Mowi Asa

I think that sets the mood. Good morning, everyone, and welcome to the presentation of Moe's first quarter results of 2026. Both to those of you physically present in the room here this morning at the Salmon, our combined exhibition center and fish restaurant at Aker Brygge in the heart of Oslo, and to those of you following the presentation online across the world. And to those of you physically present in the room, I hope you have all settled in well, had something to drink, grabbed a bite to eat, a bite of some of our delicious Moet salmon. And to those of you following the presentation online, I hope you have made yourself comfortable so you can follow along at your leisure. Otherwise, my name is Ivan Vindheim, and I'm the CEO of Moet. Together with our CFO, Christian Ellingsen, I will take you through the numbers and fundamentals this morning, and to the best of my and our ability, add a few appropriate comments to them. And after the presentation, our IRO, Kim Dresvik, will routinely host a Q&A session. For those of you who are following the presentation online, you can submit your questions or comments in advance, or as we go along, by email. Please refer to the website at movi.com for the necessary details. The disclaimer is both long and extensive. I think we leave it for self-study, as we usually do. So for the pleasantries, the practicalities, and the disclaimer out of the way, I think already for the highlights of the quarter. A quarter which was characterized by very high industry supply growth of 14% when adjusted for inventory drawdowns during the quarter. Validated by an exceptionally good growth in the sea last year. I also think it's fair to say that this year is off to a good start as well in terms of seawater growth. Although we haven't reached the high growth season yet. And an industry supply growth of 14% is, of course, much more than any market can handle in the short term, without it showing up in prices. And this also goes for the salmon market. So this took its toll on prices in the quarter, especially in the first part of the quarter, before we saw an upswing in prices towards the end of the quarter on Easter demand. And for Albert, that transferred into an operating profit of €221 million a year. which is our second best first quarter to date. And it's turnover of seasonally record high 1.54 billion euro. Thanks to first and foremost seasonally record high harvest volumes of 136,000 tons, which is up by a whopping 26% year over year, which is slightly higher than our original guidance. Otherwise, our realized standard farming cost was good in the quarter, i.e. our realized production cost for seven production countries, and I said it was good in the quarter at 5.46 euro per kilo, which is just slightly higher than the fourth quarter, notwithstanding lower harvest volumes and consequently less than usual fixed costs. In addition to issues with algae in southern Norway in the quarter, which cost us approximately 10 million euro, or 7 euro cent per kilo. 5.46 euro per kilo is also down from 5.89 euro per kilo in the first quarter last year, so down by 7.3% year over year, or 46 million euro in absolute terms, which is a significant amount also for MoE. And it can be added that our biological metrics are either better or on par with last year. which was also a good quarter for Mowi Farming. So I think it's fair to say that this year is off to a good start for our farming operation, despite our issues with algae in southern Norway in the quarter, which are now behind us. As for the second quarter, we expect our realized standard farming costs to be a stable quarter of a quarter before declining further in the second half of the year, partly aided by more harvest volumes and consequently more dilution of fixed costs. Carrying on, when it comes to two other divisions, the first quarter is low season for our feed business, all that entails. So numbers in the quarter and feed are a reflection of that. As for consumer products, our earnings in the quarter are substantially lower than the first quarter last year. but when adjusting for weaker contrast year over year, they're actually better. And then the last, sorry, then the second to last bullet point, Torgarten Aqua. We bought Torgarten Aqua's 4,500 tons sea-based salmon farming operation or business in Northern Norway in the quarter. That's very attractive terms, I would say. So this would be a nice little, bolt on to Norway region north, and perhaps one of the best places in the world for farming of Atlantic salmon. And then finally, as the last bullet point here reads, our board of directors has decided to distribute a quarterly dividend of 2.30 NOK per share after the first quarter. I think that does it for the highlights of the quarter. So then we can move on to our farming volume guidance. And to begin with, as you can see from the chart here, we maintain our guidance for this year of 605,000 tons, which is equivalent to a growth of as high as 8.3% year-over-year, mainly driven by the acquisition of NovaSea last year. And furthermore, we