Austevoll Seafood Asa Ord

Dan, it's a pleasure for me to invite you to Östervold Seafood's 2Q presentation. I will first start by taking you through the highlights of our operations in the quarter. I will go more into the details segment by segment. Then I will give the floor to our CFO Britt Kathrine Drivenes and then I will end this session by giving our view on the different segments we are operating in terms of the market. So starting up, I would say it's been a special quarter for us. In terms of salmon, we have performed well in, I would say, two out of the three regions we are operating in. I would say all in all, we have had a good biological performance across all the three regions. Ingebrigt Gunnar Landa, Tore Reed Mohn, Andres Daroch, Ingebrigt Gunnar Landa, Tore Reed Mohn, In terms of whitefish, I would say another good quarter. In addition, I would say also that the performance is a bit better than the financial figures are showing because we are also entering into the third quarter with a higher inventory than we did the same period last year. So the underlying figures is a bit better in We have the pelagic segments where we also announced in the first quarter presentation that there was both a stop in The fishery in Chile and also in Peru as a consequence of higher temperature and too high percentage of juveniles in the catch. So in both regions the seasons were stopped. In summary, I can say that in Peru, the El Niño has caused that the fishery is still closed. In Chile, the water temperatures came down in the beginning of June and the fishing started up again in and June. And I will come back to the consequences later on when I'm going through segments by segments. And in Chile in particular, Turkwater has been a good volumes for us, also where we achieved very good prices both for fish meal, fish oil and frozen products. In the North Atlantic, we are also having benefits of the failure in Peru with much better prices for our fish meal and fish oil, which is also represented in the numbers. So all in all, volume-wise, we are approximately half of the volume in Peru. Pelagic volumes in second quarter compared with the same quarter last year. Saying that, both our Peruvian and our North Atlantic activity are performing better than we did financially compared with second quarter last year. And of course, we have in the quarter an effect of Revenue done by 14%, 8.6 billion NOK and EBITDA of 1.1 billion NOK. If you take into account the 50% we have in Pelagia, the EBITDA for the quarter is 1,258,000,000 AUK, down by 8% versus the same quarter last year, whereas the salmon operation is contributing with 1,066,000,000 AUK, and the pelagic activity is down by approximately 15% driven by 150 million NOC verse performance in Peru, which Which if we are going to first half year, you also see that volume is down by approximately 32%. Here you can see if you also take into account the 50% of the Pelagia figures, you see that the EBITDA is only down by 2%. Approximately 3.4 billion NOC, whereof salmon is contributing with 2.4 billion NOC and we have a 19% increase for the pelagic activity up with 991. And the main contributor for the increase is our performance in Chile first half year. And then we are having a strong balance sheet. We have an equity ratio of 52%, net interest paying debt of just sort of 8.8 billion NOK, and we have also paid approximately 6.5 NOK in dividends during the quarter. I would say Österval Seafood is all about volumes. So on an annual basis we are catching between four to five hundred thousand tons on our own vessels. We are producing in our own factories between 1.6 to 2 million tons. We are having between 80 to 90,000 tons of whitefish through our factories and through our fishing vessels and we are aiming this year to slaughter 225,000 tons of salmon and trout during 2026. So then taking you through the pelagic segment as a start and I will start up in Peru and just to give an explanation on the situation in particular which El Niño cause. So when we did the research in front of the first season They identified a biomass of 7.1 million tonnes and they put a quota of 1.9 million tonnes which were approximately 36-37% lower than the quota they put same period last year. And the season started up the 9th of April and it continued to the end of April before the season was stopped due to too high incidence of juveniles in the catches. And it's been stopped since and it's The total volume which has been caught in Peru is approximately 25% of the total quota. So from an already lower quota compared with the same period in 2025, we have an addition also have a very low fishery, which has been the driver where we have seen prices has been coming up. We had originally 133,000 tons of quota, and I've caught 26,000 tons in the period. And if you also compare with what we were purchasing in the same quarter last year, you can see that We have approximately 200,000 tons less catch than we had in the same quarter last year, which of course impacted our financial performance in the quarter. Another consequence is that when you have too high incidence of small fish is also that the yield is coming down. So the combined fish meal and fish oil yield was 24.8%, down from 26.2% in the same quarter last year. So all in all, we have seen prices has been increasing, I would say, during the quarter and also into the next quarter and as a consequence of The lack of fish in particular in Peru. But of course, we are not benefiting a lot of that when we have these low volumes in Peru. When it comes to the second season, we have chosen this time to leave out the guidance because I think as anybody guess, What the quota could be and if there is going to be a quota in the second