Austevoll Seafood Asa Ord

Okay, then it's a pleasure for me to welcome you to the fourth quarter presentation for Östervall Seafood. I will first start by taking you through the highlights of the quarter. Thereafter, I would go more in detail in the different segments. we are operating within, and also give some insights into the start of 2026. Britt-Katrine Drivenes, our CFO, will take you more in detail through the financial figures, and then I will end this presentation by taking you briefly through the different markets we are operating within. So starting up, we have had quite good activity in all the segments in our group in four quarter. In Peru in particular, we had the second season in Peru. Volume were lower, but It's compensated by very good yields and also higher prices for fish meal and fish oil into first quarter this year. We also caught approximately 40,000 tons in end of November and December in Chile. So we caught the remaining quota. We are satisfied with the performance there. In the food segment of Pelagia, we were in the tail of the mackerel season and also executed the herring season in four quarters. And also we have had quite satisfactory biological development in four quarters compared with the third quarter in 2025. So all in all, we are more in line in this quarter with the same quarter last year. Revenue of 9.4 billion NOx. EBITDA just sold off 1.4 billion NOx and an EBIT including income from Associated on 700 million NOx. and in this quarter the associated company contributed negative to the EBIT and Britt will take you more in detail through that. If we take into account the 50% of our share in Pelagia, we had EBITDA in this quarter in line with The EBITDA in the quarter of last year was around 1.5 billion NOK, whereas Lehre is marginally better and the Pelagic segment is marginally worse the same period last year. Looking for the full year figures, 39 billion NOX in revenue, EBITDA of 5.2 and an EBIT just sold of 3 billion NOX. Total balance, total asset is 53 billion NOX, equity ratio of 52 and net interest rate of 8.7. And if you look at the same exercise with 50% of the EBITDA of Pelagia, you see that we are delivering lower volume in 2025 versus 2024. And it's mainly explained by a lower contribution from the feed segments in Pelagia and also a lower contribution from Peru as a consequence of falling fish oil prices during the year. Also, when it comes to dividend board is also suggesting six and a half NOC, which is similar dividend per share as in 2024. Österval Seafood is all about volumes. This year we are aiming to catch on our own vessels a volume of approximately 450 000 tons. When it comes to the pelagic factories we are expecting a volume of 1,750,000 tons and we are aiming to both catch and process in our fleet a land-based whitefish segment approximately 80,000 tons of whitefish and we are guiding on approximately 224,000 tons in for salmon in 2026. Then I will take you through more in detail through our presentation. And when I had the presentation after the third quarter in November, the season were yet not announced. We were guiding on a volume on 1.2, 1.3 million tons at the end of, and it resulted in, when the season started up, a total quota of 1.6 million tons, which was caught by the end of January. Better, higher quota than expected, but lower quota than the same period last year, approximately 900,000 tons less. Looking at the result, we had a good execution of the fishing season, started on up late November and finished in the middle of August. The majority of the fishery was happening around our factory in Koisko, mainly due to it was higher oil yield in that plant. We caught 113,000 tons, stone from 170,000 tons, same season last year. But the combined fish oil yield was much better. And I would say all in all, the fish oil production were in line with the same fishing season in 2024, 2025. All other volumes were lower. So the combined fish meal and fish oil yield was 29%, up from 27.4%. And you can also see that the share of super prime and prime quality was 82% versus 75% same period last year. So all in all, a good execution of the season, and it's also pleasant to observe that prices going into first quarter 2026 is on a considerably higher level than it was in the same period in 2025. Also, we had a good production in the salt, 100,000 tons we were purchasing during the first half and second half of 2025. Contributions were a bit lower than average due to falling fish oil prices, which were taking our margins down. However, if you look at the same period this year, a better balance between raw material purchase and fish meal prices and hoping to have a better contribution in 2026. And so far this year, we have caught 51,000 tons, so it's a pretty good start of the season. So all in all, in the start of 2026, we are expecting a lower volume of sale, but