uphold our 2029 organic farming volume targets of at least 650,000 tons. In the latter, it will achieve through increased small stockings and by means of post-smolts among other things, because we still have unutilized livestock capacity in Mowi and several other countries where they operate. And the post-smolts, we can increase the productivity on livestock already in operation or to be set into operation. So, Mowi's farming volume growth, Continues unabated after the rubber stagnant 20 tons. And it's surpassing that of the wider industry, and our list appears by a large margin. Cementing our number one position in the market for the Atlantic Summit. Then from the overall volume picture, to key financial figures for the quarter. There are a lot of numbers on this slide. I think we will have to focus on the most important ones now and leave the rest for later and Christian's session. And then we also avoid to get ahead of the events. And total profits, we have just been through, so I think we can skip them here. So let's go straight to cash and net interest-bearing debt, which stood at 2.74 billion euro at the end of the quarter, which is in line with a long-term debt target of 2.2%. 7 billion euro, supported by a strong equity ratio at the end of the quarter of 46%. Furthermore, underlying earnings per share was 27 euro cent in the quarter, whilst annualized return on capital employed was 13.1%. And finally, in terms of our regional margins through the value chain, there was quite a widespread in the field this time around, And we will get back to all the details shortly when we go through the different business entities. The first, further on prices in the quarter. And as I said, the quarter was characterized by very high industry supply growth of 14% when adjusted for inventory drawdowns during the quarter, well aided by an exceptionally good growth in the C last year. I also think it's fair to say that this year is off to a good start as well in terms of seawater growth, although we haven't reached the high growth season yet. And 14% industry supply growth is, of course, much more than any market can handle in the short term without it impacting the prices. And the summer market is no exception to the rule. And this impacted prices this winter. and also so far this spring, along with tariffs and turmoil in the Middle East. But on a positive note, industry supply growth has now finally normalized after an unprecedented year, and will be hovering around 0% for the remainder of this year, and 1% next year, according to the research agency Ekontali. This should, under normal circumstances, pave the way for a tighter market balance going forward, than what we have seen lately. Unlimited supply growth is also something we expect to see in the coming years due to regulatory and associated technological constraints. But the latter must be understood in context with the former and not vice versa, which is an important distinction in this. So this will be interesting to follow and in more than one way, I would say. Then our own price performance in the quarter, which I would say was okay, as it was 4% above the reference price, which is the standard we like to hold ourselves to internally, and against which we measure ourselves, as you can hear. This time around, positively impacted by a concentration of 21% in the quarter, and a small positive contribution to our earnings from them, in addition to good quality of our fish, which is an important element in this. So I think we're ready to start to drill down into the different business entities. And we begin, as usual, with Mowi Norway, our largest and most important entity by far, and the locomotive of our business model. And if you take the numbers first, operation profit was €181 million for Mowi Norway in the quarter, whilst margin was €2.40 per kilo. and harvest volumes, a seasonally record high of 76,000 tons. In a sad and rather troublesome quarter, apologetically, for our most operations in Norway due to issues with algae, so-called pseudo-chattonella. But these are now over, which cost us approximately 10 million euro in the quarter, or 13 euro cents on our Norwegian volumes. Over and out, I would say our biological performance in Norway was strong in the quarter. And to this it can be added that our biological metrics were either better or unparvaled last year, which was also a good quarter for us in Norway. And you can also see from the chart there that our cost is down year over year, which is often a good signal of good biological performance. And especially in Norway, we continue to perform extremely well which translated into an impressive margin of 2.89 euro per kilo for MoE Norway region north, which is by far our largest and consequently our most important entity in MoE Norway. So hats off for that. But I will also say that our overall margin for MoE Norway in the quarter, 2.40 euro per kilo, is reasonably good, all things considered. Then the volume guidance for MoE Norway. We maintain our guidance for this year of 380,000 tons, which translates to a growth of as high