season. We are expecting that there will be a period with lower temperatures, but also there is a high El Niño out in the Pacific. The magnitude and how it will hit the Peruvian coast will decide the size of the quota and also if there will be a fishing at all. As a consequence of that, we expect that the prices will remain strong also going forward. Chile has had a quite good development since the stock collapsed in 2010-2011. We are now back to a volume of 1.1 million tons. As announced in our first quarter presentation in May, fishing were also stopped in Chile due to too high incidence of juveniles. Andres Daroch, Ingebrigt Gunnar Landa, Tore Reed Mohn, Andres Daroch, Ingebrigt Gunnar Landa, Tore Reed Mohn, We are from Coastal Fishermen and we have seen that the yields, particularly the oil yields, have been very good. So although the volume is considerably down in the quarter, the financial results show a better result in the second quarter this year versus the same quarter last year. And Britt will take you more in detail through that. And in addition to that to talk a bit about the coming quarter which we are in now. Fishing recovered in late June and up to now we have been catching 91 000 tons and we have to see How the fishing develops going forward, but already know we are not that far away from where we were the first nine months. We don't know if the El Niño will affect the Chilean fisheries also going into the fourth quarter, but we are guiding on a volume of 135 000 tons in total. Meaning that we have to catch approximately 45 000 tons more for the remaining of the year and that's also Andres Daroch, Ingebrigt Gunnar Landa, Tore Reed Mohn, Andres Daroch, Ingebrigt Gunnar Landa, Tore Reed Mohn, The end result in Chile this year, which we think is going to have a nice year with the prices we are seeing now, both for fish meal, fish oil and also for frozen products, which Britt will take you through later on. Then talking about the North Atlantic pelagic quota development as you can see from before 2024 the average size of the North Atlantic quota was around 4 million tons but in 2025 the volumes in the North Atlantic came down with 800 000 tons and also the volumes got further down with 600 000 tons in 2026. In 2025 in addition to the drop in quotas and less raw material for Pelagia's factories we also had a drop in fish meal and fishery prices second half Ingebrigt Gunnar Landa, Arne Mogster, Andres Daroch, Andrew Dark, Britt Kathrine Drivenes So opposite development and what it was in 2025. And as a consequence of the El Niño, we are expecting Pelagia to deliver much better in particular the marine protein and oil segments in 2094 quarter versus the same period last year. We have been producing blue whiting and North Sea herring this season. It's a seasonable low production quarter, but you can see our EBITDA in the second quarter is approximately double of the same period last year, and it's mainly driven by a better performance from marine protein and oil due to higher prices. So all in all, summing up the pelagic segment, you see that the volume in this quarter was done with 51%. It's done, I would say, across the three segments. But I would say as a consequence of Peru's failure of fishing the quota, Both Chile and Pelagia is contributing with better margin as a consequence of higher prices. Then coming to second quarter, salmon highlights. And if you want to have a more detailed presentation, I suggest that you go in and look at the webcast of Lehre Seafood. All in all, EBIT of 574 million NOK, down from 680 million NOK. Farming, 236 million NOK. Don't 20 million versus same quarter last year, mainly related to lower slaughtering volumes. Wildcatch, 140 million more or less online with the same EBIT number last quarter. But we are also entering third quarter with the highest stock and inventory than we did last period. So the underlying performance is better. And then a low performance in the market operation. A bit more challenging conditions. Stronger knock, higher logistical cost in the period has taken down, I would say, the result from second quarter 25 to This quarter, but going forward, we are expecting to deliver more or less the same figures as we did in the second half 2025. Volumes 44,000 tons divided by 7,000 tons in Lerøya Rura, 20,000 tons in Lerøya Mitta, 19,000 tons in Lerøya Kjørtroll, EBIT per kilo, more or less on the same line as it was last year, one knock less. Lerøya Rura, another good quarter, One Nock Per Kilo, Lerre Mitt 13.5 Nock Per Kilo, and Lerre Kjørtroll 4.5 Nock Per Kilo. And it's mainly due to downgrades of the troughs in the period which I would say ended in June this year. Going on volumes, you see that we slaughtered 212,000 tons in 2025 and are aiming to increase with 217,000 tons in 2026, driven by the 50% share we have in Scottish seafoam. Then to the whitefish highlights, a very good performance in the quarter. Now we have had a drop in the cod quota for the last five years and it's also pleasant also to announce that it seems like we have reached the bottom and the recommendations for next year is 10% up again and also the recommendation for haddock is 18% up. and then it's a reduction in sight but this is also a quota we have so far maybe not an expectation that we're going to catch all that fish during next year so it's not that crucial. This is the year I would say that the raw material volumes has been on the lowest since we came in, but has been compensated with very high prices both for COD, HADOC and SEIT. We are expecting that we will have an EBIT in this segment between 400 to 450 million NOK this year, which is the best year so far. Then I will give the floor to Britt Kathrine to take you more into details the number.

