SalMar ASA

Investor Presentation • Mar 9, 2017

How to overcome biological challenges NASF 2017 - March 9th CFO| Trond Tuvstein

Agenda

North Atlantic Seafood 2017

• SalMar in Brief FY 2016
• How to overcome biological challenges

SALMAR IN BRIEF

Iceland

SalMar Japan

SalMar Korea

SalMar Vietnam

• Total employees: 1300
• 100 wholly owned farming licenses in Norway| 110 incl. Partnerships | 8 R&D

Scotland SalMar Central Norway SalMar Northern Norway

• MCAP: 23,0 billion NOK

• The world`s largest producer of organic salmon
• The third largest salmon producer in Norway
• Delivers salmon to +40 countries

SALMAR - A FULLY INTEGRATED SALMON FARMER

• Roe

• Rauma strain

• Essential for the performance in the entire value chain

• 100 wholly owned licenses in Norway
• Vikenco at Aukra (51 %)

• InnovaMar facility

• 110 including R&D and partnerships

• Third largest salmon producer in Norway

• SalMar Sales

• SalMar Japan / Korea / Vietnam
• The world`s largest producer of organic salmon
• Export to +40 countries

STRONG HISTORY - THE BEST IS YET TO COME

1991

1996

2002

2007

Secondary processing from the «get go»

160 meter floating cage collar

120 meter floating cage collar

Listed Oslo Stock Exchange

Certified to farm, process and sell organic salmon

InnovaMar

Ro fjell – Worlds largest wellboat for Salmon

2009

2010

2013

Ocean Farming

2016 HIGHLIGHTS

• Continued high prices driving revenues and earnings
• Biological situation remains a challenge, improved yoy
• The Board of Directors propose a dividend of NOK 12.00 per share (10.00)

HOW DID WE DO?

Farming Central Norway	FY 2016	FY 2015
Operating income (NOKm)	4 343.5	3 941.7
Operational EBIT (NOKm)	1 770.2	947.7
Operational EBIT %	40.8%	24.0%
Harvested volume (1 000 tgw)	70.5	96.9
EBIT/kg	25.13	9.78

Farming Northern Norway	FY 2016	FY 2015
Operating income (NOKm)	2 799.2	1 646.9
Operational EBIT (NOKm)	1 480.3	505.8
Operational EBIT %	52.9%	30.7%
Harvested volume (1 000 tgw)	45.2	39.5
EBIT/kg	32.78	12.81

Operating income (NOKm) 8 231.4 Operational EBIT (NOKm)	Sales & Processing	FY 2016	FY 2015
			7 295.0
		-685.8	72.6
Operational EBIT % -8.3 % 7			1.0%

• Challenging biological situation
• Strong operations has given satisfactory results

• Non-medicinal delousing we have learned a lot

• Very strong performance

• Satisfactory biological situation

• Zone regulations influence harvest distribution

• Fixed price contracts hits hard

• Biological situation affects processing

Agenda

North Atlantic Seafood 2017

• SalMar in brief FY 2016
• How to overcome biological challenges

HANDLING BIOLOGICAL ISSUES

Biological issues have always been a part of the industry – and always will be….

.…but, the industry has always shown ability to handle the challenge and move forward

WHAT IT REQUIRES TO HANDLE

STRATEGIC FRAMEWORK

SALMON FIRST

Site structure, production areas

Breeding / Large smolts

Zones, fallowing

Knowledge

Strong operational structure for sustainable growth/production

LOCATING THE AREAS IDEAL FOR FARMING

• Production on the salmons conditions
• Reduces the risk of escapes
• Improves fish welfare
• Reduces risk of high sea lice levels
• Utilizing the ideal areas for forming

• Gaining data getting new insights

• Technical information

• Overall height 68m
• Diameter 110m
• Volume 250.000 m3
• Construction start March 2016
• Completion/transfer of fish Q3 2017

FURTHER FUEL OUR UNDERSTANDING OF THE SALMON (AND ITS SURROUNDINGS)

HOW TO OVERCOME BIOLOGICAL CHALLENGES?

• Recognition
• Knowledge
• Operational capability
• Strategic framework
• Salmon first ideal farming areas and practises

Thank you for your attention!