
3		 1.
0
4		 1.
1
6
C
h
i
le		 1.
3
2		 1.
2
8		 1.
5
5		 1.
4
7		 1.
4
0
Ire
la
d
n		 1.
1
1		 3.
4
6		 2.
4
5		 3.
4
1		 3.
6
1
Fa
ro
es		 4
2
1.		 3.
0
6		 8
6
1.		 2.
6
0		 2.
0
5

Page 4

1) Notes in report

2) NIBD excluding IFRS 16 effects. NIBD including IFRS 16 effects of EUR 1,616 million

Salmon prices – weekly reference prices

Ref. price Norway EUR (NASDAQ average superior Oslo, GWT/kg) Ref. price Chile USD (Urner Barry average D-trim 3-4 lbs FOB Miami)

Ref. price North America, West Coast USD (Urner Barry avg. superior GWE 10-12 lbs FOB Seattle)

EUR per kg (Oslo)

Price achievement (1), contract & superior share

i
N
o
r
e
g
a
n
w		 i
S
t
t
h
c
o
s		 i
C
d
a
n
a
a
n		 i
C
h
l
e
a
n
Q
3-
9
1		 C
t
t
h
o
n
r
a
c
s
a
r
e		 3
4
%		 4
%
1		 0
%		 3
3
%
i
S
h
u
p
e
r
o
r
s
a
r
e		 %
9
3		 %
9
6		 %
8
9		 %
9
2

Page 6

1) From the first quarter 2018 we have changed our reporting of price achievement to no longer include margins from Consumer Products and Feed. Comparison figures are re-presented accordingly

Operational EBIT comparison

Norway

S
O
O
O
G
O
G
A
L
M
N
F
N
R
W
E
I
A
N
R
I
I
N
illio
EU
R m
n		 Q
3
2
0
1
9		 Q
3
2
0
1
8
O
t
io
l
E
B
I
T
p
er
a
na		 1
0
3.
8		 1
6
0.
2
E
B
I
T		 6.
7
-		 1
4
4.
7
Ha
t v
lum
(
G
W
T
)
rv
es
o
e		 6
3
4
0
7		 7
1
2
8
3
io
(
)
O
t
l
E
B
I
T p
kg
E
U
R
p
er
a
na
er		 1.
6
4		 2.
2
5
f w
h
ic
h
d
Fe
- o
e		 0.
1
5		 0.
3
1
f w
h
ic
h
M
ke
ts
- o
ar		 0.
1
2		 0.
1
1
f w
h
ic
h
Co
Pr
du
ts
- o
ns
um
er
o
c		 0.
0
7		 0.
1
3
ic
ie
fe
ic
Pr
h
t
/
e
ac
ve
m
en
re
re
nc
e
p
r
e		 %
1
1
0		 %
1
0
2
Co
tra
t s
ha
n
c
re		 %
3
4		 %
2
9
io
Su
ha
p
er
r s
re		 %
9
3		 %
9
2
  • •Results impacted by reduced spot prices in the quarter
  • •Good price achievement due to sales contracts
  • •Region South: Low volumes and high cost. Good production in sea
  • •Region Mid: Impacted by harvesting of smaller sized fish. Sea lice levels a concern
  • •Region North: Stable with a good performance

Norway: Sales contract portfolio

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

Norway: Operational EBIT/kg per region

Note: Including contribution from all business areas

Page 10

Scotland

S
A
L
M
O
N
O
F
S
C
O
T
T
I
S
H
O
R
I
G
I
N
i
ion
E
U
R m
l
l		 Q
3
2
0
9
1		 Q
3
2
0
1
8
O
t
i
l
E
B
I
T
p
e
r
a
o
n
a		 2
6.
2		 1
2.
3
E
B
I
T		 2
3.
7
-		 2
6.
1
H
t
l
(
G
W
T
)
a
r
v
e
s
v
o
u
m
e		 1
9
6
3
4		 9
0
2
4
O
t
i
l
E
B
I
T
k
(
E
U
R
)
p
e
r
a
o
n
a
p
e
r
g		 1.
3
4		 1.
3
6
f
i
h
h
M
k
t
o
c
a
r
e
s
w
-		 0.
3
9		 0.
4
8
f
i
h
h
C
P
d
t
o
w
c
o
n
s
u
m
e
r
r
o
u
c
s
-		 0.
0
7		 0.
2
4
i
h
i
/
f
i
P
t
r
c
e
a
c
e
e
m
e
n
r
e
e
r
e
n
c
e
p
r
c
e
v		 2
0
%
1		 4
%
1
1
C
t
t
h
o
n
r
a
c
s
a
r
e		 %
4
1		 %
6
4
S
i
h
u
p
e
r
o
r
s
a
r
e		 9
6
%		 9
%
7
  • •Improved results on the back of record high harvest volumes
  • •Despite reduced spot prices, price achievement positively impacted by good contracts
  • •Algal bloom and fish health issues impacted cost performance in Q3
  • • Costs expected to increase in Q4 2019 (versus Q3 2019) due to lower volumes and challenging biological conditions

Canada

S
A
L
M
O
N
O
F
C
A
N
A
D
I
A
N
O
R
I
G
I
N
i
l
l
ion
E
U
R m		 Q
3
2
0
1
9		 Q
3
2
0
8
1
i
O
t
l
E
B
I
T
p
e
r
a
o
n
a		 0.
2
-		 1
3.
0
E
B
I
T		 2
8.
6
-		 7.
0
(
)
H
t
l
G
W
T
a
r
e
s
o
m
e
v
v
u		 1
5
7
8
6		 1
2
4
0
5
O
i
l
k
(
)
t
E
B
I
T
E
U
R
p
e
r
a
o
n
a
p
e
r
g		 0.
0
1
-		 0
1.
5
f
h
i
h
k
t
M
o
w
c
a
r
e
s
-		 0.
4
1		 0.
2
1
f
i
h
h
C
P
d
t
o
c
o
n
s
m
e
r
r
o
c
s
w
u
u
-		 0.
0
0		 0.
0
0
i
i
f
i
P
h
t
/
r
c
e
a
c
e
e
m
e
n
r
e
e
r
e
n
c
e
p
r
c
e
v		 %
9
5		 %
1
0
2
C
t
t
h
o
n
r
a
c
s
a
r
e		 0
%		 0
%
S
i
h
u
p
e
r
o
r
s
a
r
e		 8
9
%		 9
3
%
  • •Results impacted by reduced prices and challenging environmental conditions
  • • Mortality incident in the East Coast operations related to low oxygen levels due to high seawater temperatures
  • •Net negative effects of EUR 4.6m recognised in Q3 2019
  • •Ongoing discussions with the authorities in relation to the temporary license suspension
  • •Costs expected to remain high in Q4 2019

Chile

S
O
O
C
O
G
A
L
M
N
F
H
I
L
E
A
N
R
I
I
N
i
l
l
ion
E
U
R m		 Q
3
2
0
1
9		 Q
3
2
0
1
8
O
i
l
t
E
B
I
T
p
e
r
a
o
n
a		 8.
1
7		 6
1
7.
E
B
I
T
(
)
H
t
l
G
W
T
a
r
e
s
o
m
e
v
v
u		 1
5.
4
1
4
1
3
7		 8.
8
1
3
7
2
4
i
(
)
O
t
l
E
B
I
T
k
E
U
R
p
e
r
a
o
n
a
p
e
r
g
f
i
h
h
M
k
t
o
c
a
r
e
s
w
-
f
i
h
h
C
P
d
t
o
c
o
n
s
m
e
r
r
o
c
s
w
u
u
-		 1.
3
2
0.
0
3
0.
4
8		 1.
2
8
0.
1
1
0.
3
0
i
h
i
t
/
f
i
P
r
c
e
a
c
e
v
e
m
e
n
r
e
e
r
e
n
c
e
p
r
c
e
C
t
t
h
o
n
r
a
c
s
a
r
e
S
i
h
p
e
r
o
r
s
a
r
e
u		 0
3
%
1
3
3
%
9
2
%		 0
0
%
1
2
4
%
8
8
%