as 14.5% year-over-year, mainly driven by, as I said, the acquisition of Nova Sea last year. But our short-term goal on the Norwegian assets is, of course, 400,000 tons, which we hope to reach soon, and which will be our next volume milestone in MoE in Norway. Then the last slide on Moe Norway, our sales contract portfolio. Contract share was 19% for Moe Norway in the quarter and was without a spot on our guidance. And these contracts made a small positive contribution to our earnings in the quarter. As for the second quarter, we expect our contract share to be relatively stable with relative stable contract prices quarter of a quarter. So that I think we can conclude MoE Norway, one of the six farming countries. And we begin, as usual, with MoE Scotland. MoE Scotland delivered another good quarter, biologically, I would say, partly aided by very favorable sea water temperatures in Scotland this winter and spring. And this manufactured itself in an operation profit of 31 million euro for Scottish operation in the quarter. representing a margin of 1.49 euro per kilo on our seasonally record high harvest volumes of almost 21,000 tons. Moe Kille also continued to deliver good biological quarters, especially considering that we had been through a summer in Kille in the first quarter, and this led to costs in Moe Kille in the quarter on par with Moe in Norway. But soft prices, as a result of an unprecedented high industry super-growth out of Chile in the quarter of 25%, ate unfortunately heavily into our earnings in the quarter and left us with a modest operation profit of €7 million and a modest margin of €0.34 per kilo on our seasonal record high harvest volumes in Movichile of 21,000 tons. Mobile Canada also wrestled the soft prices in the first quarter, and even more so as our cost level in Canada is higher than in Chile, although it was good by Canadian standards in the first quarter. And this resulted in a small loss of €1 million for our 8,000 tons of harvest volume in Canada in the quarter. On the positive side, the algae was once again good in Canada in the quarter, both in the west and in the east. And soft prices are also a running theme in Ireland in the quarter, which translated into a break-even result there on our 2,000 tons of harvest volume in an otherwise good quarter for our Irish operation biologically. In the fair of November, we made an operation profit of 3 million euro in the quarter on our 3,000 tons of harvest volume there, representing a margin of 93 euro cent per kilo. It is a lower margin than what we normally see in the ferals with current prices due to, first and foremost, a very front-end loaded harvest profile, as we did not harvest at all in March when prices were at their highest. Otherwise, ball yield was once again good in the ferals. Then far out into the Atlantic Ocean, to Iceland, an Atlantic farming operation, Arctic Fish. Arctic Fish turned a profit of €2 million in the quarter on our 6,000 tons of harvest volume, thanks to lower costs year-over-year, as you can see from the chart here. I think we can say that our work on costs in Iceland has started to bear fruit. But our price performance in the quarter was not satisfactory. mostly explained by harvesting out a site with low superior share. I also think it's fair to say that we are not satisfied with our price performance in general in Iceland. We see that we achieve a lower price for our Atlantic salmon than what we do for our other origins. So we have a job to do in Iceland. So that I think we can conclude more with farming and move on to consumer products, our downstream business. Consumers made an operation profit of 20 million euro in the quarter, which is, as I said, significantly down from the 33 million euro we made in the comparable quarter last year. But when adjusting for weaker contracts year over year, the first quarter this year is actually better. So I think it's fair to say that our underlying operation performance in our downstream business was good in the quarter. We also continue to see good demand for our products underpinned by seasonally record high soil volumes of 70,000 tons product weight, which is up by as much as 21% year over year. Proof of their hooding is in the eating, as they say. Then last one out this morning, more with feed. I said the first quarter is low season for feed business, all that entails. So our numbers in the quarter reflect that. And following on from this, operational EBITDA was stable year-over-year at 6 million euro on stable sold volumes of 109,000 tons. But now our expansion of the feed factory in Byung is finished, which will provide the basis for further organic growth also in this part of the value chain. So this year, we aim to produce and sell 650,000 tons of feed, which is up by as much as 11% year-over-year. I can also inform you that our recently commenced partnership with Spretting is progressing well. We targeted €55 million in annual savings. So with that, Christian, the floor is all yours. You can take us through the financial figures and the fundamentals. Thank you so much.