that's more than compensated by higher prices and also a good start in particular of fish meal activity in the salt. chile we have a good four quarter in chile i would say when we started the fourth quarter we had 41 000 tons to catch the fishing started in end november and it has been a good catch period and also a good production so we have taken double of the volume we did in the same quarter in 2024. All in all, record year, 146,000 tons of Jack Mackerel and Mackerel into our factory. So it's the highest ever, and it's up from 133,000 tons in 2024. There is a change in legislation in Chile, meaning that it's a redistribution of quota from the industry to the coastal fishing vessels. Before we had 90%, now we will have 70%. And the new quota will have an increase between 5.7% to 50% in 2025. And this will be concluded in March. So all in all, we will reduce our own quota between down to 68 to 74 percent, depending on the final quota set in 2026 which is done from 81 000 tons and then we are planning to purchase approximately 58 000 tons from fishing vessels outside the 200 miles and that's has also been implemented a new tax on approximately 90 dollars per ton on that volume So I would say framework a bit changed, condition is a bit worse for us, saying that I think it's also compensated by higher prices on end product, at least as we observe it in the start of the season. when it comes to the north atlantic pelagic quota it's been quite stable from 2014 to 2024 and the two last year you have seen that quota have been reducing with approximately a total of 1.4 million ton which is It's a high reduction, mainly driven by a reduction in both mackerel and in blue whiting. And also the North Sea herring is down, and we have had an increase in the spawning herring in the north. But this is the basis for the raw material intake for Pelagia and all other equal is of course negative and the raw material is raw material is going down from year to another. But saying that in 2025 was also a reduction and in addition it was also we had falling fish oil prices meaning that the stock we started the year with was had pressure margins and also the start of the The season where we produced fish meal and fish oil was also hammered by falling fish oil prices, which reduced the margin in this segment. All in all, volume-wise, we are happy with the intake. But again, all in all, in 2025, this segment in Pelagia will contribute to negative EBIT And normally this has been the segment which has been the most profitable for Pelagio. when it comes to the food segments in pelagia and the season in four quarter has been marked by the tale of the mackerel season and also it's been a good season for the norwegian spawning herring so all in all raw material just sort of last year but i would say we are happy with the performance and they are delivering more or less in line with the same season in terms of result in four quarter 2024 if you take away the drop of volume in the same period. uh in the quarter uh revenue of 3.8 million ebt of 223 in line with the same ebt in four quarter 2024 and if you look at the full year figures you see that ebt another revenue is 13.4 billion NOC, EBITDA of 847 million NOC, and it's down from 1.3 billion NOC, and it can be explained by falling fish oil prices and lower contribution from the feed segment of Pelagia. And hopefully we will hit the prices better this year. Down to the salmon and whitefish, EBIT is in total 40 million, not less than it was the same period, same quarter last year. Farming EBIT of 564. You have Leri Haafisk, Leri Nova Seafood, which has had a very good year, considered falling quotas. However, in four quarter due to low volume and both for the fleet and also for the land based factory margins where we had a negative contribution. But I would say more or less in line with what we expected. And then it's pleasant also to see good contribution from WAP sales and distribution around 317 million NOK. And all in all, this segment has contributed to a total of 1,290,000,000 NOC in 2025, which is over the target we set in 2022. Slotter volume, 49,000 tons. It's 16,000 tons in Lerøy Rora, 16,000 tons in Lerøy Mitt, and 17,000 tons in Lerøy Kjøttroll. EBIT per kilo, 17.9. 21 NOC per kilo in the north, 20 NOC per kilo in the mid, and just below 14 NOC per kilo in Leroy-Shuttle. We remain volume guiding, approximately 195,000 tons in Norway. And if you include the volume from Scotland, it's 217,000 tons. And also to comment a bit on the result from Larry Håfisk, quota, as I said, significantly down in 2025. But it's compensated by prices, meaning that we are delivering more than 100 million better in this segment in 2025 versus 2024. Coat prices is up at approximately 30%. Haddock prices up at 48%. And state prices up at 22% versus the same period last year. And I give the floor to Brett Katrine.