I will start with the presentation of the financials. And to start, Arne has talked you through the operation in the quarter. So this table sums up the raw material intake in the quarter and first half year. And when we look into the estimate for 2026, given the high El Niño driven uncertainty, The 2026 total volume for Peru is set equal to the total catch as of today and for illustration purposes. This figure includes our 50% share of Pelagia. And Arne has taken you through the key figures in the start of the presentation. So I will try not to repeat too much. But in short, the revenue is down by 10% and the adjusted EBITDA is down by 8%. The reduction in earnings comes from Lehre Seafood Group and Austral Group and we have seen an increase in earnings in Food Corp and in Pelagia. We will look closer into this when we are going through the segments. Since the key figures have already been presented, I will start on the line profit before tax and fair value adjustment, which is down 22% from 493 million in second quarter last year to 385 million second quarter this year. The lower profit comes as a consequence of a lower slaughtered volume of salmon and also from the suspended first fishing season in Peru. As you can see, we also have some higher depreciation, 585 million up from 544 million. And we have had quite high capex in new technology within farming the latest years. And as a consequence of that, also the depreciation increased somehow. When we look at the result or the profit before tax, that is negative. It's minus 623 million. It was 14 million plus in second quarter last year. And this profit is substantially impacted by the very high fair value adjustment of biological assets in the quarter. You can see that the portfolio has a negative biological fair value adjustment of 889 million and fair value adjustment in the associate are 119 million which impact of course profit before tax. But also net profit for the year which is minus 254 million versus 106 million in second quarter last year. Looking at earnings per share, and we look at earnings per share before the fair value adjustment related to biological assets, that is NOC 1.6 in the quarter up from NOC 1.3 in the same quarter last year. The main value driver for Lehre Seafood Group is of course harvested volume of salmon, which was close to 44,800 tons in second quarter this year, down 4,000 tons from 48,900 tons in same quarter last year. Spot prices were in line with same period last year, but operational costs are materially down quarter on quarter from a very strong biology perspective. Price realisation, however, was impacted by a lower price for troth. That was NOK 5 lower per kilogram than for salmon in the quarter. And the harvested volume of troth was approximately 10,000 tonnes. For wild catch we had a 6% higher catch volume compared to the same quarter last year. We had higher realized prices for key species. So you can see that the result is more or less in line with the same quarter last year. However, we had a significant inventory build in the quarter. So catch values were substantially higher than what is recorded in the profit in the quarter. This inventory will be sold during the third and fourth quarter. Market operation revenue here also impacted by lower volumes of salmon and a strengthening of the NOC. We have a higher margin in the quarter compared to first quarter this year. It was 3.5% in second quarter and it was 2.4% in first quarter this year. So to sum up, a revenue of almost 7.9 billion, EBITDA adjusted of 1.1 billion and the EBITDA adjusted of 574 million down from 680 million in same quarter last year. In Austral we have had very low activity as Arne has already mentioned. The first fishing season was suspended and the total raw material intake for Austral was 34 000 tons down 200 000 tons from same quarter last year. Fish meal and fish oil prices are up but of course do not compensate for the shortage of raw material. So also sales volumes are down of course. Fish meal and fish oil sales volume of 12,000 tons down from 39,000 tons in same quarter last year. Revenue in the quarter of 291 million, a negative EBITDA of 61 million and a negative EBIT of minus 124 million versus 26 million in same quarter last year. Food Corp has had a very strong performance in the quarter. Also Food Corp were impacted by the ongoing El Niño and warmer sea temperatures. So the fishery started to slow down in March and that has continued in second quarter. The fishery started to pick up again towards the end of the quarter and has been good now in Q3. The raw material intake in total was 31,000 tons, down from 39,000 tons. And also you can see there is a substantially lower sales of finished products, only 9,000 tons of frozen products, down from 33,000 tons in same quarter last year. However, the tightening of the market for both fish meal, fish oil, but also frozen products has given us higher prices. So frozen prices are up 84%, fish meal prices up 54% and fish oil prices up 167% compared to same period last year. Revenue in the quarter was 406 million, EBITDA was 134 million and the EBIT was 119 million, up from 80 million in same quarter 2025. Kobbevik og Furuholmen Oppdrett, they have harvested 2,100 tons of salmon, that is up 7% compared to same quarter last year. Spot prices in line with same period last year, but costs are significantly lower year on year. So that gives an EBIT per kilo in the quarter of NOx 7.8, up from a negative EBIT per kilo of minus 4.3 in same quarter last year. In total revenue of 149 million, EBITDA adjusted of 29 million and EBIT adjusted of 16 million up from a negative EBIT of 8 million in same quarter 2025. The group has a very strong balance sheet and the equity ratio is 52%. The total assets are 50.3 billion. That is down 3% compared to end of second quarter last year. Some of the group companies have other functional currency than NOC, and of course, weakness or strengthening of the NOC will impact the conversion of the functional currency into NOC. By the end of June, the group had a net interest bearing debt of 8.8 billion. That's in line with the The end of 2025, but it's down from 9.1 billion by the end of June 2025. We have had a very strong cash performance from operating activities and that was 1.7 billion and that is supported by a significant release of working capital in the quarter both from farming but also from the pelagic activity. Cash from investing activity is minus 219 million, and that is lower compared to the same quarter last year, but this is more or less timing. We expect that our capex in 2026 will be in line or a little bit lower than 2025. Cash from financing activity is minus 2.2 billion and you can see that the dividend paid out is the largest amount there. It's over 2 billion and of this 1.3 billion was paid to the shareholders of Østervall Seafood Asa. And we ended the quarter with a cash position of 4.6 billion, which is up from 4.5 billion in same quarter last year. Thank you very much.

