Austevoll Seafood Asa Ord

It is a pleasure for me to welcome you to Øysteinvold's third quarter presentation. With me today is Britt-Katrine Drivenes. I will start by giving you some highlights from the quarter. Then I will go from segment to segment. I will give you an overview of what has happened in the quarter in the different segments. gives our thoughts on the future in the different segments we operate in. Britt will take you through the financial performance and then we will conclude by giving our view on the different markets. In short, we have had a quarter where we have delivered worse in all segments, both in and out of marine use and in and out of pelagic activity compared to the same quarter last year. There are three main reasons for this. The first is that he has had a demanding situation, especially with high temperatures, an unusually high light pressure compared to the same quarter last year. He has also experienced growth and has had some biological challenges in connection with radiation. The second reason is a significantly lower price achievement due to the drop in spot prices. When it comes to the pelagic business, the trend in relation to the second quarter has been that falling oil prices have also had an impact on the margins, especially in fish oil, both in South America and in North Atlanta. In short, a turnover of SEK 10 billion per quarter, EBITDA of SEK 652 million and an EBITDA of SEK 73 million. Taking a look at the 50% share of Pelagia, it has an EBITDA of 791. The EBITDA from salmon and whitefish is down by about 320 million, at about 500 millions for the quarter, and the pelagic business is down about 340 million. Again, mainly explained by a drop, especially in oil prices, where it has on average had a 50% lower price achievement on fish oils in the quarter this year compared to the same quarter last year. I look at the year as a whole. It has a turnover of just over 30 billion. It has an EBITDA of 3.9 and an EBIT at 2.2. I have a strong balance. I have an adult balance. A total balance of 52 billion. No, 52 billion. A capital percentage of 53. And a net and interest rate of 8.4. ØYF is the volume that controls our income, and of course it is also the market positions when we buy raw materials and when we sell our finished products. In other words, this year we have met worse than what we have done in previous years. In terms of raw materials this year, we are at a high level, but due to high competition to secure raw materials, higher costs of fishing raw materials and a combination of falling prices, there has been a pressure on margin. We expect to produce about 450,000 tons of fish per year in our own quota. We will receive about 1.9 million tons from our pelagic factories. We will both fish and produce whitefish, about 80,000 tons, and target a total of about 219,000 tons per year. Let's start with the pelagic business. I have been awake all night. In the beginning, we were supposed to know the quota in Peru at 6 p.m. I had hoped that we would have some good news for you here. And I think it will come today. It didn't come last night. What happened in Peru is that it has been closed. It has been closed, as they normally do in the beginning of each season. The closure started in at the end of September and was finished at the end of October. He had found less fish than he had expected, so he established what they call an Eureka, that is, a new boat. The research teams went out again to see if the conditions had improved. They started a test fishing from the 4th to the 6th of November. They set up a medium-term quota of about 500,000 tons. To date, there are about 135,000 tons of that quota. What I can say is that they found less fish than expected, if you look at the map in the center north. They have found more fish than what normally flows past the zone, where you normally have your own quota. In the first 4-5 days, there has also been fishing in areas where he did not find fish when he did the baiting. I think this is one of the reasons why it takes a little longer to set the quota. Normally, in the second season, on average, they weigh 2 million tons. Our expectation is that it will be lower than before this season. We expect to guide a fishery of about 1.2 million tons by the end of the year. We also believe that the quota will be higher than before. But that is in our volume guiding. in the full year. So exciting times. And of course, since Peru is the largest producer of fish meal and fish oil in the world, this rate will have something to do with, I think, the development and expectation of fish meal and fish oil prices. As you can see, it has already come up at the beginning of the season. Both in the oil and meal industry and for those who consume oil, it is interesting to see what the rate will be and how much fish develops during the season in relation to the development of the oil prices. I have had a good year in Chile. We have a quota of 81,000 tons of our own catch. We have bought 50,000 tons of other actors that we fish with our own vehicle. I would say that fishing in Chile is quite intense until the fish hatches. Then the fish spreads. This normally happens in August-September, and then it is difficult to fish. It will come back in the steamer in November-December. This year, it went into storage earlier, which made our volume in the third quarter somewhat lower, and we have a slightly higher share in the fourth quarter. The price development, especially on frozen products, has been