•Stable results on good price achievement

  • •Reduced spot prices almost offset by positive contributions from sales contracts
  • •Sea lice levels higher YOY – working on improving our treatment capacity
  • • Costs expected to increase in Q4 2019 (versus Q3 2019) on harvesting from sites with a higher cost level

Page 13

Ireland and Faroes

S
A
L
M
O
N
O
F
I
R
I
S
H
O
R
I
G
I
N
E
U
R m
i
l
l
ion		 Q
3
2
0
9
1		 Q
3
2
0
1
8
i
O
t
l
E
B
I
T
p
e
r
a
o
n
a		 2.
2		 6.
7
E
B
I
T		 5.
9
-		 1.
4
l
(
G
)
H
t
W
T
a
r
v
e
s
v
o
u
m
e		 2
0
2
1		 9
2
1
7
O
t
i
l
E
B
I
T
k
(
E
U
R
)
p
e
r
a
o
n
a
p
e
r
g		 1.
1
1		 3.
4
6
f
h
i
h
k
M
t
o
w
c
a
r
e
s
-		 0.
0
0		 0.
0
0
f
i
h
h
C
P
d
t
o
c
o
n
s
m
e
r
r
o
c
s
w
u
u
-		 0.
0
9		 0.
0
7
i
i
f
i
P
h
t
/
r
c
e
a
c
e
e
m
e
n
r
e
e
r
e
n
c
e
p
r
c
e
v		 n
a		 n
a
C
t
t
h
o
n
r
a
c
s
a
r
e		 %
9
8		 %
9
3
i
S
h
p
e
r
o
r
s
a
r
e
u		 %
8
4		 %
8
4
S
A
L
M
O
N
O
F
F
A
R
O
E
S
E
O
R
I
G
I
N
i
ion
E
U
R m
l
l		 Q
3
2
0
1
9		 Q
3
2
0
8
1
O
t
i
l
E
B
I
T
p
e
r
a
o
n
a		 2.
8		 4.
7
E
B
I
T		 1.
1		 4.
8
(
)
H
t
l
G
W
T
a
r
v
e
s
v
o
u
m
e		 2
0
1
3		 1
5
3
3
i
(
)
O
t
l
E
B
I
T
k
E
U
R
p
e
r
a
o
n
a
p
e
r
g		 1.
4
2		 3.
0
6
f
i
h
h
M
k
t
o
c
a
r
e
s
w
-		 0.
4
4		 0.
4
0
f
h
i
h
C
P
d
t
o
w
c
o
n
s
u
m
e
r
r
o
u
c
s
-		 0.
0
0		 0.
0
0
i
h
i
t
/
f
i
P
r
c
e
a
c
e
v
e
m
e
n
r
e
e
r
e
n
c
e
p
r
c
e		 2
8
%
1		 4
%
1
1
C
t
t
h
o
n
r
a
c
s
a
r
e		 0
%		 0
%
i
S
h
p
e
r
o
r
s
a
r
e
u		 %
7
9		 %
8
3
  • • Reduced results for Mowi Ireland on higher costs due to challenging biological performance
  • •Costs expected to increase in Q4 2019 (versus Q3 2019) on reduced volumes
  • •Mowi Faroes' results impacted by reduced spot prices, however, good price achievement

Consumer Products (1)

C
O
N
S
U
M
E
R
P
R
O
D
U
C
T
S
i
ion
E
U
R m
l
l		 Q
3
2
0
9
1		 Q
3
2
0
8
1
O
t
i
p
e
r
a
n
g
r
e
v
e
n
u
e
s		 9
5
5.
5		 3
9.
6
5
i
O
t
l
E
B
I
T
p
e
r
a
o
n
a
O
t
i
l
%
E
B
I
T
p
e
r
a
o
n
a
E
B
I
T		 1
2.
8
2.
%
1
3.
4
1		 1
6.
3
3.
0
%
2
7.
(
i
)
V
l
l
d
t
d
h
t
o
m
e
s
o
o
n
n
e
s
p
r
o
e
g
u
w		 4
9
8
6
9		 4
4
9
7
1
  • •Record-high volumes sold
  • • Strong consumption rates in the key French, German and UK markets
  • • However, strong margin pressure in European VAP
  • • 55% volume growth in our American processing plants
  • • Many retailers have initiated promotional campaigns which support demand going forward

"Pasta with smoked salmon"

Feed

F
E
E
D
EU
R m
i
l
l
ion		 Q
3
2
0
1
9		 Q
3
2
0
1
8
O
t
i
p
e
r
a
n
g
r
e
v
e
nu
e
s		 6
2
1
5.		 3
8.
1
5
i
O
t
l
E
B
I
T
p
e
r
a
o
n
a
i
%
O
t
l
E
B
I
T
p
e
r
a
o
n
a		 7.
9
%
4.
8		 7.
3
%
5.
3
E
B
I
T		 7.
6		 7.
6
F
d
l
d
lu
e
e
s
o
v
o
m
e		 1
2
6
7
2
3		 1
1
1
9
9
2
d
d
d
lu
F
e
e
p
r
o
u
c
e
v
o
m
e		 2
6
1
7
7
1		 9
6
4
7
5

•Record high volumes produced and sold

  • • New feed plant in Scotland in commissioning phase
  • •Official opening of pier on 28 August
  • •Initial steady performance
  • • Satisfactory earnings from Feed Norway (~ 7% EBIT margin)
  • • Towards self-sufficiency of feed requirements in Europe in 2020