Thank you very much, Yvonne. And good morning, everyone. Hope you're all doing well. As usual, we start with the overview of profit and loss, which shows record first quarter revenue achieved on historically high seasonal volumes. Operational EBIT increased by 3% on higher volumes and lower cost, partly offset by lower prices on very high seasonal industry supply. Operational EBIT and financial EBIT were relatively similar this time around, and financial items were relatively stable from Q1 2025. Earnings translated into underlying earnings per share of 27 Eurocent, while cash flow per share was affected by working capital, tax and capex payments. We then move on to the balance sheet, which is slightly up since year end. Moe has a solid financial position with equity ratio of 46%. The cash flow contribution from EBITDA was partly offset by working capital buy-up, CapEx, and phasing of taxes. Other investments are mainly related to payment of the remaining shares in NovaSeat. and financial items were relatively stable. Net interest bearing debt per quarter end was 2.74 billion Euro, which is in line with the long-term lived target. And we maintain the 2026 cash flow guidance, which we presented in Q4. So we do not go further into the specifics on this slide. On financing, Moe has 100% green or sustainability-linked financing, but there are no new instruments or loans since Q4, so we leave this for self-study. But note that we have a Euro financing, and that is because our cash flow is predominantly in Euro. So for Moe, cash flow, financing, and reporting is based in Euro, which is our functional currency. And Euro interest rates have been consistently lower than Norwegian rates, as demonstrated in the graph. And the difference is currently 2.2 percentage points. This gives Mori a lower financing cost, and thereby lower rated average cost of capital. When it comes to operational costs, this was good in the quarter. with the blended farming cost across our seven farming countries of 5.46 euro per kilo. That's down 7.3% from 5.89 in Q1 2025. In nominal terms, the reduction was 46 million euro. And cost was also down versus the overall level in 2025. The reduction was driven by feed prices, but other cost items are also improved. Cost in the first half of this year is as usual impacted by lower volumes and negative scale effects, but we expect reduced costs in the second half of 2026. And as you know, we have worked systematically on costs for several years. I believe we have a very good track record in this area. Over time, this makes a difference And if you look at the cost reduction in Q1, 20% of this cost reduction is related to other items than feed. The EBIT per kilo overview for the last three years show that we have the number one position on EBIT in all regions. And cost is the main driver behind being the number one performer across these regions. In the current inflationary environment, we work along two lines. First, we have the operational improvements, and then we have the more generic work, including the cost reduction program and the productivity program. So this work continues unabated in Norway, and we have a strong focus on cost and cost leadership. Another way of measuring profitability is to look at EBIT per standard license in Norway. This captures both profitability and also license utilization. Norway performs strongly on both benchmarks, resulting in the number one position for Norway combined, and also in each of the regions. And region West and Mid is consolidated here due to the regional biomass. Profitability is, of course, extremely important, but perhaps even more important is what kind of return this profitability gives on the invested capital. And Moe's return on capital employed is consistently better than our peer group, around 5 percentage points better over time. The average five-year return on capital for Moe is 17.4%, versus peers at 12.7%. So more way, it's more capital efficient. If you go a bit further into cost, the single largest cost component is feed. And There has been a positive development for feed prices in 2023 to 2025 on better availability of raw materials and generally lower ingredient prices. The positive development in those years started with vegetable ingredients and then continued with marine ingredients. Also in 2025, we saw lower feed prices and due to the production cycle, this benefits P&L feed cost now in 2026. However, In 2026, prices for marine ingredients have increased related to lower supply, but Norway expects that our feed prices will be relatively stable in Q2, Q3 versus the first half due to purchases already made in addition to positive effects from the scrapping partnership. Price development further ahead is too early to say. The increase in fish oil prices in 26 is, amongst other things, affected by concerns related to the anchovy fishery in Peru. On the first fishery season, it's still too early to conclude how this will turn out, and the quota for the second season towards the end of the year will be based on the trial catch expected in Q3. We then move on to market fundamentals starting with supply. Industry supply increased by 14% year-on-year in Q1 adjusted for inventory movements. This was driven by a temporary high supply growth from Norway and Chile. On 14% increased consumption, demand increased by 7% year-on-year in Q1 adjusted down for tariffs. In Europe, consumption increased by 11%, driven by retail, supported by 4% lower retail prices. In the U.S., consumption increased by 5%. In this market, we saw continued good growth in the fresh pre-packed category in retail and e-commerce, but slower in food service. In Asia, consumption increased by as much as 42%, supported by improved availability, continued strong demand, Growth was particularly good in China, with 60% growth in the quarter versus Q1 last year, where retail, e-commerce, and hybrid channels continue to support this shift towards more home consumption in China. And of course, the very high supply growth that we saw took its toll on prices. but a tighter supply outlook would normally mean improved market conditions. And following no industry supply growth in 2022, 23, 24, the number climbed to 12% in 2025 on biological improvements and higher temperatures. And in Q1, we saw very high supply growth of 14%. And this figure is expected to be 0%. for the rest of 2026, and 1% in 2027, according to Contali. From 2028 onwards, we expect 1-2% supply growth for the industry, i.e. lower than the average 3% seen in the previous 10 years. When it comes to MAUI's own volume guidance, we maintain this at 605,000 tons for 2020, And Maui has a history of delivering on our volume guidance with positive deviation of 2% over the last five years, versus peers at negative deviation of 6%. So we have a good track record when it comes to our forecasting. That was the last slide of my part of the presentation, and I will now hand over to