very good in the fourth quarter, but has also been declining in the third quarter. So the price achievement for the third quarter has been lower than the same quarter last year, and we delivered a worse result in the quarter, but overall this year, if we fish When the volume is back, I think we will have a year that I am very pleased with in Chile. Then we come to the North Atlantic. Here it has had a decline of about 500,000 tons from 2024 to 2025. The first quota recommendations from ISIS is dramatically lower for mackerel, about 70%. On coal mills, an important resource for our fishing mill oil activity is down by 40%. The Norwegian silage is down by 30%, and it is compensated by the fact that the NVG silage is up by about 33%. So all in all, it is predicted that there will be a decline of 2800,000 tons in North Atlanta for those fishermen and those actors who participate in in this business, and it goes without saying that the raw material base is more demanding in 2026 than in 2025. And then we bet that the situation with a drop in prices, especially in oil and flour, is likely to hit the opposite direction next year. When it comes to raw materials, I would say that it has had a good production in the quarter. It has mainly been produced on waste. The meal prices have been OK in the quarter, but as I said, the oil prices have been The fall has meant that the end-of-life prices have lowered costs in the quarter, and we have retained some volume again, the prices should move in the right direction. Also, a drop of 41% on coal mill oil is negative for the use of infobae with oil. When it comes to consumer activity, we also had a decline in the mackerel quotas, and there has been a slight decline in fishing volume, so we are a little lower compared to the same quarter last year. We have gone through, I would say, a good North Sea season, a good mackerel season, despite the fact that The import prices have almost doubled compared to the same quarter last year. The prices have been fantastic. And he has managed to sell most of this out in the end market with good margin. So it has done a good job under demanding conditions. Looking at the results in Pelagia, both the quarter and the first nine months are down. For the quarter, it is down in our food activity. It is down in the feed segment, but then it is up in the halve segment. So the descent is mainly based on feed and up in the halve. Then the first In nine months, the decline can be explained with a lower contribution from the feed division. This illustrates the vision we have had with falling prices. Then I come to Lerøy, and for those of you who do not follow us on the web, I would recommend that you go in and see Hanning and Kjur's presentation to get a more detailed overview of Lerøy's performance in the quarter. In short, we delivered a quarter that is significantly weaker than last year. Again, as I mentioned, it has been a more demanding biological situation, resulting in higher temperatures and a higher light pressure. The farming EBIT is at minus 300 million. It is also compensated by a fantastic result from VAP sales and distribution. It almost doubled in the quarter. Despite the small volume, I see that Haar Fisk and Lerin Ove Sifud delivered about 60 million berries in the same quarter last year. As Henning and Kjur have pointed out, 15% more was slaughtered in the quarter. This was a good start, as a result of measures that have been taken in previous years. It is of course disappointing that they do not get more juice out of the raw material than they sell in the quarter. Here they work hard to deliver better than what we are doing right now. 59,000 tons divided into 20,000 tons in the north, 21,500 tons in the middle and 17,500 tons in Lære Kjøtroll. The EBIT per kilo in the value chain is 1.7, so despite the fact that it is 8 kroner down, it delivers a quarter. It is divided by 9.5 kroner in the north, minus 3 kroner in the middle, and about 1.5 kroner in the lower Kjøttroll. He also maintains the guiding in the farming segment. 195,000 tons that we guide on in November. We also guide on about 195,000 tons for 2026. I am very pleased with the volume in relation to where we both guided on and the development he has had in the last three to four quarters. We had hoped that we would deliver something better than what we did in this quarter. Positive to Scottish. From about 17,000 tons our share to 22,500 tons in expectation for next year. And then there is our activity at Kvitfisk. And I would say that we who like to be called fishermen out in Østervold must say that we are impressed by what they deliver in both our head office in Ålesund at Kvitfisk, but also not least at the factories in Lærein over at Seafood. When it comes to fighting with falling crude access, an extreme increase in crude prices is an achievement that it delivers somewhat on the same level as it did the year before at Landseo. It is also nice to see that the decrease in the amount of sea fish is compensated by an increase in prices that makes it deliver better the first nine months than compared to what it did in the first nine months of last year. So I would say that this is a very good job. And again, the decrease in the quotas is compensated with prices on Thursday, which is about 20-20% better in the quarter. On houses it is 68% better in the quarter and on itself about 20-50%. And it's nice to see that this is a fish that has a higher potential than the one I showed earlier. So I'll give the floor to Ms.