Page 16

Q3 2019 presentation

Financials, Markets and Harvest volumes

Profit and Loss

Mo
i
Gr
w
ou
p
EU
R m
illio
n		 Q
3
2
0
9
1		 Q
3
2
0
8
1		 Q
3
2
0
9
Y
T
D
1		 Q
3
2
0
8
Y
T
D
1		 2
0
8
1
Op
t
ion
l r
d
t
he
inc
er
a
a
ev
en
ue
a
n
o
r
om
e		 1,
0
2
2.
8		 3% 9
9
0.
2		 3,
0
2
3.
6		 2,
7
4
0.
8		 3,
8
1
4.
5
Op
ion
l
1)
t
E
B
I
T
er
a
a		 4
8
1
7.		 -29
%		 2
0
7.
1		 2
5
5
5.		 3
9.
9
5		 2.
8
7
5
C
ha
in
l
ize
d
in
te
l m
in
ng
e
un
rea
rna
ar
g		 3.
7
-		 5.
7
-		 8
1.
-		 2.
5
-		 9
5.
-
Ga
in
/
los
fro
de
iva
ive
t
s
m
r
s
t
fa
ir v
lue
d
j
tm
t o
f
b
iom
tra
ts
Ne
a
a
us
en
as
s,
on
ero
us
co
n
c		 6
1.
-
-2
1
4.
9		 0.
1
3
2.
0		 3.
7
-
1
7
3.
9		 6.
3
1
2
8.
5		 4.
4
1
4
0.
3
Re
tu
tu
ing
ts
s
c
r
c
os		 0.
0		 -
0.
0		 -
1
9.
3
-		 0.
4
-		 0.
3
O
t
he
t
ion
l
i
te
r n
on
-o
p
era
a
ms		 0.
4
-		 0.
3
-		 9
1.
-		 0.
2
-		 0
1.
-
fro
ia
ies
Inc
te
d
om
e
m
as
so
c
co
m
p
an		 1
2.
7		 1
0.
0		 2
9.
9		 3
2.
0		 4
5.
5
Im
irm
t
los
f
ixe
d
ts
p
a
en
se
s -
as
se		 0.
1		 8.
8
-		 1.
3
-		 8.
6
-		 1
1.
0
-
E
B
I
T		 -5
9.
9		 1
7
0.
3		 3
8
3.
1		 6
9
4.
9		 9
2
5.
4
Ne
t
f
ina
ia
l
i
te
nc
ms		 9.
7
-		 7
6.
7
-		 2
2.
3
-		 1
3
8.
2
-		 1
9
3.
2
-
Ea
ing
be
for
ta
rn
s
e
x		 6
9.
7
-		 9
3.
6		 3
6
0.
8		 5
5
6.
7		 7
3
2.
2
f
i
t o
los
for
t
he
io
d
Pro
r
s
p
er		 6
3
1.
-		 3.
5
7		 2
2.
9
7		 4
0
5.
5		 6
2
5
7.
Ba
ic
E
P
S
(
E
U
R
)
s		 -0.
1
2		 0.
1
1		 0.
5
3		 0.
8
3		 1.
1
5
de
ly
ing
S
(
)
Un
E
P
E
U
R
r		 0.
2
0		 0.
3
1		 0.
7
7		 0.
8
0		 1.
1
1
t c
h
f
low
ha
(
)
Ne
E
U
R
as
p
er
s
re		 0.
1
5		 0.
1
7		 0.
4
5		 0.
0
5		 0.
5
1
D
iv
i
de
d
de
lar
d
d
i
d
ha
(
N
O
K
)
n
c
e
an
p
a
p
er
s
re		 2.
6
0		 2.
6
0		 7.
8
0		 7.
8
0		 1
0.
4
0
ion
in
Op
t
l
E
B
I
T m
era
a
ar
g		 %
1
4.
5		 %
2
0.
9		 %
1
8.
4		 %
1
9.
7		 %
1
9.
7
Ha
t v
lum
G
W
T
(
lm
)
rve
s
o
e,
sa
on		 1
1
6
9
8
9		 6% 1
0
9
8
9
6		 3
1
9
5
9
1		 2
6
9
4
5
4		 3
7
5
2
3
7
ion
inc
in
fro
ing
1)
Op
t
l
E
B
I
T p
kg
l m
Sa
les
d
Ma
ke
t
era
a
er
ar
g
m
a
n
r		 1.
2
6		 1.
8
8		 1.
7
4		 2.
0
0		 2.
0
1
1)
R
O
C
E		 6.
6
%
1		 2
6.
9
%		 2
0.
3
%		 2
3
%
5.		 2
4.
9
%

• Negative net fair value adjustment of biomass of EUR 215 million mainly related to lower salmon prices

• Associated companies: EBIT/kg of EUR 2.13 on 17.5k tonnes from Nova Sea

Page 18

Financial position

i
M
Gr
ow
ou
p
illio
EU
R m
n		 3
0.
0
9.
2
0
1
9		 3
0.
0
9.
2
0
1
8		 3
1.
1
2.
2
0
1
8
t a
ts
No
n-c
ur
re
n
sse
Cu
t a
ts
rre
n
sse
l a
To
ta
ts
ss
e		 3
0.
4
1
5
2
4
9
5
1.
6
9
2.
3
5		 2
4
6
9.
3
2
0
5
7.
1
4
9
6.
4
7		 2
8.
5
5
1
2
8
5
7.
1
4
5
1
5.
1
i
Eq
ty
u
ia
i
i
ies
No
t
l
b
l
t
n-c
ur
re
n
ia
i
i
ies
Cu
t
l
b
l
t
rre
n
i
ia
i
i
ie
To
ta
l e
ty
d
l
b
l
t
q
a
n
s
u		 2
8
9.
2
1
2
0
1
3.
2
8
5
9.
9
5
6
9
2.
3		 2
3
4
9.
2
1
8
6
6.
7
7
6
0.
5
4
9
7
6.
4		 2
8
9.
0
7
1
5
6
7.
1
6
9
9.
1
5
1
4
5.
1
1)
Ne
t
in
te
t-
be
ing
de
b
t
res
ar
i
io
Eq
ty
t
ra
u
i
io
Co
t e
ty
t
ve
na
n
q
ra
u		 1
2
3
0.
2
4
9.
%
5
%
5
3.
1		 1
2
1
8.
2
4
2
%
7.
%
4
7.
2		 1
0
3
7.
2
6.
0
%
5
%
5
6.
0
  • • Increase in assets YOY mainly due to:
  • •Leases (IFRS 16) of EUR 387 million (right-of-use assets), ref note 2 in report
  • •Acquisition of K. Strømmen Lakseoppdrett (4 licenses)
  • •Net capex last-twelve-months
  • •Increased biomass in sea (12,000 tonnes), offset by negative IFRS fair value adjustment

Cash Flow and Net Interest Bearing Debt

i
Gr
M
ow
ou
p
EU
R m
ill
ion		 Q
3
2
0
1
9		 Q
3
2
0
1
8		 Y
T
D
Q
3
2
0
1
9
Y
T		 D
Q
3
2
0
1
8		 2
0
1
8
N
I
B
D
be
in
in
f p
io
d
g
n
g
o
er		 1
1
0
8.
0
-		 9
5
0.
7
-		 1
0
3
7.
2
-		 8
3
1.
9
-		 8
3
1.
9
-
Op
io
l
*
t
E
B
I
T
D
A
er
a
na		 8
6.
1
7		 2
4
6.
3		 6
6
8.
0		 6
3.
9
5		 9
0
6.
2
C
ha
in
k
ing
i
ta
l
ng
e
w
or
c
ap		 1
6.
3
-		 1
8.
0
-		 5.
6		 2
2.
7
-		 1
4
7.
7
-
i
d
Ta
xe
s p
a		 1
1.
7
-		 1
1.
5
-		 4
6.
6
1
-		 3
1
1
5.
-		 2
9.
8
1
-
O
t
he
d
j
tm
ts
r a
us
en		 6.
6
-		 7.
7
-		 1
3.
8
-		 2.
5
-		 7.
8
-
Ca
h
f
low
fro
io
*
t
s
m
op
er
a
ns		 2.
2
1
5		 2
0
9.
1		 3.
2
5
1		 3.
4
5
1		 6
2
0.
9
Ne
t
Ca
p
ex		 6
1.
0
-		 1
1
8.
9
-		 1
9
5.
4
-		 2
6
3.
6
-		 3
3
9.
6
-
O
he
inv
d
d
iv
i
de
ds
ive
d
t
tm
ts
r
es
en
an
n
re
ce		 0
5
1.
-		 2
6.
1
7
-		 3
6.
3
-		 2
0
2.
5
-		 2
2
4.
1
-
Ca
h
f
low
fro
in
tm
ts
s
m
ve
s
en		 S
c
1
1
2.
0
-		 t
l
d
o
a
n
:
3
3
5.
6
-		 C
t
t
i
o
n
s
r
u
c
o
2
3
1.
7
-		 i
t
f
n
s
e
o
n
4
6
6.
1
-		 l
t
e
w
p
a
n
5
6
3.
7
-
in
f
ina
ia
i
i
Ne
t
te
t a
d
l
te
d
*
re
s
n
nc
m
s p
a		 1
4.
6
-		 1
0.
2
-		 4
1.
0
-		 2
6.
5
-		 3
8.
4
-
O
t
he
i
te
r
m
s		 9.
9
-		 8
1.		 9.
0
1
-		 0.
5
-		 2
5.
i
b
le
bo
ds
d
Ne
t c
t
te
on
ve
r
n
c
on
ve
r		 0.
0		 0.
0		 0.
0		 0.
0		 3
1
1.
3
iv
i
f p
i
in
i
D
de
d
/
tu
d
ta
l
n
re
rn
o
a
ca
p		 3
-1
5.
5		 3
0.
1
7
-		 4
0
1
1.
-		 3
9
2
7.
-		 3
2.
4
5
-
Cu
f
fe
t o
in
te
t-
be
ing
de
b
t
rre
nc
y
e
c
n
re
s
ar		 2.
2
-		 1.
8
-		 3.
3
-		 9.
6
-		 8.
2
-
d
f p
io
d
N
I
B
D
en
o
er		 2
3
0.
2
1
-		 2
8.
3
1
1
-		 2
3
0.
2
1
-		 2
8.
3
1
1
-		 0
3
2
1
7.
-
*Ex
clu
din
ffec
ts o
f IF
RS
16
g e
is
i
io
N
I
B
D
d
tr
bu
t
n:
E
U
R		 9
%
1		 8
%
1		 9
%
1		 8
%
1		 9
9
%
U
S
D		 2
%		 1
1
%		 2
%		 1
1
%		 3
%
G
B
P		 3
%		 4
%		 3
%		 4
%		 %
1
O
t
he
ies
r c
ur
re
nc		 4
%		 5
%		 4
%		 5
%		 3
%
-