Then I will give you the view on the different market for the different segments we are operating within and start to give a reflection on the fish meal market and among the largest fish meal producers you can also see here that it's not Only in Peru, where production is much lower than it was compared with last year. You also see same development in Chile, Denmark and Norway and also the rest of the North Atlantic. So volume is down, I would say up to August among the biggest producer with 54% and that has been One of the reasons why we have seen increasing prices. Another prices we are announcing here is not updated because it's related to the latest trade which has been done in Peru, which was done in The beginning of the season before fishing were failing. So again, the supply remains tight. And that's the reason why we have seen fish meal prices increasing to all time high at the current present day. Also on fish meal consumption, we also look into China, which normally consumes 25% of the total volumes being produced. And I can see here that the stock in China is 54% down. The weekly offtake is, of course, less as a consequence of the stock situation. Prices is higher than what it was traded in Peru. We have also seen that as a consequence of the volume, the imports to China has also gone down, mainly driven by lower volume from Peru. If you look at the Chilean fishery production, it's not that much down compared with the fish meat production. And that's mainly due to quite good high oil yields, in particular in the fisheries in the salt. So the production there is only down by 3%. Peru is down by 68%. If you look at the total production of For the 500,000 tons and oil yield of less than 2%, the total production season has been approximately 8,000 tons, which is very low compared with a normal season in Peru. And that's the reason why you in particular see that the omega-3 grades is It's showing $12,250 per ton and I would say the feed grade is not representative because I think it's less volumes sold in that period and prices for feed is higher than what you see here in the picture. Then to talk about salmon supply. If you look from 24 to 25, the global supply of salmon had a growth of 12%, which were tremendously high. And at 2026, the supply is expected to be around 3%, and in 2027, 3%. If you look at the volumes from Norway, I would say that this growth is already taken out and we are expecting negative growth on the volumes in the continuous of 2026. And I would also say that market sentiments, particularly on the supply side, is favorable for stronger prices going into the end of the year, also compared with the same period last year. We see second quarter prices is more or less in line with 2025. That's a knock. And if you consider that the knock has been strengthening through euro, I would say the underlying prices in euro is 6% higher in the quarter than how it was in second quarter 2025. And then we have had a good increase in the EU market, which is important for the Norwegian salmon production. And we also see that China and Hong Kong is up 22% in the period, which is going to be an important market for the Norwegian salmon production going forward. So summing up, I would say we have had a good biological performance. We have had a summer with lower temperatures than normal. I would say bringing our biomass in a better state into the autumn which we are heading. We are a bit optimistic in terms of improving our performance this autumn compared with the last autumn in 2025. Cost per kilo is down from first quarter to second quarter and we are also expecting to continue this development with a bit lower cost. Also, when you take into account that fish feed seems to be more expensive, at least to the end of the year. Whitefish, good performance. I would say also it's very positive that the land-based industry are also showing improvements, which does the total pictures better. And you see the recommendation both for cod and hotdog for next year will probably continue a new path with A bit better development on the cold quota, which is important in particular for this segment. Then in Peru, we are expecting that 2026 is going to be a challenging year. And I would say the most exciting This year, if it's going to be a second season or not, I think it's going to be less than it would be in a normal year. But at very high prices. And both Chile and our activity in the North Atlantic is contributing by the fact that there is less volume and we are achieving fantastic prices both for fish meal, fish oil and also for frozen at the time. So all in all, it's fair to say that although that Peru is down, we expect a better quarter in third quarter than we did third quarter last year. And also I would say on the pelagic side that although the reduction of is down in Peru will be offset by the price achievements we have both in Chile and in Thank you and have a good day.