Thank you, Christian. Much appreciated. And it's time to conclude some closing remarks before we wrap up the Q&A session hosted by our IRO, Kim Dostwyk. And to begin with, as I said earlier this morning, the first quarter was characterized by a very high industry supply growth of 14%, and adjusted inventory drawdowns during the quarter. Well aided by an exceptionally good growth in the sea last year, but I also think it's fair to say that this year is also a good start as well in terms of seawater growth, although we haven't reached the high growth season yet. And an industry supply growth of 14% is of course much more than any market can handle in the short term without it showing up in prices. And this also goes for the salmon market. So this has taken its toll on prices this winter and spring, along with tariffs and turmoil in the Middle East. But on a positive note, industry supply growth has now finally normalized after an unprecedented year. And we'll be hovering around 0% for the remainder of this year and 1% next year, according to the research agency Kuntali. And this should, under normal circumstances, pave the way for a tighter market balance going forward than what we have seen lately. Otherwise, for our part, things have been going well in the sea this winter and spring, except for the algae issues in Southern Norway, of course, which are now behind us. And to this it can be added that our biological metrics are either better or unparalleled last year, which was also a good year for us. So a good start to the year for Mowi farming in other words. Things are also going well on land, so we are staying the course and sticking to our plans. And following on from this, we maintained our farming volume growth or farming volume guidance for this year of 605,000 tons earlier this morning. which is equivalent to a growth of as high as 8.3% year-over-year, mainly driven by, as I said, the acquisition of Nova Sea last year. And good biological performance also helps with cost, so we have guided stable cost in the second quarter, quarter-over-quarter, before 2020. before declining further in the second half of the year, partly aided by more harvest volumes and consequently more dilution of fixed cost. I think that was pretty much everything we wanted to cover this morning. But before we move on to the Q&A session, I would like to take this opportunity to thank my 11,700 colleagues in 26 countries across the world for making this massive operation run as well as it does. It's truly impressive, and of course, much, much appreciated. So that's Kim and Christian. I think we're ready for the Q&A session. So if Christian can please join me on the stage and help me out with some of the questions, and then you, Kim, can administer the mic and orchestrate the questions from the audience and the web.