Thank you, Arne. As normal, we start with this table and that sums up the activity in the quarter and also sums up what Arne have taken you through in details for each segment. And as you can see, we have had good activity within all segments in fourth quarter this year. We also have some estimation for 2026. I want to highlight that the quotas are not finally set yet. So this is an estimation and will be updated as we have more accurate information and the quotas are set during the year. Arne has taken you through the key figures in the beginning of the presentations. So this is just to give you an overview easily. And as mentioned, the EBT in the fourth quarter of 2025 was 1.5 billion, and that is in line with the same quarter in 2024. As we have already been through the key financial figures, I will start with the line income from associates. It's negative with 66 million compared to a positive 54 million in fourth quarter in 2024. The two largest associated companies are Pelagia and Norskott Havbruk. And Norskott Havbruk owns Scottish Sea Farms. Anna has already taken you through Pelagia in detail, so you are well aware of how they have been contributing in the fourth quarter. I will comment on Scottish Seafarm. They have had substantial biological challenges in the quarter. with the ice outbreak and some higher mortality but also slaughtered the salmon on lower weights which have again given a lower price on the products and also higher cost and are the main reason for the negative contribution from income from associates in the quarter. Looking into EBIT, including income and associates, that came in at 702 million, down from 899 million. And again, explained by the negative income from associates, but also some higher depreciations as a consequence of investments, especially in farming and shielding technology, but also to second-hand fishing vessels bought in 2025. for Chile and Peru. Profit before tax and fair value adjustments are down 5%, came in at 486 million, down from 510 million in fourth quarter 2024. And net profit in the quarter was 248 million, down from 1.8 billion in fourth quarter 2024. And again, The fourth quarter in 2024 was substantially impacted by a very high fair value adjustment related to biological assets, 725 million. This does not have a cash effect at all. It's only a technical IFRS adjustment. Looking at the Leere Sifu Group, I will take you through the main activity here. The slaughtered volume came in in accordance with guiding, but it was lower than the same quarter in 2024. It was 49,200 tonnes. down from 56,800 tons. There has been a positive price development, but late in the quarter, and the harvest profile for Lerje was impacted by the ISA outbreak in Lerje Rora and also had some of the majority, or not the majority, but 44% of the volume was harvested early in the quarter with the lowest prices. The contract share was 29%. We expected the cost to increase in fourth quarter compared to third quarter, but actually it was better. So it was down compared with third quarter in 2025. So this gave an EBIT in the value chain of 17.9 NOK. up from 15.3 NOC in the same quarter 2024. But due to lower slaughter volumes, the EBIT in the farming segment was a little bit lower than last year. It was 564 million down from 594 million. The wild catch segment, the quotas has been down in 2025, as we have been talking about during the year. And the fishing volume is a little bit lower compared with the quarter in 2024. But the prices have increased, so that has compensated the trawler fleet. However, lower raw material availability and high raw material prices are still very challenging for the onshore business. So EBIT for this segment is minus 29 million in the quarter, compared to 6 million in the same quarter in 2024. EBIT WAP, sales and distribution, they have surpassed their ambitious target, which was set in 2021-2022 of NOC 1.25 billion in 2025, the best year ever. The EBIT in the quarter was 317 million, up from 275 million in same quarter in 2024. And to sum up, the EBIT for Lera in total in the quarter was 758 million, down from 799 million in same quarter in 2024. Austral has had a very good activity in the quarter. The season started 7th of November and of the total quota of 114,000 tonnes, 93,000 was caught in the fourth quarter and the remaining part of the quota was caught in January 2026. In the same season in 2024, the total quota was 169,000 tons, and out of this, 122,000 tons was caught in fourth quarter in 2024. So total raw material intake, including purchase from third party in the quarter, was 146,000 tons, down from 191,000 tons. Price achievement, we have seen higher prices for fish meal, 6% up year on year, and for fish oil, 12% down year on year. And what we see is that going into 2026, we still see good prices for both fish meal and fish oil. So this gives us a very good start of the year. The revenue in the quarter was 185 million, the EBITDA was 51 million and the EBIT was minus 13 million. Also in Chile, we have had a very good activity in the fourth quarter. A total catch of 40,000 tonnes, up from 21,000 tonnes in the same quarter in 2024. Price achievement also up for the finished products for frozen fish and for fish meal, but down for fish oil compared to the same quarter in 2024. We see that the revenue is down, 262 million down from 395 million, and that is due to lower sales volume for fish meal and fish oil. But the earnings are up, the EBIT is 47 million up from 25, and that is because of a higher sales volume of frozen fish and also higher prices, which again gives a higher margin. Also in Chile, we see that the prices are continuing to be good into 2026. Kobbevik & Furuholmen slaughtered a volume of 2,300 tons in the quarter, up from 1,300 tons in the same quarter last year. The company sells all the fish in the spot market, but the majority here was sold in October and November at the part of the quarter with the lowest prices. Also, we have had some increased costs year on year. So the EBIT came in at 25 million. marginally down from 29 million, but the EBIT per kilo is NOC 10.7, down from 22.1. Brønnebyrkland, as mentioned in last quarterly report, there was decided a de-merger in November with the transfer of the shares in the fishing company Opili OAS. This demerger took place in December and after the demerger AUS only holds shares in Brønne Birkeland AS. The remaining activity in Brønne Birkeland is owning property And from 2026, because of the limited activity in the company, it will be reported not as a separate segment, but under the segment others. Since the demerger took place on the 30th of December, the full year and also in the fourth quarter, the result from Opelio is included. And the negative result is from Opelio in this quarter. Total assets by the end of 2025, a little bit over 53 billion, down from 55.6 billion by the end of 2024. We have a strong balance sheet. The equity ratio is 52%. I can comment some of the lines here. You see the tangible fixed assets are up, and that has increased from investment in farming, but also the two second-hand vessels we have bought for Peru and Chile. This fair value adjustment of biomass has had a sharp reduction from 3.1 billion to 1.2 close to 1.9 billion. The net interest bearing debt by the end of the year is 8.7 billion and that is up from 8 billion by the end of 2024. Looking at the cash flow for the quarter, cash from operating activities is 543 million. We build working capital and that is subject to the high operational activity that we have in Chile and Peru in the fourth quarter, but also high prices on whitefish and salmon and trout late in Q4. Cash from investing activity is minus 438 million down from minus 562 million. And cash from financing activities is positive with 304 million. And I would like to mention that Leroy issued an additional green bond of 500 million in October in 2025. We started the quarter with a cash position of 4.7 billion, and we ended the quarter with a cash position of 5.1 billion. Thank you.