Page 20

2019 Cash Flow Guidance (unchanged)

  • • Working capital build-up EUR ~115m
  • •Support further organic growth
  • • Capital expenditures EUR ~290m
  • •Freshwater expansion projects in Canada, Chile and Norway
  • •Sea water expansion projects in Scotland, Canada and Norway
  • •Consumer Products automation and expansion projects in Europe and US
  • •Interest paid EUR ~55m (ex IFRS 16 effects)
  • •Taxes paid EUR ~160m
  • •Quarterly dividend payment in Q4 2019 of NOK 2.60 per share as ordinary dividend

Overview financing

  • • Bank facility: EUR 1,406m Facility Agreement
  • •Tenor 5 years (Maturity: May 2022)
  • •Covenant: 35% equity ratio (adjusted for IFRS 16 leasing effects)
  • •Lenders: DNB, Nordea, ABN Amro, Rabobank, Danske Bank and SEB
  • • Senior unsecured bond: EUR 200m issuance
  • •Tenor 5 years (Maturity: June 2023)
  • •EURIBOR + 2.15%
  • • Senior unsecured Schuldschein loan in the German market: EUR 150m issuance
  • •Tenor 7 years (Maturity: May 2026)
  • •EURIBOR + 1.70%
  • •Long term NIBD target EUR 1,400m
im
Es
t
te
d
a		 lu
vo
m
e
s		 C
d
to
o
m
p
a
re		 Q
3
2
0
1
8		 Es
t.
lu
vo
m
e
s
ie
S
l
p
p
rs
u		 Q
3
2
0
1
9		 Q
3
2
0
1
8		 Vo
lu
m
e		 % Q
2
2
0
1
9
No
rw
ay		 3
2
2
5
0
0		 2
9
0
0
0
0		 3
2
5
0
0		 %
1
1.
2		 2
7
7
4
0
0
S
t
la
d
c
o
n		 4
5
4
0
0		 3
5
7
0
0		 9
7
0
0		 2
7.
2
%		 3
9
9
0
0
la
d
Fa
Is
ro
e
n
s		 8
0
0
1
1		 2
0
0
1
1		 6
9
0
0		 6
6
%
1.		 6
0
0
1
7
Ire
la
d
n		 4
1
0
0		 3
4
0
0		 7
0
0		 2
0.
6
%		 4
0
0
0
To
ta
l
Eu
ro
p
e		 3
9
0
1
0
0		 3
4
0
3
0
0		 4
9
8
0
0		 %
1
4.
6		 3
3
8
0
0
0
i
C
h
le		 1
6
3
1
0
0		 1
4
7
2
0
0		 1
5
9
0
0		 %
1
0.
8		 1
4
5
1
0
0
t
h
ic
No
Am
r
e
r
a		 4
0
6
0
0		 4
0
8
0
0		 2
0
0
-		 0.
%
5
-		 3
6
0
0
7
ic
To
ta
l
A
m
e
r
a
s		 2
0
3
7
0
0		 1
8
8
0
0
0		 1
5
7
0
0		 %
8.
4		 1
8
2
7
0
0
Au
tra
l
ia
s		 1
4
1
0
0		 1
3
9
0
0		 2
0
0		 1.
4
%		 1
1
9
0
0
O
t
he
r		 0
4
0
0
1		 4
0
0
1		 6
3
0
0		 3.
%
1
5
7		 9
4
0
0
To
ta
l		 6
1
8
3
0
0		 5
4
6
3
0
0		 7
2
0
0
0		 1
3.
2
%		 5
4
2
0
0
0

Supply development

  • •Global supply growth more than expected in all major farming regions
  • • Norway: Good growth conditions in sea combined with biological challenges. Higher number of fish than expected harvested
  • • Scotland: Increase driven by good growth conditions during the summer, however, biological pressure towards end of quarter
  • • Chile: Increase driven by more fish harvested than expected. Feed consumption also higher than expected

Page 23

Note: Atlantic Salmon (GWT)

Development in reference prices

(
)
No
1
rw
ay		 Q
3
2
0
1
9
M
ke
t
ar
E
U
R
4.
9
9		 C
ha
ng
e v
s
Q
3
2
0
1
8
%
1
2.
8
-		 Q
3
2
0
1
9
E
U
R
E
U
R
4.
9
9		 C
ha
ng
e v
s
Q
3
2
0
1
8
%
1
2.
8
-
C
h
i
le
(
2
)
C
h
i
le,
G
(
3
)
W
T		 U
S
D
4.
9
3
S
3
U
D
5.
7		 5.
1
%
-
6.
8
%
-		 E
U
R
4.
4
3
6
E
U
R
5.
1		 0.
8
%
-
2.
%
5
-
ica
(
)
No
t
h
Am
W
t
Co
t
4
r
er
es
as
ica
(
)
No
t
h
Am
Ea
t
Co
t
5
r
er
s
as
ica
(
),
No
t
h
Am
G
W
T
3
b
len
de
d
r
er
,		 U
S
D
3.
0
7
U
S
D
3.
3
4
U
S
D
6.
4
1		 %
5.
0
-
%
7.
5
-
%
6.
9
-		 E
U
R
2.
7
6
E
U
R
3.
0
1
E
U
R
5.
7
6		 %
0.
7
-
%
3.
3
-
%
2.
7
-

Ref. price Chile USD (Urner Barry average D-trim 3-4 lbs FOB Miami)

Ref. price North America, West Coast USD (Urner Barry avg. superior GWE 10-12 lbs FOB Seattle)