We'll start with the first question, this time around from the web, from Andreas Castanhas-Moller from Berenberg. He's got a question on dividends. If you can comment on the high dividend payout ratio, higher than previous quarters, please.

Yes, so the quarterly dividend is always a trade-off between many things, but to keep it short, I think we shall interpret it as Our board, having faith in the future prospects, we have gone from being a 400,000 ton farmer to now being a 600,000 ton farmer in just a few years. And there is more an increase than showed us that we are competitive on cost. And we also expect limited industry supply growth going forward. So that's the backdrop of that decision.

And then a follow-up question on volumes, if you can comment on the reasoning for the volume beat versus your own guidance for Q1.

Well, as you said, things are going well in the sea. We always like to be conservative in our way, so Clifton showed us our track record on delivering on volume guidance, and it doesn't happen by itself. It's also... illustrates our methodology. So it was a good first quarter. We had algae issues in the south, and algae heat, but beyond that, I think this is the best first quarter for Mowi, at least in my time.

Christian of the Arctic Securities. Jet fuel prices and diesel prices are much higher now. How does this impact the standard reference price in Oslo? due to higher prices of transportation?

It's still early days, really. So I think we just have to wait and see how this plays out. We have been in this so-called crisis for a few weeks. So I don't think we have more knowledge or insight in this than what you have. Nothing so far that has really changed our either plans or numbers, I have to say.

But you haven't seen substantially higher transport costs yet.

Of course, transport costs is up. But in the end, that's not the cost driver in this. So we see inflationary pressure. We see that inflation creeps upwards in general. But again, nothing that will impact our numbers and plans for this year at least so far. But this can change. And it's still early days. That's my point. So we are a little bit in limbo in terms of...

seeing how over this distance thank you martin it's perhaps a bit detailed but on the price chart that you show and the increasing feed price is that last data point q1 or q2 because you say that you expect stable feed prices in second half versus first half. So, did it continue to increase in Q2 from what you showed there, or is that Q2?

Yeah, the last data point is Q1, but the message from us is that we are covered when it comes to marine ingredients until including Q3. And then it's too early to say how the development will be from there. And we also have measures that we are working with. We have the the scrapping partnership and this ongoing fishery in Peru, it's too early to say how that will turn out and what kind of effects this will in the end give. But we are good until Q3.

Perhaps we can give a little bit more flavor on that. So to share something internal. So we acquired NovaSea last year and so far we have sourced NovaSea externally because of feed contracts, but also because we haven't had the capacity internally, right? And in the first quarter, our feed price in the region north, Mowi region north, old region north, was lower than in Oase. I think we have something going on here. We are on the right track. So I think when we look inside Mowi, things are going really, really well. And then we look outside, and things are not that great. And the combination of the net of this, I think we just, again, have to wait and see. We don't know more than what you do.

Thank you. And just a quick one on Torvatnakko. Is that yet to be included in our volume guidance? Or is it now included?

Well, it's still early days. So this we have to revert to later if it's merited. So we don't change our guidance in May. That's true. But the growth season is in the autumn. So, and you know, four and a half thousand tons on six hundred and five thousand tons. Not too arrogant, but it's not much. Yeah, thank you.

You're welcome. Okay, we have another question from the web. If you can comment on the supply outlook for the rest of the year. and why we should have confidence in the low growth provided the high growth in Q1 of this year and also the high growth last year, please.

Yeah, if you go back one year to April 25, then you saw 13% higher global biomass in C. If you look at the numbers this year, it's stable. If you look at the hardest-ready generations, they're actually down in Norway, in Chile, and globally. So we believe there's a big difference when looking at the biomass numbers. And we are driven by numbers. That's what we use to make our assumptions. And the data at least tells us that this volume growth will come a lot down ahead. So that's why we have given these numbers.

Good. So no more questions from the web? No more questions from the audience?

Okay. Then it only remains for me to thank everyone for the attention. We hope to see you all back in August, if not before. And in the meantime, take care and have a great day ahead. Thank you.