Then I will end this presentation by giving our view on the different segments we are operating in when it comes to market, starting off with the supply of fish meal. And as you can see, among the largest producer of fish meal, the production was approximately four point six percent up versus same. Year 2024, Peru, as I mentioned, successfully captured 98% of the anchovy quota, yielding to approximately 380,000 tons of fish meal for second season. And prices you can see during the year has been increasing from $2150 per ton to $1850 per ton, comparing high quality with low quality fish meal. Feed producers are building stock mainly to the start of the aquaculture season and it's China once again who is the main importer of fish meal during 2025. And if you look at 2025, China has a record importation over 2 million tons, whereas approximately 1 million tons came from Peru. Although they have been quite active in the market, you can also see from the graph that the current stock is approximately 24% down from 2025. and also lower than the average, the five years average. Prices also approximately $200 above what's been the full prices from Peru, meaning here it's incentivized continuous trade going forward. Fish oil, the same, 6.4% up in terms of production, mainly due to, driven by volume up from Chile. Again, last season in Peru, gave approximately a similar volume, although the quota were lower in 2025 versus 2024 in the second season, approximately 75,000 tons. And the last announced fish oil prices for feed grade is $3,500 per ton for feed and omega-3 grade up to $4,350 per ton. Looking at the production of salmon, it was up 10% in 2025. And the expectation on a global level is 1.3% growth for 2026. And as you can see out of Norway, it's estimated a reduction of 1.4%. And what we can say is that the biomass is by the end of January approximately 1% lower than it was same period last year. But also the production and the slaughter exploitation from Norway has been every week approximately 4,000 ton higher for the first six weeks of the season. prices in uh in uh four quarter was uh approximately five uh knock higher than uh four quarter uh no from uh four quarter in 2024. And it's also a bit lower now in January as a consequence of the high volume which has been sold during the first week of the year. If you look at the market, still EU is by far the major market for Norwegian salmon and also from the salmon in the world. But if you look at the growth, you can see that other markets dominated by Asia is by far the one who has been growing most during 2025. And Lehre is positioning themselves with a new representative in the main consumer markets in Asia during 2024 and 2025 to meet this upcoming demand. So all in all, if you look at the biological improvements in 2025, they've been good. We are more or less where we are supposed to be in terms of volumes and according to our guidance. And all in all, we are happy with our performance. If you discard the third quarter where we were delivering weaker than we expected, but improving in the fourth quarter and also looking forward for a better biological performance into 2026. and we are remaining the guidance of 195 000 tons in Norway and including Scottish sea farms we are estimated to sort 260 000 tons in Lerøy if you consider 50% of our share in Scottish. Whitefish continuous down with the code quota of 16%, header quota is up 18% and side quota is down with respectively 19% in the north and 27% in the south. The start of the season shows promising the high prices uh we are uh i've seen uh by the end of the year in 2025 is continuing also for white fish and also for shrimp into 2026 so hopefully also we will have a good performance from from both the vessels and also from the plants in half escalating over seafood in 2026. WAP sales and distribution again profitability was met by the ambitious target we set in 2021 and hoping to continue also into 2026. South America, a good start of the season in terms of production in the south. We ended the second season in 2025 in the middle of January. And I would say if you consider the start in the south and also the end of the season in the center north, it's well compensated with higher prices versus the reduction in volumes we had due to lower quota. Chile also, a new legislation has changed the distribution between coastal and industry. We have a new tax on quota we are purchasing from Third party fishing vessels catching outside 200 miles. But all in all I would say that prices so far is compensating the increase of this prices. of this Texas North Atlantic as well. All other equal is, of course, negatively that we are estimating hundred seventy thousand tons less raw material for our factories. But hopefully we are better off in terms of margins and particularly in the feed segments in twenty twenty six. versus 2025. So we will compensate that a bit of the reduction in volume if you compare 26 with 25. So that was all. Have a pleasant day.