Prices up to week 43 in 2019

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 GWT/kg

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

(5) Urner Barry average GWE 10-12 lbs FOB Boston/New York

Page 24

G
l		 o b
a		 l
v
o		 l
u
m
e		 b
y		 k
t
m
a
r
e
im
Es
t
te
d v
a		 lum
o
es		 Co
d
mp
ar
e		 to
Q		 3
2
0
1
8		 Es
t. v
lum
o
es		 1
2 m
on		 iso
t
h c
om
p
ar		 n
Ma
ke
ts
r		 Q
3
2
0
1
9		 Q
3
2
0
1
8		 Vo
lum
e		 % Q
2
2
0
1
9		 L
T
M		 P
T
M		 %
E
U		 2
0
0
7
5
5		 2
4
6
6
0
0		 2
8
9
0
0		 %
1
1.
7		 2
3
0
0
5
5		 0
0
6
6
0
0
1		 9
4
4
0
0
7		 6.
6
%
ia
Ru
ss		 2
3
1
0
0		 2
2
8
0
0		 3
0
0		 %
1.
3		 1
6
1
0
0		 8
1
2
0
0		 8
7
8
0
0		 %
7.
5
-
O
t
he
Eu
r
ro
p
e		 2
5
4
0
0		 2
1
0
0
0		 4
4
0
0		 2
1.
0
%		 2
1
1
0
0		 9
2
9
0
0		 8
6
5
0
0		 7.
4
%
To
ta
l
Eu
ro
p
e		 3
2
4
0
0
0		 2
9
0
4
0
0		 3
3
6
0
0		 1
1.
6
%		 2
7
2
7
0
0		 1
1
8
0
7
0
0		 1
1
1
9
0
0
0		 5.
5
%
U
S
A		 1
1
6
6
0
0		 1
0
3
8
0
0		 1
2
8
0
0		 %
1
2.
3		 1
1
5
0
0
0		 4
5
7
4
0
0		 4
2
8
9
0
0		 %
6.
6
Bra
i
l
z		 2
3
6
0
0		 2
1
6
0
0		 2
0
0
0		 9.
3
%		 2
2
1
0
0		 9
4
9
0
0		 8
7
1
0
0		 9.
0
%
O
t
he
ica
Am
r
er
s		 3
0
0
7
5		 3
2
2
0
0		 3
0
0
5		 6.
%
1
5		 3
0
2
0
0		 3
3
9
0
0
1		 0
0
1
1
5
7		 %
1
5.
7
To
ta
l
Am
ica
er
s		 1
7
7
7
0
0		 1
5
7
6
0
0		 2
0
1
0
0		 1
2.
8
%		 1
6
7
3
0
0		 6
8
6
2
0
0		 6
3
1
7
0
0		 8.
6
%
C
h
ina
/
Ho
Ko
ng
ng		 2
7
7
0
0		 2
4
7
0
0		 3
0
0
0		 1
2.
1
%		 2
5
9
0
0		 1
0
8
5
0
0		 1
0
3
1
0
0		 5.
2
%
Ja
p
an		 2
8
0
0
1		 2
8
0
0
1		 0 0.
0
%		 2
3
0
0
1		 4
9
0
0
5		 3
6
0
0
5		 2.
4
%
iw
So
t
h
Ko
/
Ta
u
rea
an		 1
4
0
0
0		 1
2
7
0
0		 1
3
0
0		 %
1
0.
2		 1
3
9
0
0		 5
6
6
0
0		 5
2
6
0
0		 %
7.
6
O
t
he
As
ia
r		 1
9
9
0
0		 1
5
1
0
0		 4
8
0
0		 3
1.
8
%		 1
6
6
0
0		 7
7
5
0
0		 7
2
4
0
0		 7.
0
%
To
ta
l
As
ia		 7
4
4
0
0		 6
5
3
0
0		 9
1
0
0		 1
3.
9
%		 6
8
7
0
0		 2
9
7
5
0
0		 2
8
1
7
0
0		 5.
6
%
A
l
l o
t
he
ke
ts
r m
ar		 3
4
3
0
0		 2
8
4
0
0		 5
9
0
0		 %
2
0.
8		 2
8
0
0
0		 1
2
8
2
0
0		 1
0
5
4
0
0		 %
2
1.
6
To
ta
l		 6
1
0
4
0
0		 5
4
1
7
0
0		 6
8
7
0
0		 1
2.
7
%		 5
3
6
7
0
0		 2
2
9
2
6
0
0		 2
1
3
7
8
0
0		 7.
2
%
In
f
low
to
U
S
fro
Eu
m
ro
p
e		 2
7
2
0
0		 2
2
0
0
0		 5
2
0
0		 2
3.
6
%		 2
6
2
0
0		 1
0
3
2
0
0		 9
3
3
0
0		 1
0.
6
%
f
low
fro
C
h
i
le
In
to
E
U
m		 0
0
0
1
7		 6
0
0
7		 3
0
0
1		 4
0.
8
%		 8
3
0
0		 3
6
0
0
5		 4
0
6
0
0		 2.
3
%
1
-

Source: Kontali

•Consumption rates on par with supply increase – value increased of salmon consumed

  • •Europe: Double digit growth rates in the key French, German and UK markets
  • •Americas: Volume growth in the US and Brazilian markets continued
  • • Asia: Good developments. Increased consumption in China/Hong Kong mainly by Norwegian salmonSource: Kontali

Page 25

Note: Atlantic Salmon (GWT), LTM: Last Twelve Months, PTM: Previous Twelve Months"

Industry supply growth 2019e and 2020e

2
0
1
6		 2
0
17		 2
0
1
8		 2
0
1
9		 Es
im
t
te
a		 2
0
1
9
s		 Es
im
t
te
a		 2
0
2
0
s
G
W
T
(
1,
0
0
0
)		 Lo
w		 Y
/
Y g
wt
h
ro		 H
ig
h		 Y
/
Y g
wt
h
ro		 Lo
w		 Y
/
Y g
wt
h
ro		 H
ig
h		 Y
/
Y g
wt
h
ro
No
rw
ay		 1
0
5
4		 1
0
8
7		 1
1
2
8		 1
1
9
5		 1
1
8
9		 5
%		 1
2
0
1		 7
%		 1
2
2
0		 2
%		 1
27
0		 6
%
U
K		 1
4
2		 15
9		 1
3
8		 1
6
1		 15
9		 15
%		 1
6
3		 1
8
%		 1
6
2		 1
%		 17
2		 7
%
Fa
Is
lan
ds
roe		 7
0		 7
2		 6
5		 75 7
4		 %
15		 7
6		 %
1
8		 75 %
0		 8
2		 %
9
To
ta
l
Eu
ro
p
e		 1
2
6
5		 1
3
1
9		 1
3
3
1		 1
4
3
1		 1
4
2
2		 %
7		 1
4
4
0		 8
%		 1
45
8		 2
%		 1 5
25		 %
7
C
h
i
le		 45
4		 5
0
8		 6
1
0		 6
3
7		 6
3
3		 %
4		 6
4
1		 %
5		 6
3
8		 %
0		 6
6
8		 %
5
No
rt
h
Am
ica
er		 15
2		 1
4
3		 1
4
9		 1
4
9		 1
4
8		 0
%		 15
0		 1
%		 1
4
4		 4
%
-		 15
4		 3
%
To
ta
l
Am
ica
er
s		 6
0
6		 6
5
1		 75
9		 7
8
6		 7
8
1		 3
%		 7
9
1		 4
%		 7
8
2		 0
%		 8
2
2		 5
%
O
t
he
r		 75 9
2		 9
1		 1
15		 1
1
4		 25
%		 1
1
6		 27
%		 1
2
4		 8
%		 1
3
4		 17
%
To
ta
l		 1
9
4
6		 2
0
6
1		 2
1
8
0		 2
3
3
2		 2
3
17		 6
%		 2
3
47		 8
%		 2
3
6
5		 1
%		 2
4
8
2		 6
%
Q
4
2
0
1
6		 Q
4
2
0
17		 Q
4
2
0
1
8		 Q
4
2
0
1
9e		 Es
t
im
te
a
s		 Q
4
2
0
1
9
G
W
T
(
1,
0
0
0
)		 Lo
w		 Q
/
Q g
h
wt
ro		 H
ig
h		 Q
/
Q g
h
wt
ro
No
rw
ay		 2
9
0		 3
2
2		 3
2
1		 3
2
9		 3
2
3		 1
%		 3
3
5		 4
%
U
K		 3
7		 4
0		 4
1		 3
8		 3
6		 %
1
1
-		 4
0		 %
1
-
Fa
Is
lan
ds
roe		 2
0		 1
9		 2
2		 2
1		 2
0		 -7
%		 2
2		 2
%
To
ta
l
Eu
ro
p
e		 3
4
6		 3
8
1		 3
8
3		 3
8
8		 3
7
9		 1
%
-		 3
9
7		 4
%
C
h
i
le		 1
1
6		 1
45		 1
6
9		 17
0		 1
6
6		 2
%
-		 17
4		 3
%
No
h
Am
ica
rt
er		 3
7		 3
6		 3
8		 4
1		 4
0		 6
%		 4
2		 1
1
%
To
l
Am
ica
ta
er
s		 15
3		 1
8
2		 2
0
7		 2
1
1		 2
0
6		 1
%
-		 2
1
6		 4
%
O
he
t
r		 2
1		 2
4		 3
0		 3
5		 3
4		 1
4
%		 3
6		 2
1
%
To
l
ta		 5
2
0		 5
8
6		 6
2
0		 6
3
4		 6
1
9		 0
%		 6
4
9		 5
%
  • • 2019 guidance: Global growth of 6-8 % (increased from 4-7%)
  • •Q4 2019: 0-5% growth (YTD 2019 of 9%)
  • •2020 guidance: Global growth of 1-6%