Drivenes. Hello, Arne. I'm from Atlanta. What brings you here? Thank you, Arne. That was a bit of a hard over-delivery. Shall we start with this table? It summarizes what Arne has been doing throughout his career. So we can briefly summarize some of the low activity in South America. In North-Atlanta, the important infobio consumer product season has started in the third quarter, received North Sea ice and the mackerel season started in August. As you can see, there is a significantly higher volume of salmon compared to the same quarter last year. The main numbers have also been mentioned, so I will just briefly summarize a little. The turnover has increased. This also includes 50% of Pelagia's numbers. The increase in turnover comes mainly from Lerøy. There has been increased volume of slaughter in the seafood segment, and also very good activity and increased sales volume for wholesale and distribution. So the income is significantly lower, and Arne has been in on the explanations back then. But as I said, we see that Lerøy is significantly lower, and that is due to sea consumption with high sea temperatures, increased costs and significantly lower price achievements. When it comes to Peru, the first fishing season was quite demanding in the end. This has led to demanding fishing conditions and poor utilization of the factories. Combined with a lower price on fish meal oil, the income there is affected. In the same case in North Atlanta, there is a decrease in the special price on marine oil, which reduces the income in that part of the activity. The main numbers we have been doing, so I think we jumped down to revenue from the company. It is significantly down. Arnav was through Pelagia and the reason for the decline in income there. The other big company that is in here is Norskott or Scottish Seafarms, and they have of course also been affected by salmon prices in the quarter. And then there is a 40 percent decline in slaughter volume. The second line we can talk about is the fair value on biological units. It is not a very effective term, but it has quite large results. This time you see that it is positive with almost 950 million. Last year it was negative with 600 million. And that of course affects our total results. If we look at the results before the tax and the value adjustment linked to biomass, it is negative with 161 million from 2008. But as I said, including the biomass adjustment, we get a quarterly result of 529 million, up from 168 million. Lerøy, as we mentioned, recommends that you follow us on the web and check out the presentation Henning and Kjur have had. The main factors here are volume and the catch of whitefish. The volume of slaughter is 15% higher, 59,000 tons. There have been good biological performance in Lerøy in the previous four quarters. The third quarter has been somewhat more challenging. Spot prices, 8 kroner lower, and this has given a negative reception in the farming segment. Vap, sale and distribution, they have had their best quarter and have had a good capacity utilization and good sales volume. And past Kvit Fisk, where the catch volumes are in line with last year, and the prices have been identified, they greatly compensate past Flåteleddet, And then you do a good job on land and in a demanding situation with lower volumes and higher raw material prices. Summing up, it is down to 15 million, down from 412 million in the same quarter last year. Australia, seasonal low activity in this quarter. The first fishing season ended on July 23, and as I said, it was a demanding end to the season. Then you see the prices of fish meal down 6% compared to the same quarter last year, and fish oil down 56% compared to the same quarter last year. We have empty storage when we enter the fourth quarter. A turnover of 825 million, an EBITDA of 144 million and an EBIT of 85 million. But in summary, it has been a more demanding first fishing season than last year. Food corp and lower activity. The main season was ended in mid-August. What we can report here is that the company has a good volume for fishing again in the fourth quarter. Here we see that the prices in the quarter are down past all categories, both fish meal, oil and frozen, in comparison with the same quarter last year. A revenue of 368 million, an EBITDA of 35 million and an EBIT of 22 million. As I said, a drop in the price also means that the income is lower than in the same quarter last year. Kobbevik and Furholmen sell all their fish in spot. They slaughtered 1,100 tons of fish in the same quarter last year. They are of course affected by lower prices in the quarter. In the second quarter, there was still some volume left to be slaughtered from a generation with a very high cost. This also affects the third quarter. Here we have a negative EBIT per kilo at 10.80 kroner. An EBIT at minus 12 is slightly lower compared to the same quarter last year, at minus 16. Brønnbyrkeland is the main activity of the snow crab ships. They were done with their quotas in April, so the boats have not been put on board yet. Of course, there has been a bit of maintenance work in anticipation of restarting again in 2026. So a negative EBITDA of minus 12 compared to minus 9 in the same quarter last year. The balance at the bottom of 52 billion is a net income of 8.4 billion, and a net capital share of 53%. If we are to comment on some of these lines in the balance sheet, there is an increase in infrastructure, and there are investments in, among other things, new technology for marine use. But we have also had two new second-hand ships in Peru and Chile that arrived in the second quarter. Biomass adjustment affects the balance of the year significantly. It is much lower compared to last year, but especially from the new year this year. There has been a positive development in labor capital in the quarter. Here is more information on the cash flow. The cash flow from operations is 1.5 billion. As I said, this is a positive development in terms of working capital, both in Lerøy and in South America. Our investment cash flow is at minus 445, not much to comment on, and neither is our finance, which is at minus 878. But we have had a positive change in our cash flow of 231 million kvartals, and we are leaving the quarter with a cash flow of 4.7 billion kvartals. Johanne?