Page 26

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.

la
ic
lm
A
t
t
n
sa
on
G
W
T
(
1,
0
0
0
)		 2
0
1
7
Ac
tu
l
a		 Q
2
0
8
1
1
Ac
tu
l
a		 Q
2
2
0
8
1
Ac
tu
l
a		 Q
3
2
0
8
1
Ac
tu
l
a		 Q
4
2
0
8
1
Ac
tu
l
a		 2
0
8
1
Ac
tu
l
a		 Q
2
0
9
1
1
Ac
tu
l
a		 Q
2
2
0
9
1
Ac
tu
l
a		 Q
3
2
0
9
1
Ac
tu
l
a		 Q
4
2
0
9
1
G
i
da
u
nc
e		 2
0
9
1
G
i
da
u
nc
e		 (
*)
2
0
2
0
G
i
da
u
nc
e
No
rw
ay		 2
1
0.
2		 5
1.
1		 4
9.
5		 7
1.
3		 5
8.
6		 2
3
0.
5		 5
6.
1		 5
1.
4		 6
3.
4		 6
5.
1		 2
3
6.
0		 2
6
0.
0
Sc
t
la
d
o
n		 6
0.
2		 8.
7		 9.
0		 9.
0		 1
1.
8		 3
8.
4		 1
5.
8		 1
5.
9		 1
9.
6		 1
0.
6		 6
2.
0		 6
7.
0
Ca
da
na		 3
9.
4		 6.
6		 8.
0		 1
2.
4		 1
2.
2		 3
9.
3		 9.
8		 1
2.
5		 1
5.
8		 1
5.
8		 5
4.
0		 4
4.
0
i
C
h
le		 4
4.
9		 1
2.
4		 9.
8		 1
3.
7		 1
7.
2		 5
3.
2		 1
9.
8		 1
5.
1		 1
4.
1		 1
5.
4		 6
4.
5		 6
4.
0
Ire
la
d
n		 9.
7		 1.
5		 1.
2		 1.
9		 1.
6		 6.
2		 1.
4		 2.
1		 2.
0		 1.
0		 6.
5		 6.
0
Fa
ro
es		 6.
0		 1.
0		 0.
8		 1.
5		 4.
4		 7.
7		 1.
1		 1.
4		 2.
0		 2.
4		 7.
0		 9.
0
To
ta
l		 3
7
0.
3		 8
1.
2		 7
8.
3		 1
0
9.
9		 1
0
5.
8		 3
7
5.
2		 1
0
4.
1		 9
8.
5		 1
1
7.
0		 1
1
0.
4		 4
3
0.
0		 4
5
0.
0

Mowi volume guidance

•2019 volume guidance of 430,000 GWT (Group unchanged, but some country differences)

  • • 2020 volume guidance of 450,000 GWT (*) (5% growth)
  • •Improved capacity utilisation in Norway
  • •Growth in Scotland
  • •Canada impacted by biological incident in Q3 2019
  • •Chile, Ireland and Faroes relatively stable

(*) Guidance pre any potential capacity adjustments from the Traffic Light System in Norway 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.

Outlook

  • • Sector fundamentals remain strong
  • •Good demand response in all key markets and increased retail promotions
  • • Significant industry harvest volumes in Q3 2019 have reduced the biomass for future harvest
  • •Fish Pool forward price (12 months) at EUR 5.8/kg
  • • Record high third quarter biomass for Mowi supports 2020 harvest volume guidance of 450,000 tonnes GWT (20,000 tonnes GWT, equivalent to 5%)
  • • Feed plant in Scotland finalising commissioning phase. Increased internal sourcing of feed going forward
  • •Quarterly dividend payment in Q4 2019 of NOK 2.60 per share as ordinary dividend

Q3 2019 presentation

Appendix

Dividend policy

  • • The quarterly dividend level shall reflect the present and expected future cash flow generation of the Company
  • • 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 (excluding IFRS 16) target EUR 1,400m

Contract coverage and sales contract policy

S
S
C
O
C
O
C
A
L
E
N
T
R
A
T
P
L
I
Y
i
i
M
h
d
t
n
e
g
n
g
r
a
e		 (
1)
i
M
h
d
t
a
e
g
n
g
r
a
e
x
(
2)
N
o
rw
a
y		 %
0		 %
5
0
S
t
l
d
c
o
a
n		 %
0		 %
7
5
C
d
a
n
a
a		 %
0		 %
3
0
(
2)
i
C
h
l
e		 %
0		 %
5
0
I
l
d
r
e
a
n		 %
0		 %
1
0
0
F
a
r
o
e
s		 %
0		 %
3
0

Notes:

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

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

  • • Q4 2019 contract shares (% of guided volume):
  • •Norway 43%
  • •Scotland 96%
  • •Canada 0%
  • •Chile 31%
  • •Ireland 96%
  • •Faroes 0%
  • • Contracts typically have a duration of 3-12 months
  • • Contracts are entered into on a regular basis

Quarterly segment overview

S
O		 U
R
C
E
S
O
F
O
R		 I
G
I
N
Q
T
D
EU
R m
illio
n		 No
rw
ay		 Sc
t
la
d
o
n		 Ca
da
na		 C
h
i
le		 Ire
la
d
n		 Fa
ro
es		 1)
O
t
he
r		 Gr
ou
p
O
P
E
R
A
T
I
O
N
A
L
E
B
I
T
G
F
A
R
M
I
N		 8
2.
6		 2
1
7.		 2.
4
-		 4
1
1.		 2.
1		 2.
0		 2.
8
1
1
S
A
L
E
S
A
N
D
M
A
R
K
E
T
I
N
G
ke
ts
Ma
r		 7.
5		 6
7.		 2.
3		 0.
4		 0.
0		 0.
9		 0.
2
-		 8.
6
1
Co
Pro
du
ts
ns
um
er
c		 4.
4		 1.
4		 0.
0		 6.
8		 0.
2		 0.
0		 0.
0		 1
2.
8
S
O
U
B
T
T
A
L		 9
4.
5		 2
6.
2		 0.
2
-		 1
8.
7		 2.
2		 2.
8		 0.
2
-		 1
4
4.
2
d
Fe
e		 9.
3		 3
-1.		 9
7.
1)
O
t
he
t
i
t
ies
r e
n		 -4.
3		 4.
3
-
T
O
T
A
L		 0
3.
8
1		 2
6.
2		 0.
2
-		 8.
1
7		 2.
2		 2.
8		 8
5.
-		 4
8
1
7.
lum
(
G
)
Ha
t v
W
T
rve
s
o
e		 6
3
4
0
7		 9
6
3
4
1		 8
6
1
5
7		 4
3
1
1
7		 2
0
2
1		 2
0
3
1		 6
9
8
9
1
1
1) -
Op
t
ion
l
E
B
I
T p
kg
(
E
U
R
)
to
ta
l
Gr
era
a
er
ou
p		 1.
6
4		 1.
3
4		 0.
0
1
-		 1.
3
2		 1.
1
1		 1.
4
2		 1.
2
6
f w
ic
h
h
Fe
d
- o
e		 0.
1
5		 0.
0
0		 0.
0
0		 0.
0
0		 0.
0
0		 0.
0
0		 0.
0
7
f w
h
ic
h
Ma
ke
ts
- o
r		 0.
1
2		 0.
3
9		 0.
1
4		 0.
0
3		 0.
0
0		 0.
4
4		 0.
1
6
f w
h
ic
h
Co
du
Pro
ts
- o
ns
um
er
c		 0.
0
7		 0.
0
7		 0.
0
0		 0.
4
8		 0.
0
9		 0.
0
0		 0.
1
1
A
N
A
L
Y
T
I
C
A
L
D
A
T
A
1)
ice
h
iev
t
/re
fer
ice
(
%
)
Pr
a
c
em
en
en
ce
p
r		 0
%
1
1		 2
0
%
1		 9
%
5		 0
3
%
1		 na 2
8
%
1		 0
9
%
1
Co
tra
t s
ha
(
%
)
n
c
re		 3
4
%		 4
%
1		 0
%		 3
3
%		 9
8
%		 0
%		 3
%
1
Qu
l
i
ty
ior
ha
(
%
)
a
- s
up
er
s
re		 9
3
%		 9
6
%		 8
9
%		 9
2
%		 8
4
%		 9
%
7		 9
3
%
G
C
U
I
D
A
N
E
Q
4
2
0
1
9
ha
t v
lum
(
G
W
T
)
rve
s
o
e		 6
5
1
0
0		 1
0
6
0
0		 1
5
8
0
0		 1
5
4
0
0		 1
0
0
0		 2
4
0
0		 1
1
0
4
0
0
2
0
1
9
ha
t v
lum
(
G
W
T
)
rve
s
o
e		 2
3
6
0
0
0		 6
2
0
0
0		 5
4
0
0
0		 6
4
5
0
0		 6
5
0
0		 7
0
0
0		 4
3
0
0
0
0
2
0
2
0
ha
t v
lum
(
G
)
W
T
rve
s
o
e		 2
6
0
0
0
0		 6
0
0
0
7		 4
4
0
0
0		 6
4
0
0
0		 6
0
0
0		 9
0
0
0		 4
0
0
0
0
5
(
%
)
Q
4
2
0
1
9 c
tra
t s
ha
on
c
re		 %
4
3		 %
9
6		 %
0		 %
3
1		 %
9
6		 0
%		 %
4
0

YTD segment overview

S
O		 C
S
O
O
U
R
E
F
R		 G
I
I
N
Y
T
D
illio
EU
R m
n		 No
rw
ay		 Sc
t
la
d
o
n		 Ca
da
na		 i
C
h
le		 Ire
la
d
n		 Fa
ro
es		 1)
O
t
he
r		 Gr
ou
p
O
P
E
R
A
T
I
O
N
A
L
E
B
I
T
G
F
A
R
M
I
N		 3
0
8.
8		 8
3.
2		 9
1
7.		 9.
0
5		 3.
1
7		 6.
3		 4
8
8.
9
S
A
L
E
S
A
N
D
M
A
R
K
E
T
I
N
G
ke
Ma
ts
r		 2
0.
3		 2
1
7.		 6.
2		 3.
9		 0.
1		 2.
3		 0.
4
-		 4
9.
6
Co
Pro
du
ts
ns
um
er
c
S
U
B
T
O
T
A
L		 0.
5
3
2
9.
6		 8.
1
0
8.
1
5		 0.
0
2
4.
1		 1
3.
3
6.
7
1		 0.
2
4.
0
1		 0.
0
8.
5		 1.
5
1.
1		 2
3.
5
6
2.
0
5
Fe
d
e
1)
O
t
he
t
i
t
ies
r e
n		 1
6.
4		 -7.
8
-1
5.
5		 8.
6
1
5.
5
-
T
O
T
A
L		 3
4
6.
0		 0
8.
1
5		 2
4.
1		 6.
7
1		 4.
0
1		 8.
5		 2
2.
1
-		 2
5
5
5.
(
)
Ha
t v
lum
G
W
T
rve
s
o
e		 1
7
0
9
1
0		 5
1
3
6
3		 3
8
1
6
3		 4
9
0
6
5		 5
5
2
3		 4
5
6
8		 3
1
9
5
9
1
1) -
Op
t
ion
l
kg
(
)
to
ta
l
Gr
E
B
I
T p
E
U
R
era
a
er
ou
p
f w
h
ic
h
d
Fe
- o
e
f w
h
ic
h
Ma
ke
ts
- o
r		 2.
0
2
0.
0
1
0.
1
2		 2.
1
1
0.
0
0
0.
3
4		 0.
6
3
0.
0
0
0.
1
6		 1.
5
5
0.
0
0
0.
0
8		 2.
4
5
0.
0
0
0.
0
2		 8
6
1.
0.
0
0
0.
4
9		 4
1.
7
0.
0
3
0.
1
6
f w
h
ic
h
Co
du
Pro
ts
- o
ns
um
er
c		 0.
0
0		 0.
6
1		 0.
0
0		 0.
2
7		 0.
0
4		 0.
0
0		 0.
0
7
A
N
A
L
Y
T
I
C
A
L
D
A
T
A
1)
ice
iev
fer
ice
(
%
)
Pr
h
t
/re
a
c
em
en
en
ce
p
r
Co
tra
t s
ha
(
%
)
n
c
re
Qu
l
i
ty
ior
ha
(
%
)
a
- s
up
er
s
re		 %
1
0
2
3
6
%
9
1
%		 %
1
1
1
4
7
%
9
6
%		 %
9
7
0
%
9
0
%		 %
1
0
1
2
7
%
9
1
%		 na
9
5
%
8
7
%		 %
1
1
2
0
%
8
1
%		 %
1
0
3
3
3
%
9
2
%
G
W
T		 2
0
1
5		 2
0
1
6		 2
0
1
7		 2
0
1
8		 2
0
1
9
E		 (
*)
2
0
2
0
E
(
)
1,
0
0
0		 T
t
l
o
a		 T
t
l
o
a		 T
t
l
o
a		 Q
1		 Q
2		 Q
3		 Q
4		 T
t
l
o
a		 Q
1		 Q
2		 Q
3		 Q
4
E		 T
t
l
o
a		 T
t
l
o
a
N
o
rw
a
y		 8
2
4.
5		 0
2
3
6.		 2
0.
2
1		 5
1.
1		 4
9.
5		 3
7
1.		 8.
6
5		 2
3
0.
5		 6.
5
1		 4
5
1.		 4
6
3.		 6
5.
1		 0
2
3
6.		 2
6
0.
0
S
l
d
t
c
o
a
n		 0.
1
5		 0
4
5.		 6
0.
2		 8.
7		 9.
0		 0
9.		 8
1
1.		 3
8.
4		 8
1
5.		 9
1
5.		 6
9.
1		 0.
6
1		 6
2.
0		 6
0
7.
C
d
a
n
a
a		 1
4
0.		 3
4
3.		 3
9.
4		 6.
6		 8.
0		 4
2.
1		 2.
2
1		 3
9.
3		 9.
8		 2.
1
5		 8
1
5.		 8
1
5.		 5
4.
0		 4
4.
0
i
C
h
l
e		 5
6
2.		 9
3
6.		 4
4.
9		 2.
4
1		 9.
8		 3.
7
1		 2
1
7.		 5
3.
2		 9.
8
1		 1
5.
1		 4.
1
1		 4
1
5.		 6
4.
5		 6
4.
0
I
l
d
r
e
a
n		 7
9.		 4
8.		 9.
7		 1.
5		 2
1.		 9
1.		 6
1.		 6.
2		 4
1.		 2.
1		 0
2.		 0
1.		 6.
5		 6.
0
F
a
r
o
e
s		 9
2.		 9
1
0.		 6.
0		 1.
0		 0.
8		 5
1.		 4.
4		 7.
7		 1.
1		 1.
4		 0
2.		 2.
4		 7.
0		 9.
0
T
t
l
o
a		 1
4
2
0.		 6
3
8
0.		 3
3
7
0.		 2
8
1.		 3
7
8.		 9
1
0
9.		 8
1
0
5.		 3
7
5.
2		 1
1
0
4.		 5
9
8.		 0
1
1
7.		 4
1
1
0.		 0
4
3
0.		 4
5
0.
0