Then I end by giving a little insight into the market in the different segments we operate in. I start with the fish and meal market on the supplier side. I look at the largest actors who produce fish and meal. Up until week 42, there is an increase in supply of about 15% compared to 24%. It has been a good drive, especially at the fishing prices in Peru from September, when you see that there has been an increase in price and the prices were in the lead in the announcement of from the season at 1,895 dollars per ton for the Super Prime. And then you have a discount on the lowest quality, where you get about 1,550 dollars per ton. China is still the biggest driver behind consumption. But what we also see in the course of the previous season is that the Europeans have come in and bought flour, and I also see that Ecuador is doing large production with a volume almost as large as the Norwegian salmon volume, and has also begun to buy flour from Peru. If you look at the second largest market for fish in China, you can see that the stock levels are lower than they were 10 years ago, and are on average in the last five years. Prices are higher than what you can achieve in in Peru 10 years ago, which also stimulated increased trade. And then it has been worth noting that I think some of the basis for the Chinese being active has been that there has been a weak fishing and a weak production of oil in the local industry over the years. This has led to the prices going up. The market for fish oil is waiting to see the fashion of the time. They are waiting to see what the final quota in Peru will be, how much fish will develop, and what the exchange rate will be for fish oil in Europe. In Peru, when it gets a little safer from there, the fish oil prices will set. In short, 9% up in volume. Here, let's say, falls have been demanding for our business, both in South America and the North Atlantic this year. Then we come to the supply and export of salmon. A fantastic production in Norway in 2025. Good quality. It is joyful. And then of course it has led to It has been demanding to get the price achievement you would want. Henning has been talking about the excitement towards 2026, regarding what the price development will be, when he sees that it will not be easy to get a lot of fish, either from Norway next year, or a lot of growth from Norway next year, or globally. To illustrate the volumes out of Europe, he sees that in October he had a growth of 14%, and he expects that this growth has already been taken out for the year, and that it will go down in volume in November and December, compared to November and December last year. We have been talking about the prices, but it is clear that when you get the prices down to the 50s, it is demanding to be employed. The expectation is of course based on the supply curve for next year, that we will have a different development than what we are seeing now. A little about the market. 6% increase in the market that is located out past our dust doors here in Norway, in the EU. Other markets. Henning has been involved in a draw from Southeast Asia. And the US has also increased its volume by 10%, although there has not been much from us. To sum up, we are satisfied with the development up to this quarter. It has been more demanding in this quarter. and have worked hard to deliver better in 2026. We expect a lower cost in 2026 than we see in 2025. The quota situation has been demanding for Bikvitfisk. The quotas will still down. The rate didn't go down that much this year, so they recommended it. I'm not going to look away from the fact that next year is the last year. Not the last year, but that there is a turn. in relation to the rate development in the course of next year, that we will see rising rates in 2020. I see a lot of fish. Those fishermen who are both along the coast and those who are on our trolleys. South America. Again, I would like to say that we could have shared a little more fixed quotas with you, but I think that will come in the course of the day. What I can say is that, as always, most of what we produce in the fourth quarter is then sold in in the first and second quarter. So it is a small volume of what we produce now, so it will be sold in the quarter. And then there is an advantage for us, of course, if the quota is closer to 1.5 million tons than it is 500,000 tons. And we are a careful optimist in relation to our expectations that we will get there. And it goes into the year with higher special fishing prices than what we did in the corresponding period last year. When it comes to the speed marker quota in Chile, it tends to go up by about 5% and 15% by next year. And then, of course, it is adjusted as a basis, mostly due to the fact that It has made a shift from sea to coast. Previously with 90% of the quota, now with 70% of the quota in 2026. And then there will of course be an impact on the volume, but perhaps in a more limited degree if the quota was 15% versus 5%. In North Atlanta, there will be high competition to secure raw materials. When he starts a new season, he rewrites the book. And here it is to try to position the buyers in such a good way that they meet when they sell the products for next year. I want to underline that in the last five years, the team in Pelagia has met extremely well. And you can't expect to meet as well every year. But there is no doubt that a decrease in the quota means that the use of capacity in the pelagic industry, both in terms of flour and oil and in terms of consumption, will be challenging. When you look at the quotas that have been recommended, we will see what the final quotas will be when the countries are ready to negotiate. Those were just questions.

Hello, Ola Troaten, DNB Carnegie. It is a challenging quota situation for Pelagia in 2026. At the same time, it might have a compensating effect on the price. You say that you want to keep a volume this year and bring it next year. So the question is, do you think that what you know today will make Pelagia in 2026 higher or lower than you expected in 2025?

If I can answer Ole, I can say that this is a good question. I can reflect a little. If you compare 24 with 25, we get about could be 400-500 million worse than what we did in 2024. In any company, it can be explained by that it has a decline in the falling price of marine oil, both in and out of whitefish, salmon, pelagic and wild fish. And you can see that it has not hit the prices it has gone into. Then I hope a lot will come back. Now the prices are at a very low level. And... The raw material price is going down. It's negative. It's going the other way. So I think you have to wait and see. But you have a good question. And I hope we meet better next year than what we did this year.