Development in harvest volumes

Growth relative to same period in previous year

2
0
1
5		 2
0
1
6		 2
0
1
7		 2
0
1
8		 2
0
1
9
E		 2
0
2
0
E
T
t
l
o
a		 T
t
l
o
a		 T
t
l
o
a		 Q
1		 Q
2		 Q
3		 Q
4		 T
t
l
o
a		 Q
1		 Q
2		 Q
3		 Q
4
E		 T
t
l
o
a		 T
t
l
o
a
N
o
rw
a
y		 %
1
-		 %
7
-		 %
1
1
-		 4
%		 2
6
%		 2
9
%		 2
%
1
-		 %
1
0		 0
%
1		 4
%		 %
1
1
-		 %
1
1		 %
2		 %
1
0
S
t
l
d
c
o
a
n		 3
%		 1
0
%
-		 3
4
%		 %
-5
1		 %
5
2
-		 %
1
7
-		 %
9
-		 3
6
%
-		 %
8
2		 %
7
8		 %
1
1
8		 %
1
0
-		 6
1
%		 8
%
C
d
a
n
a
a		 0
%
5		 8
%		 9
%
-		 -2
6
%		 1
4
%
-		 1
1
%		 2
2
%		 0
%		 4
9
%		 5
6
%		 2
7
%		 2
9
%		 3
8
%		 9
%
1
-
C
h
i
l
e		 %
7
-		 4
%
1
-		 2
2
%		 9
6
%		 2
%
7		 0
%		 %
1		 8
%
1		 6
0
%		 3
%
5		 3
%		 0
%
1
-		 2
%
1		 %
1
-
I
l
d
r
e
a
n		 %
5
6		 %
1
3
-		 %
1
5		 3
0
%
1		 6
6
%
-		 3
8
%
-		 3
2
%
-		 %
3
6
-		 -2
%		 6
9
%		 4
%		 4
0
%
-		 %
4		 %
8
-
F
a
r
o
e
s		 %
7
5
-		 %
2
7
3		 %
4
5
-		 %
-1
0		 /
n
m		 %
4
4		 %
1
6		 %
2
9		 %
9		 %
8
4		 %
3
1		 %
4
4
-		 %
9
-		 %
2
9
t
l
T
o
a		 0
%		 9
%
-		 3
%
-		 3
%
-		 0
%		 %
1
5		 6
%
-		 %
1		 2
8
%		 2
6
%		 6
%		 4
%		 %
1
5		 %
5

(*) Guidance pre any potential capacity adjustments from the Traffic Light System in Norway

Cash flow guidance and historic developments

Financial commitments and cost of debt (*)

Page 35

* Excludes effects of IFRS 16

Nova Sea

Ha
t v
lu
rv
e
s
o		 (
G
W
T
)
m
e		 E
B
I
T p
e		 kg
r		 N
I
B
D
E
U
Rm
O
h
ip
%
w
ne
rs		 2
0
1
7		 2
0
8
1		 Q
3
2
0
8
1		 Q
3
2
0
9
1		 2
0
1
7		 2
0
8
1		 Q
3
2
0
8
1		 Q
3
2
0
9
1		 Q
3
2
0
9
1
S
No
va
e
a		 %
4
8		 4
0
7
0
0		 3
7
8
7
9		 1
4
2
9
2		 1
7
4
6
7		 2.
7
2		 2.
6
6		 2.
5
2		 2.
1
3		 5
0.
0
-
  • • Leading integrated salmon producer in Northern Norway
  • •33.33 wholly owned licenses
  • •4 partly owned licenses
  • • Mowi has an ownership in Nova Sea of ~48% through direct and indirect shareholdings
  • • Dividends
  • • Paid dividends of NOK 300m in Q1 2019 and NOK 300m in Q2 2019 (Mowi's share of NOK 289m)
  • • Proportion of income after tax reported as income from associated companies in Mowi Norway
  • •EUR 12.2m in Q3 2019

Debt distribution and interest rate hedging

CU
CY
RR
EN		 DE
BT		 20 19 20 20 20 21 20 22
(2)
30
/
09
/
20
19		 Nom
inal
valu
e		 te(3)
Fixe
d ra		 Nom
inal
valu
e		 te(3)
Fixe
d ra		 Nom
inal
valu
e		 te(3)
Fixe
d ra		 Nom
inal
valu
e		 te(3)
Fixe
d ra
EU
R m		 1 1
47
.5		 .5
970		 3.2
7
%		 0.0
38		 2.1
3
%		 0.0
38		 2.2
0
%		 - 0.0
0
%
US
D m		 60
.0		 .5
167		 2.9
3
%		 .3
78		 2.3
1 %		 .3
78		 2.3
1 %		 .0
60		 4.1
3
%
GB
P m		 40
.0		 .0
34		 3.1
3
%		 23
.5		 2.8
3
%		 23
.5		 2.8
3
%		 - 0.0
0
%
r (
)
Ot
he
EU
R m		 80
.8

Market value of IRS contracts (30/09/19): MEUR -43.7

Change in market value due to market movements in Q3(4): MEUR -1.1

Change in market value due to interest settled on IRS contracts in Q3(5): MEUR 9.2

Notes:

(1) March is the starting month for all 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

(5) Net amount of interest on IRS contracts settled quarterly in cash

  • • External interest bearing debt is distributed as follows: EUR 91%, USD 2%, GBP 3%, other currencies 4%
  • • Policy: 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% 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 - policies

  • • EUR/NOK
  • • Mowi 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
  • • Mowi 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
  • •Mowi 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 Mowi Farming entities (including contribution from Sales) and peers with respect to price achievement and operational EBIT

Strategic currency hedging

U
S
D
/
C
A
D		 U R
/
N
O
K		 E
Y
H
E
D
G
I
N
G
M
E
U
R
Ra
te
M
U
S
D
Ra		 S
T
R
A
T
E
G
I
C
C
U
R
R
E
N
C
4
9.
8
9.
8
1
7.
2
1.		 2
0
1
9
1
9
9.
2
9.
9
5
2
8.
8
1.		 2
0
2
0
1
4
9.
4
1
0.
1
9
1
9.
2
1.		 2
0
2
1
l
ize
d
in
Q
3
(
M
E
U
R
)
1.
3
re
a
-		 P
/
L e
f
fe
t o
f c
tra
ts
c
on
c
M
E
U
R
1
9
0.
6
-		 Ma
ke
t v
lue
3
0
/
0
6
/
2
0
r
a
5.
6
-		 C
ha
ng
e
1
9
6.
2
-		 Ma
ke
t v
lue
3
0
/
0
9
/
2
0
r
a
D
E
S
I
G
N
A
T
E
D
M
A
R
K
E
T
C
U
R
R
E
N
C
I
E
S
No
rw
ay		 E
U
R
C
h
i
le		 U
S
D
Ca
da
na		 S
U
D
Sc
t
lan
d
o		 G
B
P
Ire
lan
d		 E
U
R
Fa
Is
lan
ds
roe		 E
U
R
Co
Pr
du
Eu
ts
ns
um
er
o
c
rop
e		 E
U
R
As
ia		 U
S
D
Fe
d
e		 E
U
R

Thank you

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